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"All taxation is a loss
per se. It is
the sacred duty of the government to take only
from the people what is
necessary to the proper discharge of the public service;
and the
taxation in any other mode, is simply in one shape or another, legalized
robbery."
Sir
Richard Cartwright
Dominion of Canada -
Minister of Finance,
Budget Speech 1878
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Download your own copy of the
CGA publication
'Personal Tax Planning 2005-06 National Edition'
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►
Business
Number (Canada Revenue Agency / CRA)
► Contact Information
/ Canada Revenue Agency (CRA)
►
Contact Information / Internal Revenue Service (IRS)
► Corporate
Taxation
► Goods & Services
Tax (GST)
► Personal
Taxation
*
Charitable
Donations
* Deceased
Persons Taxation
*
RRSP's
*
RESP's
*
Rental
Income
*
Tax
Deductions vs. Tax Credits |
►
Payroll information
►
Proprietorships
and Partnerships
►
Provincial
Sales Tax & Property Purchase Tax (British Columbia)
►
Probate
Fees (Canada)
► Record
Keeping requirements
►
Tax Dates to
remember (Canada Revenue Agency / CRA)
► Other Tax Tidbits
►
Weird GST and
PST Facts
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Articles of Interest...
►
Lottery
winnings, taxable? (CGA Magazine 06/2007)
►
Club memberships, Golf
fees, are they deductible expenses? (CA Magazine 05/2007)
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Increased Cost of Late Filed GST Returns! (CA Magazine 06/2007)
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The "Natural Person" Argument (CGA Magazine 09/2007)
►
Tax return Accountability (CGA Magazine 11-12/2007)
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| Top
Ten Tax Tips... |
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Have a Financial Plan. If you don’t
already have a financial plan, NOW is the time to get one. If you
do, now is the time to review it. You’d be surprised how focusing on
specific goals helps you watch where your money goes. For example,
transfer a set dollar amount monthly to a RRSP (or other financial
planning goal) and watch your wealth grow.
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Contribute to RRSP's. Contributing to an
RRSP is a great way to defer income tax and save for your
retirement. Try to contribute 10 – 15% of your annual taxable salary
(adjust if you have a company plan). Before you make your
contribution check your contribution limit. For more RRSP details
refer to our article on RRSP's.
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File on Time. Your tax return is due April
30, unless you or your spouse reports self-employed earnings in the
year, in which case it is June 15. Penalties are charged on late
filed returns; an immediate penalty of 5% of the balance owing plus
additional penalties for each month the return is outstanding.
Penalties increase for repeat offenders.
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File a Tax Return for your Child. When
your child has earned income, it may be advantageous to file a tax
return for them even when it isn’t necessary; this establishes
RRSP contribution room which may be carried forward to future years.
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Claim your child’s Unused Education Amount.
If your dependant child attends a qualifying Canadian university,
college or other post-secondary educational institution, they
may have unused tuition and education credits available for
transfer. Take advantage of this transfer (while they are
taking advantage of your hospitality).
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Claim Charitable Donations. Charitable
donations should be combined with your spouse and claimed by the
higher-income earner. Donations which exceed $200 entitle the
contributor to a larger tax credit so if your annual gifts don’t
exceed this amount hold onto your receipts (up to the last
five years) and claim in the last tax year. For more Charitable
Giving details refer to our article on Charitable Giving.
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Claim Medical Expenses. Expenses exceeding
a specified threshold (3% of your net income to a maximum of $1,885
for 2006) entitle you to a tax credit. You may claim medical
expenses for you, your spouse, and dependants you support (some
limitations). The expenses may be for any 12 month period
falling within the taxation year. For a complete list of qualifying
medical expenses refer to CRA / IT-519R.
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Keep your Records. Records must be
retained for tax purposes for six years from date of filing. Some
documents, such as those records pertaining to capital gains must be
kept until six years after the sale is reported.
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Review tax changes. Each year the
government responds to changes in the economy, public opinion, and
the law by implementing tax changes. It is important to review
these changes to determine if you can reduce your tax bill. It is
equally important to review your personal situation to determine if
tax credits are available that weren’t before such as qualifying for
the disability tax credit.
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Make tax installments. Your past and well
as your present situation will determine if tax installments are
required. If you are required to make tax installments, be
sure to do so otherwise you will be paying non-deductible interest.
There are limited situations where installments may not be required
even when requested; be sure to seek our advise before ceasing the
requested installment payments.
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Top Ten Tax Mistakes... |
- Mathematical errors, such as adding and subtracting incorrectly.
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Forgetting to reduce income by identifying
amounts received for workers' compensation, social assistance
payments, and net federal supplements.
- Claiming provincial tax credits incorrectly by
not calculating provincial tax credit forms properly.
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Forgetting to indicate pension adjustments.
This affects unused RRSP deduction room for the next year.
- Claiming an incorrect GST/HST credit by using
incorrect spousal income amounts.
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Entering the wrong amount for CPP, QPP and EI
contributions and overpayments.
- Claiming incorrect amounts as RRSP
contributions.
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Forgetting to claim the basic personal amount.
- Claiming the spousal amount incorrectly.
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Not claiming, or incorrectly claiming, the age
amount.
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