Tax

Colossal RRSP room left untouched

As a potent savings tool, the Registered Retirement Savings Plan (RRSP) remains woefully underutilized for yet another year. A recent survey by BMO Financial Group revealed only 39% Canadians made an RRSP contribution, well below 50% as had been predicted by an earlier survey by the bank. “We are quite surprised that the number of […]

By Vikram Barhat |March 4, 2011

2 min read

Tax News

Home Buyers’ Plan troubles

The Home Buyers’ Plan (HBP) allows first-time home buyers to withdraw up to $25,000 from their RRSPs to assist them with the purchase of a home. The funds need to be paid back over a 15-year period. If payment is missed in a particular year, the amount not repaid must be included in the participant’s income for that year.

By Jamie Golombek |March 2, 2011

4 min read

Tax News

Charitable giving, flow-through shares strategies

March is flow-through share season: the time of year when Canadian resource and exploration companies are most likely to be out raising funds. Charitable-giving strategies using flow-through shares are relatively well known, but strategies using a corporate client’s capital dividend account, or CDA, are underutilized.

By Mike George |March 1, 2011

4 min read

Tax News

Inflated asset values can cause tax time issues

“The very term ‘Arabian horses’ takes me back to the early 1960s, watching in awe as Lawrence gallantly galloped across the Arabian sands on a sinewy strong stallion. The power, the grace, the beauty — it was unforgettable.” – Honourable Justice Campbell J. Miller (Teelucksingh v. the Queen)

March 1, 2011

3 min read

Protecting retiring allowance payments

A report by Generational Insight suggests that roughly 41.5% of the Canadian population consists of 'Matures' (those born between 1909 and 1946) and 'Baby Boomers' (those born between 1947 and 1966).

4 min read

Canadians raiding their RRSPs: BMO

After months of being lectured on their debt accumulation habits, Canadians have apparently taken up another bad habit, in part to combat the first: raiding their retirement plans. According to a survey conducted by Leger Marketing for BMO Financial, roughly 40% of Canadians with an RRSP admit they have made withdrawals from their plan before […]

By Steven Lamb |February 28, 2011

2 min read

Charity fraud concerns abound

An Angus Reid survey commissioned by Capital One and CanadaHelps shows 65% of Canadians are worried about fraudulent charities, a 14% jump from the results of a 2009 survey. This skepticism, combined with the difficulty of recovering donations made to fraudulent charities, led 53% of respondents to say they are less likely to give to […]

3 min read

Income trusts beyond 2011

Canada is in the midst of a bull market in yield securities. Retail and institutional investors alike are clamouring for securities generating and paying a steady cash flow. The demographics of this country provide strong evidence of why the demand for yield has seemingly accelerated in recent years.

9 min read

Create an RRSP exit strategy

As one of Canada’s best savings programs and biggest tax breaks, the Registered Retirement Savings Plan (RRSP) should be wildly popular. However, Canadians are not taking full advantage of them. Year after year, over 90% of taxpayers eligible to make RRSP contributions fail to make the maximum contribution, leaving unused contribution room on the table.

7 min read