It is time to start developing tax planning strategies at the beginning of this year, not later.
In Canada, from what I saw in newspapers and online, most taxpayers in the world feel that they have to pay too much. And in order to increase the insult to injury, most of the taxes paid have not been exploited. We almost every day hear about abusing the large amount of tax collected from taxpayers.
While we seem to be powerless for these violations, we can use effective tax planning strategies to help us reduce our tax obligations.
Tax planning does not involve complex strategies to hide or reduce income.
These problems lead to your big problems, your collector and not worth it, especially when there are legal means to save more money in your pocket and collect it from the distance.
A very effective tax planning strategy is to make qualifying charitable donations.
In Canada, the Canada Revenue Agency allows taxpayers to pay up to 75% of their income.
This means that your tax revenue is only 25% of your income.
Tax incentives are very effective!
However, few taxpayers can afford it.
Many Canadian taxpayers make qualifying charitable donations and receive the resulting tax credit.
Be careful! Not all charities are the same, and some are completely suspicious.
Charities must be registered and have a verifiable tax ID.
All charities do not follow strict guidelines that make good philanthropy programs effective and sustainable, even if they are challenged by tax authorities.
When considering tax avoidance procedures (and calling these tax cuts), it requires procedures to be very important in relation to “recovery”, “welfare” and “poverty” issues.
In Canada, recent legislation has enacted rules prohibiting taxpayers from obtaining tax credits for donated property at prices above the purchase price of the property. Previously, donors were allowed to obtain a low-cost property and donated to charities in return, receiving a receipt of the highest estimated value of the donation.
Under the new regulations, the value of the receipt must equal the original purchase price of the given item, provided that the amount does not exceed the fair market value.
The value of any “benefits” (personal economic benefits) that you can receive from donations must now be deducted from the value of the receipt.
For example, if you buy a $200 Charity Golf Tournament ticket and get a $140 dinner, donors of drinks and course fees will only receive a $60 donation receipt.
To apply for a tax credit for a donation like qualifying charitable donations, the donor must indicate that he or she is financially poor after making a donation. In other words, donations must be “funded” due to transactions. In order for your charitable donations to be effective in tax planning, make sure that any plans you choose are consistent with all of these aspects. Use a tax planning strategy that is not critically reviewed or worse, it doesn’t make sense to accuse you of wanting to bypass compliance rules. Yvonne Finns invite you to his website to find out how they can tell you how to get CRA back to 90% of their annual income through effective tax avoidance.