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If you own a corporation, you have different options to extract money from your corporation. Tax is a critical factor to consider while you are deciding which option to take.
It is very common that one spouse earns a much higher income than the other does. For those families, the family’s combined tax bill can be reduced if the higher earner pays family expenses and the spouse with lower income saves and invests.
There are a lot of confusions regarding the tax deductibility of legal fee expenses. The general rule is simple: they are deductible only to the extent that they are incurred to gain or produce income from a business or property.
Canada Revenue Agency allows employers to give two non-cash gifts per year, on a tax-free basis, to employees for special occasion such as Christmas, birthday, marriage or a similar event. The total value (including taxes) of the gifts should be $500 or less.
There are essentially four broad sources of income:
There are many different ways in which taxes can be classified. Based on economic feature or event that is to be taxed, here are some of the most common taxes in different tax systems around the world:
A personal trust is a legal arrangement that arises when a settlor transfers property to a trustee to hold and administer for the exclusive benefit of the beneficiaries. Settlor: the person who sets up the trust and makes the initial transfer of the property to the trustee.
A tax credit reduces an individual’s tax payable. Rather than specifying the amount of each credit, in Canadian tax system, most credit is calculated by multiplying the base amount by the lowest tax rate. For example, the basic personal credit for 2011 is $1,579.05. It is calculated by taking 15% of $10,527.
Canada employment amount is a non-refundable credit for work-related expenses, such as home computers, uniforms, and supplies. It was introduced in 2006.
Canada employment amount is a non-refundable tax credit (what is a tax credit?) for work-related expenses, such as home computers, uniforms, and supplies. It was introduced in 2006.