Contract Number: 46558-163625/001/CY
Contract Award Date: December 19, 2014
Fieldwork Completion Date: January 19, 2015

Prepared for:
Canada Revenue Agency

Prepared by:
Harris Decima

For additional information:
media.relations@cra-arc.gc.ca

Ce rapport est aussi disponible en français

Executive Summary

Harris/Decima is pleased to present this report of research findings to the Canada Revenue Agency and the Department of Finance Canada. This project involved research with Canadians regarding their attitudes towards the economy and awareness of, perceptions of, and likelihood of applying for tax measures, and efforts government might pursue to address those issues.

Harris/Decima assessed, through qualitative and quantitative means, the public’s attitudes surrounding the administration of several existing tax measures. This report details qualitative research findings only. Quantitative research tables are provided under separate cover and are included as part of the submission of this report.

Objectives

The Canada Revenue Agency (CRA) administers tax laws for the Government of Canada and for most provinces and territories, and administers various social and economic benefit and incentive programs delivered through the tax system. The Department of Finance Canada (Finance Canada) is the federal department responsible for providing the Government of Canada with analysis and advice on broad economic and financial affairs of Canada. Jointly, the CRA and Finance Canada wished to explore in more detail the public’s attitudes surrounding the administration of several existing tax measures as well as testing a series of related television advertisements.

Results will provide insight into Canadian general public awareness and perceptions on:

• views on the state of the economy, to provide context for subsequent questions;
• Awareness of existing tax measures, and understanding of Government of Canada messaging concerning them;
• Likelihood of and conditions for applying for the tax measures; and
• Perceptions on the ease of applying for the tax measures.

The total cost of the research was $148,460.78 (including HST).

Methodology

Harris/Decima conducted a two-part research program for the CRA and Finance Canada during the winter of 2015. The research program included a comprehensive survey of Canadians and focus groups across the country. This approach was in line with the CRA’s research requirements.

Qualitative Phase

The focus group component of the research was conducted with members of the general population in six locations across the country. In each location, one group was composed of individuals living in lower and middle income households, and one group of those in higher income households, utilizing a formula that weighs two-income and single income households appropriately.

A series of twelve focus groups were conducted between January 10 and 17, 2015. Two groups were conducted in each of Burnaby, BC; Calgary, AB; Mississauga, ON; Kitchener, ON; Bridgewater, NS and Quebec City, QC. Groups in Quebec City were conducted in French; all other locations in English.

The sessions were standard in-person focus groups of two hours in length. Ten people were recruited and confirmed, aiming for between eight and ten participants. They each received an honorarium of $75 in appreciation for their time. Depending on the day of week, sessions were either conducted in the evening or during the day.

The following table summarizes the specifics of the project:

Appended to this report are the recruitment screeners (see Appendix A) and discussion guides (see Appendix B) in both official languages.

Quantitative Phase

The 11-minute quantitative survey was conducted by Harris/Decima and is based on 3,003 telephone interviews conducted between January 6 and 19, 2015. The sampling method was designed to complete 3,000 interviews with the target audience of Canadians 18 years of age and over. From within each multi-person household contacted, respondents 18 years of age and older were screened for random selection using the “most recent birthday” method. The use of this technique produces results that are as valid and effective as enumerating all persons within a household and selecting one randomly. The sample was stratified to ensure meaningful data and analysis at the provincial level. The data are statistically weighted by region, gender and age according to the most recently available Census information (2011). The margin of error for a sample of 3,030 is +/- 1.8 percentage points, in 19 out of 20 samples (margin of error is greater for subgroups).

A more detailed description of the methodology is presented at the back of the report (see Appendix C), along with a copy of the questionnaire in both official languages (see Appendix D). Quantitative research tables are provided under separate cover and are included as part of the submission of this report.

Key Findings

In the discussions, participants displayed a general sense that things were going relatively well in Canada compared to circumstances perceived in other parts of the world. Within that context, participants expressed a sense that there are nevertheless always some issues deserving of attention.

Among the more frequently mentioned issues on their minds, participants offered:

• Economic issues; including the price of oil, unemployment (youth), job opportunities and lay-offs, lower Canadian dollar, cost of living, minimum wages, housing prices, off-shoring of jobs, foreign policy, and economic diversification.
• Security issues; including wars abroad and Canada’s involvement in them, terrorism threats in Canada (i.e. homegrown terrorism) in light of recent events in Ottawa and Paris and the emergence of ISIS.
• Aging population; including issues particular to retirees such as retirement age and income, replacement of the retiring population and to a lesser extent, health care.
• Immigration; mentioned in various contexts, secondary to other issues.

Following an initial discussion about how the country is doing in general, participants were asked to focus more specifically on Canada’s economy.

In virtually all discussions, there were diverging views on how the economy was performing, with some sectors or regions performing better than others.

Those geographic areas most involved in resource extraction, particularly the oil industry, were felt to be experiencing an economic downturn due to the lower price of oil. The Atlantic region was perceived as having higher levels of unemployment as well, which some are concerned will be exacerbated due to job loss in the West. Conversely, there were regions and sectors that, in contrast, were expected to benefit. In particular, the manufacturing sector, largely seen as affecting Ontario’s economy first and foremost, was often cited as one where there had been a downturn with little or no sign of recovery and in which participants tended not to see a recovery as likely any time soon.

A variety of probes uncovered perspectives on what challenges or threats were facing the Canadian economy. The threats that came up most often included:

• Price of oil and the lower Canadian dollar
• International economic conditions
• Employment
• Personal or Household Debt Levels
• Reduced Purchasing Power
• Economic Impact of Aging Population
• Retirement Preparedness

The discussions then turned to specific tax measures that the federal government recently introduced. Awareness of the individual tax measures was mixed with most participants voluntarily mentioning one or two of the seven being discussed. Generally, awareness of the Universal Child Care Benefit and Children’s Fitness Tax Credit were more easily recalled with some also voluntarily mentioning the Family Tax Cut (more generally referred to as income splitting). Support for these measures was high with the general sense that “every little bit helps.”

To complement this discussion, two television advertisements highlighting the tax measures were tested with participants. The ads were received positively and the overall message was easily understood. The main message understood by participants was that there are tax credits being proposed that will help Canadian families. There was also wide recognition that these tax credits will be obtained by filing their income tax returns.

There was variety in how participants prepared their tax returns: half of participants used a tax professional for guidance and the other half prepared their returns themselves. The large majority of those who did it themselves used software to file their taxes, with a very small number using pen and paper. Tax professionals were consulted when participants felt that their taxes were more complex (such as small business owners or those with investments) or those who did not feel confident in their knowledge of the tax system. Participants who used software felt that it makes filing their income tax easier and more complete due to the prompts for specific information.

Some had contacted CRA in the past, usually by telephone, and expressed satisfaction with their experience. CRA staff were well-regarded as being knowledgeable, friendly, and with a high willingness to help.

Awareness and usage of My Account, the electronic service that allows Canadians to track information related to their income taxes, was low. Upon hearing of the service, some thought that it was interesting, but expected future usage to remain low.

Proprietary Warning

Any material or information provided by the Canada Revenue Agency and all data collected by Harris/Decima will be treated as confidential by Harris/Decima and will be stored securely while on Harris/Decima's premise (adhering to industry standards and applicable laws).

Research Firm: Harris/Decima Inc.
Contract Number: 46558-163625/001/CY
Contract award date: December 19, 2014

Harris/Decima Inc. certifies that the final deliverables comply with the political neutrality requirement in section 6.2.4 of the Procedures for Planning and Contracting Public Opinion Research in the Government of Canada.

Megan Tam, Vice President
Harris/Decima Inc.