The Canada Revenue Agency notes on its website that “We recognize that many First Nations people in Canada prefer not to describe themselves as Indians. However, we use the term Indian because it has a legal meaning in the Indian Act.” For the same reason, the author uses the term in this … [Read more...]
Tax Issues for New Canadians
While there are many attractions to Canada, I cannot recall anyone attracted by a desire to experience our income tax system! Like most developed tax systems, ours can be extremely complex, and can impose results perceived as neither just nor equitable. Many tax issues are unique to new Canadians, … [Read more...]
Your Principal Residence and Taxes
Capital gains have been subject to taxation in Canada since 1972. At present, only half of any capital gain is included in income. While this includes property such as real estate, most Canadians are aware that there is a “principal residence exemption”, and believe gains on their home will not … [Read more...]
The Tax Implications of Marital Breakdown
Breaking Up is Hard to Do The breakdown of a relationship creates sufficient personal upheaval that it is unreasonable to throw in the myriad legal implications that also result. Unfortunately, the law is not always reasonable. And, the tax provisions applicable to matrimonial breakup add further … [Read more...]
Credit where Credit is Due: Personal Credits in the Canadian Tax System
2012 is the 25th year of personal credits in the Canadian tax system. Prior to 1988, personal exemptions were deducted from taxable income. Since 1988, credits against taxes payable have been used. This was perceived as more fair, because the benefit of deductions was greater for higher income … [Read more...]