Taxes Are A Coming! Or Are They?
April 30th, the dreaded deadline for Canadians to pay their taxes to the Canada Revenue Agency (CRA). Not everyone owes the CRA money. There’s a growing number of Canadians that earn six-figures and won’t pay any income tax whatsoever!
These are Canadians who LEGALLY avoided paying income tax.
They know the game and all it’s rules, or they’ve hired tax professionals who specialize in reducing taxes efficiently and effectively.
Tax the Wealthy!!!
For decades, the Government told the average Canadian they’ll increase taxes on the wealthy. These Government promises never amounted to more than idle chatter with no substance. If you knew how to use the system correctly, then these Government promises only appealed to the uninformed voter. Justice will be servered!
“Our tax system is overly complex and probably benefits people who hire lawyers and accountants to work for them … lower-income people don’t have that option,” says Michael Veall, an economics professor at McMaster University who has spent 30 years studying Canada’s tax system.
Last year, he co-authored a study that found nearly half of high-income Canadians are business owners. He says this allows them to write off most of their income “through their corporations and not pay taxes immediately.” msn.com
Charitable Giving – Reducing Taxes And Helping Others!
Charitable donations or Government gifts is one of those deductions that help a worthy cause or need, and is an effective tax tool.
According to the CBC News analysis, more than half (53 per cent) of the amounts deducted as a charitable donation or a government gift in the tax year 2014 came from Canadians earning $100,000 or more. They wrote off more than $5 million, or about $4,300 each.
Smart stresses he doesn’t know how taxpayers manage to avoid paying taxes completely, but “if you combine the various different loopholes in the system, the alternative minimum tax is supposed to kick in and guarantee that every taxpayer’s overall tax rates is about 15 per cent of their total income. There are a few exceptions to that, and one is charitable contributions.” msn.com
Are you taking full advantage of the loopholes the Canadian Income Tax Act provides each and every Canadian?