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Transfer pricing describes price at which service and goods are traded across international borders between related or non-arm’s length parties, such as company divisions or a parent company and a subsidiary.
The marginal tax rate is the amount of tax on your next dollar of taxable income. Canada’s income tax system is a progressive tax system. Different tax rates are applied on different levels of income.
The first-time home buyers’ tax credit (HBTC) is a non-refundable tax credit introduced in 2009 for the first-time home buyers who acquire a qualifying home after January 27, 2009, that is – closing after this date.
Tax planning involves arranging one’s financial affairs to reduce the tax liabilities. There are three basic goals of tax planning:
In terms of the effective tax rates, Canadians can divide their income into three categories: ordinary income, capital gains, and dividends.
The General Anti-Avoidance Rule (GAAR) was introduced as part of the 1988 tax reforms to the Income Tax Act by enacting section 245. This provision allows the Canada Revenue Agency to redetermine the tax consequences of a transaction(s) entered into by a taxpayer in an effort to deny the tax benefit(s) otherwise enjoyed by the…
In Canada, capital gains have always received preferential treatment in that they are not 100% taxable. Here is a summary of the history of percentage of capital gains which were subject to tax:
The widow and heir of New York real estate tycoon Harry Helmsley and one of the richest women in the United States, Leona Helmsley notoriously declared, “We don’t pay taxes. Only the little people pay taxes.” She became infamous in the early 1990s for being convicted of income tax evasion and sentenced to 18 months…
A few tax quotes. Just for fun. The only difference between a tax man and a taxidermist is that the taxidermist leaves the skin. – Mark Twain My money goes to my agent, then to my accountant and from him to the tax man. – Glenda Jackson
A few tax quotes. Just for fun. President Bush’s tax returns are a little different. He claimed the Christian Right as dependents, he declared the 2000 election as gift, and he tried to write off the mileage he got from 9/11. – Bill Maher