Advisors need to be active in keeping clients aware of tax changes throughout the year, according to John Waters, vice president, head of tax and estate planning, BMO Nesbitt Burns Inc., as few Canadians think about their taxes except when its time to file their returns.

According to a survey by Toronto-based BMO Nesbitt Burns Inc., 87% of Canadians are unaware of end-of-year tax saving practices, such as tax-loss selling and charitable donations. Furthermore, the study, which was released on Wednesday, found that only 27% of Canadians believe tax planning is a yearlong activity.

Tax planning needs to be an ongoing process, however, says Waters, because by the time it comes time to file a return there is little that can be done in regards to tax savings. “When we actually sit down to do our tax returns in April,” says Waters, “by and large that’s just a record keeping process.”

Yet 31% of Canadians feel that the only time they need to consider their taxes is during the traditional “tax season” between January and April, according to BMO. As well, 36% of survey participants say they have their taxes under control while another 23% don’t believe taxes should be a yearlong priority. Twenty-one per cent of surveyed individuals say they are already aware of their eligibility for tax credits and therefore don’t need to give the matter another thought.

While clients may not think it’s a priority, advisors would do well to make sure their clients are up to date regarding tax changes. Says Waters: “[Keep] an ear to the ground in terms of what’s happening.”

For example, recent changes clients are likely to want to know more about include the federal government’s income splitting initiative, Ontario’s new tax rates, the increase to the Universal Child Care Benefit in 2015 and changes to the foreign investment form T1135.

Advisors can keep clients thinking about taxes throughout the year by alerting them to changes, such as the ones above, when they occur or during the annual review. As well, clients will also want to hear about the tax implications of various investments before making their final decision on what product to buy.

Survey results were compiled from 1,002 online interviews of adult Canadians between December 1-4.