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Moving? Make sure you notify the Canada Revenue Agency as soon as possible of your new address
Several ways to change your address at Canada Revenue Agency. You can change your address, or check the address and phone number CRA-ARC has for you, using the Address Changes Online service

seniors electronic tax filing services expanded to help eligible elderly taxpayers telefile their income tax returns by phone
Canadian seniors electronic tax filing services expanded by Canada Revenue Agency CRA to help eligible elderly taxpayers telefile their income tax returns by phone in Canada.

2002 personal tax return changes adds the effect of indexing on various tax credits, tax brackets and income testing thresholds
Before you hunker down for endless hours pounding away on a calculator it's time for a quick tour of some of the changes to the 2002 personal tax return.

Employed apprentice mechanics get 2002 tax break for cost of tools
Believing the significant upfront cost of tools to be an impediment to entering the trade, the federal government decided to introduce an income tax deduction for the extraordinary portion of the cost of new tools purchased by eligible apprentice mechanics in 2002 and later years

Back-to-School costs escalate for university and college … RESP may be the best answer
If back-to-school means sending child to a post-secondary institution, add on tuition fees, textbooks, parking, student fees and maybe even living expenses. How can parents expect to cope? One of the options available to assist parents (and grandparents) in financing post-secondary education is the registered education savings plan (RESP). One of the options available to assist parents (and grandparents) in financing post-secondary education is the Registered Education Savings Plan (RESP).

Canadian Income Tax Act requires taxpayers to keep records and books, including all source documents to verify the information
Who has to keep books and records - The Income Tax Act states - every person carrying on business and every person who is required to pay or collect taxes shall keep records and books of account. So in essence if you are a taxpayer you are required to keep books and records.

Kiss business bank fees goodbye with bizSmart, offered through Staples
As a small business owner fed up with monthly bank charges, are you aware that an option exists that may enable you to kiss such fees goodbye? In this case, the solution is known as bizSmart and it’s available through none other than Staples Business Depot.

Confidence in new Canada Pension Plan is growing despite billion dollar losses
confidence in the Canada Pension Plan has increased since the plan was converted from a pay-as-you-go plan to a self-funded plan some five years or so ago.

Leaving Canada to escape income taxes? CCRA 's updated bulletin on requirements for non-resident taxpayers is worth reading
Leaving Canada to escape income taxes? CCRA 's updated bulletin on requirements for non-resident taxpayers is worth reading

Canadian Savings Bond (CSB) not a good deal if you consider the negative impact of income tax and inflation on real after-tax returns
If you have a bit of money to invest and you don’t mind locking in for a longer term, GICs can provide a better return than either CPBs or CSBs. If security and the ability to redeem your investment is important and an annual redemption feature is good enough, then CPBs aren’t a bad deal. Where CSBs are at issue, investors should look elsewhere.

CCRA allows five-year loans at prescribed interest rates for home puchase loans and home relocation loans
General rules, by their nature, have exceptions and there is an exception to the general CCRA employer-to-employee loan rules that can provide fortunate employees with a nice 5-year perk. The operative word here is “fortunate” since loans that qualify for this extended treatment are special loans known as “home purchase loans” or “home relocation loans.”

Tax brackets are irrelevant to tax credits, which allow all taxpayers the maximum benefits for charitable donations
A tax credit is a direct reduction of tax, dollar-for-dollar. This means that a 100 dollar tax credit claimed by you will save the exact same amount of income tax as the same credit claimed by the richest taxpayer in the country, which is perfect for charitable donations.

Deducting child care expenses may trigger reduction in supplements paid under Child Tax Benefit program
Have you ever had an urge you couldn't control? A rhetorical question to be sure but, where income taxes are concerned, the urge to deduct child care expenses could be costing you money and you may not even know it

Christmas bonus, if done right, offers chance to reward employees while getting a nice employer tax break
A new policy in the area of employer-provided gifts is remarkably generous. A fact sheet was also released early this month to remind employers about how a Christmas bonus to reward employees is taxed. So if you’re an employer read-on.

After Christmas rush, take a moment or two for year end tax planning
If you’re still in shopping mode, surviving on a daily dose of anxiety pills, you may want to set this article on your ever-expanding pile of things to do after the Christmas rush. On the other hand, if you’re the hyper-organized type sitting in your jammies by the fire with hot apple cider in hand, take a moment or two and give some thought to the following year-end tax planning ideas.

Cost of smoking? Might as well just burn $100 bills because a young smoker could have accumulated $230,000 by age 65
June being grad month and with yet another increase in the cost of cigarettes, I thought this would be a good time to revisit a topic I wrote on a little more than four years ago – the cost of smoking. Intuitively most people know that smoking is expensive but just how expensive is it?

Disability tax credit clarified by Finance Canada to establish eligibility criteria
Disability – it’s a big issue today and I expect it to become an even bigger issue in the future now that the baby boom bubble has joined the over-the-hill gang. Hot on the heals of the Romanow Report, Finance Canada issued a backgrounder regarding proposals to “clarify” eligibility criteria under the Income Tax Act for the disability tax credit.

Early retirement available at age 60 for Canadians who meet the criteria under the Canada Pension Plan (CPP) Act
CPP benefits are normally payable starting in the first month after age 65. Although age 65 is a popular retirement age, it is possible to commence receiving CPP as early as age 60 or as late as age 70

Federal government at work: Spreading cash around like a giant manure spreader
John Manley may have tabled the federal budget in the House of Commons but this effort had Jean Chretien's fingerprints all over it. Evidently, feeling legacy-less after almost 40 years of public service, our nostalgic Prime Minister wanted to go out with a bang and with a bang he'll go.

Taxpayers obtaining illegal income get closer scrutiny by CCRA auditors
CCRA issued an interesting notice last week dealing with the taxation of illegal income

Income splitting great way to legitimately reduce taxes and increase your return on investment … but only if done exactly as prescribed by the CCRA
Get yours while the going is cheap – income splitting that is. For certain couples (married or common-law) a small window of opportunity is open to legitimately split income on the cheap. The window for cheapskates is open a crack due to our historically low interest rates that appear to be on the rise.

Income tax installment plans triggered by CCRA installment reminder notices
Paying personal income tax instalments isn’t an issue for most taxpayers. For these people, sufficient income tax is withheld from employment and other income eliminating the need to remit additional tax throughout the year. Where this is not the case, Canadian taxpayers need to plan paying quarterly income tax instalments – a potentially tricky exercise that can become costly if not properly managed.

Deductibility of interest expense against taxable income must meet stringent test
interest expense is generally deductible for income tax purposes - the interest was paid or payable in the year in accordance with a legal obligation and the borrowed funds were used for the purpose of earning income from a business or property – property income being defined as interest, dividends, rents and royalties but not capital gains

Interest expense deduction gemerally allowed for income tax purposes under very specific conditions
In the income tax world, the interest expense deduction saga reads like a very bad serialized novel – one most readers would have long since tossed aside. Although greatly simplifying the issue, interest expense is generally deductible for income tax purposes under the following conditions.

Mutual fund investing comes at a cost … upfront and backend sales charges that can reduce your real return on investment (ROI)
At its most basic level, mutual fund investing is really quite simple – a large group of people, with more or less the same investment objective, contribute money to a “fund” that pays a professional manager to purchase and otherwise manage a variety of investments on behalf of the fund. This all sounds fine and dandy but mutual fund investing comes at a cost.


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