Prepared for the:
Public Affairs Branch
Canada Revenue Agency
FINAL REPORT
February 2007
POR# 237-06
Contract # 4655870637
Prepared by:
Corporate Research Associates
Le rapport complet en français sera fourni sur demande.
To request a full copy of this report, please contact Library and Archives Canada at:
613-996-5115 or 1-866-578-7777 or www.collectionscanada.ca
Media Enquiries:
Media Relations
Canada Revenue Agency
4th Floor 555 MacKenzie Avenue
Ottawa ON K1A 0L5
media.relations@cra-arc.gc.ca
Executive Summary
Findings from the Qualitative Research with Younger Canadians conducted by Corporate Research Associates Inc. on behalf of the Canada Revenue Agency suggest that youth have minimal awareness and understanding of income taxation. Understanding of how income taxation works is especially limited among youth aged 16 and 17 years old, and among older unemployed youth.
Although youth have generally heard of terms and expressions pertaining to income taxation, perceived understanding is limited. In fact, terminology such as "filing your taxes", "deductions", and "source deduction" were generally not familiar to youth across age groups. Youth 16-17 years old did not know the meaning of other terms, including "income tax refund", "taxable income", "Registered Retirement Savings Plans (RRSPs)", "T4 information slip", and "direct deposit" as it relates to income tax. In addition, although the collection of income taxes is recognized as a governmental responsibility, few youth, regardless of age group, are aware of the Canada Revenue Agency and its specific roles.
Youth also expressed limited knowledge of the requirements and processes involved in filing an income tax return. It is felt that all working Canadians are obligated to do their taxes, with the exception of those receiving social assistance benefits and homeless individuals. Furthermore, while most instinctively know that "doing your taxes" involves filling out a form and sending it off along with receipts to the government, very few were familiar with the specific steps involved in filing a return. A "tax return" is considered to be the payback from government that may result from doing your taxes. Not only is knowledge limited, but youth also perceive the process to be lengthy and complex, based on witnessing their parents do their taxes. This finding highlights the importance of better informing and reassuring youth regarding the process and potential benefits of filing a tax return.
Common questions regarding the filing process suggested by youth included who must file a return, reasons for or potential benefits of filing, consequences of not doing so, documents needed, and methods of filing. Most importantly, youth need to be made aware that they could potentially get money back if they file a return, as it is deemed the greatest motivator.
Simple information to encourage participation (e.g. advantages, consequences, timeline, etc.) could be provided using a print awareness campaign in public transit vehicles and locations and public washrooms, in support to a broader youth educational campaign delivered through in-school presentations and on schools' Web sites. Direct mail, if addressed and bearing the look of an official document, may also be effective at getting youth's attention.
In contrast, the appeal of other traditional media, including radio, television, and movie theatres was mixed, and reactions to the use of non-traditional online media (e.g. Internet banner advertisements and 'pop-up' windows) were generally negative. Similarly, youth felt advertisements using personal music players or cellular telephones would be invasive and unwelcome. Nonetheless, youth suggested they would pay attention to advertising with a humorous and upbeat angle.
In addition to developing high level, motivational messaging, the CRA should also consider providing youth with more targeted instructions on filing an income tax return. Indeed, youth clearly expressed an interest in better understanding the steps to filing a return, therefore suggesting the need to tailor instructions and develop targeted tutorial tools that apply to most youth's situations. Such tools could be available through schools, or online on the CRA Web site, and need to be user-friendly and use plain language. Given youth's technological savvy, an interactive electronic or video presentation should be considered.
Finally, the role of parents as an information source for youth cannot be underestimated in either the development of a youth educational campaign or in provision of general information on income taxation.
