31 Dec 2010, 8:44pm
BC Province HST Income Tax
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HST! a Lesson Learned by BC Politicians

TAX! No one liked to be taxed.

Even it’s good for the economy.

BC politicians thought since they understand the goodness of HST, rest of the BC will follow their lead and will accept a 7% tax increase.

Unfortunately they underestimated the BC residences. Power of the people. It is so exciting to see that people’s voice mattered and with that BC residences brought down leaders of both the parties.

Even a bribe of 15% income tax cut by departing Premier could not help him to stay in power.

Updating……

30 Dec 2010, 11:45pm
Income Tax:
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Comments Off on Why Borrowing to Invest in RRSP is a Bad Idea?

Why Borrowing to Invest in RRSP is a Bad Idea?

RRSP season is coming.

You still have two more months to top up your RRSP contribution. If you have fully used up your RRSP contribution room for 2009, your 2010 RRSP contribution limit will be 18% of your 2009 earned income to a maximum of $22,000. You might have more contribution room if you have unused RRSP from previous years.

RRSP is a tax deferred investment. You do not pay any tax on your RRSP contribution as long as you keep your investment in your RRSP account. Once you start to withdraw money from your RRSP account, it become fully taxable during the year it is withdrawn, except for Home Buyer Plan. HBP is like taking a loan from your RRSP account and you must pay it back. If you do not repay and fill up your RRSP account, unpaid amount is included in your income and is taxable.
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29 Dec 2010, 4:08pm
Income Tax
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After Tax Income to Increase for Some Canadians

Canadian Taxpayers Federation (CTF) has came out with a detail analysis of new year tax increase on different provinces.

Among all the provinces BC residences will have the highest increase in taxes, which is estimated to be 2.9% more than previous year.

Contributing factor to this higher tax is increase in B.C. are MSP premiums, increase in Employment Insurance (EI) and Canada Pension Plan (CPP) source deduction.
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22 Dec 2010, 10:51pm
BC Province Canada Revenue Agency Tax Fraud:
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Donation Tax Shelter in Canada How it Works?

In Canada a tax payer can claim 75% of his income as donation and get a Tax Credit of 43% (combined Federal and BC Province) as a tax payable reduction or cash refund.

Donation is a very attractive Tax Shelter for people in higher income tax bracket.

Donations to Canadian registered charities and other qualified donees approved by CRA can only be claimed as charitable donations.

At the end of each calendar year many tax shelter advocate give attractive and compelling presentation to tax payers to donate money to their tax shelter and either reduce tax or get a big refund.
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21 Dec 2010, 11:14pm
Canada Revenue Agency:
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On Line Business Tax Saving Tips

I was requested to talk about tax saving ideas for Online Business owners by Arik Sternberg founder of a Vancouver Meetup group Vancouver’s ‘Online Business Optimization’.

On line revenue generating business are taxed like any other money making business in Canada. The most important thing on line business owners can do to reduce their tax bill is to keep a detail record of all expenses related to their on line business. This alone will reduce their taxable income significantly. Further tax planning should be done with a tax advisor.

Here are the slides of the presentation.