• Mar
    27

    It’s Income Tax Time in Canada: Let the Scare Tactics Begin

     

    Once again, income tax time is upon us as Canadians. And, once again, the government claims that it’s not collecting enough income tax.

    Here’s a sampling of some of the articles you’ll see:

    One of things you’ll see repeatedly are the terms: “tax evasion” and “tax avoidance” being used together. The implication is that they’re the same thing.

    That’s false.

    Tax evasion is one thing, but tax avoidance is something else entirely. According to Investopedia tax avoidance is: “The use of legal methods to modify an individual’s financial situation in order to lower the amount of income tax owed. This is generally accomplished by claiming the permissible deductions and credits.”

    See the difference?

    Then there’s the issue of the income tax burden on Canadians. According to this article, the tax burden on Canadians is up slightly. I don’t know where they’re getting their data, but I think the numbers are off.

    In the book: My Blue Haven by noted Canadian author Alex Doulis, the numbers are actually higher than quoted in these reports. In “My Blue Haven,” it’s mentioned that “tax freedom day” comes in early June. This when we’ll have paid off the income tax to the government and can actually start earning money for ourselves.

    And in the book: The 10 Secrets Revenue Canada Doesn’t Want You to Know, author David Voth states: “The average Canadian now pays half of their income in some form of tax, while the highest income earners pay as much as 75% of their income in tax!”

    In The Tax Collectors Bible, by author and former CRA auditor, Alan Baggett, you’ll learn that many Canadians are disenchanted with income tax, not to mention the ways the government is spending those hard-earned tax dollars.

    Then there’s the HST fight (and subsequent return to separate PST and GST in British Columbia), led by former premier, Bill Van Der Zalm. According to an article I read in The Province, an average family will save $350.00/year.

    It’s Income Tax Time Once Again

    And the scare tactics abound, as they do every year. To find out what’s really going on, we have to educate ourselves. Appearances can be deceiving.

    Do you have an opinion? Feel free to voice your thoughts in the comments.

    © Nathan Segal

    Note: This article contains affiliate links. If you buy one or more of the books listed here, I might receive a commission.

    No Comments

Leave a reply

Archives