Barriers Associated with Tax Filing in Vulnerable Populations Qualitative Research

Contract Number: 46558-184802/001/CY

POR 103-16

Canada Revenue Agency

Contract Award Date: January 26, 2017

Report Date: March 24, 2017

Produced by: Corporate Research Associates Inc

Ce rapport est aussi disponible en français.

For more information on this report, please email:media.relations@cra-arc.gc.ca

Table of contents

Executive summary

Background, Objectives and Methodology

To better understand some of the contributing factors to lower rates of tax filing and benefit uptake among segments of the population identified as more vulnerable, the Canada Revenue Agency (CRA) commissioned a series of 20 in-person focus groups in five locations (including Edmonton, Winnipeg, Thunder Bay, Quebec City, and Iqaluit). Group discussions were conducted from February 27th to March 7th, 2017. Each focus group lasted approximately 1.5 – 2 hours and a $75 honorarium was offered to each participant in all locations except for Iqaluit where participants received $100. Targeted audiences included single women living with dependents, Indigenous peoples in urban settings, persons who have recently experienced homelessness, and a mix of age and gender low-income individuals. All participants across groups were classified in Statistics Canada’s Low Income Cut-Offs (LICO) threshold. A total of 150 participants took part across locations. The research aimed at exploring barriers, perceptions and knowledge gaps that limit some people’s participation in the system, as well as identifying preferred methods of communication with the CRA.

Caution must be exercised when interpreting the results from this study, as qualitative research is directional only. Results cannot be attributed to the overall population under study, with any degree of statistical confidence. The actual expenditure was $92,585.62 (including HST).

Political Neutrality Certification

I hereby certify as a Representative of Corporate Research Associates Inc. that the deliverables fully comply with the Government of Canada political neutrality requirements outlined in the Communications Policy of the Government of Canada and Procedures for Planning and Contracting Public Opinion Research. Specifically, the deliverables do not include information on electoral voting intentions, political party preferences, standings with the electorate or ratings of the performance of a political party or its leaders.

Signed: Margaret Brigley, President & COO
Corporate Research Associates
Date: March 24, 2017

Key Findings

Findings from the Barriers Associated with Tax Filing in Vulnerable Populations Qualitative Research confirm that greater outreach is warranted among urban Indigenous peoples and low income individuals to increase awareness and understanding of the various benefits associated with filing tax returns. Indeed, overall findings were generally consistent across the four audiences under study.

Results show individuals, across audiences, are acutely aware of the necessity to file a tax return each year and most understand that tax returns are due to be filed by the end of April. While there is clear civic obligation to file taxes, individuals are primarily motivated to complete their return annually to collect any taxes owing. Some, particularly single mothers or those on disability, are compelled to file their tax return to ensure a continuation of benefits. Others do so to avoid getting in trouble with the government.

Despite a strong awareness of various government benefits and financial services available, there appears to be only a moderate understanding that receipt of some benefits is dependent upon filing a tax return. Indeed, those most familiar with this fact suffered a disruption in their benefits after not filing taxes, and accordingly are now aware. Regardless, across locations and audiences, findings show there is limited awareness of the full extent of benefits to which individuals may be eligible for.

Although all but a few participants reportedly filed their taxes each year, most know others who have not. When asked why others may not file a tax return, the reasons were primarily attributed to a range of factors, including a lack of awareness of the benefits of doing so, health conditions (i.e. mental or physical capacity), ability, owing money/ fear of repercussions, a desire to keep income / location hidden (for fear of wages being garnished for child support, alimony, etc.), and a lack of trust in the government.

There is a perception that completing a tax return is confusing, difficult, and challenging, particularly for those who are not adept at math, comfortable with numbers, or who do not have English / French as their mother tongue. The terminology used in the process is intimidating to some, and many believe an up-to-date knowledge of tax laws and benefits is needed to successfully complete a tax return. Indeed, the perceived complexity of the process and low literacy (both general and financial) were by far the most common challenges faced by people who do not file their income tax return regularly. Across groups, participants shared a general lack of confidence in their personal abilities to effectively file their taxes. Participants are largely dependent on others to file their taxes, primarily because they are afraid to make a mistake and miss an eligible benefit. They have a lack of confidence in their abilities and accordingly, most pay others to file their taxes.

A lack of support, aptitude, language and confidence present key barriers to completing a tax return. Barriers to the completion are most pronounced in the North, where few options for assistance are available and none are readily available free of charge.

Participants seem to lack full awareness of all the various benefits they may be eligible for. While they are aware of their obligation to file an annual tax return, many do not readily identify the personal benefits to doing so, and thus place no urgency on the matter. Without question, findings show there is a need for greater outreach among vulnerable audiences, including a need for increased awareness of the full range of eligible benefits. Results suggest priority should be placed on ensuring the necessary supports are in place to complete tax returns for others, as most show no interest in completing a return themselves. To that end, a range of suggestions for outreach or interaction at the community level were offered to support tax filing.

A general lack of awareness and lack of knowledge is compounded by a lack of preparedness. Many feel as though they have missed an opportunity to claim benefits that are owing to them. This creates heightened frustration toward the government with some thinking the government’s lack of assistance is intentional to minimize payment of eligible benefits. This underscores the need for self-help tools that guide individuals’ collection of necessary documents to successfully file a return, while maximizing the benefits they might be eligible for.

The proposed outreach document was well received and considered clear, relatively simple and informative. Participants appreciated the friendly and approachable tone of the document and the brevity of information presented. It was considered highly informative and effective at encouraging individuals to file a return to receive benefits that were not familiar. Despite its overwhelmingly positive reception, a variety of changes were suggested to enhance the document including such things as clarification of some terminology, replacing the visual icon, and consideration of a new colour scheme.

When sharing communication on tax filing, findings show that CRA should consider a multi-mode communications strategy, including both traditional and non-traditional information sources. The use of traditional advertising (TV, newspaper), printed materials / posters in public places and social media (Facebook ads, YouTube) were strongly suggested, as was collaboration with community organizations (seniors’ centers, immigration groups, etc.), and information at government offices related to social services or employment.

Finally, results highlight the need for clear, short messaging, presented in simple language that highlights the benefits of tax filing. Any messaging must also highlight personal financial relevance by letting an individual know that they could realize some personal financial gain if they file their return.

Introduction

The CRA commissioned Corporate Research Associates to conduct qualitative research with some vulnerable populations. The research aimed to assess and better understand the root issues and causes behind lower rates of tax filing and benefit uptake among these population segments. This includes exploring and identifying the real and perceived barriers and perceptions that limit some people’s participation in the system.

Specific research objectives included to:

This report presents the detailed findings of the focus group discussions, a series of conclusions and recommendations stemming from the research findings, a high level executive summary and a description of the detailed methodology used. All working documents are appended to the report, including the recruitment screener, the moderator’s guide, and the outreach documents that were tested.

Research Methodology

Given the topic and the target audience under study, a series of traditional, in-person focus groups were conducted. Specifically, a total of 20 groups were undertaken, across five (5) locations and including both English and French Canadian residents. Four audiences were included in the study, all being classified in Statistics Canada's Low Income Cut-Offs (LICO) threshold. The four audiences included:

  1. Women who are single parents, with dependents;
  2. Low income general population group; mix of gender and mix of age;
  3. Indigenous peoples living off-reserve; and
  4. Persons who have recently experienced homelessness (may include situations where someone may have had to stay with friends and/or family members, stayed in a hotel/motel or shelter, or had to stay in a vehicle).

The following table provides an overview of the group breakdown by audience segment.

Date
(2017)
Language LICO single mothers LICO mix of gender LICO Indigenous LICO experienced homelessness Total
Winnipeg, MB February 27 & 28 English 1 1 1 1 4
Edmonton, AB February 28 & March 1 English 1 1 1 1 4
Thunder Bay, ON March 1 & 2 English 1 1 1 1 4
Quebec City, QC March 1 & 2 French 1 1 1 1 4
Iqaluit, NU March 6 & 7 English 1 1 1 1 4
Total 5 5 5 5 20

As is normal practice, participants excluded those who attended at least one focus group in the past six months, who have been to three or more focus groups in the past five years, or who participated in a group on taxation issues. At the same time, people working in a sensitive occupation, including marketing, market research, media, accounting, tax preparation, a political party or a federal or provincial government department were excluded from the study. All participants had lived in Canada for at least 12 months. The sessions were audio recorded for the purpose of report writing and there were observers in attendance for a few of the groups.

Ten individuals were recruited in each group, with a total of 150 participants attending the groups across locations. Participants in Iqaluit received $100 in appreciation for their time, while the participation incentive was $75 in other locations to align with market requirements. Each group discussion lasted approximately 1.5 to 2 hours.

Context of Qualitative Research

Qualitative discussions are intended as moderator-directed, informal, non-threatening discussions with participants whose characteristics, habits and attitudes are considered relevant to the topic of discussion. The primary benefits of individual or group qualitative discussions are that they allow for in-depth probing with qualifying participants on behavioural habits, usage patterns, perceptions and attitudes related to the subject matter. This type of discussion allows for flexibility in exploring other areas that may be pertinent to the investigation. Qualitative research allows for more complete understanding of the segment in that the thoughts or feelings are expressed in the participants’ “own language” and at their “own levels of passion.” Qualitative techniques are used in marketing research as a means of developing insight and direction, rather than collecting quantitatively precise data or absolute measures. As such, results are directional only and cannot be projected to the overall population under study.

Detailed Analysis

Awareness of Federal Tax Credits and Benefits

There is strong awareness of various government benefits and financial assistance, with most understanding that receipt of benefits is dependent upon filing a tax return.

Government Programs and Benefits

To begin the discussion, participants were asked to identify government programs and services available to people living in Canada. Across locations and audiences, there was a high level of awareness of various government benefits or types of financial assistance. Top mentions consistently included Employment Insurance, Canada Child Benefit, Social Assistance / Welfare, Disability, GST / HST Tax Credit and Canada Pension Plan. Other benefits mentioned, albeit to a lesser extent, included sports and recreation rebates, rental assistance, transit passes, childcare assistance and subsidies, home care, student loans, training, medications / health benefits, hydro rebate, workers’ compensation, emergency home repair, and RESP funding. In the North, a few made mention of housing allowances, vacation benefits, health benefits (prescription, dental, vision) and education support. In Quebec City, participants also commonly referenced the government subsidized daycare service. In Ontario, participants consistently mentioned Trillium as a key form of assistance, while in Edmonton, mention of Assured Income for the Severely Handicapped (AISH) was common across all groups.

Regardless of location, awareness of benefits was consistently lowest among people with current or past homelessness experience.

Groups were reminded that some benefits are only available to those who file their income taxes with the federal government, and were asked which specific benefits are dependent on filing. Participants identified a wide range of federal tax credits and benefits available to people living in Canada who file their taxes, with most mentioning Canada Child Benefit, GST/HST Credit, and Disability Tax Credit. These were clearly the most commonly recalled government benefits across locations and audience types. In Edmonton, Winnipeg and Thunder Bay, a few participants in each group also mentioned the Working Income Tax Benefit, and in Winnipeg and Thunder Bay, the Caregiver Tax Credit. In Edmonton, a Carbon Tax Credit was also noted. In the North, Housing Allowances were often mentioned, as was Vacation Travel Assistance and the Financial Assistance for Nunavut Students (FANS).

It should be mentioned that while there was strong recall of a variety of different tax credit and benefits, the level of government offering these financial incentives was often unclear. In fact, some confusion was evident regarding which benefits and tax credits are offered by the federal government and which ones originate from provincial or territorial governments.

Across groups, all but a few participants had applied for and/or received at least one of these credits / benefits in the past. Consistently, single parents were especially well versed on the necessity and importance of filing their taxes, particularly to ensure receipt of the Canada Child Benefit and GST/HST Credit. In fact, in multiple locations, several parents explained that they had failed to file their taxes one year and their Canada Child Benefit was cut off until it was filed. Accordingly, they now fully appreciate the importance of filing their return each year.

Most agreed that they would expect to find out about their eligibility of such benefits from their accountant or tax advisor, or the individual who helped them complete their taxes. Those on social assistance also advised that they were told of their eligibility from the government office that coordinates their social assistance, or by volunteers who assisted with tax completion. In general, knowledge of benefits does not appear to be proactive. Many indicated that residents often come across such financial assistance ‘by chance’ or because of other people providing them with the information.

Searching for information on the CRA website was deemed to be difficult due to a perceived overwhelming list of information, and a prerequisite to know what benefit or name to look for. Several participants suggested that a simple online ‘quiz’ or questionnaire could serve as an effective tool to help people determine their eligibility for benefits.

Of note, in some instances, people who have experienced homelessness at some point in their life believe that tax credits and benefits are more easily accessible and available to wealthier individuals. This mindset suggests that additional efforts will be required to convince these people to seek out such benefits or to ensure that they are aware of various benefits that might be available to them.

Impressions of, and Experience With the Canada Revenue Agency

The Canada Revenue Agency is generally considered inaccessible, inconsistent in its responses, and lacking empathy for the general public.

Prior to a group discussion, participants were asked to write down what comes to mind when they think of the CRA and doing their taxes.

For many, the thought of CRA evokes a strong emotional response, eliciting feelings of fear, skepticism, and concern. Many are fearful that they will have to pay money (that they cannot afford) and are largely unsure of their standing with CRA from year to year. Others are fearful that they will get in trouble for misfiling their return. This is driven not by an action of deceit on their part, but a lack of awareness of how to file and the details required. Participants consistently put blind faith in others to complete their return correctly, and hope for the best.

At the same time, these negative emotions are caused by the perceived complexity of completing an income tax return, and the lack of understanding of the process. The process appears daunting and intimidating to most, thus eliciting feelings of anxiety.

For some, thoughts of CRA conjure an expectation that they will get back money that they have overpaid in taxes, or receive money in various benefits owed to them because of their income status. That said, there remains a perception among many that the process of filing a tax return is more accessible to wealthier and more highly educated individuals, thus providing them greater benefits.

Others, (albeit the minority across locations), appreciate that it is through taxes that most Canadian residents can expect to receive the many benefits they do such as healthcare, education, and a sound infrastructure. They, in turn, believe CRA fulfills an important and essential role. The following visual depicts key unaided, top of mind mentions of CRA.

Wordcloud

Image is a word cloud with three sizes of words. Most frequently mentioned words are in the largest font.
Largest words are: Benefits, Refund, Owning money, Fear, Complex, Confusion, Stress
Middle words are: Lacks empathy, Concern, Time consuming, EI, Frustrating, Seize assets, Intimidating, Services, Taxes
Smallest words are: Necessity, Important, Nightmare, Boring, Federal

CRA Interaction

Across locations, several participants in each group had experienced a direct interaction with the CRA in the past. For many, this interaction was limited to telephone interaction, which was generally not positive. Indeed, consistent with each audience, participants expressed frustration with the CRA based on their experience. For the most part, CRA was considered difficult to access due to perceived limited hours of operation, an inaccessible automated phone system, and an inability to reach a real person. Again and again participants shared stories of how they had spent extended time on hold listening to music – sometimes for longer than an hour. At the same time, a few expressed frustration with having to search for the right telephone number to call, while yet many were concerned with the inability to access a representative in-person.

A further frustration was driven by their experience once they finally reached a ‘real person’, whereby they were often provided with inconsistent responses. In fact, multiple participants in each group spoke to several CRA contacts on the same query, only to receive a different answer each time.

Participants also voiced frustration with a perceived condescending, insensitive and demeaning tone from CRA, with a presumption that CRA staff assumed that a caller was hiding something or being untruthful at the onset of the contact. This perceived lack of empathy further heightened a distrust and sense of fear among participants. In Quebec City, many expressed frustrations caused by a difficulty understanding service staff with a foreign accent.

While these types of experiences were widespread across groups, there were also individuals who indicated that they had spoken with CRA by phone and had positive and efficient service.

In Edmonton, many participants who had recently filed taxes using online software indicated that their impressions of interacting with the CRA were much more positive than in the past.

In Iqaluit, further frustrations were shared when contacting CRA on behalf of an elder who was unilingual (speaking only Inuktitut). In multiple groups, several participants reportedly had called on their parent’s or relative’s behalf (with the relative beside them), only to be told that information could only be given to that person directly, and that they had to speak to them in English or French. One participant was advised that the elder must sign an affidavit advising that the family member is representing them and only then would they be given the answer. This direction followed an extended time on hold, and resulted in extreme frustration for all those involved.

Experience with Filing Income Taxes

Participants are largely dependent on others to file their taxes, primarily because of a fear of making a mistake and a lack of confidence in their abilities. Most pay to file their taxes.

Reasons for Filing Income Tax Returns

Across groups, all but a few participants filed income taxes with regularity. Interestingly, reasons for doing so varied across groups. Across locations, single parents file their taxes to ensure their eligibility for various benefits (namely Canada Child Benefit, GST / HST credit). Others were motivated to file their taxes to get their tax refund. Some indicated that wanting to apply for loans, student loans or to make other types of purchases made filing a tax return a necessity.

Others reportedly file their tax returns because it is legally required and they consider it to be part of their civic duty of being Canadian. For some, paying taxes was their social conscience in supporting the services offered to all Canadians. That said, some questioned if the financial benefits received warranted the efforts needed to file a return.

Yet a few others were pressed to explain their behaviours, believing that they file their income tax because of habit, or because they have ‘always done so’.

A few also filed to avoid problems and to have the peace of mind knowing that they will not be fined or prosecuted by the government for owed taxes.

Requirements of Filing Incomes Taxes

There was consensus that everyone needs to file taxes in Canada each year, though a few questioned at what age you must begin filing taxes (16yrs or 18yrs), and if taxes need to be filed if you have no income to report. For the most part, it was felt that as soon as you start to collect a working income (e.g. 15 or 16 years of age) you must file a tax return or that anyone with a Social Insurance Number (SIN) must file taxes.

Across locations and groups, (and regardless of audience-type), some questioned if Indigenous peoples living on reserves were required to file a tax return since they are exempt from paying taxes, although others believed they would be required to, in order to access benefits not related to tax payment.

For the most part there is clarity that taxes are due by the end of April, though many people recognize that the deadline applies primarily to those who owe taxes. Some recognize that if you are getting a refund, you are required to file by the end of the calendar year and not by April 30th. In Quebec City and Edmonton, awareness of the deadline was less acute, with many simply filing their taxes as soon as their paperwork was available, thus not paying attention to the deadline, or having a vague awareness of the deadline being sometime in April, or even at the end of March.

Process of Filing an Income Tax Return

Across locations, almost all participants reportedly have someone complete their taxes for them, with many paying to have their taxes filed by a tax refund service. Most have chosen this approach despite the cost, given the perceived complexity of the process of filing an income tax return and the other challenges discussed in this report.

In Thunder Bay, Edmonton and Winnipeg, several participants in each group indicated that they did not pay to have their taxes completed, making use of free services available through low income volunteer workshops or use of a relative / family member. In Quebec City, awareness of free or low-cost alternatives was limited, with many shopping around for an affordable tax specialist or relying on the assistance of friends, neighbours or relatives with a higher level of knowledge, for a small fee. Apart from the cost, several participants rely on referral to select a tax specialist.

In each location (except for in Iqaluit) only a few filed their taxes using software (either purchased software such as TurboTax, Simple Tax, UFile, electronic tax-filing services (i.e. Netfile) or software available on CRA’s site). Those who did, typically filed online and generally found the software easy to use and helpful in prompting them for eligible benefits. Those same individuals were generally aware of the various tools (e.g. CRA Guide) available from CRA to assist with completion.

In the North, all participants paid to get their taxes filed and participants concurred that there are generally two options available locally (either use of a private accounting service or a tax preparation service available at a local store). Across groups participants expressed frustration with the increasing prices and mistakes of the local tax preparation service, and thus, several participants have resorted to using a service in Winnipeg (by fax) that offers a reduced cost and a slightly delayed service. No one in Iqaluit was aware of volunteer programs being currently available to help people file their taxes, although a few mentioned such programs were available in past years.

Tax Completion

There is limited to no interest in learning how to file a tax return.

The topic of filing an income tax return does not seem to be top-of-mind among most of the target audiences, who for their most part turn to someone else to think about its implication. Interestingly, younger Canadians are generally not sensitized to the importance of understanding their responsibilities in the process, as well as the implications of taking part in it. The exception to this was those who have young children or who are dependent on various benefits provided by the government.

Experience with Filing Income Tax Returns

In most locations, several participants had at one time completed their taxes on their own. Many, however, did so only once, and after experiencing errors or omissions, subsequently chose to rely on others for assistance. In each location, participants recited stories of missing eligible benefits, having to pay unnecessarily, or having to correct a return that was misfiled. A few have had significant incidences with CRA because of mistakes they have made.

Very few participants reportedly had never filed an income tax return, with those most notably being young people still in school. When asked how they would approach the process, they generally indicated they would rely on their parents for guidance.

Perceived Challenges

Accordingly, across groups participants shared a general lack of confidence in their abilities to effectively file their taxes. There is clearly a fear of doing it wrong, making mistakes, or missing an eligible benefit if they do it themselves. Most, in fact, have no desire to learn how to file their own return in the future. Rather, they prefer to rely on those who are well versed in current tax laws and exemptions to ensure they collect all benefits they are eligible to receive.

Even those who get someone to complete their taxes found preparing for the completion to be stressful. They must compile all necessary documents (T4s / T5s), rent receipts, medical receipts, childcare, donations, RESPs, RSPs, education receipts, bus pass receipts, etc., and are fearful they will forget something, to their own detriment. Moreover, many are reactive in this process by simply waiting to receive the receipts rather than proactively seeking them out or collecting them throughout the year. There is little verification on their part to ensure that they have all receipts in hands, with most relying on the person completing their tax return to identify what receipts are required.

There is a perception that completing a tax return is confusing, difficult, and challenging, particularly for those who are not adept at math, comfortable with numbers, or who do not have English / French as their mother tongue. The terminology used in the process is intimidating to some, and many felt that you need an up-to-date knowledge of the tax law and benefits to successfully complete a tax return. Indeed, the perceived complexity of the process and low literacy (both general and financial) were by far the most common challenges faced by people who do not file their income tax return regularly.

Female single parents also mentioned that shared custody of their children adds complexity to the process of filing their income taxes, as they need to determine which parent will claim some of the family benefits and tax credits available. This process can be particularly difficult for those who are not in good terms with their ex-spouse.

Technology also proved a challenge for some participants, particularly those in lower income brackets and those in the North. For them, it was felt that CRA has placed great dependence on having a computer, both in terms of accessing necessary information and in filing.

People who are currently homeless, or have experienced homelessness, reported frequently moving and not always updating this information with governments or their employers. As such, these participants noted the increased challenge of sourcing documents and receipts required to complete their income tax return, which for some was a reason to not bother with the process. This challenge was exacerbated by a lack of identification and lack of a permanent address for filing.

There is limited awareness and understanding of what deductions might be specific to the North. Many, in fact, felt that they do not likely receive their full eligible refund because they are simply unaware of all the various deductions that might apply to them personally. In each group, a few participants mentioned various deductions that were surprising to others (i.e. vacation entitlement, Northern Tax Credit, health and medical deductions, employment income benefit). As a result, some frustration was evident towards the government, assuming that they are intentionally trying to keep the full range of benefits that might be available to Northern residents hidden. Accordingly, there is a general sense that there is much they do not claim that they are eligible for.

Motivations to Filing Income Taxes

While most feel an obligation to file their tax return, citizens are primarily motivated to file their taxes to receive key benefits or a refund of the taxes they have paid.

Current Motivations

When asked why people choose to complete an annual tax return a variety of consistent responses were provided across groups. The following outlines key motivations identified across locations.

Basic Requirement: Filing a tax return is generally considered to be a required obligation in Canada, and many feel, as a matter of course, that it is their civil obligation. For them, filing a tax return is considered ‘a necessary evil’, in that it is something they simply are required to do. Across locations, some participants acknowledged that filing taxes also ensures that you are on the voting registry, and that important statistics on the population are collected. Interestingly, some consistently confused their tax return to be part of the Census, whereby it was deemed to provide an important input to direct government programs and policies.

Tax Refund: Across groups and locations, individuals are primarily motivated to file their tax return to collect any taxes that are owing to them.

Access to Benefits: For many, (most notably single parents, those with a disability or those dependent on the benefits they receive), filing a tax return is their assurance of receiving eligible benefits. Across locations, several participants shared personal experiences whereby they had missed filing their return and consequentially they stopped receiving necessary benefits. On each account, the individuals experienced frustration and financial hardship and are now very motivated to file their return each year.

Fear of Repercussions: The fear of repercussions was also identified by a few in all groups as a reason to file their income tax return regularly. While actual repercussions experienced were generally limited to interest charges on amounts owed to the government and warnings of late filing or payment, a few mentioned having experienced more severe consequences, including the freezing of their bank account and their assets being seized. A few also reported that their housing allowances were negatively impacted because of their reported income.

Despite only minor and infrequent consequences actually happening, there appears to be a sense of fear for consequences that are perceived to be more acute, such as income or pay being frozen, large assets such as homes being seized, and criminal accusation that can lead to prison terms.

Barriers to Filing Income Taxes

Not filing a tax return is primarily attributed to a lack of awareness, health conditions, owing money/ fear of repercussions, a desire to hide, and a lack of trust in the government.

When asked why other people would choose not to complete a tax return a variety of consistent responses were provided across groups and locations. The following outlines key barriers identified across locations.

Lack of Awareness: Some believed that if people have no income they are not required to file a tax return. In essence, they believe people are unaware that they are missing eligible benefits because of not filing. Further, audiences who are unfamiliar with the laws (immigrants, refugees, etc.) may be unaware of the requirement. At the same time, a lack of awareness of Canadians’ responsibility to file an income tax was noted.

Health Issues: Those who are physically and / or mentally incapacitated in some way are deemed unlikely to file taxes, unless someone is acting on their behalf. Mental health issues are considered a key factor that could prevent many from doing so (particularly among homeless), as people may simply not have the ability to do so.

Living on Reserves: It was felt that in Indigenous communities, those living on reserves may be resistant to file taxes since they may perceive they should be exempt from paying any taxes. For them, filing a tax return may not be considered relevant and representative of a way for government to keep their ‘nose in their affairs’ unnecessarily.

Owing Money: Knowing that you owe money and cannot afford to pay it is another key reason participants felt someone would not complete an annual return. Further, once someone has not filed, a fear of consequences keeps them from filing in subsequent years. They simply do not want to get in trouble, and avoidance seems to be the best solution.

Hiding Income: Across groups participants agree that some people intentionally do not want their income to be reported so they can avoid having their wages garnished if they owe alimony, child support or past taxes.

Illegal affairs: It was felt those making money in illegal means (criminal activity, working under the table) could be resistant to file their tax return so as not to draw attention to their current situation. Some could also be facing criminal persecution.

Living off the Grid: It was felt that some people might avoid taxes because they do not want the government to know where they are / what they are doing – namely a desire to ‘live off the grid’. For them there is a lack of trust or respect for the government, and a lack of desire to collect any programs or benefits from the government.

Language: Language was also considered a potential barrier to groups of the population who do not speak either official language. In the North, unilingual elders were considered at high risk. Other key groups impacted by language were deemed to be refugees and immigrants.

Lack of Support: For some audiences, it was felt that a lack of support prevents people from filing tax returns. Most notably, those who are challenged intellectually, by language, or by income, may not have available resources to assist them in completing their taxes. Further, it was believed that many are unable to afford the payment to file a tax return, so choose not to. They are generally not aware of free services to assist them.

Lack of Address: Being homeless presents a key barrier given that an address is required to file a tax return. While a few acknowledged that a shelter’s address can be used to file a return, this did not effectively address all those without an address. Similarly, since many homeless people do not have proper ID, they are unlikely to have required information to file their return. As well, those without a home were deemed unlikely to have necessary forms or receipts collected.

Avoidance: Some participants indicated that people avoid completing a return due to a lack of a desire to face their financial situation. These individuals indicated that shame, avoidance of the facts and complacency affect their desire to complete a return.

Disillusionment: Among individuals who have experienced homelessness at some point in their life, and among Indigenous participants, there is a certain level of suspicion and cynicism towards the government in general. Many of them are disillusioned with the government’s willingness to help them, as they have experienced more negative effects of government involvement than positive outcomes in general. This sentiment was viewed as explaining why some people do not file an income tax return.

Affordability: Some indicated that the cost of having a return completed by a service (estimated at $150 or more) was simply too great and would not be outweighed by any benefits of completing a return.

Generally, it was felt that the most negative impact of not filing an income tax return is not receiving benefits that you are eligible for. A few mentioned that a person could be jailed or fined for not filing income tax.

Who’s Most Susceptible?

Reflective of the key barriers outlined above, most concurred that some audiences in the population are more susceptible to not filing taxes. These primarily included those who are:

Tax Supports / Resources

There is a clear need for greater supports to help people file their taxes, particularly in the North.

Despite evident frustrations when dealing with the CRA, government was consistently listed as the trustworthy and credible resource when looking for information on taxes. Indeed, across locations, government resources or a trusted professional (i.e. accountant or tax adviser who is familiar with the current process) were deemed most trustworthy when considering information related to tax filing. Getting information directly from CRA (in person office visits or by phone) or through direct contact from a reputable source, were both deemed trustworthy sources.

In Edmonton, Thunder Bay and Winnipeg, several individuals in each group indicated they had used the CVITP, however most were not familiar with its offering nor its name. Indeed, many simply referred to the service as a ‘volunteer’ or ‘community’ group or organization available through their library, homeless shelter or church. Regardless, across locations, participants strongly endorsed introducing a greater number of such opportunities, whereby citizens have greater access to resources to help them file their taxes. For most this does not mean that they want to file the return themselves – they would clearly prefer to have others complete it on their behalf. Having a greater number of clinics at community centres, social services organizations, seniors’ centres, etc. was most recommended. Other suggested locations include immigrant groups, student centres, libraries, post-secondary institutions.

There is deemed to be minimal-to-no support to help people file their taxes in the North. No one completed their return on their own, and all paid a fee to file their taxes. This cost alone was deemed a key barrier to filing, where $60-$150 could better be used to pay their basic life necessities (food, rent, childcare).

Likewise, in Quebec City, many of those who turned to a tax specialist spent between $60 and $180 for the service. Despite the high price, the perceived benefits of relying on a professional was worth the investment. In addition, awareness of free tax preparation clinics was nearly non-existent, with many under the impression that this kind of service was not available. When asked if they would take advantage of this kind of service if it was available, many expressed interest although they were concerned with the qualifications of the personnel involved (thinking that because it is free they many not have access to skilled or experienced consultants).

Proposed Changes to Increase Tax Filing

A wide range of suggestions were offered to increase the filing of tax returns.

When asked what changes could be implemented to increase tax filing or simplify the current process, participants offered consistent responses across locations, as outlined below:

Simplify Eligibility:
In each location, it was mentioned by a few that the promise or assurance of receiving benefits would likely motivate some people to file their income tax return. As such, it was proposed to be more clear in terms of who might be eligible to receive some of the benefits (for example those for parents). In many instances, communications imply that people ‘may’ be eligible for tax credits and benefits rather than stating that they ‘will’ receive them. This type of wording tends to create suspicion regarding the veracity of the claim. Some suggested an ‘opt out’ rather than ‘opt in’ to benefits approach, whereby individuals would automatically be eligible for various benefits, then would answer questions to ensure accurate alignment of benefits to an individual’s circumstances. This idea was proposed given that many were suspicious that there are a multitude of benefits available that they are not aware of and don’t know how to search for.

Education:
In many instances, participants mentioned that younger people they know appear to be less familiar with the process of filing their income tax, in addition to not being aware of the benefits. Younger participants in the groups shared this opinion and expressed concern with the topic not being part of the school curriculum. Some mentioned that currently in high school, tax filing (and basic budgeting) is only taught to those at the most basic level of math, and not for academic math students. Accordingly, across locations, many participants believed that increased education in the school system would help increase tax filing.

A variety of other educational suggestions were made including offering courses or workshops where citizens can attend sessions to learn more about what is required. At such sessions, they could ask questions and learn more about what deductions they might be eligible for. It was proposed that such courses or workshops be held in collaboration with local community groups (seniors’ centres, elder groups, community organizations, shelters, etc.), which would help to encourage attendance.

Similarly, it was suggested in multiple locations that a series of videos be created and posted on YouTube showing how to file a return, or explaining key deductions and benefits in simple language. Providing basic information on how to file a simple tax return was deemed a useful exercise.

Information:
Across locations, and most notably in the North, the provision of a summary of relevant deductions (in a simple, easy to understand format) was deemed something that is currently lacking and would be useful in encouraging tax filing. In addition, having a consolidated listing of ways to file and where assistance is available was suggested. Further, the suggestion of having a simple, online questionnaire or tool was suggested that would pose simple questions, direct individuals to the right resources, and determine eligibility for benefits.

Similarly, in multiple locations, it was felt that it would be helpful to provide clear direction on what type of receipts or information should be collected throughout the year. Some suggested that provision of a collection tool (a simple envelope with guidance printed on it, or a receipt carrier of sorts) would help guide collection activities throughout the year, making filing easier.

Assistance:
Across locations, participants felt strongly that additional assistance should be made available to residents free of charge. Such assistance would provide for tax return completion, as well as the ability to ask questions about tax returns and tax deductions in general.

One suggestion made consistently in many locations was having accounting students (through accounting firms or through post-secondary institutions), conduct free workshops where they completed tax returns on a volunteer basis. It was felt the government should provide specific updates to these students to ensure they were up to date on current benefits / laws and that they should compensate the students for their time.

In the North, language was considered a serious barrier to tax filing for elders and some living in shelters, and it was felt that the government would be well served to provide tax specialists who can complete returns in Inuktitut.

Finally, when considering who should offer programs or tax filing, findings suggest there is some lack of trust in assistance programs that offer free completion of tax return, as the expertise and quality of the work is unsure. It was felt that any such service should be strongly endorsed by CRA and only provided by those well versed in recent changes to tax practices. This suggests that those providing a free service should complete a refresher course or tutorial from CRA prior to implementation.

Free software:
Another suggestion made by those who had regularly purchased tax software such as TurboTax or UFile was to offer online access to filing software, without a charge. These individuals were not aware of the free software links on CRA’s site.

Simplify the process:
Not surprisingly, many believed that simplifying the process and the wording in the forms and guide would remove a level of complexity that currently prevents many people from filing a tax return. This includes the use of simpler language and simpler calculation.

In Quebec City, Indigenous people mentioned the need to have a presence either on-reserve or in key locations off-reserve (such as Friendship Centres) to provide tailored assistance to this audience. Most notably, they believed that someone of Indigenous descent, or at least that has a deep cultural understanding of each First Nation, would be best suited to provide individual counselling and assistance on filing income tax return.

Increased penalties:
Only a few suggested that increasing the severity of consequences and penalties may result in a higher uptake. That said, this option was not viewed as the most effective in motivating people to file a tax return.

Other suggestions to simplify the process that were each less commonly cited included to require that tax filing be done only every second year, to create a central repository of all paperwork and receipts required for each person, and to offer an in-home consultation service that is free of charge.

Communications and Assistance

Communications and assistance on income tax filing is deemed lacking, particularly in Northern communities.

Due to the difficulties mentioned in reaching the CRA by phone, and the perceived complexity of the CRA website, it was felt that communications about benefits and ways to file taxes, as well as assistance in the community, should be more widely available. Overall, participants pointed to public communication in locations where waiting was common, such as post offices, doctors’ offices, government service offices, bus stops and other public transportation.

Language presents a real challenge for tax filing for some in the North. For unilingual elders, tax completion is problematic and there is clear frustration that Canada Revenue does not offer any type of program to complete elders’ taxes for them. There is a concern about too much dependence on electronic communications / filing, and a real need for in-person consultation in the North.

No one was aware of any current CVITP in Iqaluit, although some mentioned there had been a program offered a few years ago, and that such a program is available in smaller communities in the North. Participants expressed a real need for clinics to do people’s taxes at no cost. This would allow government to get taxes filed and provide residents with access to benefits they may not know about.

As mentioned, it was felt that any communication in Iqaluit must be available in Inuktitut. Several participants expressed frustration in dealing with CRA, whereby there was resistance from CRA in providing information when they called on a family member’s behalf who could only speak Inuktitut (even with the family member there).

Sources of Information and Assistance

It was felt information should be made available in a mix of formats and sources. In each group, a good number of participants did not have computer access, or a social media presence. Rather, they relied primarily on government offices, community contacts and traditional media for outreach. People with experiences of homelessness were particularly vulnerable and lacked a strong assistance network. Many relied on homeless shelters or similar community organizations to guide their government service requests.

Others were tech savvy and considered social media applications to be an effective way to reach then, primarily through advertising on either Facebook or YouTube. Email was mentioned as a common communications tool to many, although some expressed concern about the number of CRA email scams. Indeed, multiple individuals across locations had heard of ‘fake’ emails from Canada Revenue Agency.

Participants were asked to identify which information sources would most likely reach them with tax-related information. Across locations, individuals consistently selected multiple communications methods, highlighting their dependence on a variety of different information sources. No one source was most popular across locations, rather findings demonstrated that a multi-mode communications strategy is needed. Indeed, findings suggest that Information sources should include:

A variety of other suggestions were made, albeit to a lesser extent, including: offering the in-home service of a consultant to assist those with reduced mobility; launching a help line with a phone number easy to remember (e.g., 811; 311); providing easy access to answer quick questions about the process of filing an income tax return; having posters, brochures or workshops available in places of work (perhaps distributed with the T4s); and offering taxation workshops or clinics through trusted service organizations that cater to low-income individuals, such as soup kitchen or shelters; or culturally-specific organizations such as Friendship Centres.

Ideal Messaging

When asked what should be said to help people understand that they could quality for certain benefits or tax credits, participants consistently highlighted the need to place increased focus on the financial benefit for people. Establishing relevance, in laymen’s terms (i.e. letting them know they may be missing out of cash that they are eligible for), was deemed essential. Several points were mentioned consistently:

The way information is presented was considered important. Consistently, participants voiced preference for simple, straightforward information, that lets them easily and quickly establish personal relevance. Across multiple locations, the following suggestions were made when considering ideal messaging:

Proposed Outreach Document

The outreach document was well received and considered informative, helpful, direct and attention-getting. Several modifications were suggested to enhance its effectiveness.

Participants were shown a potential outreach document (‘It’s Your Money’) and asked for their reactions, in terms of both content and design.

Overall Reactions: The proposed outreach document was well received and considered clear, relatively simple and friendly in tone. Participants appreciated the brevity of information and short sentences, and felt that ‘less is more' on this topic. More so, participants liked the fact that the government was interested in ensuring people are aware of the benefits that they might be eligible for. For those more comfortable with face to face interactions, the fact that the message was delivered on paper was important, with the trusted Government of Canada logo being present.

Colour / Imagery: The use of colour on the document was considered important in grabbing viewers' attention. That said, while the colour scheme and presentation was very positively received by many, others criticized the red and green combination for looking too much like a Christmas flyer.

The image included in the document received a mixed response. Some felt the dollar bill icon was confusing, looking like a window with curtains, an American dollar bill, a present, a sports field, or simply nothing at all. Most felt that better imagery could be used to more accurate reflect cash back, including a dollar sign, a piggy bank, a photo of Canadian dollar bills, or a bag of coin / cash. These results suggest the icon should be reconsidered prior to launch.

Headline: The headline on the document clearly grabbed attention and established personal relevance to most. The title on the French version was at times criticized in Quebec City for not being attention-grabbing. It was suggested to change it to something such as, "C'est votre argent; Profitez-en".

Copy: Despite very positive feedback on the document, there were several areas where questions were consistently asked relating to specific terminology presented. These highlight the lack of awareness of some benefits:

At the same time, a few participants felt that the use of the expression "could" rather than "can" introduced the idea that there are limited eligibility criteria, thus these benefits may not be as widespread as it may appear.

Participants also questioned why they would be able to file anytime, and if that meant that an April deadline no longer applies.

In Iqaluit, participants felt strongly that the document must be provided in Inuktitut.

Contacts: Participants appreciated the inclusion of information on where to get assistance if they needed it. A few questioned why the acronym (CVITP) was included, and felt it was not necessary. While having contact information was well liked and considered helpful, some were unsure which elements would require provincial versus federal contact. Further, some expressed concern as to whether the answers to questions would be different depending on the number called.

In addition, to minimize the negative impact of having a lot of information included, it was recommended the dollar amounts in the bullet points be highlighted in a different colour.

Finally, when considering copy points, participants questioned if all key benefits eligible in various provinces / territories would be included in the document. This was of considerable importance in the North, where it was felt the document missed important benefits they are eligible for.

Modifications

A variety of modifications were proposed to enhance the document, including:

Government Priorities

A wide variety of both accomplishments and mis-steps were mentioned with respect to the Federal Government’s actions, with a desire for more focus on job creation, creation of equity across the Country, housing and improved infrastructure.

When asked what the greatest accomplishments of the federal government have been within the past year, a variety of responses were made, with key mentions including:

By contrast, the greatest criticisms (namely what the federal government has been getting wrong in the past year), primarily focussed on the following:

It warrants mention that across locations and audiences (i.e. those who have experienced homelessness, those in low income households, and Indigenous people), many participants had difficulty identifying what the federal government has done well or done poorly within the past year. Many are simply unaware of current events and unfamiliar with any specific actions that have occurred, good or bad, unless it had direct and immediate implications to them.

Accordingly, some incorrectly mentioned municipal or provincial initiatives (good or bad) as top of mind opinions of the federal government (e.g. local education challenges, roads, garbage collection, etc.).

When asked what should be given top priority by the Government of Canada, again, many were unable to provide a response. Of those who did, a range of responses were provided, with key mentions including:

Conclusions

The following conclusions are drawn from the detailed analysis of the study's findings.

There is strong awareness of various government benefits and financial assistance, with most understanding that receipt of benefits is dependent upon filing a tax return.

There is a high level of awareness of various government benefits or types of financial assistance available. Top mentions consistently included Employment Insurance, Canada Child Benefit, Social Assistance / Welfare, Disability, GST / HST Tax Credit and Canada Pension Plan. A wide variety of other benefits mentioned were also mentioned, albeit to a lesser extent.

Although not universally understood, there is wide recognition that some benefits are only available to those who file their income taxes with the federal government. Participants identified a wide range of federal tax credits and benefits available to people living in Canada who file their taxes, with most mentioning Canada Child Benefit; GST/HST Credit, and Disability Tax Credit.

Of note, while there is recall of a variety of different tax credit and benefits, the level of government offering these financial incentives is often unclear. In fact, there is some confusion regarding which benefits and tax credits are offered by the federal government and which originate from the provincial or territorial governments.

Information about benefits is generally gleaned from tax advisors and accountants, as well as through government offices and volunteers. Knowledge of benefits does not appear to be proactive.

The CRA is generally considered inaccessible, inconsistent in its responses, and lacking empathy for the general public.

For many, the thought of the CRA evokes a strong emotional response, eliciting feelings of fear, skepticism, and concern due to a wide variety of concerns such as having to pay money that they cannot afford, getting in trouble, or not understanding the rules. Given these fears and concerns, participants largely put blind faith in others to complete their return correctly, and hope for the best. At the same time, these negative emotions are caused by the perceived complexity of completing an income tax return, and the lack of understanding of the process. The process appears daunting and intimidating to most, thus eliciting feelings of anxiety.

By contrast, for some, thoughts of CRA conjure an expectation that they will get back money that they have overpaid in taxes, or receive money in various benefits owed to them because of their income status. That said, there remains a perception among many that the process of filing a tax return is more accessible to wealthier and more highly educated individuals, thus providing them greater benefits.

Across locations, several participants in each group had experienced a direct interaction with the CRA in the past. For many, this interaction was limited to telephone interaction, which was generally not positive. Indeed, consistent with each audience, participants expressed frustration with the CRA based on their experience of difficult accessibility, limited hours and an inability to reach a real person.

While these types of experiences were widespread across groups, there were also individuals who indicated that they had spoken with the CRA by phone and had positive and efficient service.

Participants are largely dependent on others to file their taxes, primarily because of a fear of making a mistake and a lack of confidence in their abilities. Most pay to file their taxes.

Across groups, all but a few participants filed income taxes with regularity. Interestingly, reasons for doing so varied across groups. Across locations, single parents file their taxes to ensure their eligibility for various benefits (namely Canada Child Benefit, GST / HST credit). Others were motivated to file their taxes to get their tax refund. Some indicated that wanting to apply for loans, student loans or other types of financing for key purchases (i.e. vehicle / home) made filing a tax return a necessity.

Others reportedly do so because it is legally required and they consider it a civic duty. For some, paying taxes was their social conscience in supporting the services offered to all Canadians.

Yet a few others were pressed to explain their behaviours, believing that they file their income tax because of habit, or for ‘always having done so'. Some also filed to avoid problems and to have peace of mind knowing that they will not be fined or prosecuted by the government for owed taxes.

There was consensus that everyone needs to file taxes in Canada each year, though a few questioned at what age you must begin filing taxes (16yrs or 18yrs), and if taxes need to be filed if you have no income.

Across locations, almost all participants reportedly have someone complete their taxes for them, with many paying to have their taxes filed by a tax refund service. Most have chosen this approach despite the cost, given the perceived complexity of the process of filing an income tax return and the other challenges discussed in this report. In Thunder Bay, Edmonton and Winnipeg, several participants in each group indicated that they did not pay to have their taxes completed, making use of free services available through low income volunteer workshops or use of a family member.

In most locations, only a few filed their taxes using software (either purchased software or available on CRA's site). In the North, all participants paid to get their taxes filed and participants consistently reported to have few options locally available to do so.

There is limited to no interest in learning how to file a tax return.

In most locations, several participants had at one time completed their taxes on their own, but many did so only once. After experiencing errors or omissions, they subsequently chose to rely on others for assistance. In each location, participants recited stories of missing eligible benefits, having to pay unnecessarily, or having to correct a return that was misfiled. A few have had significant incidences with the CRA because of mistakes they had made.

Accordingly, across groups, participants shared a general lack of confidence in their abilities to effectively file their taxes. There is clearly a fear of doing it wrong, making mistakes, or missing an eligible benefit if they do it themselves. Most, in fact, have no desire to learn how to file their own return in the future. Rather, they prefer to rely on those who are well versed in current tax laws and exemptions to ensure they collect all benefits they are eligible to receive.

There is a perception that completing a tax return is confusing, difficult, and challenging, particularly for those who are not adept at math, comfortable with numbers, or who do not have English / French as their mother tongue. The terminology used in the process is intimidating to some, and many believe you need to have an up-to-date knowledge of the tax law and benefits to successfully complete a tax return. Indeed, the perceived complexity of the process and low literacy (both general and financial) were by far the most common challenges faced by people who do not file an income tax return regularly.

Most feel an obligation to file their tax return, and citizens are primarily motivated to file their taxes to receive a refund of the taxes they have paid or key financial benefits.

When asked why people choose to complete an annual tax return a variety of consistent responses were provided across groups, including filing taxes being a basic requirement, that filing could lead to a refund and access to benefits, or because of a fear of repercussions.

Not filing a tax return is primarily attributed to a lack of awareness, health conditions, owing money/ fear of repercussions, a desire to hide, and a lack of trust in the government.

When asked to think of why other people would choose not to complete an annual tax return a variety of consistent responses were provided across groups and locations, primarily including a lack of awareness, health conditions (both mental or physical) that may prevent completion, or owing money to the government. In addition, other key reasons included a desire to hide income (to avoid child support / alimony payments), being involved in illegal affairs, living on reserve, and living ‘off the grid'. For others, language barriers, a lack of support, avoidance, disillusionment with the government, or lack of affordability were attributed as reasons for not filing a return.

Generally, it was felt that the most negative impact of not filing an income tax return is not receiving benefits that you are eligible for. A few mentioned that a person could be jailed or fined for not filing income tax.

There is little interest in learning how to complete a tax return on their own, and a clear need for greater supports to help people file their taxes, particularly in the North.

Across locations, government resources or a trusted financial professional were deemed most trustworthy when considering information related to tax filing. Getting information directly from the CRA (in person office visits or by phone), or through direct contact from a reputable source, were both deemed trustworthy sources.

The idea of community volunteers helping with taxes was widely endorsed, though only a few in three cities (Edmonton, Thunder Bay and Winnipeg) had already taken advantage of these types of services. In Iqaluit, tax filing support was deemed minimal and no one was aware of any current volunteer filing services, despite an apparent significant need for such services. Across locations, the acronym ‘CVITP' is not well known.

A wide range of suggestions were offered to increase the filing of tax returns.

When asked what changes could be implemented to increase tax filing or simplify the current process, participants offered consistent responses across locations, including: increasing awareness of the various benefits available; simplifying eligibility for benefits; educating youth on tax-related information in the school system; providing more information on how to file a simple tax return; conducting public information sessions or workshops on tax filing; increased volunteer / free filing services; providing free online software to submit a return; and simplifying the process of filing.

Other suggestions to simplify the process that were less commonly cited included increasing penalties for not filing, changing the requirement to file taxes to every second year, creating a central repository of all paperwork and receipts required for each person, and offering a free in-home consultation service.

Communications and assistance on income tax filing is deemed lacking, particularly in Northern communities.

Across locations, it was felt that communications about benefits and ways to file taxes, as well as available assistance in the community, should be more widely available. Overall, participants pointed to public communication in locations where waiting was common, such as post offices, doctors' offices, government service offices, bus stops and other public transportation. Language presents a real challenge for tax filing for some in Iqaluit, particularly elders, and it was felt that any communication must be available in Inuktitut.

Findings underscore the importance of providing information through a mix of sources, including traditional advertising (TV, newspaper), posters in public places (libraries, pharmacies, schools, on public bulletin boards), community organizations (seniors' centers, immigration groups, etc.), Government offices and social media (Facebook ads, YouTube).

Results highlight the importance of clear, short messaging using simple language that highlights the benefits of filing a tax return, consequences of not filing, and the ease of completing a return. More so, it was felt any messaging should highlight personal financial relevance by letting an individual know there may be money to be had.

The outreach document was well received and considered informative, helpful, direct and attention-getting. Several modifications were suggested to enhance its effectiveness.

The proposed outreach document (It's your money) was well received and considered clear, relatively simple and friendly in tone. Participants appreciated the brevity of information and short sentences, and felt that ‘less is more' on this topic. Having the Government of Canada logo prominently displayed was on the document was deemed important, and many felt it should be given greater prominence. A variety of other changes were suggested to enhance the document including such things as some terminology clarification, replacing the visual icon, and consideration of a new colour scheme. The headline in the French version also needs modification.

A wide variety of both accomplishments and mis-steps were mentioned with respect to the broader Federal Government's actions, with a desire for more focus on job creation, housing, creation of equity across the Country, and improved infrastructure.

When asked what the greatest accomplishments of the federal government were within the past year, a variety of responses were made including communications, inclusiveness and a focus on family, women, Indigenous peoples, immigration and the environment. By contrast, criticisms were brought against the government on a range of factors including a lack of change on electoral reform, not addressing growing housing challenges, lack of progress in relation to Indigenous problems, environmental issues, a widening gap between poor and rich, and a perception that too much focus was being paid on immigration.

Going forward, participants suggested the Government's priority focus should be on a variety of areas, ranging from affordable housing to job creation to healthcare to infrastructure to Indigenous communities.

Of note, many participants were unable to offer a clear opinion on this matter due to a general lack of awareness of current affairs or government activities, and a lack of knowledge of the difference between responsibilities or actions of the various levels of government.

Recommendations

The following recommendations are based on the study's conclusions and offered for consideration.

1. Continue with the development of the promotional outreach material.

The ‘It's Your Money' outreach document was well received as a positive and necessary message and should be widely promoted. With minor changes, this communication will help to increase access to benefits. Translation of the final document in Inuktitut should be considered for Iqaluit.

2. A multi-mode communications strategy should be considered to actively promote the full range of financial benefits individuals may be eligible to receive.

Low-income individuals and Indigenous peoples are clearly not familiar with the full range of potential benefits they might be eligible for by filing their tax return. Accordingly, findings suggest that greater efforts are needed to communicate the full array of potential benefits. Such information should be communicated across a wide range of mediums including both traditional and non-traditional media. Communications will go a long way to motivate individuals to file a return, simply by enticing them to collect financial benefits they may be eligible to receive.

3. The creation and promotion of a simple ‘benefits eligibility tool' should be considered to raise awareness of benefits.

Given that participants tended to find out about benefit eligibility in a non-proactive way, it could be useful to have a short, easy-to-understand, web-based tool developed. More specifically, development of a simple online questionnaire would allow individuals to answer a few simple questions to determine if they are eligible to apply for various benefits. This type of tool could be available on the CRA website and promoted by community organizations.

Another support tool that should be considered for low income individuals includes a reference or collection document that clearly outlines what receipts or documents should be saved throughout the year, providing a place (e.g. envelope or file) to store such items.

4. Increased community volunteer supports are needed for completing tax returns.

Having increased supports in place, free of charge, are imperative to improved tax filing rates among the most vulnerable audiences. Findings clearly show that priority should be placed on increased collaboration with local organizations to ensure the necessary supports are in place to complete tax returns for others. This should be given priority rather than focusing on teaching low income individuals how to complete their own return since most exhibit a general lack of confidence and aptitude to file their own taxes and have no interest in completing the returns themselves.

Participants were very receptive to the idea of having volunteer organizations available with individuals who could answer questions and help in completing returns. Holding workshops or sessions on what benefits they might be eligible for, what information is needed to meet eligible benefits, and how to complete a tax return, will help to improve individuals' mindset towards tax filing.

In Iqaluit, supports were deemed lacking, particularly for elders and any support service should include materials in Inuktitut.

Further, across markets, a limited few felt that consideration should be given to investigate the possibility of providing free access to ‘do it yourself' software on community-accessible computers, to allow those without a computer to complete a tax return without making the investment in software. This could also potentially allow someone to complete a return with a volunteer advisor nearby to answer questions.

Appendices

Appendix A: Recruitment Screener

Canada Revenue Agency – Barriers Associated with Tax Filing in Vulnerable Populations

FINAL Recruitment Screener

Name:_______________________________________________________________________

Tel. (H):___________________________ Alt Tel.:_____________________________

Group 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

FOCUS GROUPS:

Winnipeg, MA (ENGLISH)
Location: NRG Research Group
Suite 804
213 Notre Dame Avenue
Date: Monday, February 27, 2017
Time: Group 1 – 6:00 pm (Single parents-women)
Group 2 – 8:00pm (Low income-gender mix)
Date: Tuesday, February 28, 2017
Time: Group 3 - 6:00pm (Indigenous)
Group 4 - 8:00pm (Homeless experience)
Edmonton, AB (ENGLISH)
Location: Trend Research
10147 – 104 Street NW
Date: Tuesday, February 28, 2017
Time: Group 5 – 6:00 pm (Single parents-women)
Group 5 – 8:00pm (Low income-gender mix)
Date: Wednesday, March 1, 2017
Time: Group 7 - 6:00pm (Indigenous)
Group 8 - 8:00pm (Homeless experience)
Quebec City, QC (FRENCH)
Location: SOM
3340 rue de la Perade, 3rd Floor
Date: Wednesday, March 1, 2017
Time: Group 9 – 6:00 pm (Single parents-women)
Group 10 – 8:00pm (Low income-gender mix)
Date: Thursday, March 2, 2017
Time: Group 13 - 6:00pm (Indigenous)
Group 14 - 8:00pm (Homeless experience)
Thunder Bay, ON (ENGLISH)
Location: Days Inn & Suite
645 Sibley Drive
Date: Wednesday, March 1, 2017
Time: Group 11 – 6:00 pm (Single parents-women)
Group 12 – 8:00pm (Low income-gender mix)
Date: Thursday, March 2, 2017
Time: Group 15 - 6:00pm (Indigenous)
Group 16 - 8:00pm (Homeless experience)
Iqaluit, NU (ENGLISH)
Location: Hotel Artic
923 Federal Road
Date: Monday, March 6, 2017
Time: Group 17 – 6:00 pm (Indigenous-Single parents-women)
Group 18 – 8:00pm (Indigenous-Low income-gender mix)
Date: Tuesday, March 7, 2017
Time: Group 19 - 6:00pm (Indigenous)
Group 20 - 8:00pm (Indigenous-Homeless experience)

Specification Summary:

Hello/Bonjour, my name is____ and I am with Corporate Research Associates, a public opinion and market research firm. We are conducting a study on behalf of the Government of Canada and are looking for people to take part in a small focus group discussion [DEPENDING ON LOCATION: in English/in French]. All those taking part in this upcoming focus group will receive [INSERT INCENTIVE AMOUNT BY LOCATION] for their participation. I would like to speak with someone in your household who is at least 18 years of age. May I ask you a few quick questions to see if you are the type of participant we are looking for in this study? This call should take approximately 10 minutes.

Please note, this information will remain completely confidential and you are free to opt out at any time. Thank you.

[IF CRA CONTACT/VERIFICATION NEEDED: Krista Holmes, Senior Public Affairs Advisor, 613-617-1343]

[IF ASKED WHAT DEPARTMENT SPONSORS THE STUDY: This research is sponsored by the Canada Revenue Agency. Note that your participation will remain completely confidential and that it will not affect your dealings with the Government of Canada, including the Canada Revenue Agency, in any way.]

Gender (By Observation):

[RECRUIT GOOD MIX OF GENDER (MIN 4 MALES AND MIN 4 FEMALES) FOR GROUPS 2, 3, 4, 6, 7, 8, 10, 12, 13, 14, 15, 16, 18, 18, 19, 20]

1. To begin, are you or anyone in your household currently employed in any of the following sectors?

IF YES TO ANY OF THE ABOVE, THANK AND TERMINATE

2. Into which of the following age groups do you currently fall? Are you…?

3. Are you currently …?

4. If employed, ask… What is your current occupation? ____________________________

TERMINATE IF SIMILAR OCCUPATIONS AS IN Q1

5. If employed, ask… in which industry do you currently work? __________________________

TERMINATE IF SIMILAR OCCUPATIONS AS IN Q1

6. Including yourself, how many people are currently living in your household? [RECORD] ______

7. [ASK IF 2 OR MORE IN Q6] Do you currently have children under the age of 18 living with you most of the time?

8.Which of the following best describes your total household income before taxes last year (net income)? Would you say? (1 & 2 see LICO info below).

Low-Income Cut-Off (LICO) Lines

In all groups, recruit a MIX of the following (LICO groups):

9.For this research, we are looking for a good mix of participants, so we encourage and appreciate your honesty in answering the following question. Note that there are no wrong answers to this question. Please remember that this information will remain completely confidential and your response will not be provided to the government.

How often do you generally file a personal income tax return in Canada? Would you say …?

10. To make sure that we speak to people from various backgrounds, please tell us about your ethnic background. DO NOT READ

11. [ASK IF NOT MENTIONED IN Q10 ]Do you identify yourself as Aboriginal? That is, First Nations, Metis or Inuk (Inuit)? First Nations includes Status and Non-Status Indians under the Indian Act.

12. [ASK YES IN Q11 OR CODE 12 IN Q10] Which of the following group do you identify with?

13. [IF FIRST NATIONS OR MÉTIS IN Q11, ASK; DO NOT ASK IN IQALUIT] Do you currently live on- or off-reserve?

Thanks & Terminate:

Thank you for your interest but unfortunately we will not be able to include you in this research. For this project, we are hoping to meet with Indigenous Peoples living off-reserve, as the Government of Canada is conducting a separate project with Indigenous Peoples living on-reserve.

14. What is your current marital status?

15. How long have you lived in Canada? __________ Min 12 months

16. For this research, we would like to meet with people of all different living situations. Would you mind telling me if you have been in a situation where you were homeless in the past 5 years? This would include situations where you may have had to stay with friends and/or family members, stayed in a hotel/motel or shelter, or had to stay in vehicle.

17.Have you ever attended a group discussion or interview for which you received a sum of money?

18. [IF YES TO Q17] When was the last time you attended a group discussion or interview? _______

19. [IF YES TO Q17] How many groups and interviews have you attended in the past 5 years? _____

20. [IF YES TO Q17] What was / were the subject(s) of the group(s)? _______________

Note: If they have been to a group in the past 6 months - thank & terminate; If they have been to 3 or more groups in the past 5 years - thank & terminate; If they have been to a group on taxation, thank & terminate.

INVITATION

I would like to invite you to participate in a focus group discussion we are holding at [TIME] on [DATE]. As you may know, a focus group is a research method, which uses an informal meeting to gather information on a particular subject matter, in this case, government programs.

The discussion will include 7 to 10 people and will be very informal. It will last approximately 2 hours; it will begin at [START TIME] and end at [END TIME]. Refreshments [FOR 6:00PM GROUPS: and sandwiches] will be served and you will receive $[INCENTIVE AMOUNT] as a thank you for your time. Are you interested in attending?

The group discussion will be audio and video recorded for research purposes only. Please be assured your comments and responses are strictly confidential. Are you comfortable with the discussion being audio and video taped?

IF PROFESSIONAL FACILITY:

The discussion will also take place in a focus group room that is equipped with a one-way mirror for observation. There may or may not be an observer or two present but they will not know your full name. The purpose is to ensure individuals working on this project are able to hear your thoughts and opinions and take notes without disturbing the group discussion. Would this be a problem for you?

IF MEETING ROOM:

The discussion will also take place in a small meeting room. There also may be one or two individuals also in the room who will be taking notes. The purpose is to ensure individuals working on this project are able to hear your thoughts and opinions and take notes without disturbing the group discussion. Would this be a problem for you?

ALL:

Participants may be asked to read materials and write out responses on their own during the focus group. How comfortable are you in taking part in these activities in (English/French) without assistance if these were part of the focus group? Are you…?

If you require reading glasses, please bring them with you.

Since participants in focus groups are asked to express their thoughts and opinions freely in an informal setting with others, we'd like to know how comfortable you are with such an exercise. Would you say you are…?

We ask everyone who is participating in the focus group to bring along a piece of I.D., picture if possible.

These are small groups and even one person missing will affect the overall success of the group. Once you have decided to attend please make every effort to do so. If you are unable to attend, call_____ (collect) at ________as soon as possible so a replacement may be found. . Please do not send anybody to replace you,

I would like to remind you that the 2-hour group discussion will begin at [START TIME]. Please arrive 15 minutes prior to the starting time. If you are late, we will not be able to include you in the discussion and you will not receive the $[INSERT] gift. The group discussion will end at [END TIME].

Thank you for your time and we look forward to your hearing your thoughts and opinions during the focus group.

ATTENTION RECRUITERS

CONFIRMING

Incentives By Location

Appendix B: Moderator’s Guide

Moderator's Guide – FINAL

Introduction 10 minutes

Government Programs / Warm-Up 5 minutes

I'd like to begin by getting a sense of the government programs or benefits currently available.

Discussion as a group:

Awareness, Motivations & Barriers 30 minutes

Many of the benefits provided by the government (If relevant: some of which you have mentioned,) are only received through the process of filing income taxes with the federal government. Let's talk about that process a bit more.

GROUP DISCUSSION:

PROBE FOR AWARENESS IF NEEDED:

  • Have you ever applied for or received any of these tax credits or benefits? HAND COUNT
  • For those of you who have not received these tax benefits, how would you find out if you were eligible to receive them? How would you apply?
  • Using the paper and pencil/pen in front of you, I'd now like each of you to write down what comes to mind when you think of the Canada Revenue Agency and doing your taxes (Exercise #1). If you don't feel comfortable doing so, that's fine because you will have a chance to share when we discuss this as a group. As well, if nothing comes to mind, that's okay too. Don't feel like you must write down a response.

    GROUP DISCUSSION, FOLLOWING THE EXERCISE:

    The main objective of this research is to identify the best ways to help people receive benefits and credits they are entitled to by doing their taxes. I am interested in hearing from all, regardless of your previous tax filing experience.

    There might be reasons some people would want to file their income tax every year and reasons others might want to avoid that. Let's talk a little bit about that.

    GROUP DISCUSSION – ALL PARTICIPANTS:

    Explore further if raised:

  • Are there reasons specific to any group of people, or any community that you can think of that would affect whether or not someone files their taxes?
  • Some people may think it's too hard or difficult to do your taxes. What do you think are the main challenges people may come across?
  • Explore further if raised:

  • Are there negative impacts or consequences of not filing an income tax return?
  • Process 50 minutes

    I'd like to understand a bit more about what is involved in filing an income tax return and how someone might approach that process.

    GROUP DISCUSSION:

    ASK ALL:

    Communications 15 minutes

    I'd like to get your thoughts on the best ways for the Canada Revenue Agency to let you know about the process and benefits of filing a tax return. Before we talk about this together, go back to your exercise sheet (Exercise #2). There are a list of different ways the government could provide you with taxation information and I would like you to place a checkmark in the green column next to all of those that would reach you personally. Let's have a look at this together. There are a few empty boxes if you wish to add anything else that I've missed. MODERATE READ THE LIST OUT LOUD

    Then, choose up to three that are the most likely to reach you; place those checkmarks in the orange column.

    GROUP DISCUSSION FOLLOWING THE EXERCISE:

    I'm now going to pass out a short document that the Canada Revenue Agency has put together to share information about tax credits and benefits - we will read through it together. This is just a draft – information would be specific to your province / territory in any final version.

    Examples:

  • What are the things about tax filing and benefits you most want to know about?
  • Is this document providing some answers?
  • How do you feel about the way the information is provided? PROBE: content; tone; level of language; motivation
  • Anything confusing / unclear?
  • Government Priorities 5-10 minutes

    For the last part of our discussion, I'd like to get your thoughts on the general focus for the Government of Canada.

    GROUP DISCUSSION:

    Thanks & Closure

    That concludes our discussion. On behalf of the Government of Canada, I would like to thank you for your time and input. Direct them to the hostess to receive the incentive.

    Individual Exercise

    Exercise #1:

    What comes to mind when you think of the Canada Revenue Agency and doing your taxes?

    Exercise #2:

    Exercise #2 Check all that apply Check up to three (3)
    Radio advertisement
    Television advertisement
    Newspaper advertisement
    Brochures received in the mail
    Through social media (such as Facebook and Twitter)
    Posters or brochures in public places (pharmacies, libraries, etc.)
    From tax preparers or accountants
    From community organizations
    At a government office
    Mobile (tablet, phone)
    Email

    Appendix C – Outreach Documents

    Winnipeg

    It's Your Money Winnipeg

    A poster hand-out titled "It's Your Money" that Canada Revenue Agency put together to share information about tax credits and benefits. Specific for Manitoba. English version.

    Edmonton

    It's Your Money Edmonton

    A poster hand-out titled "It's Your Money" that Canada Revenue Agency put together to share information about tax credits and benefits. Specific for Alberta. English version.

    Québec

    It's Your Money Québec

    A poster hand-out titled "It's Your Money" that Canada Revenue Agency put together to share information about tax credits and benefits. Specific for Québec. French version.

    Thunder Bay

    It's Your Money Thunder Bay

    A poster hand-out titled "It's Your Money" that Canada Revenue Agency put together to share information about tax credits and benefits. Specific for Ontario. English version.

    Iqaluit

    It's Your Money Igaluit

    A poster hand-out titled "It's Your Money" that Canada Revenue Agency put together to share information about tax credits and benefits. English version.