45% of Canadians Admit They Find Tax Return Preparation Stressful, 44% Continue to File at the Last Minute



    Report reveals tax stress may cause Canadians to overlook simple tax
    filing solutions or miss valuable write-offs

    MONTREAL, March 6 /CNW/ - Almost half of all Canadians find the idea of
preparing their own tax return stressful, according to a study commissioned by
UFile, the leading Canadian-based tax preparation software company, and this
could contribute to the continuing trend in Canada to delay tax filing to the
last minute and not optimize potential tax write-offs.
    According to the report, 45 per cent of Canadians polled admitted that
tackling tax return preparation themselves generated a moderate to high degree
of stress. Female respondents indicated more apprehension at the thought of
completing their own tax returns than men, with almost twice the number of
female respondents choosing the most extreme stress rating as men (11 per cent
vs. six per cent (6%), respectively).
    Canadians still seem to procrastinate doing their taxes for as long as
possible, with 44 per cent of respondents stating they'll file in April - the
last month of tax season. This represents a meager four per cent (4%)
improvement over last year, in which 48 per cent said they would choose April
as their tax-filing month of choice.
    "Clearly, Canadians still feel somewhat overwhelmed by the idea of doing
their own tax returns, which may also explain why they tend to wait to the
last minute to file their taxes," observed Joanne Birtch, vice president of
marketing and new business development at UFile. "Yet, while some Canadians
are racking up penalties and interest due to late filing, this procrastination
and stress can be minimized in relatively inexpensive ways, such as filing
online using an income tax return preparation software like UFile."
    Of those Canadians who actually plan on missing the tax deadline this
year, 23 per cent stated it was because they found it "less stressful" to
determine what they owe at a later date. Sixteen per cent (16%) of this group
indicated they simply don't pay attention to the tax deadline.
    Canadians are also continuing the trend of neglecting to note the first
day to complete their taxes; according to the study, 69 per cent of
respondents weren't aware of the first day they were eligible to file their
taxes - only one per cent (1%) more were aware this year than last year.
    The report also revealed 15 per cent of Canadians either don't file their
tax returns themselves or have never filed a tax return. Furthermore, 13 per
cent of Canadians polled reported they knew someone who still has not filed a
return for the previous tax year.
    Finally, 32 per cent of Canadians report that it is "likely" they are
unintentionally overlooking available tax write-offs or exemptions when they
file their return. This has actually increased by four per cent (4%) from last
year, demonstrating Canadians aren't taking measures to optimize their tax
return and receive money that is rightly due to them at tax time.
    "Most Canadians will likely receive refunds after filing their income tax
returns," added Birtch. "It's important they not fear tax season, but embrace
it, simplify the process and file on time."
    UFile's 2007 study was conducted by Decima Research January 11th through
the 15th, 2007. With a sample size of 1,017 completed surveys, the results can
be considered to be accurate within +/-3.1% 19 times out of 20.

    
    Additional Findings Based on UFile's 2007 Decima Survey:

    -   Regionally, residents of Ontario and Alberta had the highest degree
        of tax stress. Forty-nine per cent (49%) of residents from these two
        provinces reported that preparing their own tax return generated a
        moderate to high degree stress.
    -   Quebec residents, however, were the most relaxed about doing their
        own income taxes. Only 33 per cent - considerably lower than the rest
        of Canada - of Quebecers put themselves in the moderate to high
        stress categories.
    -   Twenty-two per cent (22%) of those who were aware of someone who
        still owes a tax return for the previous year had a household income
        of $100,000 or more. This was the largest group (in terms of income)
        who were aware of someone owing last year's tax return.
    -   Although Canadians are clearly not paying attention to the first day
        to file their taxes and prefer to wait till the last minute to file,
        97 per cent of respondents in the study have the best intentions,
        indicating they planned on meeting the tax deadline this year.
    -   Only six per cent (6%) of the 18-24 age group were aware of the first
        day they could file, making this the least knowledgeable age segment
        in this regard.
    -   Sixty-five per cent (65%) of respondents claimed they filed their
        first tax return when they were between 18 and 24 years of age.
    

    On a scale of 1 - 10, with '(1.)' being the lowest degree of stress and
'(10.)' being the highest degree of stress, how would you would rate your
stress level at the thought of preparing your own tax return?

    
                     --------------------------------------------------------
                                                      Man./
                      Total    Atl.    Que.    Ont.   Sask.    Alb.    B.C.
    -------------------------------------------------------------------------
    High to Moderate
     Stress
     (5 to 10)         45%     48%     33%     50%     46%     49%     46%
    -------------------------------------------------------------------------
    Low Stress
     (1 to 4)          48%     43%     62%     40%     45%     45%     47%
    -------------------------------------------------------------------------
    Don't
     Know/Refused       8%      9%      4%     10%      9%      6%      7%
    -------------------------------------------------------------------------

                     ------------------------
                         Male      Female
    -----------------------------------------
    High to Moderate
     Stress
     (5 to 10)           41%         48%
    -----------------------------------------
    Low Stress
     (1 to 4)            53%         43%
    -----------------------------------------
    Don't
     Know/Refused         6%          9%
    -----------------------------------------

    Tips to Simplify the Tax Filing Process:

    -   Prepare early: the earlier you prepare, the earlier you file and
        receive your refund - or determine what you owe to avoid late
        penalties and interest.
    -   Refer to last year's tax return as a guide in order to ensure you
        don't miss benefits and deductibles.
    -   Store slips and receipts throughout the year in a central place, such
        as an envelope, for easy reference at tax time.
    -   Remember to incorporate deductible expenses to decrease what you owe
        and ultimately maximize your refund.
    -   File online, on time, which typically delivers your refund as quickly
        as eight days.
    

    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 tax compliance products for 20
years. Dr Tax's UFile products include UFile.ca (online tax software) and
UFile for Windows(R). UFile.ca powers the tax centres for Canada's major Web
portals, Sympatico.MSN.ca and Yahoo! Canada.

    About UFile Products
    UFile is available on CD-ROM or as an online program. Both UFile for
Windows(R) and UFile.ca can prepare tax returns for all provinces and is
available in French as ImpôtExpert. Those who choose UFile can take advantage
of the program's unique QuikClik interview process and MaxBack refund
analyzer, which saves money by finding every possible deduction and transfer
to minimize your taxes and maximize your refund. This year's version also
includes updated and intuitive help functionalities, as well as online support
built directly into the product.

    Pricing and Availability
    UFile for Windows(R) is available exclusively at Future Shop and Best Buy
for $19.99 for the standard box version or $29.99 for UFile Plus. Pricing
online at www.ufile.ca starts at $15.95.
    The online version of the product is available for free to students and
Canadians making under $25,000 a year.





For further information:

For further information: Alana Coleman, Jason Kinnear, Mansfield
Communications, (416) 599-0024, alana@mcipr.com, jason@mcipr.com; Joanne
Birtch, Vice President, Marketing and New Business Development, UFile, (905)
845-0908; or 1-800-834-5322

Organization Profile

Dr Tax Software Inc

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UFILE

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