As the deadline for filing income tax returns approaches, it turns out that only 51% of Canadians regularly look for tax-efficient options when considering new investments.
That’s according to a 2014 study by BMO Nesbitt Burns. One possible reason for this trend is that a number of Canadians lack knowledge about the tax treatment of certain investment income types that can reduce their overall tax liability. Fifty-nine percent of respondents don’t know how capital gains are taxed. Similarly, 59% are not sure about the tax implications of dividend income.
The study also reveals that 54% of respondents are barely influenced by tax credits for charitable donations—or not influenced at all—when deciding whether to give.
Conducted last month, the survey polled 1,007 Canadians.