Survey: 95 per cent of Canadians plan to file taxes on time but few will use refund to pay down debt

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?
Answer	Total	Age			Location
		18-29	30-49	50+	ATL	QC	ON	MB/SK	AB	BC
Early	64	67	64	62	77	62	61	52	66	69
Late	4	5	4	5	7	6	4	3	3	1
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?
Answer	Total	Age			Location
		18-29	30-49	50+	ATL	QC	ON	MB/SK	AB	BC
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
Neither	6	4	5	7	3	8	4	4	6	8
Both	2	2	2	2	-	2	2	1	-	5
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?
Answer	Total	Age			Location
		18-29	30-49	50+	ATL	QC	ON	MB/SK	AB	BC
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
Renovations/housework	10	11	10	9	13	11	8	15	9	8
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
Other	26	28	24	26	14	20	29	28	31	31
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

Kelly Olive       
MAVERICK PR
[phone] ext. 230 
[email protected] 

Joanne Birtch 
Dr Tax Software Inc.
[phone]
[email protected]