By Timothy J Cestnick
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Additional resources for 101 Tax Secrets For Canadians 2010: Smart Strategies That Can Save You Thousands, 2nd Revised and Updated Edition
Home Team Advantage: Tax Planning for the Family The thing that a parent will never understand is why all bachelors aren’t rich. I t seems like only yesterday that Carolyn and I got married. In fact, we tied the knot on August 3, 1997. I have to admit, one of Carolyn’s virtues—and she has many—is that she can cook like no one else I know. I can’t even make my way around in the kitchen except to raid the fridge. In fact, some people accuse me of getting married solely for the culinary benefits. That’s ridiculous.
Avoiding tax could involve using loopholes, which are inadvertent errors in the Income Tax Act, but more commonly will involve using provisions of the law to your advantage. Tax evasion, on the other hand, is an attempt to reduce your taxes owing or increase refundable credits by illegal means, such as making false statements about your income or deductions, or destroying records. Trust me, if the Special Investigations Unit of the Canada Revenue Agency (CRA) catches you in the act of evasion, you’re in for a rough ride.
General Corporate Tax Rate and Surtaxes Previous announcements by the government will reduce the general corporate income tax rate (after the 10 percent provincial abatement) to 15 percent by 2012. 5 percent (2011), and 15 percent (2012). 12 percent corporate surtax took place January 1, 2008 for all corporations (as announced in the 2006 federal budget). Small Business Limit and Tax Rate The annual amount of taxable income eligible for the Small Business Deduction—generally referred to as the “Small Business Limit”—was increased in the 2009 federal budget to $500,000 federally (up from $400,000).
101 Tax Secrets For Canadians 2010: Smart Strategies That Can Save You Thousands, 2nd Revised and Updated Edition by Timothy J Cestnick