Taxes, Tax Reduction
In this section we outline the taxation system in Canada. We cover legal tax reductions and other questions. There are many different ways to reduce taxes. The most obvious and common is RRSP, TFSA, Health Insurance Plans, borrowing money for investments with reasonable expectations of earning income.
Do you remember the school song “What Are Little Boys Made Of?”
Then a detailed description of various things composing little boys and girls was provided.
Thus due to a set of “components” it became clear why all boys are such boasters and brawlers, and girls appear to be squealers and cowards. Consequently you realized what to [...]
Here is an example of Busines Income Questioner CRA is sending to small businesses in case of audit. If you are operating more than one business, please include information on each business when answering the following questions.
The Mining Flow-Through Share Tax Credit was introduced in B.C. in 2001, paralleling a federal program. The 20 per cent B.C. Mining Flow-Through Share Tax Credit is available only to individuals. The combined effect of the flow-through share deduction, the federal credit and the provincial credit for an individual investor is to reduce the cost of a $1,000 investment to about $383.
The Federal Government agrees that it’s important for all Canadians to save. And better still, they’ve just passed legislation to let you save without paying tax on the interest you earn. This means that soon all Canadians will be able to save up to $5,000 every year without being taxed on interest earned. This is great news for savers. And we’re very excited!
The Canada Revenue Agency (CRA) announced that Societe Financiere Speedo (1993) Ltee, a Montreal business specializing in loans in the taxi sector, had been convicted of tax evasion charges at the Laval Court House.
In the fall economic and fiscal update by Finance Minister Ralph Goodale some tax reductions were announced. The cuts are expected to bring $30 billion in personal income tax relief for Canadians over the next five years.
A nation’s productivity performance is an important factor influencing a nation’s long-term economic growth potential. In the first half of this decade, Canada’s annual average productivity growth significantly trailed the U.S. and also fared poorly among other members of the Organization for Economic Co-operation and Development.
Did you know that contributing to your favourite charity not only helps their bottom line, but that your generosity can also save you money on your taxes?
When was the last time you read your will? Is it still relevant? Are there changes that really should be made? After completing a will, most people put it in a safety deposit box and don’t bother looking at it again. This is a mistake because wills should be reviewed periodically, especially if there have been significant changes in your life such as…
Most times people ensure that they have a will in place but neglect to consider the possibility of being unable to manage their personal affairs while they are still alive. They could be temporarily or permanently incapacitated due to illness or an accident. A power of attorney can be written to manage an individual’s affair in such a situation. This would however need to be done when the individual is mentally capable.
Most Canadian investors are familiar with Registered Retirement Savings Programs, RRSPs for short. Your contributions are tax-deductible, the funds accumulate without having to pay tax and, on death, you can transfer the money tax-free to your surviving spouse. Every retirement plan should take full advantage of the fully deductible RRSP contributions you can make.
We all feel we pay too much in taxes. However, we don’t always take advantage of ways to save tax. The problem is that most of us feel that saving tax must be complicated. One of easiest ways to save tax is by “income-splitting”…
If you are like most Canadians, you think about your tax bill once a year..usually right before the April filing deadline. Unfortunately, by April it’s too late to do anything to save on that year’s tax bill. With the notable exception of RRSP contributions, most of the steps you can take to lower your tax bill must be taken before December 31.
We all feel we pay too much in taxes. However, we don’t always take advantage of ways to save tax.