Tax

CRA to give 10/8 decision

Back at the December 2008 Canadian Tax Foundation Conference, the CRA announced it was preparing to audit loans secured with life insurance policies, also known as 10/8 plans.

February 18, 2011

2 min read

Estate Planning

Business owners need proactive tax planning

A heavy tax burden is a grave concern of surviving families as many Canadian family businesses owners take an approach to tax planning that is ‘too little, too late’, according to the Canadian results of PwC’s latest Global Family Business Survey. The study noted that the majority of Canadian family business owners are not fully […]

By Vikram Barhat |February 17, 2011

3 min read

Industry

Time is on the side of young investors

Becoming a millionaire might be more achievable than young Canadians realize, according to a TD Canada survey. Just a fist full of dollars a month, provided the saving starts early. The TD Canada Trust Millionaire’s survey, which polled 689 randomly selected Canadian adults aged 18-34, reveals young Canadians, despite having the power of compounding on […]

By Vikram Barhat |February 16, 2011

3 min read

Tax News

Capital gains mean tax-efficient investing

Reader alert: This is part 2 of a five-part series. • Part 1: Tackling tax-efficient investing • Part 2: Capital gains mean tax-efficient investing • Part 3: Tax-efficient investing and dividends • Part 4: Magic of tax-efficient bond investing • Part 5: Tax-efficient investor behaviour Capital gains are the most tax-efficient form of investment return […]

By André Fok Kam |February 11, 2011

9 min read

Odd RDSP tax case exposes problems

To ensure clarity and efficiency, new legislation is often layered upon existing law; otherwise, there could be unnecessary duplication of definitions, parallel procedures and inconsistent results. A recent court decision concerning the relatively new registered disability savings plan (RDSP) illustrates how this otherwise logical approach may nonetheless lead to unexpected outcomes, and leave a court […]

February 11, 2011

3 min read

RCAs avoid the cash grab

Out of the amount contributed to the RCA, 50% must go to a refundable tax account (RTA) with the CRA. Earnings within the RCA are not entitled to the capital gains inclusion tax rate, or to preferred dividend gross-up and tax credit treatment. As with contributions, 50% of realized RCA earnings must be paid to […]

February 11, 2011

4 min read

Lump sum cash receipts and the RRSP

It is a great day when you receive a large sum of money. Perhaps you just sold a business; maybe you received an inheritance from your parents; it could be an award settlement from a legal claim; possibly a divorce settlement; or, maybe even a lottery winning. And for most Canadians, it's not unusual to have lots of room to deposit a large sum to their RRSP.

By Blair Corkum |February 10, 2011

4 min read

Incorporation tax benefits for professionals

As a professional, significant tax planning opportunities can become available when you incorporate. These include splitting income with family members, taking advantage of low corporate tax rates to defer tax and possibly the capital gains exemption if you sell your corporation.

By Bruce Ball |February 10, 2011

4 min read

Tax

CRA to give 10/8 decision

Business owners need proactive tax planning

Time is on the side of young investors

Capital gains mean tax-efficient investing

Odd RDSP tax case exposes problems

RCAs avoid the cash grab

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Income Tax in Quebec: Main Changes for 2010

Lump sum cash receipts and the RRSP

Incorporation tax benefits for professionals