| Survey reveals that 43% of Canadians
plan to use their tax refunds to pay down debt, while
only 9% plan to invest it for retirement
March 4, 2009, TORONTO – At a time when
every dollar counts, Canadians are reassessing the
value of their tax returns as an immediate opportunity
to improve their personal financial. A recent study
commissioned by Dr Tax Software Inc., makers of UFile
personal tax software, found that 43% of Canadians
plan to use their tax refund to pay down debt. Investing
in retirement (9%) and house repairs/renovations (8%)
ranked a distant second and third.
Recessionary fears are also creating uncertainty
for many Canadians regarding their tax returns and
personal finances. Over half of Canadians feel the
recession will negatively impact (26%) their return,
or are unsure (25%).
Despite these concerns, over a quarter of Canadians
surveyed (28%) feel they do not have an adequate strategic
approach in place to deal with their personal finances
given the current economic situation, and a full 53%
of Canadians stated that they will not be more disciplined
in their approach to filing their returns this year.
Worse, 86% intend to use the same overall strategic
approach to filing their personal income tax as in
previous years.
“Canadians clearly want to reduce their debt-load
and view their tax refunds as an important opportunity
to do this, but many lack an effective strategy to
help to maximize their refunds,” says Malcolm
Campbell, Vice-President and General Manager of Dr
Tax. “Personal tax software like UFile can play
an important role in Canadians’ tax strategies
by helping individuals identify available tax credits,
deductions and transfers.”
Tax refunds play a key role in Canadians’ personal
finances, regardless of age. According to the study,
younger age groups are most likely to use tax refunds
for paying down debt, with 55% of 18 to 34 year olds
and 50% of 35 to 54 year olds naming debt repayment
as their top priority for their tax refund. While
paying down debt is also the number one choice for
respondents aged 55 plus (22%), this age group also
prioritized saving for retirement (15%) and home renovations
(10%).
When asked for her thoughts on the survey results,
Evelyn Jacks, bestselling Canadian tax author and
president of The Knowledge Bureau, a leading Canadian
educational institute in financial services, agrees
that paying down debt is a smart approach for Canadians.
“Canadians who are facing a credit crunch
are wise to look to their tax refund for relief,”
Jacks said. “In fact, most people leave money
on the table by overpaying their taxes year over year.
A strategic approach to maximizing tax advantages
can really help Canadians at tax filing time and all
year long.”
UFile 2008 offers users the opportunity to better
understand tax advantage available to Canadians with
an exclusive feature, MaxBack, which automatically
analyzes each individual return for the greatest possible
refund. UFile also offers a unique pension-splitting
calculation for senior couples, and the ability to
import from other tax software at no charge.
Regional data*:
1. Do you agree or disagree with this statement?
Given today’s economic situation, I believe
that I have an adequate strategy in place to deal
with my personal finances.
2. Will you change your overall strategic approach
to filing your personal income tax this year compared
to previous years?
3. Do you agree or disagree with this statement?
I feel the recession will have a negative impact on
my tax refund this year.
4. Do you agree or disagree with this statement?
Compared to previous years, I will be more disciplined
in my approach to filing my taxes this year.
5. How do you primarily plan to spend your tax
refund?
6. Do you plan to open a Tax-Free Savings Account
(TFSA) in 2009?
*In calculating a combined number from the chart,
percentages were rounded to the nearest decimal.
About the Survey
The report is based on poll data collected by Angus-Reid
Strategies on behalf of Dr Tax Software Inc. All interviews
were conducted among a random nationally representative
sample of 1,000 Canadians, aged 18 and over. The data
was collected on January 20, 2009. The results can
be considered to be accurate to within +/- 3.1%, 19
times out of 20.
To receive a complete copy of results, please contact
Megan Hooper at megan.hooper@edelman.com.
About Dr Tax Software
Dr Tax Software Inc. is a privately-owned, Canadian
company located in Montreal, Quebec. It is a leading
provider of tax preparation products and has served
the professional tax community with personal and corporate
tax products for over 20 years. Dr Tax's UFile products
include Ufile.ca (online tax software), UFile for
Windows and UFile Pro. UFile for Windows is available
exclusively at Future Shop, Best Buy and online at
www.ufile.ca.
About the Knowledge Bureau
The Knowledge Bureau is an independent, national certified
post-secondary educational institute, which provides
continuing professional development to practicing
professionals in tax and financial services leading
to certification and designation. It is also the publisher
of the Master Your Personal Finances series of books
for consumers. For more information, please visit
www.knowledgebureau.com.
For more information please contact:
Joanne Birtch
Dr Tax Software Inc.
Tel: (905) 845-0908
Toll Free: 1-800-834-5322
Email: jbirtch@drtax.ca
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