A good deal of tax saving is possible through proper tax planning in different types of investments. If a person wants capital gains on the transfer of any capital asset, whether a movable or an immovable property he can save a good deal of income tax by proper planning of investments. Below are some more creative and mostly used deductions available for proper tax planning?

Mortgage interest

Most people are not able to claim a deduction for mortgage interest, but it’s possible to deduct your mortgage interest by carrying on a business from your home. You don’t have to leave your job, but using your home as your principal place of business for selling some type of product or service on a part-time basis or using your home on a regular or continuous basis to meet customers will allow you to claim a deduction for part of your mortgage interest.

Self-employment losses

It’s usual in the first couple of years of a business to incur losses. These losses can be applied against any other type of income. You can’t create or increase a loss from home office expenses such as property taxes or mortgage tax, but those costs can bring your self-employment income down to zero and create a loss. Unused home office expenses can be claimed against self-employment income in the future.

Automobile costs.

When you use your own vehicle in your employment and you did not receive a tax-free allowance or reimbursement to cover those costs, you can claim a deduction for a portion of all your car costs which can include gas, repairs, oils, insurance, licence fees, auto club fees, interest on a car loan, lease costs, capital cost allowance and more. If the total of your car expenses is higher than this tax allowance, you can choose to include your unreasonable allowance in your income and then deduct your actual car expenses.

Carrying charges

Most people are not aware of carrying charges that can be deducted which includes investment management and custody fees, fees paid to investment counsellors, safety deposit box fees, fees for recording investment income, tax preparation fees, interest on borrowed money used for business or to earn investment income and legal fees you paid relating to support payments that are owing to you.

Salary of an assistant

It’s possible to claim a deduction for wages or salary paid to an assistant if your employer requires you to pay for such a person’s services. You can hire your spouse or child to assume that assistant’s role as this can result in a sizable deduction against your employment income for amounts paid to that person and you’ll be keeping the money in the family.

    Corporate tax in Canada forms a very small part of the total revenue generated by all kinds of taxes in the country. All the corporate houses in Canada are taxed on the gains from different commercial based activities undertaken and on the capital that they generate which is then disbursed to the shareholders as dividends. A credit is given to the individuals who get dividends to show the payment of corporate tax. Taxation on the dividends is as a result much more than most other methods of generating income.Half of this income is brought under the tax laws and the rest half is excluded.

Companies may subtract the capital cost on the basis of regulations in the Capital Cost Allowance with the deductions allowed on any property that was owned for a short interval. These deductions are also on the property which is re-leased to the original seller.

From the year 2002, many large corporate houses and companies converted themselves into “Trusts” to reduce or completely eliminate their income taxes.This fast tracked the trust sector’s growth a lot. However the government plugged this loop hole by declaring that any new trusts will be treated like the corporations and will be taxed similarly and these new rules were also applicable to the older or the existing trusts to which stopped such modifications by the corporates.

In Canada corporations were also taxed on the capital income by them which were removed completely at the federal level in from January 2006 but some territories continued to charge these taxes till the year of 2012.A review was done by the Canadian Finance Department to determine whether corporate tax should re-introduce on the group level. This review however did not bear any solution and as a result of which such a group taxation law was not formed as the department didn’t find this as a need of the hour.



The tax returns of an individual staying in Canada are evaluated on the basis of the income sources whether it is domestic or from international commercial transactions. Such an immigrant can however approach an immigrant trust, and let the trust manage such commercial activities on his/her behalf. As a result, they can save taxation on such assets for a period of 5 years.

Such a trust can be set up before or a maximum up to 5 year after the individual immigrates to Canada. Such a trust should be non-resident in nature i.e, it should be in the hands of a non-resident trustee or under the control of a set of laws which are not under Canadian jurisdiction. The individual should not have any kind of transaction with a citizen of Canada too.

Once the immigrant becomes a Canadian citizen, the profits generated by the assets under the immigrant trust are tax exempted for 5 years. The setting up of immigrant trusts requires a lot of financial planning as such trusts provide a number of tax related benefits, financial information and safety.

For a layman, the simplest meaning of non-resident taxation in Canada is the tax levied on the residents when they are present outside the country during the taxation time of the year. Now, this isn’t as easy as it seems to be. There are certain rules and regulations to this. Non-resident taxation is a bit different from the resident ones. There certain specific rules and regulations available for this, which an individual should follow, in case they are not present in their domicile during the taxation period of the year.

Canadian residents use the T1 tax and Benefit return for taxation. The rule is same for individuals and employees. And how is the tax calculated? Any tax payer must have known it. Anyways for the sake of understanding the calculation method, here it is: income tax is usually calculated by reducing the allowed expenses from the overall gross income received.

Adding more information to this, here is some important information regarding non-resident taxation in Canada:

• If you are routinely living in another country and are not the citizen of Canada, then you are subjected to nonresident taxation purpose.
• In another case, if you do not have significant residential ties within Canada, then also you can avail this taxation purpose. But what’s the meaning of insignificant residential ties? It can happen if you live outside Canada throughout the year or else if you are outside of the nation for more 183 taxation days. There are several other aspects of residential ties also. A home in Canada, a spouse or any common law partner or else any other dependants who stay in Canada, any personal property like car or any other vehicles and automotives, or any other household objects like furniture.
  
  
  
  One of the most surprising facts which are lesser known to people is that, even strong social ties can be a residential security. Other ties which are relevant in this regard are driver’s license, bank accounts or credit cards of Canada and a health insurance within the Canadian province or territory. There are many other aspects also; you can get the details from an authorized source. And for finding an authorized source, you need to do a bit of research also. Follow the normal search strategy and you can land up with many taxes related sources. And finally consult the best one!
  If you are looking for reliable Canadian tax expert in this regard, contact Michael Atlas. He is a professional Chartered Accountant with profound expertise in this niche. For more details regarding his work profile and business portfolio, browse through his official website at http://taxca.com/
  
  
  

People dread the word income tax; all that comes to their mind, when they hear it, is loss of a fraction of their salaries. In the times we are in, money to people is the most important thing. It is a general consensus, that nobody likes to pay taxes, but if you want developmental processes to carry on, like always, it is necessary. It is of note here that not only residents but also non-residents have to be a part of the taxpaying regulations. These measures are taken and ensured to strictness by every country and its government to try to utilize the country’s resources for its own economy.

The fact that these rules have to be followed by immigrants may cause them to distress. This could be because of not having the apt knowledge about how to accomplish the formalities, or how to apply for an exempt and even the way to maximize tax returns. For these purposes, you require the help of an established professional in the area of taxation for non-residents in Canada. One of the top names in the list for this is Michael atlas, a pioneer in the field of taxations and tax return assessments. He has been in the field for more than 20 years, and the reputation he has garnered speaks for itself.

Taxation and exemption are the two sides of the same coin, your country may or may not have signed a treaty with Canada for specialized rebates, and you end up paying taxes on the income you are getting in the country. You can get the professional help of Mr. Atlas, to maximize your income tax returns, by investing in funds, and bonds. The specialized techniques of calculating your due tax, and the return to expect on it, will be taken care of, by his firm. In a nutshell, if he agrees to take up your case, you no longer have to spend sleepless nights in the fear of missing out on something. His firm not only deals in domestic cases, but s equally adept at taking up international clients as well.

For the domestic clientele, he helps with real estate tax assessments and general tax payments. His international services are a tad up market, with helping organizations settle taxes while acquisitions and mergers with different firms. Assistance is also provided for corporate tax rebates, for better assessment of due tax payments. The credibility of his services could easily be judged by the quality of his clientele. The best factor that encourages people to hire him, is the priority given to clients, by accommodating to their needs. An example of this would be that he provides free preliminary assessment or free first time assessment of your taxable amount and the returns that you could expect out of it. The genuine customer oriented outlook that his firm has, which lets clients have Skype, chats and telephonic conversations to discuss their issues, is a commendable initiation!

To get the best taxation related solutions, Mr. Michael atlas and his associates, offer the best there is. The credibility, reputation and genuine interest in helping people, is reflected in their outlook!

Tax payments are headaches and at the same time mandatory. Being a citizen of a country it is important to pay all the taxes levied by the government of the country which we often feel as an imposition but latently they’re used for our betterment in some way or the other by the government. Be it road construction, all the government services that we get, expenditures in defense of a country etc, finance for all these things comes from the taxes. Taxes for different things are different and fall with different rules and regulations. These are followed and collected according to international tax rules and Canadian taxation system is also not left untouched of them.

There are so many taxes and their deadlines which are hard to followed and keep a track of especially for big industries and business persons. Here comes the hard core requirement for a Tax specialist. A tax specialist takes care of all the taxes associated with your firm and your personal accounts, their terms, their different percentages. He doesn’t only make sure that all your taxes are paid in time but also helps you in saving taxes where possible with his vast knowledge and expertise in tax industry.

The general tax the government collects from everyone is income tax which is levied on based on your salary and is required to be paid to the government time to time on a fixed percentage depending on how much your annual salary is amounting. If you run multiple businesses and firms, it becomes a tedious task to manage all the records of your capex, opex and much more that only an expert can understand and complete all the tax related commitments in time saving your time, so much of pain and headache. Any big businessmen would never like income tax police to rush in to his territory because of tax payment issues. They hold a brand name and a reputation in market which they don’t want to get wagered for nothing but little carelessness. So, a tax expert is a must in every for every industry, firms and sometimes also in small businesses which deal with finance.

Tax are not only collected for salary but there are many taxes to be paid in an year like house tax, water tax, taxes for real estate, corporate taxes a businessman must take very good care of, taxes on residents and non-residents and much more which a normal person is less aware of. If you own a home and use water, you are supposed to pay home taxes and water taxes. If you are a resident of Canada, the tax rules and regulations for you will be different from the ones who are non residents. This is completely because of the services they two use of the government as a resident uses more services as compared to non residents. Therefore, there tax considerations have to be different.

A tax expert can put you out through all this math work and help you manage your tax, pay them well in time and save wherever possible.

In Canada, corporation have to pay tax on their income generated. Canadian Corporate tax only makes for a small portion of the entire taxes that are collected and the major share of the revenue is from personal income tax. Canadian Corporate tax has to be paid by the corporation before dividends are distributed among the individual shareholders. For the people who receive dividends from Canadian corporations, some credit is given for underlying tax. All resident corporations in Canada have to pay corporate taxes and have to file a corporation tax return (T2) every year. Even if there is no tax payable to the CRA, corporations have to file the T2 return.

Who Have to File T2 Returns And When

All resident corporations have to pay Canadian corporate tax and file the T2 return except charities that are registered, Crown corporations and Hutterite colonies. T2 return has to be filed by the corporation even if they have no corporation tax to pay and non-profit organizations, inactive corporations and tax-exempt corporations should file the returns mandatorily. Non-resident corporations are also required to file T2 return if any of the following situations can be applied to them:

• The corporation has carried on business in the country

• The corporation has disposed of taxable Canadian properties

Any disposition that has been done after 2008 will have a few additional criteria that it will have to consider and there have been other amendments to the definition of taxable Canadian property . T2 return forms have to be submitted to the CRA no later than 6 months from the end of the year. The date of filing will change according to the when the tax year ends and one has to ensure that it is not beyond six months of the end of the year or else they may have to pay a penalty.

How to Determine the Tax Year of The Corporation

If you want to pay your corporation tax promptly and file the T2 return on time, you need to know the tax year end of your corporation. The fiscal period of a corporation or the corporation’s tax year has to be less than 53 weeks. New corporation can choose the tax year end while filing the first T2 return and the subsequent tax year can be calculated according. If the professional corporation is a partnership firm, then the tax year will end on December 31. The tax year end cannot be changed by the corporation unless approved by the CRA and they have to pay their corporation tax and file the T2 returns before the deadline until they get a notification of change of tax year end.

Filing A T2 Return Form

IF the annual gross revenue of the corporation exceeds $1 million, then the corporation will have to file the T2 return online. Some companies are exempted from this rule and they are

• Nonresident corporations

• Insurance corporations

• Corporations that are exempted from paying tax under section 149 of the Canadian Income Tax Act

• Corporations that are reported in functional currency

Corporations that have less than $1 million revenue can send their T2 return forms to their respective tax centers and the nonresident corporations can send their forms to the International Tax Services Office.