The Canadian Revenue Agency has some very good advice for individuals and companies when it comes to tax planning:
“The Canada Revenue Agency (CRA) recognizes that you are entitled to arrange your affairs as provided for under the law to reduce your tax liability and to receive the benefits to which you are entitled. However, aggressively pushing the limits creates a risk of crossing the line, the line between acceptable tax planning and what is considered aggressive or abusive tax planning.”
“If it sounds too good to be true, or whenever you are dealing with a situation that is out of the ordinary for you, you might want to consult with a trusted and knowledgeable tax advisor who will explain to you the risks and consequences of various tax planning arrangements.”
The first step in minimizing your tax liability is to take advantage of expert tax planning advice. When it is time to file your tax return, it is too late to set up your finances so that they reduce your tax liability.
Letting an expert set up your personal or company finances to your best advantage is vitally important. Even the government advises you to do this. Taking risks, either out of ignorance of tax law, or knowingly, can do great damage to either your tax situation or your company’s.
However, you should take full the benefit from the 3 D’s of tax planning: Deduct, Defer, and Divide.
Jim Yih writes:
Take advantage of ATS tax planning services when it comes to: