Average Canadian Tax Refund Up In 2007 Tax Season

by Mike Godfrey, for LawAndTax-News.com, Washington

03 June 2008

Gordon O'Connor, Canada's Minister of National Revenue, announced on Friday that the average refund for the 2007 tax year was worth approximately CAD1,440 to Canadians — an increase of almost CAD200 per person since last year.

"As a result of our government's various tax relief measures, income tax refunds are up significantly this year," Minister O'Connor stated, adding that:

"Thanks to measures such as the children's fitness tax credit, the public transit amount, and pension income splitting, Canadians everywhere can use that money to save, invest, or spend it on things they need."

Since 2006, the government has announced nearly CAD200bn in tax relief over 2007-08 and the following five years.

Canada Revenue Agency (CRA) figures show that the majority of Canadians continue to choose electronic filing as their method of choice. In fact, the number of people filing electronically increased by 7.2% this year.

In a statement published on Friday, the Canadian tax authority announced that:

"With the filing season now complete for most Canadians, the CRA would like to remind self-employed individuals, and their spouses or common-law partners, that they have until midnight on Monday, June 16, 2008, to file their income tax returns."

"If they had an outstanding balance for 2007, it had to be paid on or before April 30, 2008, to avoid interest."

"A late-filing penalty on amounts owing will apply to returns received or postmarked after June 16, 2008."

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