Most Canadians ignorant of tax deadlines

Canadians may be leaving dollars on the table by not considering key end-of-year-tax deadlines, finds a survey by BMO Nesbitt Burns.

Read: Tax tips for giving to charity

It found just 24 think about income tax return-related issues prior to the end of the year, while overall 50% think about these issues by the start of the new year and 35% start thinking about it by the period just before the April filing deadline.

“The end of December marks an important time for many who are looking to minimize the amount of taxes they pay on their income this year,” says John Waters, vice-president, head of tax and estate planning, BMO Nesbitt Burns.

He also noted that tax planning is a year-round activity and the end of the year is a great time to review and plan one’s overall financial situation.

Read: How to tax-loss harvest

The study also found 88% of Canadians feel that they’re familiar with income tax deadlines (compared to 93% last year). But, when asked about various specific tax deadlines, many could not identify the correct dates:

• 68% don’t know the deadline for charitable donations and tax credits or deductions
• 75% don’t know the RRSP contribution deadline for those turning 71
• 82% don’t know the payment of quarterly tax installments deadline
• 83% don’t know the TFSA withdrawal deadline
• 90% don’t know the tax-loss selling deadline

Ignorance of each deadline was up compared to last-year’s survey.

Read: 8 great year-end tax tips

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Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.