The Holiday Season is a time to reflect
We have a lot to reflect on this past year. For many it will be time for difficult financial decisions caused by some of the unkindest events we could imagine. The world was progressing nicely and then there was COVID-19. That resulted in the most significant reset to our everyday lives that many have experienced […]
Personal income tax returns should be automated
Using technology will save Canadians and the government time, energy, and money, writes Peter Watson Canada should follow other countries and automate the current personal income tax filing system. Filing personal income tax returns in Canada is embarrassing, a complete waste of time and energy. Plus, it’s expensive, both for the government and individuals. Automate […]
Canada’s Income Tax Act Needs Reform
Canada’s Income Tax Act is an inefficient mess that needs to be radically reformed. It’s too complicated. There are 40,000 employees at the Canada Revenue Agency. Based on Canada’s population versus the United States, we employ five times more people collecting tax than our American neighbour, on a per capita basis. A simplified method of […]
CRA poll: Wealthy are favoured when it comes to income tax
Wealthy Canadians receive favourable treatment in avoiding paying income tax. This is the opinion of those that work at Canada Revenue Agency (CRA). The CRA is our tax collector. A union-sponsored survey was conducted by the Professional Institute of the Public Service of Canada (PIPSC). They are the union representing CRA employees. More than 1,700 […]
Tax planning and asset location
Do you pay too much income tax every year? The solution could be asset location. For individuals who have an investment portfolio that includes an RRSP or RRIF, and a regular Investment Account, this column will be of particular interest. Consider this a practical tax planning guide. Zero math skills are required however, you may […]
RRSP contribution season – it’s that time of year again
We are nearing the end of the RRSP season where Canadians flock to their financial advisor or financial outlet and make an annual contribution to their Registered Retirement Savings Plan. This multi-decade ritual seems to be changing. But first let’s review the basics. An RRSP allows a Canadian to contribute an annual amount based on […]
Fairness has evaporated from income tax rules
The Canada Revenue Agency (CRA) has been caught in an embarrassing mess. It appears it has turned a blind eye to wealthy families who were hiding income in order to not pay their share of income tax. Back in 2012 one of Canada’s largest accounting firms was alleged to have created fancy offshore tax shelter strategies for […]
