How to Reduce Tax Burden in Canada

Tax payers started to have headache as and when the season of tax-paying comes. These tax payers try their every bit possible so they have to pay as little tax as possible. It is, however, impossible to completely eliminate this burden, but, there are ways through which we can reduce this burden.

The taxes paid by us contribute towards the development of the country and therefore we should make sure that we pay our taxes in time. It is also important that in our effort to reduce our tax burden we should not make use of illegal means. Never encourage accountants in Mississauga to resort to illegal means in preparing accounts.

Make Use of Legitimate Means to Prepare Accounting Books

The legitimate way to reduce the tax burden is by maintaining your books in proper order. When your accounting books are maintained properly you are aware as to what is the present financial status of our company and how can we reduce the burden. Consult accountants in Oakville to maintain your books in proper order.

In case accounting books are not maintained properly you will have little idea on what measures need to be taken to reduce tax burden. A sure shot means to maintain books in good order is by hiring accountants..

There are accountants who will help you out in maintaining your accounting books in good order, but they will also tell you ways on how you can reduce your tax burden. There are various deduction schemes available from government / firms that can help you reduce your tax burden.

Lets us take a look at some of these programs:

The Child Tax Credit (CTC) – you can claim a tax credit for each of your child of $2,000. This non-refundable tax-credit is given to only those children who are below eighteen years of age.

The Children Fitness Credit – A credit to the tune of five hundred dollars is given when a child who is below 16 year old is registered. This credit is given when a child joins a program at any time of the year.

The Canada Child Tax Benefit (CCTB) – This monthly payment is tax free and it is designed to help familiar in raising their kids. This benefit is given till a child reaches the age of 18 and the annual benefit that is given is around twelve hundred dollars.

There are numerous other programs that you can make use of to reduce the tax burden on you. There are certain rules about which you might not be aware of as a normal person, and it is for this reason you need to hire the services of accountants in Oakville.

Preparing for tax can be quite cumbersome for any person and for a business person there are numerous other important things to take care of. When you hand over the task of maintaining accounting books to an accountant in Mississauga than you will have the peace of mind that you might have been looking for.

How Accountants Help For Tax Planning And Tax Return Preparation

The tax professionals know several methods of tax preparation.  The complexity of the tax return is sometimes very difficult to be understood. The services of the H&T accountants Oakville have several advantages. These are professionals in the field. The first thing is that they are graduates and comprise knowledge in that field. Therefore they are the right knowledgeable professional who can conveniently handle the taxes of the company. The overall tax of the company can be easily ascertained and decisions can be taken whether there is a need to reduce the taxes in future or measures can be determined for the same. The accountants help you to prepare your taxes on your own and you do not have to separately hire any authorities to do so. Therefore with the help of accountants Oakville who are quite knowledgeable with the subject of accounts and know the placement of each transaction under proper head you can determine your position and have a complete control over your tax return. Therefore the entire financial impact and the tax situation can be easily analysed.

  1. The financial accountant is a person who can do all the financial planning to achieve your goals
  2. He can help you with your efforts in minimizing the tax cost
  3. You can get the tax cost calculation for all the assets
  4. Your accountant provides you with the liability figures which would reduce your cost

The H&T Accountants in Brampton can help you to prepare tax return quickly and as they know the basic rules handy they would help you with the Tax Returns Mississauga in a tremendous manner. Sometimes there are some complex situations which you would find difficult to face, such situations can be easily handled by the accountants. They can help you with the investment channels in which you get good tax exemptions. With their services your Tax Return preparation can be done well in advance. You can maintain complete records of accounts in an up to date manner. Therefore you can get your taxes done quickly. They are handy with the rules and the tax changes and would be able to provide you with the same. They are best guidance to easily understand and incorporate complex procedures in taxing.

The H&T Accountants in Mississauga and Oakville are professionals and qualified persons who provide you with the best method of tax planning and tax preparation. They consider every aspect and attributes which significantly brings a difference to the tax planning. These accountants would provide you with the wonderful options to reduce cost and accomplish your goals too.  They can help you with saving some money on taxes. Besides they also provide filing the returns apart from planning. The tax saving strategies that they provide is quite wonderful and therefore with their services you can finally determine the actual tax that you would pay after all the due deductions. Ultimately, their services are very useful as you can accomplish your business goals and reduce the tax using the strategies that they provide.

Canada Child Tax Benefit

Canada Child Tax benefit is a tax which is imparted to the families living in the Canada by the Canadian Government. It is basically a tax free monthly payment given by the Government to all those families or parents who needs money to raise their children up to the age of 18 years.  It is majority divided into two main components one focuses on the low and middle class Canadian families and the other one provides definite assistance and help to the low income families having a necessity of acquiring this help from the Government in the form of tax benefit.

Eligibility Criteria to avail this tax benefit

Canada Child tax befit cannot be provided to everyone. It is given to only those Canadian families which meet the proper eligibility criteria as stated by the Canadian Government in order to avail the tax benefit.

  • A person must be the Canadian resident.
  • Must be the primary caregivers of the child under 18 years of age.
  • If a person is not Canadian resident then one can avail the tax benefit if a spouse or partner is:
    1. Canadian resident.
    2. Protected person
    3. Permanent resident.
    4. A temporary resident who is residing in the county of Canada from the last 18 months.

These are some of the criteria which need to be fulfilled by the person in order to ensure the benefit of the Canada Child Tax.

Application Information

After the eligibility criterion has been met by the Canadian family, another important criterion is to fill the application form to apply for this benefit either through mail or by applying online. One can fill the relevant and necessary information in the application form as provided by the Government under the proper guidelines in order to have a benefit of the Child Tax.

Financial Information

The amount paid under the Canada Child Tax benefit plan majorly depends upon two things which is income tax and benefit returns. The amount paid under this tax can be even adjusted in case the size of the family increases during the end of the year and some other issues.

Dates and Deadlines

The Canada Child Tax benefit is issued for the Canadian family very 20th day of the month and even one week earlier in December. For more specific dates one can visit to the official website and can keep a track of their status of issuing the tax benefit plan. It is always advisable to the individuals belonging to the Canadian family who has applied for the Canada Child Tax benefit plan to contact to Canadian revenue agency in case one do not receive his CCTB within five business days after the issuance of the tax befit plan.

Therefore, this is a brief overview on the Canada Child Tax benefit (CCTB) for the Canadian residents and families provided by the Canadian Government. One can take the required information from the official website to apply for the Canada child tax benefit plan.

Tax Planning Tips for Self Employed Individuals

Tax Planning Tips for Self Employed Individuals

Self employment is a very interesting field as you are the boss of your own empire. Self employed persons indeed have a more advantage on Tax Savings as they have much more tax efficient income as that of the persons on the salary income basis. So it is very important for them to manage the tax efficiently to avail the full benefit of it.  If you are a self employed person and falls in any category fall under head of income.

Here are some of the Tax Planning Tips that will enhance your tax efficiently:

Taking Advantage of all business expenses:

All the expenses related with the business or works are called as business expenses. There are varieties of expenses in the businesses even for the self employed individuals such as house rent, electricity bills, travel costs, internet and telephone costs, and other utilities consuming during the self employed business can be even treated as business expenses. Vouchers and bills can be even considered as the business expenses. To manage all these business expenses in a proper and regulated manner bookkeeper is very much essential.  With the aid of proper Tax Planning one can claim the deprecation of all the business or work related expenses and can avail the full income from the Government.

Distribution of Income:

This task is possible in case if you involve your family member in the business. By involving them part of your income is shifted through that side too and will help you to achieve your goal as it helps to reduce taxable business income prevailing in the business.

Availing Deductions:

Normal deductions are allowed for the self employed persons such as PPF (public provident fund), insurance, pension planning, fixed deposits as well as other money saving schemes.  Tuition fees of your child can also be claimed from the Government through an effective tax panning scheme from the self employed individuals. One can even avail the claim deduction in regard with medical premium of the parents as well as his/ her family as a whole. If the person is living in the rented home then one can claim the rent of the house even as deduction. These also deductions depends upon the different situations and will be provided by the Government at different interest rates.

Hedge your Risk and Save Taxes:

It is important to have a life insurance scheme for every person in the family in order to have full and proper protection in case of any mishappening and incident. Avail the policies which will help you to protect your family from accident or incidents and even from the medical emergency as well as these liabilities help you to repay the loans in a lowest turnaround time possible very efficiently.

These are therefore some of the most important tips for the tax planning for the self employed individuals running their own business organizations.

Two Effective Tax Saving Tips and Plans

Congratulations! For adding another achievement to your business, you are able to take it to the level you want. Over the years you may not have made any drastic changes in the way you do business, but you have to keep track of the changes made by the tax department. Here are some Tax Saving Tips and plans that can be beneficial for you. To withdraw full benefit from corporate structure you need to understand the following parameters:

  • You should keep a record of all the transactions and make sure to keep track of supporting documents. One of the good accounting practices is to keep a record of all the transactions. This will enable you to keep track of your expenses, revenues, and net income.
  • If you are already occupied and don’t have time to do all the calculations, make sure to keep record of – receipts, invoices, deposit slips, agreements, bank statements, letters from WSIB, CRA and other.

You should also have all the documents pertaining to the foundation of your company, minute book, and articles of incorporation. You need to have some evidence in order to support you case in front of CRA, therefore you need to have some documents at your disposal. You need to prepare before hand in order to take care of this, the best way is to store all the related documents of your business activity.

Some tax saving tips and plans for families are as follows.

  • Everyone is looking for ways to reduce tax, as it is a considerable burden on many families. Families can include their child care expenses in order to save tax. There are two ways to do this. Flexible spending account is the first option. You can reduce taxable income through your employer sponsored accounts. It contributes to expenses towards your child care on the basis of pre-tax.
  • The second option is to claim the expenses on your child care and use it to deduct taxes at the end of the year. Many parents are not aware of the fact that the money spends on summer day camps for their kids can be used to save tax.
  • If the main reason for your child attending summer day camp is that you are going to school or work, than the money spend on these camps can be used to save taxes. Camps are entertaining and fun, and this fact does not eliminate them from tax deductibles.

Tax saving tips and plans through health care are another option to save tax. Flexible spending account for health care expenses can be used to deduct tax in a given year. It is important that you keep track of all your health care expenditure; this also includes the medications you purchased in a given year. You can get a reimbursement for your medical expenditure, if you have a flexible spending account.

These are couple of tax saving tips and plans that can help you immensely in saving money.

Enjoy Financial Success with Effective Tax Planning

Tax Planning is indeed a very important key area for the development of strong business foundation. To lay down the strong foundation of any business it is very much essential to plan for the tax effectively which can result in the gains and growth of business in a very short span of time. It is therefore one of the essential aspect for the business to develop financially.

Planning for each business should be done in a proper and regulated manner irrespective of the size of the business. It is mandatory for every business to be a tax payer and implements the proper strategy of the Tax Planning. It can be quite complex and tedious if the tax is not planned and managed effectively as the whole foundation of the business depends upon these financial aspects.

It is therefore advised to the business owners not to depend on any inadequate advice on Tax Planning as it can result into something disastrous. Adequate and proper knowledge of the tax is very much essential before planning it for the business and applying it in order to achieve optimum results for the business.
It is often advised and suggested to the business owners to seek the advice about Tax Planning from expert having adequate and sound knowledge of the subject and latest advancements in the tax planning as well which can further help you to reap the benefits of the sophisticated tax planning which results in high profit margins.

Financial and Tax Planning Services will provide necessary and definite help for every business to grow successfully in a regulated manner as these services are quite essential in order to calculate the taxes accurately and will even provide you the streamlined approach of planning your tax as well as finances in a best possible way for your business.

It is important for every business owner to keep an eye on the latest changes and updating that is happening in the taxation laws which ensures better and effective tax planning and even ensures tax savings. This complex task can be made easier only if you seek the proper advice of the tax consultant having wide experience in planning tax and have a proper approach of even implementing it. Business owners to carry this tedious task in a disciplined and regulated manner hire professional services which ensure proper tax planning as well as tax returns. It is their responsibility to fill the form for the tax returns in a particular span of time.

These expertise professionals will prepare the required documents of filling the right form of taxes in a correct manner and further apply their analytic skills and approach to implement the same in the area of tax planning and tax savings. Financial services is another major aspect which plays a key role in bringing success and growth to the business and will even aid the business to be aware of the latest advancements happening in the taxation industry in a lowest turnaround time.