Click here to close now.


News Feed Item

What Are You Planning to Do With Your Tax Refund?

Scotiabank Tax Expert Offers Tips to Make Tax Savings a Year-Round Priority

TORONTO, ON--(Marketwired - May 05, 2014) - Among Canadians who expect to get a tax refund, more than one-third (37%) plan to deposit or reinvest it, followed by one-fifth (18%) who say they will use it to pay off debt, according to Scotiabank's annual Income Tax Refund Poll. Meanwhile, 22% of Canadians don't expect to get an income tax refund at all.

The poll also shows that British Columbians are the most likely to reinvest their tax refund (9%) compared to those in Alberta (1%). Residents in Quebec are significantly more likely to use their refund to pay off debt (25%) compared to residents of B.C. (9%).

Additional findings:

  • Canadians are once again opting to deposit/reinvest their tax refund this year (37% in 2014 vs. 33% in 2013).
  • Fewer Canadians said they do not expect to get a tax refund this year (22% in 2014 vs. 26% in 2013).
  • When it comes to men and women, men (21%) are more likely than women (15%) to pay off debts with their refund, while women (17%) are more likely than men (11%) to pay bills.
  • Fifteen percent of those aged 18-24 are using their tax refund to pay for school/tuition.
  • Those aged 65+ are most likely to put their tax return in the bank (43%) and are least likely to say they are using it to pay off debts (6%).

"Many Canadians rush to file their taxes on time each year and don't think about it until the next year," says Kevin Tran, Director of Tax Advisory at Scotiabank. "Now that you've filed your taxes, it's the perfect time to plan for the next tax year and a great place to start is looking at your Notice of Assessment which summarizes the important information for the year ahead. In addition, meeting with a financial advisor to build a complete financial plan can give you a sense of not only your future cash flow, but also your after-tax cash flow."

Tran offers the following planning strategies Canadians can explore in an effort to reduce taxes for next year and beyond:

  • Take a look at your Notice of Assessment. Your Notice of Assessment summarizes the information from your most recent tax filing and includes a number of important pieces of information for the year ahead such as your Tax Free Savings Account contribution room, quarterly income tax instalment reminders, your RRSP deduction limit, refund interest and any losses being carried forward.
  • Maximize RRSP contributions. Your RRSP remains one of your most powerful tax breaks. Not only do you receive a deduction for the contribution you make, the earnings in your plan compound tax-free. To get the most out of your RRSP, consider "paying yourself first" by setting up a regular investment plan, which will help you maximize your refund for next year.
  • Review tax loss opportunities. If the capital losses in your investment portfolio this taxation year exceed your gains, the net capital loss can be deducted against any capital gains. You are also permitted to carry back net capital losses to the preceding three taxation years and carry them forward indefinitely, which provides you with some tax planning opportunities.
  • Open a Tax-Free Savings Account (TFSA). A TFSA provides another opportunity to save money and have it grow tax-sheltered like an RRSP with the flexibility of a savings account. A TFSA can be opened at age 18 and you can save $5,500 each year.

About the Poll
Data was collected by phone using Nielsen's (formerly Harris/Decima) national telephone omnibus (tVox). A total of 1,021 surveys were collected from March 27-March 29, 2014 with a margin of error of +/-3.1 percentage points 19 times out of 20.

About Scotiabank
Scotiabank is a leading financial services provider in over 55 countries and Canada's most international bank. Through our team of more than 83,000 employees, Scotiabank and its affiliates offer a broad range of products and services, including personal and commercial banking, wealth management, corporate and investment banking to over 21 million customers. With assets of $783 billion (as at January 31, 2014), Scotiabank trades on the Toronto (TSX: BNS) and New York Exchanges (NYSE: BNS). Scotiabank distributes the Bank's media releases using Marketwired. For more information please visit


2014 Plans for Income Tax Refund - By Province and Gender
(Among Canadians who expect to get a tax refund)

                 (2014 Atlantic                Man/                         
                  vs.   Canada  Quebec Ontario Sask Alberta B.C. Male Female
Deposit/          37%                                                       
 Reinvest - NET   vs.    26%     32%     38%   43%    41%   41%             
                  33%                                            39%   35%  
  Put it in the   27%                                                       
           bank   vs.    22%     19%     28%   31%    38%   26%  29%   25%  
    Reinvest it 6% vs.                                                      
                  4%      4%      8%     7%     5%    1%     9%   6%    7%  
  Contribute to 4% vs.                                                      
     RRSPs/RSPs   4%      --      5%     3%     6%    2%     6%   4%    3%  
Pay off some      18%                                                       
 debts            vs.    17%     25%     18%   17%    23%    9%             
                  20%                                            21%   15%  
Pay bills       14% vs                                                      
                  11%    23%      7%     16%   14%    17%   10%  11%   17%  
Go shopping/buy 6% vs.                                                      
 some things      5%      5%      4%     8%     3%    2%     7%   6%    6%  
Go on a         5% vs.                                                      
 vacation         7%      3%      7%     5%     4%    2%     5%   4%    6%  

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data...
Internet of @ThingsExpo, taking place June 7-9, 2016 at Javits Center, New York City and Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 18th International @CloudExpo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo New York Call for Papers is now open.
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York and Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty ...
Just over a week ago I received a long and loud sustained applause for a presentation I delivered at this year’s Cloud Expo in Santa Clara. I was extremely pleased with the turnout and had some very good conversations with many of the attendees. Over the next few days I had many more meaningful conversations and was not only happy with the results but also learned a few new things. Here is everything I learned in those three days distilled into three short points.
As organizations realize the scope of the Internet of Things, gaining key insights from Big Data, through the use of advanced analytics, becomes crucial. However, IoT also creates the need for petabyte scale storage of data from millions of devices. A new type of Storage is required which seamlessly integrates robust data analytics with massive scale. These storage systems will act as “smart systems” provide in-place analytics that speed discovery and enable businesses to quickly derive meaningf...
DevOps is about increasing efficiency, but nothing is more inefficient than building the same application twice. However, this is a routine occurrence with enterprise applications that need both a rich desktop web interface and strong mobile support. With recent technological advances from Isomorphic Software and others, rich desktop and tuned mobile experiences can now be created with a single codebase – without compromising functionality, performance or usability. In his session at DevOps Su...
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
The buzz continues for cloud, data analytics and the Internet of Things (IoT) and their collective impact across all industries. But a new conversation is emerging - how do companies use industry disruption and technology enablers to lead in markets undergoing change, uncertainty and ambiguity? Organizations of all sizes need to evolve and transform, often under massive pressure, as industry lines blur and merge and traditional business models are assaulted and turned upside down. In this new da...
In his General Session at 17th Cloud Expo, Bruce Swann, Senior Product Marketing Manager for Adobe Campaign, explored the key ingredients of cross-channel marketing in a digital world. Learn how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects).
Culture is the most important ingredient of DevOps. The challenge for most organizations is defining and communicating a vision of beneficial DevOps culture for their organizations, and then facilitating the changes needed to achieve that. Often this comes down to an ability to provide true leadership. As a CIO, are your direct reports IT managers or are they IT leaders? The hard truth is that many IT managers have risen through the ranks based on their technical skills, not their leadership ab...
The Internet of Everything is re-shaping technology trends–moving away from “request/response” architecture to an “always-on” Streaming Web where data is in constant motion and secure, reliable communication is an absolute necessity. As more and more THINGS go online, the challenges that developers will need to address will only increase exponentially. In his session at @ThingsExpo, Todd Greene, Founder & CEO of PubNub, exploreed the current state of IoT connectivity and review key trends and t...
Two weeks ago (November 3-5), I attended the Cloud Expo Silicon Valley as a speaker, where I presented on the security and privacy due diligence requirements for cloud solutions. Cloud security is a topical issue for every CIO, CISO, and technology buyer. Decision-makers are always looking for insights on how to mitigate the security risks of implementing and using cloud solutions. Based on the presentation topics covered at the conference, as well as the general discussions heard between sessi...
Continuous processes around the development and deployment of applications are both impacted by -- and a benefit to -- the Internet of Things trend. To help better understand the relationship between DevOps and a plethora of new end-devices and data please welcome Gary Gruver, consultant, author and a former IT executive who has led many large-scale IT transformation projects, and John Jeremiah, Technology Evangelist at Hewlett Packard Enterprise (HPE), on Twitter at @j_jeremiah. The discussion...
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.