Canadians procrastinate on filing taxes due to concerns about owing money

An increasing number of Canadians are delaying filing their taxes this year due to concerns about owing money, according to a recent survey by H&R Block Canada. With less than a week left before the April 30 deadline, 23 percent of Canadians have yet to file their taxes, with a quarter expecting to miss the deadline and four percent not planning to file at all.

Yannick Lemay, a tax expert at H&R Block Canada, noted that the fear of owing money is a significant factor for procrastination, with nine percent of respondents citing this as the reason for delaying. However, the majority of those who have already filed have received a refund.

Lemay emphasized the importance of filing before the deadline to avoid late-filing penalties and fees. He also highlighted that many Canadians may be entitled to tax credits and benefits they are not aware of, which could result in a refund or year-round benefits.

A separate survey by the Canadian Imperial Bank of Commerce found that many Canadians are relying on anticipated tax returns to cope with rising living costs. The top ways they plan to use their refund include saving, paying down debt, and spending on essentials, with only 12 percent intending to invest the money.

Filing taxes late could result in higher penalties for those who have received demand letters from the Canada Revenue Agency in the past. The report also mentioned options available for those who owe money but cannot pay in full, such as negotiating a payment plan or paying in instalments.