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April 18, 2021

Filing your tax return is the right thing to do

Did you know there's a rhyme and reason to why you file your income tax return?

It's because it's the right thing to do.

According to the Psychology of Taxes Study by BMO Nesbitt Burns, 52 per cent of Canadians say they file their taxes because they believe its their civic duty. 

John Waters, Vice President, Head of Tax & Estate Planning, Wealth Planning Group, BMO Nesbitt Burns, says, "The fact that more than half of Canadians think that preparing and paying their taxes is the right thing to do says a lot about us as a nation.

"Taxes fund critical government programs such as healthcare and education. The study findings suggest that Canadians are keen on doing their civic duty as citizens every tax season."

And no doubt, fear of the Tax Man also plays a role in their motivation with 11 per cent indicating they file an income tax return for fear of being audited if they don't.

The study also found that 94 per cent of Canadians file a tax return annually with 28 per cent expecting a refund, and 22 per cent admitting it gets too complicated if they didn't file one every year.

The study also discovered that of those who did not file a return regularly, 24 per cent said they were too busy; 20 per cent admitted they do not know how to file their taxes; and 17 per cent feel they do not make enough money to warrant filing taxes.

The deadline for filing your personal income tax is coming up on April 30, 2013. Filing your taxes on time can help avoid penalties and interest charges.

That's enough motivation for me to get the task done.

By Donna Donaldson, MSN Money

Do you file your income tax regularly and on time? Why or why not? What motivates you to do so?

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