Canada’s April 30 tax-filing deadline is fast approaching, but many are planning to delay filing due to confusion over recent tax changes, according to a recent survey by H&R Block Inc.
The survey said 29 per cent of Canadians are feeling confused about what they are supposed to claim and 28 per cent are planning to delay filing as a result.
“It’s clear that many Canadians are confused by the recent announcements on tax-related issues from the government and the
, including around
, cancelling the
and extending tax filing deadlines for certain qualifying Canadians due to delays on certain income-related forms,” Yannick Lemay, a tax expert at H&R Block Canada, said in a press release.
And 22 per cent even expect the filing deadline to be extended due to the pending
on April 28.
“It’s important to emphasize that Canadians are still obligated to file before the April 30 deadline to avoid any potential penalties even if you don’t owe any taxes to CRA,” Lemay said. “While the federal election may lead to tax-related changes going forward, it’s important to reassure Canadians that this will not impact your tax filing for this year.”
Still, seven per cent of Canadians said they feel inclined to wait for the results of the election in case of further changes. Another seven per cent anticipate missing the deadline while they try to ensure they understand any relevant changes. And 15 per cent of those who have already filed are worried they might have filed incorrectly based on the changes already announced.
Overall, 40 per cent said they were unaware of any mid-season changes related to income tax filing, but 37 per cent said they already don’t feel confident in knowing how to maximize their tax refund.
A separate study by Remolino and Associates Inc., a licensed insolvency trustee firm, and Angus Reid said 65 per cent of Canadians are worried about how tax policies will impact their finances.
Part of their worry could be because a quarter of them are planning to use their tax refund to pay off debts this year.
However, 36 per cent said they are unaware or unsure of tax credits or deductions that apply to their employment and 20 per cent feel they have missed out on them.
“At a time when every dollar counts, our data shows that many Canadians are not only struggling with debt, but also unsure of where to turn to for help,” Francisco Remolino, principal of Remolino and Associates, said in a release. “The lack of awareness about debt-relief options combined with rising
and economic uncertainty makes tax season even more stressful for individuals, families and business owners.”
The study, which interviewed 1,504 Canadians in March, also said 39 per cent of Canadians feel the next federal government should prioritize lowering income tax, 23 per cent said it should increase tax credits for families and individuals, and 18 per cent want the GST/HST reduced.
• Email: novid@postmedia.com
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