Re: [lp-ca-on] Canadian .tax file layout

[Sergio Durigan Junior]

On Sunday, May 01 2016, Greg Knittl wrote:

> Hi,

Hey Greg,

A bit of background before I reply to your message.  Since I arrived in
Canada and became involved with lp-ca-on I have been talking about
filing taxes using Free Software.  This, IMHO, is an urgent topic we
need to address, and an excellent opportunity for the group to make a
difference where it matters.

I have some experience in helping liberating tax software; in Brazil,
they have almost the same problem as here: the federal government
actually provides an official proprietary software that should be used
to prepare your income tax declaration, and another official proprietary
software that should be used to transmit this declaration over the
internet.  Two friends of mine, both from LibrePlanet São Paulo,
developed two libre versions of the mentioned programs.  It was a huge
step in the right direction even though the government did not provide
any help, not even by releasing the format of the declaration file.

Having said that...

> I have just completed my tax return for 2015. Once again I have hand
> written and printed forms and receipts, 32 this year, for submission
> on paper because I can find no NetFile certified free (as in libre)
> software available that runs on Linux and lets me retain control of my
> tax information on my computer.

I envy you.  I really wanted and planned to do my tax return on paper
this year, but I haven't really felt confident in getting everything
right (this was the first time I declared my taxes by myself), so I,
against many things that I believe and hold dear, used a web service to
help me with the work.  May the Free Software gods forgive me...

However, I made a promise to myself that I would at least *start*
something this year in order to change this scenario.  Your message was
really motivating in this aspect.

> When I used tax packages and net filed in the past, the netfile was a
> completely separate step. The tax program created the .tax file. Then
> you opened a browser and went to the CRA website and pointed it to the
> .tax file. The CRA may check for a certified vendor field in the .tax
> file but there is no other barrier than the layout of the .tax file as
> far as I can tell. Technically this should be a lot simpler than
> creating logic to handle all the tax forms and I think it's
> independent of the tax calculation - except that there are limitations
> on what types of returns are eligible for netfile. The main challenge
> appears to be political - to pry the .tax layout from the CRA and
> obtain any vendor identification code that might be required.

OK, a few thoughts here.

Stewart already mentioned, but it seems to me that the NETFILE is a XML
file.  If that is correct, then "obtaining the layout" can be as simple
as looking at the file itself.  No need to worry about binary data, etc.

I'd be interested in knowing if you still have access to those .tax
files you created in the past.  They may prove really useful in
understanding the format and coming up with our own hand-crafted
specification (that is, while the government doesn't provide an official
one).

Also, I have never used a software to prepare the declaration.  From
what you said above, now you don't really need to upload the .tax file
by hand, right?  So I assume the software will do that for you...  But
does the software offer an option to export the declaration in the .tax
format?  If yes, then that also may be a good starting point to
understand the specs.  Otherwise, it should be possible to intercept the
packages and see what is being sent over the network (but I'm getting
ahead of myself).

Last, but not least, I *seem* to remember seeing the NETFILE spec in
some official website.  I confess I was really surprised when I read
your message (and Stewart's reply), because I was sure that the
specification was *already* available...  I think it was Lukas (Berk)
who sent me the link ages ago in a private conversation; not sure if
he's still reading the list, but if he is and if he has the link, I'd
love to see it again :-).

> Suggested Actions
>
> 1/ This is absolutely a software freedom issue. It is specific to
> Canada. I fits right into the mandate of LibrePlanet Ontario. I'd like
> to see the Wiki list it as a project

Yeah, totally agree.  BTW, the wiki is open for everyone to edit, so you
can do that and list this project there!

> 2/ It should be part of Software Freedom Day

Sure.  And FSOSS as well.  I was always surprised when I didn't see
people talking about this issue here, TBH.

> 3/ A letter from LibrePlanet Ontario to the Minister of National
> Revenue to state the problem and ask for the layout of the .tax
> file. It's important to understand if the CRA has a legitimate reason
> for restricting access to the .tax file layout to certified tax
> software. I suspect it's security by obscurity and/or an industrial
> development scheme to support the Canadian tax software industry. The
> CRA is in trouble if they are depending on tax software to produce
> valid .tax files. I expect the CRA to be able to completely validate
> any garbage in a .tax file in the same way the CRA has to be to handle
> any garbage that comes in on paper. Another way of looking at it is
> that the layout of the .tax file is equivalent to the blank paper
> forms that the CRA provides. The CRA does not require me to obtain
> paper tax forms from certified 3rd parties. I want to deal directly
> with the CRA electronically just as I do on paper. Some freedom got
> lost in the transition to electronic filing.

That is a good idea, but I cannot be involved in this right now.  Maybe
I can contribute to the letter, but extra-officially.

> 4/ If there is no technical reason to restrict the .tax file layout to
> Netfile certified software then possibly a freedom of information
> request to get the layout of the .tax file. If it's a political issue
> then we need to take political action to lobby our MPs. As with the
> TPP there is strength in numbers.

I'd be very, very surprised if they have any real and valid technical
reason not to provide the specs.

> 5/ If there is a valid technical reason to restrict knowledge of the
> .tax file then this would be a useful free software project

It sure is already.

> Your thoughts?
>
> I'm over committed like everyone, but I think I could spare enough
> time to draft a letter to the Minister of National Revenue or some
> other small action to move the ball forward.

I'd like to start hacking on something.  I'm also busy with plenty of
other things, but it should be possible to get some prototype working by
the end of the year.  It's also a good opportunity to understand more
about the tax system, and to make sure that, at least on your end, you
can be sure that you're being respected by the software you're using.

Thanks,

-- 
Sergio
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