News Releases

TORONTO, April 19, 2010 - The majority of Canadians are not thinking about tax implications every time they are making investment decisions, according to a Leger Marketing survey commissioned by BMO Nesbitt Burns, and as a result are either paying too much in taxes or not reaping the full benefits from their investments.

• More than three-quarters (76 per cent) of Canadians do not take tax implications into consideration every time they make an investment decision
• Almost 40 per cent (37 per cent) are not confident they are taking advantage of all tax incentives available to them
• Almost 9 in 10 Canadians (89 per cent) are not certain how recent changes in federal budgets impact their personal tax situation.

"The results clearly indicate that many Canadians do not fully understand their personal tax situation," says John Waters, Manager, Tax Planning, BMO Nesbitt Burns. "People have the opportunity to pay less tax if they take the time to understand the basics and seek advice when needed."

While considering overall investment objectives and factors such as risk tolerance and expected return should be top of mind for investors, BMO Nesbitt Burns is also recommending that Canadians keep in mind personal tax implications when planning their investment strategy.

"Ensuring you"re making sound investment decisions that fit within your personal financial plan means weighing the risks against the possible rewards, but taxes can have a significant impact on the net returns ultimately achieved," says Mr. Waters. "A BMO Nesbitt Burns advisor can help you understand the basics of investment taxation in addition to creating an overall financial plan for you."

Be aware of recent Federal Budget tax changes

With the introduction of some important changes to personal tax laws in recent budgets, BMO Nesbitt Burns advises Canadians to take the proper steps to learn how these changes will impact their personal financial strategy. While most Canadians claim they are aware of the changes that have been made, 89 per cent are not completely sure how these changes will impact them.

"The 2010 Federal Budget introduced measures intended to improve tax fairness. Canadians should take steps to understand these proposed measures to determine any possible implications to their investment strategy," adds Waters. "They need to ensure they are up to speed on which recent changes may affect them in order to build a sound financial strategy for the future."

Mr. Waters is available for interviews on several tax-related topics, including:

• Tax planning and savings tips: simple things almost everyone can do to improve their tax situation.
• Understanding how the different types of investment income are taxed, to take into account personal tax implications when planning an overall investment strategy.
• Considerations for entrepreneurs, including the personal, business and family aspects of taxation.
• Things you can do now to minimize the amount of taxes paid for next year and beyond.
• Understanding the potential impact of recent personal income tax changes to Canadian tax law, including significant changes to the taxation of employee stock options and enhancements to Registered Disability Savings Plans (RDSPs).