Articles: Archived News

Your RRSP might be able to help.

If you’re like the majority of taxpayers you have set up a registered retirement savings plan (RRSP) to save for a more comfortable retirement.

Their arguments might sound convincing, but those who say governments lack the constitutional power to impose taxes are off base. Eldon Warman, originator of a grassroots “de-tax” movement that started in Western Canada, has claimed for several years now that people can lawfully refuse to pay taxes or file tax returns. Despite Canada Revenue Agency … Read more

For Canadians buying US funds for a trip south of the border, an improving exchange rate can be a welcome turn of events but for those holding investments or conducting business in USD having currency-related gains or losses that, if realized, need to be include them in their tax returns.

Don’t miss an opportunity to pay your spouse and your children for work done to help the business. Canada Revenue Agency (CRA) has no problems with you paying family members as a tax-saving strategy so long as you meet two key conditions.

If you run a farm or other small business, be prepared for a tax auditor’s call. Previous reviews of Canada Revenue Agency’s (CRA) practices by the Canadian Attorney General’s office flagged “small and medium enterprises” (SMEs) for high levels of “non-compliance” with tax legislation.

Farming is big business. And big business is knowledge-intensive. Like other successful business people, farm operators need to acquire, maintain, and upgrade business skills and technical know-how on a regular basis. It’s the only way to keep pace with changes in their industry.

The principal residence exemption is one of the largest tax breaks in the Canadian personal tax system. It can entirely eliminate tax on capital gain incurred when a principal residence is sold. For a property to qualify as your principal residence in a given tax year, you must first own it in that year, or own it jointly with another person.

Do you struggle every year to complete your income tax return?

Consider hiring a professional tax preparer to handle this unpleasant chore. That way, you leave most of the hassle to an expert who knows the ropes.

Income trust units have their place but make no mistake: when you buy one of these investments you’re not buying a Government of Canada bond.

The increase in the number and types income trusts has been spurred to a large extent by income-oriented investors seeking higher yields than those available through traditional income-generating investments like bonds, GICs and money market funds.

In addition, because income trusts benefit from tax efficiencies not available to conventionally structured companies, many corporations have been hurrying to convert themselves to income trust arrangements to attract investor financing.