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NetFile's popularity fuels growth of online tax preparation in Canada


FOR FURTHER INFORMATION:
Joanne Birtch 905-845-0908
Email jbirtch@drtax.ca

FOR IMMEDIATE RELEASE:
March 25, 2003

Consumer confidence in the Internet, combined with easy to use software and a robust site, credited for UFile's success with Canadian tax filers.

Montreal, March 25, 2003 CNW/ Dr Tax Software Inc., makers of UFile.ca, announced today that acceptance of online tax preparation and filing has moved into high gear among Canadian taxpayers.

Last year, the CRA reported that 9% of all tax returns filed were received via NetFile. So far this year, that number has climbed to 15%. As more and more Canadians embrace filing using the NetFile option, an increasing number are turning to online solutions to prepare and calculate their tax return as well.

NetFile's popularity is due to its convenience and the CRA's ability to boast that 90% of those who filed their tax returns in this way last year received their tax refunds within 9 days.

In order to use NetFile, taxpayers must use a certified tax software such as UFile. A list of certified products is available at www.netfile.gc.ca/software-e.html#list on the CRA's Web site.

Statistics out of the CRA show that UFile.ca is one of the top online tax applications. "Our numbers this year clearly show that an increasing number of Canadians are turning to the Internet for tax preparation. Why? Because it is easy to use, inexpensive and always up to date" says Malcolm Campbell, VP and General Manager of Dr Tax Software Inc. "In only 3 years, online tax preparation has gone from being an unknown concept to the point where this year, it will account for close to 200,000 returns. UFile users have either stopped using retail software or are abandoning the pen and calculator in favour of the convenience of visiting our Web site."

To file a tax return using an online tax product, taxpayers are asked to create a confidential user ID and password and enter their tax information into the online application. With a click, this information is used to produce complete tax returns which may be reviewed, printed and/or filed with the CRA (and the MRQ in Quebec) using their NetFile service. There is no program to download or install, and data is stored on the program's secure servers for retrieval and editing by the user only, thanks to the user ID and password.

The best online products allow the user to try out the program free of charge, and to print out a copy of the return. Payment is made only when the user is ready to view beyond a summary to the completed return. Modest-income earners may use an online product at no charge.

"What the UFile user sees on screen is pretty simple - just fill in the blanks. It's the technology behind a Web product that is key. It must be reliable, secure and robust. Steps were taken from the outset to ensure that UFile could serve thousands of concurrent users without straining resources" says Campbell.

"As NetFile's popularity grows, so will the use of online tax products. Like online banking, the convenience of online tax preparation is hard to beat."

About Dr Tax Software Inc.

Dr Tax Software is a privately-owned, Canadian company located in Montreal, Quebec. It is a leading developer of tax preparation products and has served the professional tax community with personal and corporate tax products for 15 years. UFile was launched in 2001 to serve consumers in all Canadian provinces in both English and French. Dr Tax Software's UFile has partnered with such trusted financial and tax sites as Sympatico.ca, Moneysense.ca, Softrontax.com and Libertytax.ca.

 

 

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