Do not, I say again Do not do your tax this way.

Here is a great entertainment piece of how to do your tax. No wonder, CPA’s are teaching their kids and other kids on how to pay tax. On an income of $100,000 you pay $26,230 in tax in Ontario. There are no comments about how to reduce the tax. Claim all the tax deductions and tax credits and pay 1% in tax rather than 26% tax on the same $100,000 income.

How To Write Off Your Tax Debt

Canada Revenue Agency has written off almost $4 billion in tax debt over the last two years.

Outstanding and Collectable tax balance for the federal agency stands at almost $29 billion. When a taxpayer properly disputes a tax bill or assessment, CRA must stop all collection efforts of the unpaid tax, until the dispute is settled internally or at the highest level of tax court. It takes many years to close a disputed case, if he tax payer is willing to fight with CRA to the end.

After reviewing the tax debt, CRA decided to write off $3.4 billion in tax debt. As per CRA these were declared uncollectible because may have died, filed bankruptcy and sought relief of the tax debt, could not be located in Canada or lived outside Canada. And is some cases officials considered it is not worth the expense to pursue collection or reached a compromise settlement with the tax debtor.

Despite the fact most of the tax payers in Canada are sought after with iron fists by the CRA if they do not pay the owed tax voluntarily, these lucky tax payers somehow forgiven $3.4 billion in taxes owed by them. It was revealed in disclosed documents that 2 of these accounts owed more than $10 million in outstanding taxes.

How would you have liked CRA to write off your tax debt? more »

Year End Tax Tips – Pay Less Tax in 2014

While 99% of us are busy shopping, eating and drinking and complaining about the sorry state of our finances, 1% of people (the wealthy ones) are meeting with their tax advisors and planning all out, how to minimize their taxes and maximize their after tax income. You see, in Canada for every $100 taxable income reduction by tax planning you save almost $44 in taxes. You can easily pay off your holiday shopping bill with just few simple year end tax saving strategy.

Tax planning is a year around activity. But if you ignored it, all year long, this last few days of the year, where you must take action to minimize your 2014 tax.

So, here are some ideas. more »