With taxes due to be filed today, BMO Harris Private Banking released the results of a survey revealing that more than half of Canadians will do the responsible thing this year and use their refunds either to invest or pay bills and credit card balance.
According to the survey, 9% will use their refunds for travel and leisure purchases, while another 9% will put the money toward home renovations.
According to the Canada Revenue Agency, the average tax refund exceeded $1,400 for the 2008 tax year.
Sara Plant, BMO vice-president and national director of wealth services, said, “This tax season, it’s all about doing the responsible thing. These results really speak to the character of Canadians and the importance they place on financial responsibility.”
The study, conducted by Leger Marketing, also examined Canadians' views on the current tax system, including changes they would like to see in the future. They include:
- 84% want a more simplified tax system;
- more than 75% want more tax incentives for home ownership/renovations;
- 69% want more family-friendly tax incentives;
- 62% want to see a reduction in capital gains tax; and
- more than 50% want to move to a flatter tax model.