Wealthsimple Tax survey finds Canadians are trading more, but aren't sure what it means for their taxes

More than two-thirds of Canadian retail traders don't understand tax implications of trading stocks and crypto

Key findings from the survey include:

• 70 per cent of crypto traders anticipate needing to claim capital gains this tax season, compared to over a third (35 per cent) of retail stock traders.
• Less than a quarter surveyed have ever had to claim capital gains on a tax return in the past.
• For those that said they were worried about filing their taxes this year, approximately 1-in-5 retail stock traders (19 per cent), and 1 in 4 crypto traders (26 per cent) said it's because they don't know how to claim capital gains.
• Crypto trading was highest among GenZ and millennials (32 per cent of 18-40 year olds).

TORONTO, Feb. 24, 2022 /CNW/ - Wealthsimple, the company behind some of Canada's leading digital financial products, has uncovered a false sense of confidence among Canadian retail traders as they head into tax season. The company's do-it-yourself tax platform, Wealthsimple Tax, commissioned a cross-country survey to understand whether those who participated in stock and crypto trading in 2021 felt prepared to file their taxes this year.

The survey, hosted on the Angus Reid Forum, found that while most respondents felt confident about their taxes, nearly the same amount also shared they were unsure how to report trading activity on their tax return. 85 per cent of crypto traders said they had little to no knowledge of how to report capital gains on their tax return compared to 66 per cent of respondents who traded stocks.

"Crypto is a new asset class for many Canadians and our research shows that while there is significant interest in the space, there is still a critical need for education and support," said Evan Thomas, Head of Legal for Wealthsimple Crypto. "It's important Canadians understand not only the risks, but also the impacts of crypto and retail trading as part of their full, annual financial picture."

2021 was a significant year of growth for retail trading in Canada, sparked by the GameStop phenomenon and a rise in stock trading among young investors, as well as increasing interest in cryptocurrency. Well over half of retail traders surveyed said their trading activity increased last year. Of those who traded cryptocurrency, 67 per cent said 2021 was their first year.

"We're building tools and educational resources needed to help Canadians navigate tax questions and changes they encounter each year," said Nick Galasso, Head of Wealthsimple Tax. "For many this tax season, that includes investments made in stocks and cryptocurrency. Our aim is to provide a simplified experience for the millions of Canadians preparing their tax return this year."

Wealthsimple is the first company in Canada to offer both a registered platform for buying and trading cryptocurrency, as well as a free, do-it-yourself tax filing platform to help individuals file their tax return. As part of its offering, new this year Wealthsimple Tax will calculate capital gains and losses for cryptocurrency trades, for up to 500 transactions, across more than 300 supported exchanges.

As of February 21, 2022, tax filers can prepare and submit their return online through Wealthsimple Tax.

About Wealthsimple
Wealthsimple is a new kind of financial company. Canadians can invest, trade, save, spend, and even do taxes in a low-cost, transparent, and simpler way. Using smart technology to make powerful financial tools, Wealthsimple is on a mission to help everyone achieve financial freedom, no matter who they are or how much they have. The company was founded by a team of financial experts and technology entrepreneurs, and is headquartered in Toronto, Canada. To learn more, visit our website.

Connect with Wealthsimple: Website | LinkedIn | Twitter | Instagram

SOURCE Wealthsimple

Media Contact: Juanita Leon, Wealthsimple Communications Team, [email protected]