49% of Canadian families are not satisfied with the family-related tax incentives offered to them, yet 38% do not use a tax strategy to reduce the amount of taxes they pay



    UFile study reveals that, while Canadian families find the cost of
    raising a child to be high, many may not be taking advantage of existing
    child and family-related tax incentives

    MONTREAL, March 5 /CNW/ - Many Canadian families across the country feel
they could use a bigger break on family-related tax incentives offered to
them, but admit to not taking a strategic approach in researching and
maximizing existing write-offs. A full 68% of Canadian families surveyed
agreed that the cost of raising a child is too high. And while 49% are not
satisfied with the family-related tax incentives offered to them, 33% admit
they do not know how they will learn of, and correctly apply, family-related
tax incentives to their 2007 tax return.
    The survey, commissioned by Dr Tax, the Canadian-owned and operated
creators of the popular UFile and UFile.ca consumer tax preparation software,
suggests that more needs to be done to ensure Canadian families are
capitalizing on existing incentives to ease the cost of raising a family. Of
Canadian families surveyed, 38% do not use a tax strategy when preparing and
filing their taxes and 49% feel they are missing valuable family-related tax
write-offs after they file.
    The report is based on poll data collected by Harris Decima Research on
behalf of UFile. All interviews were conducted among a random representative
sample of families with at least one child 17 and under across Canada.
    "Canadians are clearly looking for some financial relief to help them
raise their families," says Joanne Birtch, Vice-President of Marketing and New
Business Development for Dr Tax. "But without a clear tax strategy, including
the use of personal tax software like UFile or a tax professional, they may be
overlooking family-related tax incentives and write-offs to help ease the
financial load."
    When asked how they will ensure they are aware of and correctly applying
family-related tax incentives to their 2007 tax return, 33% answered that they
do not know, 22% will use an accountant, while the remaining 45% of Canadian
families are split between a myriad of methods, including the use of computer
software (6%), researching online (6%), reading the tax form (5%) and checking
the government website (1%).
    Both UFile online and desktop products are making it easier for every
Canadian to maximize their tax returns by incorporating and alerting users to
all changes, incentives and write-offs for 2007. UFile also offers a unique,
step-by-step pension-splitting application for senior couples, and the ability
to import previous returns and files from other tax software for free.

    Where the Money Goes

    When asked to name the single biggest expense to raising their child or
children, 43% of Canadian families answered food and clothing, followed by 19%
for schooling and 18% for daycare, nanny or other childcare.
    Considering these results, it may come as little surprise that 54% of
Canadians stated that they would like to see an increase in the Monthly Child
Tax Benefit offered to them, followed by incentives or write-offs for
Registered Education Savings Plan (RESP) (52%); sports/recreational activities
(43%); and daycare (39%).
    The cost of raising a child, however, doesn't seem to deter Canadians
from having children, as 61% of Canadian families surveyed stated that cost
did not have an impact on the number of children they decided to have or plan
to have.

    About the Survey

    The report is based on poll data collected by Harris Decima Research on
behalf of UFile. All interviews were conducted among a random representative
sample of 309 families with at least one child 17 and under across Canada. The
data was collected from February 14th to 17th, 2008. The results can be
considered to be accurate to within +/- 5.6% 19 times out of 20.

    
    Regional data(*):

    1.  To what extent do you agree or disagree with the following statement:
        "The cost of raising a child/children is too high."

    88% of Albertans agree or strongly agree with this statement, followed by
B.C. (73%), Atlantic Region (75%), Ontario (71%), Manitoba/Saskatchewan (67%),
and Quebec a distant last with (44%).

                       ------------------------------------------------------
                                                        Man./
                        Total    Atl.    Que.    Ont.   Sask.    Alb.    B.C.
    -------------------------------------------------------------------------
    Strongly Agree       32%     34%     21%     40%     34%     34%     25%
    -------------------------------------------------------------------------
    Agree                35%     41%     23%     31%     33%     53%     48%
    -------------------------------------------------------------------------
    Disagree             24%     21%     38%     21%     23%     10%     23%
    -------------------------------------------------------------------------
    Strongly Disagree     7%      4%     17%      6%      7%      2%      2%
    -------------------------------------------------------------------------
    Don't know/refused    1%      -       1%      2%      3%      -       2%
    -------------------------------------------------------------------------

    2.  Do you use tax strategies to reduce the amount of tax you and your
        family pay, or to help boost your tax return?

    The Atlantic region led the nation, with 57% of families surveyed stating
"No," followed by Quebec (51%); B.C. (38%); Ontario (33%); Alberta (29%); and
Manitoba/Saskatchewan (19%).

                       ------------------------------------------------------
                                                        Man./
                        Total    Atl.    Que.    Ont.   Sask.    Alb.    B.C.
    -------------------------------------------------------------------------
    Yes                  55%     43%     39%     60%     81%     62%     59%
    -------------------------------------------------------------------------
    No                   38%     57%     51%     33%     19%     29%     38%
    -------------------------------------------------------------------------
    Don't Know            6%      -      10%      7%      -       9%      3%
    -------------------------------------------------------------------------

    3.  In your opinion, how likely is it that you have been missing out on
        any available family-related tax write-offs or exemptions?

    The Atlantic provinces felt they were missing out the most, with 69% of
respondents stating that they likely or very likely failed to catch a valuable
write-off, followed by Manitoba/Saskatchewan (53%) and Alberta (53%); Ontario
(52%); Quebec (44%); and B.C. (35%).

                       ------------------------------------------------------
                                                        Man./
                        Total    Atl.    Que.    Ont.   Sask.    Alb.    B.C.
    -------------------------------------------------------------------------
    Very Likely          19%     10%     19%     21%     29%     18%     16%
    -------------------------------------------------------------------------
    Likely               30%     59%     25%     31%     24%     35%     19%
    -------------------------------------------------------------------------
    Unlikely             24%     11%     23%     27%     26%     23%     25%
    -------------------------------------------------------------------------
    Very Unlikely        20%     20%     18%     16%     21%     20%     35%
    -------------------------------------------------------------------------
    Don't know/refused    7%      -      15%      5%      -       4%      5%
    -------------------------------------------------------------------------

    4.  To what extent do you agree or disagree with the following statement:
        "As a parent, I am satisfied with the tax incentives offered to my
        family"?

    With 63% of families in Ontario and the Atlantic provinces responding that
they disagree or strongly disagree with this statement, they are the least
satisfied with the tax incentives offered to them, followed by Alberta (49%);
Manitoba/Saskatchewan (40%); B.C. (36%) and Quebec (29%).

                       ------------------------------------------------------
                                                        Man./
                        Total    Atl.    Que.    Ont.   Sask.    Alb.    B.C.
    -------------------------------------------------------------------------
    Strongly Agree        7%      7%      8%      6%      7%      4%      9%
    -------------------------------------------------------------------------
    Agree                39%     30%     54%     25%     44%     43%     53%
    -------------------------------------------------------------------------
    Disagree             28%     29%     18%     35%     29%     29%     18%
    -------------------------------------------------------------------------
    Strongly Disagree    21%     34%     12%     28%     11%     19%     18%
    -------------------------------------------------------------------------
    Don't know/refused    5%      -       8%      5%      9%      4%      2%
    -------------------------------------------------------------------------

    5.  What is the single biggest expense when raising a child/children?

                       ------------------------------------------------------
                                                        Man./
                        Total    Atl.    Que.    Ont.   Sask.    Alb.    B.C.
    -------------------------------------------------------------------------
    Food/Clothing        43%     55%     49%     32%     52%     45%     55%
    -------------------------------------------------------------------------
    Schooling            19%      4%     19%     23%     14%     16%     19%
    -------------------------------------------------------------------------
    Daycare, Nanny or
     other Childcare     18%     18%      5%     26%     23%     17%     18%
    -------------------------------------------------------------------------
    Sports                5%      7%      3%      6%      7%      7%      -
    -------------------------------------------------------------------------
    Dental Care           1%      -       -       2%      3%      -       -
    -------------------------------------------------------------------------
    Taxes (general)       1%      4%      -       1%      -       -       3%
    -------------------------------------------------------------------------
    RESP Savings          1%      -       1%      1%      -       -       -
    -------------------------------------------------------------------------
    Other                 8%     13%     14%      5%      -      11%      -
    -------------------------------------------------------------------------
    Don't know/refused    4%      -       8%      3%      -       4%      5%
    -------------------------------------------------------------------------

    6.  For which of the following would you like to see an increase in tax
        incentives, refunds or government subsidies?

                       ------------------------------------------------------
                                                        Man./
                        Total    Atl.    Que.    Ont.   Sask.    Alb.    B.C.
    -------------------------------------------------------------------------
    Monthly Child Tax
     Benefit             54%     69%     34%     53%     68%     65%     62%
    -------------------------------------------------------------------------
    RESP                 52%     64%     40%     61%     26%     57%     43%
    -------------------------------------------------------------------------
    Sports/Recreational
     Activities          43%     56%     35%     44%     43%     48%     40%
    -------------------------------------------------------------------------
    Daycare              39%     57%     21%     41%     40%     57%     35%
    -------------------------------------------------------------------------
    Other                 2%      4%      2%      -       6%     5%       4%
    -------------------------------------------------------------------------
    Don't know/refused    5%      4%      7%      4%     11%     2%       4%
    -------------------------------------------------------------------------

    (*) In calculating a combined number from the chart, percentages were
        rounded to the nearest decimal.
    

    About Dr Tax:

    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 15 years. Dr Tax's UFile products include Ufile.ca (online tax
software), UFile for Windows and UFile Pro. UFile.ca powers the tax centre for
Canada's major Web portal, Sympatico.MSN.ca. UFile for Windows is available
exclusively at Future Shop, Best Buy and online at www.ufile.ca.





For further information:

For further information: Megan Hooper, Edelman, Tel: (416) 979-1120 ext.
297, Email: megan.hooper@edelman.com; Joanne Birtch, Dr Tax Software Inc.,
Tel: (905) 845-0908, Toll Free: 1-800-834-5322, Email: jbirtch@drtax.ca

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