• Apr
    10

    Canadian Income Tax Avoidance (and Income Tax Reduction) Strategies

     

    Since it’s tax time you’ve no doubt seen many articles about tax avoidance and tax evasion (mostly by government) and bandying around those two terms as if they were the same. They’re not. Tax evasion is one thing, but tax avoidance is completely legal. As far as I’m concerned, by using both terms in the same sentence the government is intentially trying to confuse the public and are probably succeeding.

    In addition, there’s one important thing you need to know. In 1938 there was a landmark case in the house of lords in Great Britain, a ruling which also applies to Canada because Canada was a dominion of Great Britain at the time. Lord Curson ruled in Westminster vs. Regina that “a man had the right to arrange his affairs in such a manner to attract the least amount of tax.”

    The bottom-line? Tax avoidance is legal in Canada.

    Now, I’m going to post links to several articles, all about tax avoidance or reducing your income tax profile in Canada.

    Note: I’m not an accountant and I’m not giving legal advice. If you have any questions about what you read here, consult with a professional.

    The first group of strategies is an article in the Victoria Times Colonist titled: Many ways to reduce your taxes. It’s a decent starting point, but one can go much further than that.

    Some other strategies I found come from blogger John Chow. Here’s the first part of his articles on reducing your taxt profile. And here’s part two and part three.

    Here’s another option: How Income Splitting Can Reduce Your Tax Bill.

    And as in my other articles, I recommend that you read My Blue Haven and The Tax Collectors Bible.

    © Nathan Segal.

    No Comments

Leave a reply

Archives