Tax Strategies

Tax Minimization Strategy

The adage that nothing is certain but death and taxes is actually not quite correct. Death remains everyone’s destiny, but some taxes can be postponed for one’s entire life or shifted beyond one’s life to people in whose hands actual amounts payable to government may be negligible. Taxes can also be minimized by investments that postpone amounts payable, investments in assets that have relatively low tax rates, income splitting with a spouse or children, and changes in the nature of income or how business is organized. What is required to achieve these tax savings is careful control of investments, employment income, and bonuses in order to achieve income averaging where possible and, for investments, cash flow shifting where it is lawful. None of the following discussion of tax management presumes or suggests actions that are not in compliance with Canadian tax law.

Let’s look at tax management for the individual taxpayer with a list of the easiest things almost anyone can do to cut a tax bill: