MONTREAL, April 2, 2012 /CNW/ - A survey commissioned by Dr Tax Software, the makers of UFile ONLINE and UFile for Windows, has found that only 29 per cent of Canadians plan to use their personal tax refund to pay down debt. This change in commitment by Canadians is a 14 per cent decrease in comparison to the 2009 tax study.*
The national survey, which targeted Canadians 18 and older, also revealed that location affected respondents' plans in using their refund for debt repayment. At 35 per cent both Quebec and the Atlantic provinces, (New Brunswick, Prince Edward Island, and Nova Scotia - and Newfoundland and Labrador), saw a larger percentage of respondents planning to use their refund to pay down debt. British Colombia saw the lowest amount of respondents planning to pay down debt, with only 21 per cent of respondents choosing debt repayment as the plan for their tax refund.
"These survey results showcase an interesting analysis of how Canadians are prioritizing their overall financial strategy," said Malcolm Campbell, VP and General Manager of Dr Tax Software Inc. " These numbers illustrate that Canadians are recognizing the value of filing their tax return on time as 95 per cent of respondents indicated they plan to file by the deadline."
The survey also found that those under 50 are were much more likely to use their return to pay down debt (37 per cent of those aged 30-49, 36 per cent of those aged 18-29), compared to only 21 per cent of those 50 and older.
Additional interesting findings include:
When do Canadians plan to file their taxes?
- 95 per cent of Canadians plan to file their 2011 tax return by the deadline, April 30, 2012.
- This is a 58 per cent increase from 2009, when only 37 per cent of respondents said they planned to be more disciplined in their approach to filing their taxes, i.e. filing on time.
|THIS YEAR, WHEN DO YOU PLAN TO FILE YOUR TAXES?|
|Right on time, April 30th||31||27||32||31||15||30||34||44||28||28|
|Don't know N/A||1||1||-||2||1||2||-||2||2||2|
How do Canadians feel about their tax return?
- 48 per cent of Canadians consider their annual tax return to be a bonus, versus 34 per cent who consider it an expense.
|WHAT DOES YOUR ANNUAL TAX RETURN REPRESENT?|
|An annual bonus||48||56||60||35||65||41||50||51||52||41|
|An annual expense||34||31||25||43||22||41||33||29||29||38|
|Don't know / N/A||10||7||8||13||10||8||11||15||12||8|
How do Canadians plan to spend their refund?
Canadians are diverse in their decisions as to how to spend their 2012 tax refund.
- 11 per cent plan to use the money to invest in retirement
- 10 per cent plan to put the money to renovations or housework
- Five per cent plan to begin an emergency fund
- Four per cent plan to go on a vacation with their refund
|HOW DO YOU PLAN TO SPEND MOST OF YOUR TAX REFUND THIS YEAR?|
|Pay down debt||29||36||37||21||35||35||29||28||27||21|
|Invest in my retirement||11||6||13||11||8||10||12||10||9||13|
|Begin an emergency fund||5||11||4||4||6||8||4||2||6||7|
|Go on vacation||4||3||6||4||8||6||4||5||3||1|
|I don't anticipate a refund this year||12||4||4||21||15||8||13||7||14||17|
|Don't know N/A||2||1||1||3||1||3||2||6||1||1|
About the Survey
This report presents the findings of a Research House National Telephone Omnibus Survey, commissioned by Dr Tax, conducted among a national random sample of 1,000 adults comprising 500 males and 500 females 18 years of age and older, living in Canada. The margin of error for a sample of this size is +/- 3.10%, 19 times out of 20. The survey was conducted March 6 - 11, 2012.
For additional survey results please contact Kelly Olive at [email protected].
About Dr Tax Software
Dr Tax Software Inc. is part of the Thomson Reuters family of companies and is 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 more than 20 years. Dr Tax's UFile products include UFile ONLINE (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.
* Note to Editors: The 2009 report referenced is from poll data collected by Angus-Reid Strategies on behalf of Dr Tax Software on January 20, 2009.
Image with caption: "Percentage of Canadians who plan to use their 2012 tax refund to pay down debt (CNW Group/Dr Tax Software Inc.)". Image available at: http://photos.newswire.ca/images/download/20120402_C8459_PHOTO_EN_11702.jpg
For further information:
(416) 640-5525 ext. 230
Dr Tax Software Inc.