The way we interact with our government is constantly evolving, especially when it comes to taxation in these troubling economic times. More than ever, families are finding deductions, credits and other tax benefits to be somewhat of a saving grace.
- The Canadian Government collects almost three times more from personal taxes than it does from corporations; it may seem unfair, but this is because of fantastic amenities like socialized medicine.
- If you’re new to Canada, the Canadian Immigration Tax Benefit can help you get situated. If you’ve immigrated, you probably aren’t yet aware that Canada does not impose estate taxes or duties.You also may not be aware that taxation is based on residence, not citizenship. If you’re living in Canada, expect to file taxes this year. Which brings us to…
- Canada taxes residents on their world wide income. Non-residents only pay Canadian tax on certain sourced income or capital gains.
- A lot of people don’t realize the tax benefits you file for will be paid out the following year.
- Canada Child Tax Benefits are calculated on a sliding scale using a family’s net income. When applying for Basic Child Benefits, if your income is over $40,970, you will receive less in benefits than other households. If you have one child, the reduction rate is 2%, and if you have two or more children, the rate is 4%. There are five additional credits that parents can claim – find the correct child tax credit that applies to your unique financial situation.
- New Canadian Permanent Residents can reduce Canadian taxes by planning in advance of their arrival into the country. They are allowed to establish a properly structured offshore trust to shelter non-Canadian sourced income and capital gain for up to five years after their arrival in Canada. During this five-year tax holiday, the new resident can acquire Canadian citizenship and choose to become a non-resident for Canadian tax purposes.
There are many opportunities to help you balance your wallet and optimize what you could be getting back next year. Make sure you don’t miss the chance to file for benefits that can help you pave the road to a smart financial future.
Author Bio: Olivia Mungal is an award-winning writer with pieces of her work archived in the Library of Congress. With a background in Law, she tackles convoluted economic issues in entertaining and engaging ways.
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United States tax code is established for the rich so that they can benefit from loopholes. People who are below poverty line and a little above it do not even know what loophole means.
There are two basic concepts behind U.S. tax code:
1. The more you make, the less you pay – ever heard of loopholes?
2. The less you make, the more you pay – never heard of loopholes?
Does anyone know how the Permanent Residency benefit through a sheltered trusts work?
Small private corporations are taxed at a lower rate than individuals to encourage business to grow in Canada. Beyond that, personal and corporate taxes are fully integrated.
@Virata – Persons considering entering Canada can place their assets in an offshore trust for up to three years before the trust assets become taxable in Canada.
does anyone know if you can get a refund from paying estate taxes twice on the same estate within 4 years back in 1968