Toronto tax accountant and consulting

Every one should pay the tax for their business and personal property. Sometime the individuals avoid the tax issues which are great mistakes done by them. The situation arises only due to the lack of proper knowledge or they may not face the proper or difficult position of the tax obligation. The tax consulting is very necessary for individuals. The individuals need to be known the proper way to find out the solution to avoid the critical position or avoid making it complex. Hence if the individual now want to solve out his problem regarding tax he should consult the experts.

The individuals must go to the consultant for taking the perfect tax solution. Hence they need the tax consulting services. The Toronto Tax Accountants has the brilliant knowledge and experience to solve out any kind of tax solution. The strategy that a consultant provides must be followed by them. Avoiding the pay of tax sometimes it can be overwhelming and this complex tax must be cleared by the individuals. Hence the individual should contact the consultant. It may be any kind of tax that bothers only because it did not pay at the right time.

The issue will be clear in a proper manner when a person will come to take opinion of an expert. These experts are the accountant’s who is available to sort out the various tax problems of the individuals. The Toronto tax accountant is always available to solve the problems of the clients regarding the tax strategy of Canada. The client can easily contact to the accountant through phones or through online. They have excellent knowledge of how to handle the situation positively. Along with the steps that should be taken by the individuals to overcome their difficulties.

Now one important thing is how to select and where to go for the best accountant in Toronto. The solution comes when the individuals will select a reliable accountant who has the perfect knowledge and must have the experience. Today is the world of internet so without much thinking a person can take the advantage of it and can easily select the accountant and get to know their services through online. Individuals need to contact with him and everything must be explained in front of the accountant to get the appropriate solution. Along with that if the problem is complex then the tax accountant must take the complete steps by himself for a better result. The experienced accountant will always give positive reply to the clients. Along with these facilities the best thing is, the client will always get the accurate solution in affordable rate.

Hence if an individual must take the design of tax planning which is effective and right from the accountant then the deserved tax which are available of the business will be cleared very soon. The accountant will solve out and after knowing the problems the person won’t have to face it alone. Hence the tax accountant’s of Toronto are very supportive to the people to solve any of the tax issues.

REAL ESTATE TAXATION AND ESTATE PLANNING EXPERTS

Real estate taxation also known as property tax is imposed on the owner of the property.The Canadian citizens have to pay the tax on, both domestic and overseas assets. However, the non-resident Canadians have to deposit only on the real estate that they own in Canada. The real estate owners are compelled to pay their taxes to the Municipal corporations and the amount of tax that is to be deposited also depends upon the location and the value of the real estate. Different tax rates are applicable for different kinds of real estate. The commercial property taxes are much higher than the residential ones.

The tenants don’t need to pay the property tax to the authorities directly; rather the landlords are liable to deposit the taxes. Property taxes also vary according to the provinces and territories in accordance to the schemes for different economic class and age groups. For example there are schemes that give rebates for the low income groups and the senior citizens.

Properties taxes are usually evaluated on the basis of the prevailing market and this assessment is carried out by the provinces through the boards under them. The evaluation is then provided to the different municipal authorities who apply the tax rates on the properties. The rates are fixed annually which are defined by varies organizations and institutions and the process of calculation is quite detailed since the property tax calculation depends upon the various issues that they serve such as schooling in the provincial level etc. Hence the values and rates vary among different provinces.

Property tax is usually paid to the different municipal authorities and is usually calculated as annual fees that need to be deposited. These types of taxes also include late payment charges on the properties which have not paid there taxes for a long specified time period and can be auctioned if required.

An estate planning expert provides their clients with the best advice regarding their property based transactions, property taxes, legal disputes, administration of the estates, protecting clients and their properties, minimising tax on the properties, charitable ventures, developing succession plans in family for the transfer of properties. These experts also guide people if they are emigrating from Canada, for proper use of insurance schemes etc. They also provide advisory services to the new immigrants to form trusts and take advantage of 5 year tax free period. The planning expert also ensures services like formation of marriage contracts too.

The clients of the experts have requirements which are usually multi-jurisdiction .Hence such needs require different planning to accommodate the varying tax regimes and laws.These experts usually work separately or in co-ordination with the advisors of the clients to achieve the needs while reducing the effect of various taxes.The give effective advice, the experts begins with understanding the values and objectives of the client and evaluate accordingly once this clarity is achieved.

Offshore Tax Planning and Non-resident taxation

If a Canadian Citizen wants to save tax, then offshore tax planning is the best option where he can save his tax by making the investment in offshore which will lead to saving of money and increasing the investment which is not possible for the person living in his own country because they have to pay tax for the same.

What is offshore tax planning?

Offshore tax Planning gives the opportunity to the Canadian citizens who are working abroad. This facility is not possible for the people who are living in Canada. If the people working aboard indulge in investment part they will be having the great feature of saving tax along with applying them in many fields with the help of the management. Off shore is considered the best option as it will give the opportunity to the people that they can save and invest without paying any tax.

Off shore investment also provides the benefit to the customers at the time when person is returning to Canada after completion of the job. They will manage the assets in the better and efficient way. Offshore tax Planning is the best option as a person can make the best deal in investment part and manage it from anywhere in the world as they don’t want to pay the tax for the same. Apart from that, they can also increase the share of the investment as all are tax free.

Benefits of Offshore tax planning

Some of the main benefits of offshore tax planning are that person can increase the large share of investment as they don’t have to pay any extra amount as tax on these investments and they can easily maintain and control them by living in any location. Offshore tax planning is stable as the person indulge in investment are having more security in this field. Investments in offshore will give the best credit rating to the country along with facing the high regulation in financial market. Because of this feature most of the people preferred to have offshore investments.

Taxes for non-residents

Taxes are paid in the form of money which is levied on property, income and other taxes. It is important for an individual who is residing in Canada to pay the tax but the person who is coming for abroad has special conditions with regards in paying taxes. There are some rules for taxation for non-residents which will include:-

Non-resident taxation will allow the person not to pay any tax living in other country apart from that they can also take part in investment activities like buying the pension policies along with life insurance policies in which they will able to save the large amount of tax. They can also save their tax by buying some special policies like health policies for them or for their families and claim the deductions per year. Thus investment in offshore and investment in Canada by non-resident is very useful as they will able to save big amount of tax which will aid in their savings.

CANADIAN INCOME TAX FOR NON-RESIDENT TAX PAYERS

Canadian Income Tax is a joint responsibility of the Federal as well as the Provincial or Territorial Governments. Under the Constitution Act of 1867 taxation is undertaken by the Canadian government. According to the Supreme Court ruling of 1930:

• Taxation is enforced by the law of the land
• authorised by the legislature
• implemented by a public body
• to be used for development of the general public

Income tax forms one of the most important sources of revenue for Canadian Federal Government as well as the Provinces. In fact the income tax collected from individuals is many times more than the corporate taxes generated in the provinces. Canadian Revenue Agency or CRA which is responsible for the collection of the taxes. It is a Federal government agency and collects both personal and corporate taxes on behalf of the provincial and territories.

The tax payers of Canada have to do the self -assessment of their tax liability and pay the taxes by a due date to CRA.CRA undertakes the checking of the tax returns filed by the payers and then would inform them if any errors are found. If the tax payer is not satisfied and objects to the review done by the CRA, then the individual can appeal in the Tax Court and the Federal Court of Canada.

The individual has to pay taxes on the basis of the amount taxable income for a particular year. The various means by which a tax payer can pay the taxes are as follows:

• Tax deduction at source
• Pay through installments
• Income tax return by a due date
• Payment after due date as arrears

There are certain other deductions from the Income that are done by the employer such as Pension Plan, Employment insurance, Parental Insurance.

If any individual has overpaid then he/ she is refunded in their bank accounts directly after filing their tax return which is usually April 30^th.

There is another source of through which the Canadian Government earns revenue which is Non –Resident Tax. According to this the non resident Canadians who

• Those who have stayed in the country for more than 183 days
• those who do not have any residential links with Canada such as a residence, spouse, property, social ties etc
• those who are not considered as resident of a different country as per the tax laws of Canada
• If an individual is factually a resident of Canada and also has a citizenship of another country too with whom Canada has a tax treaty, will be considered as a deemed-non-resident and such an individual will be covered under the Canadian income tax law.
• Also those individuals who have driver’s license, credit card, bank accounts and health insurance schemes are considered to have residential links or ties with Canada.
• Anon-resident individual who earns from sources in income has to pay income tax depending upon what kind of that income is and whether it comes under the tax regime or laws of Canada.
• Income by a non-resident is subject to Part XIII of tax else Part I of tax.

How to find the best tax specialist in Canada?

Hiring a tax accountant can benefit all types of taxpayers. Before you start your search, you might be wondering about all kinds of tax pros out there or who can do your taxes. There are two types of tax professionals that are most appropriate for most people-enrolled agents and certified public accountants. In case you get audited, both types can represent you before the IRS. You should find an experienced tax specialist who specializes in the areas in which you need help. Here are some simple steps you can take to find the right professional for your situation, to protect yourself before you spend your hard-earned cash.

• Referrals are best .Ask everyone you can think of: friends, business owners, family, financial advisors and attorneys. It will be best if you ask someone who has a similar tax situation to yours.

• Beware of an accountant who says that you can deduct everything or promises you big refunds. You are ultimately responsible for the information on your tax return, not the tax consultant

• Do not be afraid to change accountants or shop around if you are not comfortable.

• Retail tax franchises offer competent tax service for individuals who need to file relatively straight-forward tax returns. You can sometimes find CPAs and Enrolled Agents working in these offices and some tax preparers will be more experienced than others. Prices are often determined by how many tax forms need to be filled outfit is good if you can meet with a CPA, senior tax preparer or an enrolled agent. You'll pay the same, but can get to speak with a seasoned professional.

• Local, independent tax firms often specialize in the tax needs of small businesses and individuals in their neighborhood.Some independent tax accountants will be more experienced than others. It will be good to ask if the firm has the expertise to handle your taxes.

• Enrolled Agents (EAs) are tax professionals who have passed background check and a rigorous test administered by the IRS. Enrolled agents often specialize and are best for complex tax situations.

• Certified Public Accountants (CPAs) are accountants who have passed the rigorous CPA Exam and are licensed by the state they work in. CPAs generally expertise in a specific area, such as business consulting or audits tax.Not all CPAs handle tax issues but CPAs are best at complex accounting work.

• Tax attorneys are lawyers who have chosen to specialize in tax law. Tax attorneys will often have a master of laws degree in taxation (LL.M.) in addition to the required juris doctor (J.D.) degree. Attorneys are best at complex legal matters, such as taking your case before the Canada Tax Court or preparing estate tax returns.

Your guide in tax payments!

Tax is a common term that we all come across in our daily life, such as education tax, service tax and a never ending list of taxes. But what is tax? Tax is an excise duty that government imposes on individuals or firms to continue experience the multiple services facilitated to them by the government. Once in every year all the citizens of a particular state need to file a tax charge.

For paying tax it is important to keep a track of all the important expenses and purchases one has made throughout the year, also including your travel expenses. But as a general trend, we keep on delaying this very essential upgrade and thus find ourselves attracting to penalties. Even your stay in abroad for a long duration is liable to crown you with a non resident tag and thus imposing a non residential tax on you. To avoid this condition, one can seek help from tax consultants.

Tax consultants are people who have completed their higher studies in the fields of accounting and taxations. Their superlative knowledge about the rules and regulations of tax laws makes them a handy and reliable resource in handling tax filing to paying problems. Their assistance also offers a great peace of mind and a considerably better financial status.

The most notable advantage of hiring a tax professional is the valuable tips that he extends to help us cut down on the tax costs. They also act as tax preparers and assist in formulating the needed records and papers, required during taxpaying. One should not forget that his own valuable input is of utmost importance in furnishing the records. Their expertise and skills in the field assure you of no troubles and penalties during and after the process.

These consultants can be hired on per session basis or you can even book them for a month, as per your budget. They may be individuals or firms running tax consultancy. Whosoever you choose assure that the person is reliable and credible. One should check for the qualifications and research in detail about the company he/she wishes to hire to meet success with ease. If not checked, your financial condition may further deteriorate and you may end up landing into a trap.

Whenever possible meet the consultant in person and look for traces of clients that one has already dealt with. Whether the consultant is registered or not, is also an essential element in choosing the right expert for you. Also there are agencies that specialize in some or the other niche; for example a company would be relatively superior in catering official taxes, therefore, always trust and sign deals with the most reputable professional in this field.

Taxing is an important part of an individual, organization and the state itself. This imposition made by the government eventually is for our own benefit and also helps in progress of our nation. Therefore one must abide by the tax laws and should pay them in time to avoid punishment charges.

The most pragmatic solutions for your nonresident taxation needs!

People all over the world, have been in the constant look out for ways to minimize their taxes, and maximize their savings. This has not always been a very successful ordeal, more so, if you are a non-resident in Canada, and are supposed to be a part of the economy by paying taxes. People might not be awake that doing certain things may make them enter the category of taxpayers in Canada. This can happen when you own a license, or purchase a house here. It is extremely difficult for non-residents to properly understand the tax havens related to being a non-resident taxpaying person.

For all such people, chartered accountants are a one-stop solution in all their needs to help them with their tax paying laws, and entitlements. This makes it easier for people like them to get the best of solutions, without having to go through the legal hassles. These chartered accountants should be hired based on their years of experience and specialty. Reputation is also a very deciding factor, for all such purposes. These are exceptionally trained to handle problems like yours and those related to nonresident tax payments.

The taxation rules are quite confusing in Canada, and they sometimes vary with province, for all such setbacks that you may have for lack of knowledge these services will come handy. What people need to understand is that, not everyone owning a car, or home or furniture is liable to pay taxes, if they are a non-resident. The fact is many of these people may be exempt from doing so, without any knowledge. This exemption can come from a number of reasons, like mutual understanding between the two governments, or because of very specific treaties signed by them. There may be other things that you may be entitled to like, rebates and certain differential treatments based on the lines, of previously mentioned things.

It is not easy for everyone to understand and more importantly incorporate them in their financial calendar, this is why usually, people opt for chartered accountants to properly aid their tax planning and how to take measures like fixed deposits, funds and other such things to minimize paying taxes and increase returns. Looking for a suitable accountant may be another daunting task, but if you are set for it, there are many ways you can find one in your nearest area. The key, is to find someone, who is worthy of getting paid to do these kind of assessments and planning for you, even if the person Is sitting thousands of miles away. This distance is not much of concern, anyways these days for the fact that technology has made the whole world shrink to a size where n0othing is far enough.

Therefore, to get the most returns out of your income tax payments, consider hiring a professional to do the job for you. This will make sure that you are in accordance with the laws, as well as save a lot of that money you could not have without this professional help!

Keep yourself informed with real tax experts!

Every country has a specific set of rules to manage the constant cash flow to the country’s economy; one such necessary rule to follow is paying your taxes on time. Not many of you might know, that taxes are not only paid by the residents of the country, but also those immigrants that are staying in the country and fall under the category of having taxable income. This Canadian taxation of non-residents, Is not a novel phenomenon, on the other hand, it is almost predominantly present in all the countries, more or less. To fall under the category of taxpaying nonresident, there are criteria that need to be met. To get a brief idea about them, read on!

Those immigrants, who obtain a driving license, are working for any Canadian company, or have an income at taxable limits are all eligible to pay taxes. In addition, those who have bought any type of real estate are also entitled to pay Canadian income tax. In such situations, even though you know that you are liable to pay taxes, you would like to save money on it, and get professional help. It is of utmost importance, to be correctly informed about the procedure of these tax payments. Which forms to fill, what are the deadlines and how to go about it? A professional will guide you through the whole process, so that you do not have to lose your sleep over such trivial matters.

This professional can be an accountant or better still a chartered accountant. These are better options than lawyers are because lawyers have a limited skill set, when it comes to taxation and such procedures. These processes on the other hand, can be undertaken with ease and finesse by the accountants, for they are specially trained in this respect. Mathematical calculations and tax calculations are very easily done by them, and you get results within a matter of minutes. In case, you are thinking of hiring one, it is not that difficult a task. All you have to do is, look for the most preferred accountant in the area, get your friends and relatives to set you up with one of these accountants and try surfing until you zero in on what is best for you.

These accountants will help you get proper knowledge of the category you fall in, and whether or not you can be exempted from paying g taxes. Tax evasion is a crime, but investing your money properly so that you get a lot of that back as income tax returns is legal as well as a wise decision that you should make well within the stipulated time. The best part of these services is that you can clearly map out the exact schedule of payments, and the chartered accountant will help simplify things for you. Therefore, no matter what your tax paying status, if you genuinely want to save yourself from the troubles of the taxpaying, hire a chartered accountant today!

Get the best tax consultation, imaginable!

Money makes the world go round, you may have heard of this proverb many times. The fact is that not only citizens, but also a country needs money, to facilitate the process of development in the country. This money is taken from the residents and non-residents of a country, in the same manner. These international tax rules are as stringent for non-residents, as they are for the citizens of a country. In Canada, there are certain laws that govern these taxation processes, they are almost the same as that as any other country for that matter.

The government expects taxes, to be paid from the income you receive from being employed in the country. There are certain laws related to the nonresident taxation policies, according to which you can decide which category of taxpayer you belong to. You should be aware as to what are your obligations, rights and entitlements are. These laws can sometimes, be very stringent as well as confusing and for understanding these you may need professional help. If you think, that professional help can effectively be derived from accountants or lawyers, you may be left surprised as how incomplete their knowledge could be. For the most effective of solutions, you need real tax experts, with genuine experience and expertise in the field.

Anyone, in such a position, would like to have the best in the field of tax consulting. The most important factors that you need to look for, in the firm you may be relying on are consistency, reputation, and real knowledge. The agency must enlighten the situation to you, and you should be informed about the criterion with which you are classified as a non-resident. There are some factors that make you an eligible candidate for paying the taxes in Canada, like buying a home or getting any sort of property. You will be classified as a non-resident taxpayer if you were to hold a driving license in Canada, or if you have a spouse or dependant family members here. The list is quite wide, and to save yourself from any sort of legal trouble, it would be a wise decision to get the best legal tax professional help possible.

The agency you approach for all these matters should have proper knowledge of the proceedings involved. There are many top-notch agencies, which let you get instant information on these taxation rules, on Skype, or chat, or even with a phone call. While looking for such services, always make sure that the agency is properly accredited and affiliated. This will ensure that the information is reliable and will not cause any problems for you. One of the most important things to consider, is that you should try to get the first evaluation, done as a trial, so that you avail it for free and get to know whether the agency is of any use to you or not. Getting the best taxation advice, especially if you are a non-resident, is of paramount importance to avoid any future complications!

Money makes the world go round, you may have heard of this proverb many times. The fact is that not only citizens, but also a country needs money, to facilitate the process of development in the country. This money is taken from the residents and non-residents of a country, in the same manner. These international tax rules are as stringent for non-residents, as they are for the citizens of a country. In Canada, there are certain laws that govern these taxation processes, they are almost the same as that as any other country for that matter.

The government expects taxes, to be paid from the income you receive from being employed in the country. There are certain laws related to the nonresident taxation policies, according to which you can decide which category of taxpayer you belong to. You should be aware as to what are your obligations, rights and entitlements are. These laws can sometimes, be very stringent as well as confusing and for understanding these you may need professional help. If you think, that professional help can effectively be derived from accountants or lawyers, you may be left surprised as how incomplete their knowledge could be. For the most effective of solutions, you need real tax experts, with genuine experience and expertise in the field.

Anyone, in such a position, would like to have the best in the field of tax consulting. The most important factors that you need to look for, in the firm you may be relying on are consistency, reputation, and real knowledge. The agency must enlighten the situation to you, and you should be informed about the criterion with which you are classified as a non-resident. There are some factors that make you an eligible candidate for paying the taxes in Canada, like buying a home or getting any sort of property. You will be classified as a non-resident taxpayer if you were to hold a driving license in Canada, or if you have a spouse or dependant family members here. The list is quite wide, and to save yourself from any sort of legal trouble, it would be a wise decision to get the best legal tax professional help possible.

The agency you approach for all these matters should have proper knowledge of the proceedings involved. There are many top-notch agencies, which let you get instant information on these taxation rules, on Skype, or chat, or even with a phone call. While looking for such services, always make sure that the agency is properly accredited and affiliated. This will ensure that the information is reliable and will not cause any problems for you. One of the most important things to consider, is that you should try to get the first evaluation, done as a trial, so that you avail it for free and get to know whether the agency is of any use to you or not. Getting the best taxation advice, especially if you are a non-resident, is of paramount importance to avoid any future complications!

Get the best advice for your offshore tax planning!

In these times of economical downpour and recession, many people find themselves immigrating to other countries in search of greener pastures. Most of these people, immigrate to developed countries like Canada, or US, in search of jobs that pay well. What most of these people fail to understand is that they are equally liable to pay taxes, just like the residents of that country like Canada, for example. These taxation laws, are often complex, and require the help of professionals to understand and execute them properly.

Seeking professional help, for all your offshore tax planning needs, may be more difficult then what most people imagine. Most of the people do not have any idea, as to where and who to turn to in such needs. The first step they can go wrong at, is going to a lawyer for seeking help. What you need to understand is, that lawyers know about law, and have very little or almost no knowledge of the mathematical skills involved in getting the proper assessment of your taxes and returns. This can waste a lot of your money, on useless services that will not yield results.

For those of you, who may be thinking who to turn to, the answer is any chartered accountant that has good credibility and repute. One of the exemplary names in the field is Michael Atlas, one of the most reliable and versatile chartered accountants that has captured the fascination of people like you, that are entwined in these legalities and see no way of coming out of them. He has been helping non-residents with the issues of taxation since the year 1991, making him truly credible and his efforts applaudable! He has found his clients in lawyers, other accountants, general people like you and many more, this reflects the versatility of his clientele.

His efforts to make the Canadian tax havens understandable to the general public, is commendable. There are many ways, you can contact him, and not all of those involve visiting his office. You can very easily call him from any part of the world, for taxation related help and you may be mesmerized by the effectiveness with which he provides even the most minute of details. He is equally adept at providing national and international taxation advices, depending on what you need. His areas of services in the domestic category are helping with taxation needs in case of mergers and major acquisitions, and in cases where you want to sell off your business. Services provided to those undergoing reorganizations at the corporate level, may leave you with an experience that is unmatched. He is equally skilled in handling real estate related taxation needs.

These services are not only limited to domestic clients, but also cater to international clients. He can very easily let you know all the taxation laws that come as a part of being an immigrant, or transactions between countries, like US and Canada. His services have truly created a benchmark in consumer satisfaction and the place he holds in the field of nonresident taxation is self-explanatory of the reputation he has!

Rules for taxation in Canada

Canadian Government has made special rules for the comfortable stay of its people. Because, of its policies and a stable governance it is a developed country. One of such policies which supports in the smooth running of the Governance system is the special Taxation Policies for the Non residents.

The Non residents’ tax policies are applicable on all those people the people who either are not the residents of Canada and live in another country or those who do not have proper residential ties in Canada. Resident ties includes those people who have lived outside Canada either for the entire tax year or if a person lives in Canada for less than 183 days in a year.

Thus all the people who do not follow the certain things such as having a place of residence in Canada or having a spouse or a common law partner in Canada or not having a property in Canada. In addition to that a person must have some other ties in order to be a Canadian resident which includes having a Canadian driving license and bank account in Canada and a health insurance in a Canadian territory.

Canadian taxation of non residents:

As a non resident of Canada the income tax is paid in order to receive the sources from the Canadian government. The kind of tax that will have to be paid would depend on the income that you receive.

The rules for the Canadian taxation for Non residents have been explained in the Part 13 of the taxation policy.

According to the part XIII of the Canadian Income Tax policy the taxes are deduced from the types of the income. In order to ensure that the correct tax amount that is deducted for the payees, they would need to submit the right taxes.

The Canadian income taxes according to the Part XIII are:

1) Dividends: Dividend may be defined as the payments that are made by the company or the corporate in order to make the payments of the share holders.

2) Rental and Royalty payment: The royalty may be given against a product that originally is of someone else but is used by the company or the corporate.

3) Pension Payments: The pension payments include payment of the pension for the people who have retired from their jobs.

4) Retiring Allowance: It is the amount that is paid on retirement.

5) Registered saving plans: These are the payment plans which are paid on the savings.

In addition to this there are other fees which include the management fees.

In addition to the part XIII tax there is part 1 tax which includes the conditions for the payment of the income tax in accordance with the business in Canada.

According to this payment scheme, if the business is carried in Canada then the tax payments can be seen by referring to the Guide T4002 by the Business and Professional Income in order to find the taxes which are needed to be paid in instalments.

Thus, there are various policies adopted by the government in order to acquire taxes from the government.

Estate Planning in Canada: Some basic considerations

Canada is a country which does not charges any taxes under the name of the estate tax. This is true but the taxes for the state fall under the category of the deemed deposition tax. The deemed disposition tax includes the taxes which are similar to the estate taxes and are applicable when a person is dead.

Thus while having the estate planning for yourself in Canada you must be aware of certain small things which includes the issues related to the taxation policies. The deemed deposition tax is names as it is deemed at the time of the disposition of the person i.e. the death. The capital gains that are made by the sale also includes the retirement accounts and the income which is received from the stocks, real estate investments, treaties, bonds and other plans such as the life insurance which proceeds in the death year for any person which starts from the first day of January and continues up to any month. The final tax returns also include the tax gains which are filled in the year of death. The final taxation under the real estate is substantial and consists of the tax rates up to 29 percent. This also includes the provincial and the probate tax.

A good thing about the disposition tax is that it is also transferable under the surviving spouse. The taxes are also deferred even if the assets are transferred to the surviving partner. The taxes are also deferred in case the spouse sells the assets and the tax is applied. When the person also dies and the assets are passed on to their successors, the half of the capital gains which are earned from the stocks, bonds and other real estate investments. 

A better option is to make a will before the death. This is beneficial because if you make the will the successors would get the real estate property according to the person’s choice. In the otherwise situation the Canadian province has the right to decide the distribution of the same without the wish. According to the laws which are followed by the policies, the amount in cash or the property up to first $50000 is deposited to the surviving partner and the rest are distributed among the spouse and the children

If there is no spouse or the child then the parents enjoys the amount, which is followed by the brothers and sisters.

If the person dies without the payment of the will then it would also lead to the delays and the payment of the extra expenses.

These considerations are also applicable in case of an offshore trust which is the offshore trust involving the offshore jurisdiction. Now it is very important to have the offshore trust in order to consider the trustee for any kind of real estate. This is because it is of prime importance to have a trustee during the real estate buying and selling. The settling or the transferring of the policies is also managed under the offshore trusts.

Corporation Taxes: An overview

The corporation income tax in Canada has to be paid by the corporations and the organisations, these corporate taxes have to be filed in the category of the corporate income tax which are payable under the return scheme every year whenever there is no tax which has to be paid.

This corporation tax is not payable for following organisations and corporate:

1) The corporation taxes are not applicable to the non profit organisations who work for the social benefit but fall under the category of the business and the corporate.

2) The corporate taxes are applicable to the corporations which fall under the category of tax exemption.

3) The corporate taxes are not applicable to the inactive corporations

Even if these organisations and the corporations do not have to pay the corporate taxes they will have to file the Corporation Income Tax return every year. The filing is mandatory because of the following reasons:

The government is also conducting certain projects for the development of the nation. Some of those includes the inter nations taxes. Canada-Us tax is an example of the same. Under which they are paying certain services and the values to the tax payers. This kind of tax payments are also constant in other leading administrations which are related to taxes. Most of the corporate tax file returns are paid in the present times using the internet by the commercial software, thus the information is automatically transferred to the CRA. 

Various large corporations in the present days file under the available technology by making a good business sense, in addition to this it also helps in the sustainable development of the nation. The corporate find it feasible to file the corporate returns online by using the internet.

It is of prime importance for the corporation who have gross annual revenue of over $1 million.

The corporate taxes are also applicable for the non resident taxes who have to file the T2 returns in certain situations.

The T2 returns are mainly of two different types:

1) T2 corporation Income Tax Return: This is an 8 page return which might be used to file the income tax for any corporate.

2) T2 short Return: This return is a 2 page return which includes three schedules. This type of return is not applicable for other corporations.

The declaration of the corporate tax year many vary. The tax year can be declared after the incorporation of the first T2 return. The financial statements should be attached related to the tax year.

As soon as the T2 returns are incorporated, the dates of the incorporation are applicable for the taxes. For all the subsequent returns the date of incorporation is used as the start date for the tax year. The tax year would thus start from the day after the end of the tax year.

If you are filing the corporate tax returns online then it is automatically forwarded to the CRA. However if you are filling the same offline you will have to send the same in different corporate return offices which are located in different places in Canada.

Canadian taxes on the business

The corporate taxes are the income tax which is levied by the federal government of Canada on the corporate. These taxes are applicable under all the private corporations in Canada which comes under Canadian Controlled Private Corporations.

Types of corporate taxes:

1) For private corporate who have small business the taxation rate is 11 percent. An example of the same can be the estate planning expert.

2) For all the other kinds of corporations in Canada the corporate rates are fixed at 15 percent.

The corporate tax for the big corporate of Canada was 18 percent in 2010 which was decreased to 16.5 percent in 2011 and 15 percent in 2012.

In order to take care of the corporate taxes the Canadian taxable revenue agency is responsible which includes the different tax rates which are to be charged by the provinces and the territories.

In Canada there are two main types of corporations, one of which is the Canadian Controlled Private Corporations and there are other corporations.

When it comes to the corporate taxes the Canadian controlled corporations have a better hand while the other corporations do not have.

One of the greatest advantages of the Canadian controlled corporations includes the eligibility to get the permission for the small business deduction. The tax deduction is thus calculated as eleven percent on the least business income of the corporate in a taxable year.

Another advantage of having the Canadian controlled corporations involves:

1) It involves an additional month where the taxes can be paid by the corporation.

2) It involves an enhanced investment to pay the tax credits for the expenditures which are qualified and the experimental development and the research conducted t the scientific level.

3) It ensures the capital gain exemption to the share holders for the deposition of the corporate business shares at the small level.

4) It also involves the deferral of the taxable benefits of the employees for exercising the options which are related to the stocks as per the grants given by the CCTC.

Reduction on the Canadian corporate tax:

1) There are two ways to reduce the amount of Canadian tax that the people of Canada have to pay. It is also notable fact that they do prescribe the things that they earn from the tax credits and tax the advantages of the other tax deductions.

The first method is the corporate tax credits. The tax credits include the federal investment credits which can be read in detail in the investment tax credits for Canadian small business. The best tax credit involves the scientific research.

The second method is the income tax deductions which are available to the Canadian controlled private corporate. The business tax deductions are available in the list provided in my business Expenses from the Accounting to the travel expenses.

The corporate income tax is thus needed to be paid by the people within the 6 months of the fiscal year. It is designed in order to benefit the corporate which are provided assistance from the revenues generated from the corporate tax.

Canadian System of Tax Havens

International corporations have for long been in search of methods or to be more precise, tricks, to evade taxation of countless types, across their global market destinations and that's where the tax implementation teams found their use, curbing the practice of tax evasion, on both corporate and individual scale but, one such practice seems to be defying every possible effort of these taxation departments, especially that of the US, of putting an end to the "not so illegal" practice of tax avoidance. Tax haven -a term that still remains largely undefined, has in a way provided a major outlet to individuals and corporate setups in saving huge capital which otherwise would have been taken as tax to the state.

The countries that provide basic modifiable tax structure which is composite in it and relies on the administration's alteration, with time which has been used to favour huge as well as middle class businesses in terms of tax reductions as compared to their home state. This is what attracts these huge corporate establishments to setup industries in these states i.e. to enjoy tax benefits, which when was calculated led to a staggering range of $10 billion to $90 billion of revenue losses to the taxation departments. To add to these excerpts of tax avoidance, the individuals too have started using these tax havens in their favour by purchasing foreign investments or by simply not reporting their income which they are free to save in foreign banks that do not give out any details of the client. Another method involves shell corporations and trusts that are exempted under the US tax laws from taxing interest income and capital gains, including investments within the US.

Real Estate Taxation in multiple countries have yet not faced a threat as the taxation department faces due to tax havens, but given the nature of real estate tax being imposed in various countries, the probability of tax evasion in this sector cannot be ruled out. Most of the countries, especially the western part of the world favours a flexible structure of tax amount estimation, that takes into account the current land value of the holding, which as compared to other countries like India, Denmark etc has a better relevance in present day because the stringent and rigid set of rules being followed by the former countries while evaluating tax results in people resorting to non-investment methods, especially in real estate which is at present in a booming stage and if not regulated well, will outgrow the administration by finding loopholes in the system.

For the rapid revenue losses, inflicted by none other than their own corporate industries, President Obama had presented International Tax Proposals that included restricted access to foreign tax credits, control over check-the-box practice and many more. With multiple proposals on regulation of this 'undefined' practice, the Obama administration aims to raise $210 billion for fiscal year 2010-2019, another $129 billion for fiscal year 2012-2021 and yet another $148 billion for the fiscal year 2013-2022.

Offshore Trust – An Overview

The only way to protect your wealth or part of it is through a trust. It could be through an onshore discretionary trust or an offshore discretionary trust. A trust is an arrangement where a person (the settler) creates a trust and the trustees hold and manage assets (the trust fund) for the benefit of others (the beneficiaries). An offshore trust or overseas trust is a trust that is resident outside the "resident country" for tax purposes. The residence status of an overseas trust is important because it determines how the trust and the beneficiaries are taxed in your resident country for income tax and capital gains tax. The resident status of a trust does not directly affect the inheritance tax in most cases.

While the tax advantages of using offshore trusts are limited, they can still play a key role in estate and financial planning to help you preserve and enhance your wealth.

You may benefit from using an offshore trust if you are a Canadian resident and:

• You have assets in various locations throughout the world;
• You intend to distribute assets to individuals living outside Canada during your lifetime;
• You have recently immigrated to Canada; or
• You intend to leave Canada. If you are not a Canadian resident, an overseas trust can:
• help you distribute assets to Canadian residents tax effectively, either during your lifetime or through your will; or
• provide significant tax benefits if you plan to immigrate to Canada

An offshore trust is established under the laws of another country and is administered by a non-Canadian trustee, typically a financial institution. An overseas trust has a settler, a trustee and beneficiaries. If you are the settler of the trust, you will fund the trust either by giving or lending property to it. A trust is separate from you and your beneficiaries, and is governed by the laws of the country in which the trustee is resident.

The trustee becomes the legal owner of the trust property and is required to manage the property as directed in the trust deed. The trustee is also responsible for distributing trust assets to the beneficiaries you have named in the trust deed. The trustee has full decision-making powers over trust assets based on the provisions of the trust deed, and it is essential that you have complete confidence in your choice of trustee.

If you are planning to immigrate (or have recently immigrated) to Canada, the assets in an offshore immigration trust can earn income and capital gains from foreign sources free from Canadian income tax for up to the first 60 months of the immigrant’s Canadian residency. Because the duration of the Canadian tax holiday is based upon the time you are resident in Canada, setting up the trust prior to the move to Canada maximizes the benefits. However, setting up such a trust may generally still provide some benefits even if established within 60 months after immigration to Canada.

Because of the complexity of the rules governing overseas trusts, you should obtain expert advice from experienced Canadian tax specialist who is familiar with your particular situation. You will need tax, legal, and investment advice to ensure that the trust is structured for your maximum advantage. Your tax specialist will also need to consult with reputable advisors in the jurisdiction where the trust will be established to ensure familiarity and compliance with local laws as well as jurisdictions in which the beneficiaries reside.

Know About Canadian Corporate Tax

In Canada, when it comes to taxes, big corporations don't pay their full share. Instead of other countries, the central government helps out big businesses in order to keep the money circulating through Canada. Without supporting such services through income tax, it is seen as inappropriate and unfair that corporations with profitable operations benefit from government services. Also, current levels of taxation were cited as a major problem for Canadians. Since Canadian corporations pay a lower income and corporate tax, if the government was to raise the tax who would pay it at the end. Another clear example which supports such argument is seen when it comes to high payroll tax. Since businesses claim that high payroll tax will force them to fire employees, this gives them another advantage in not paying their expected share. Businesses pay less then what is expected of them to pay.

Canadian corporate tax includes taxes on corporate income in Canada and other taxes and levies paid by corporations to the various levels of government in Canada. These include capital and insurance premium taxes; payroll levies (e.g., employment insurance, Canada Pension Plan, Quebec Pension Plan and Workers' Compensation); property taxes; and indirect taxes, such as goods and services tax (GST), and sales and excise taxes, levied on business inputs.

Canadian corporate tax is levied both at the federal and provincial level. The current federal corporate tax rate for 2013 is 15% on general active business income and the combined federal and provincial corporate income tax rates in 2013 range from 25% to 31%, depending on the province in which the permanent establishment is located.

Nonresident corporations who have business interests in Canada and generate revenue from a business that is located in Canada will have to pay corporate income tax to the Canadian Government. The clauses that govern the corporate income tax in Canada are a bit complicated and the complications will only increase if you are a nonresident. If you are ‘carrying on business' in Canada either directly or indirectly then the profit that is earned out of the business will be subject to taxation. Like in income tax, the residency status of the corporation will have to be determined and the corporate tax that is levied will be based on the residency status of the corporation.

Canada’s complex and continually changing legislative environment poses a significant tax-compliance burden on every company doing business in Canada. That’s why it’s more important than ever for businesses to understand the key tax regulations that affect their particular business. To minimize your risks, it’s important to work with professionals who can help you manage your tax issues and anticipate the potential impact they will have.

Hire an International Tax Accountant to Help You with International Tax Planning

International tax planning involves strategies to reduce or outright eliminate the payment of income taxes and other taxes. Global tax planning doesn't mean illegal tax evasion. There is a big difference between tax evasion and legal tax avoidance. Evasion means lying, hiding, fraud, perjury, and other illegal ways to hide income which is a crime in most countries. Legal tax avoidance is using a global tax plan to legally avoid paying taxes.

International tax planning usually includes the use of offshore corporations to be created in countries who do not tax their corporations doing business outside of the country. All of the earned income and passive income (like bank account interest) are tax free. Products or services being sold by these corporations to other countries makes them "offshore" corporation in regards to generating income. Offshore corporations also get their name because they exist away from the client's home country.

Here are few advantages of effective international, or overseas, tax planning:

• Taking advantage of double taxation treaties between your resident country and other offshore countries
• Legally minimizing international tax liabilities
• Improved financial efficiency
• Maximize working capital
• Protecting business, and personal, assets

An effective, well-structured global tax planning strategy can legally benefit an international business in a number of areas. It can be a complex process, especially when multiple jurisdictions are involved. There are a number of fundamental issues to consider before deciding on an optimum strategy and this is the reason why using an experienced professional can be valuable. They will assist with both developing the most suitable strategy and avoiding potential issues from arising.

Hence, it is important that you understand the tax related laws and rules of your home country as well as of the new country, where you are planning to settle. In addition, you will need to focus more towards global tax planning.

Finding a competent tax accountant to come up with an international tax plan takes a little research. The internet is filled with law firms and legal entities creation companies all claiming they can do "asset protection" or can eliminate income taxes or do asset management and other forms of a global tax plan.

International tax accountant can also help in your global taxation planning. In fact, they have too a good understanding about offshore tax related rules and breaks. However, appointing an international accountant will be of no use if your prime concern is about offshore banking advantage and investment. They can actually advise you on the residency related rules and laws.

Features of Offshore Trusts

Offshore trusts or overseas trusts are formed due to the distinct asset protection that is provided. One can hold assets as well as funds and property and these assets are then managed in accordance with the rules laid down in the deed of trust. There are offshore tax benefits that one can avail of as well which are preferred to the taxes residing in one's country. The distribution of the funds or the benefits of the assets among the group of persons who are known as beneficiaries of the trust fund is also dictated by the deed of trust.

It is formed through an arrangement that is entered into by a person or a group that is referred to as a trustee. The trustee and the settler come into an agreement. The settler is a group of people or a distinct person. The provisions are made in the form of a legal agreement. It is known as a deed of trust that is formed between the trustee and the settler.

It is well-established policy that new immigrants to Canada are given a five-year tax exemption, through the use of an appropriately structured overseas trust. Furthermore, offshore trusts established by non-residents of Canada for Canadian beneficiaries are not subject to Canadian tax at all. Canadian residents may receive distributions of capital from such overseas trusts tax-free.

Trusts are subject to taxation. Whenever you move property into/out of a trust, there may be tax consequences. Furthermore, the income and appreciation of the assets may also be taxed. Therefore, it is always a good idea to consider the offshore tax implications and minimize them whenever possible.

New or recent immigrants to Canada may continue to use offshore trusts and obtain a 60-month tax exemption. In addition, trusts established by persons who never become resident, either by will or during their lifetime will be tax-free indefinitely. Former residents now living outside Canada may set up a tax-exempt overseas trust to benefit Canadian family members after 60 months of non-residency (18 months if set up by will on death).

Overseas trusts provide the trustee with great flexibility, control and authority over their assets and provide absolute confidentiality, total privacy and protection from liability. Assets managed by overseas trusts are mainly free from tax applicable in a settler's home country or jurisdiction, protecting assets for heirs. An overseas trust is effectively a shield of protection to protect assets from scrutiny, tax and civil legislation and provide peace of mind for people looking to protect their assets and provide for their descendants into the future.

Estate Planning & Its Advantages

Estate planning is about the life of your family and loved ones – and the peace of mind you get from helping to preserve their financial security. Property planning is a difficult subject to discuss by its very nature, – even more so to plan for because it forces us to come to terms with our own mortality. Yet it’s something you need to talk about openly with your loved ones today because you can’t do so after you’re gone – or after they’re gone. Each person will approach estate planning differently, with personal motivations and expectations. No estate plan will be exactly like another. Estate planning should be a reflection of your personal priorities and choices.

Estate planning advantages

• It distributes your assets as you intended; provides funds to cover funeral expenses, as well as immediate and/or long-term family living costs
• Keeps more of your money in the hands of your heirs
• Minimizes income tax and probate fees (no probate fees in Quebec); designates charitable gifts; declares your personal care preferences, including terminal medical treatment and organ donation intentions
• Provides for the tax advantages of income splitting
• Ensures business continuity for business owners
• Identifies the people chosen to carry out your last wishes and care for your children

Generally, Canada is viewed as a country with no estate tax. While that's true, what many people don't realize is that a deemed disposition tax, which is similar to an estate tax, applies when you die. Deemed disposition tax is so-named because your investments are deemed to be sold at death. Any capital gains triggered by their sale are included in a final income tax return filed in the year of death. A final tax return also includes the value of any retirement accounts and income received from stocks, bonds, real estate investments and even life insurance proceeds in the year of death, from January 1 up to the date of death. With Canadian federal income tax rates of up to 29%, this final taxation can be substantial. Provincial taxes and probate fees also apply.

The good news is the tax is deferred if the assets are transferred to a surviving spouse. Taxes are deferred even if the assets are held in a spousal trust, which provides income to the surviving spouse. However, if the spouse sells the assets, then the tax applies. When the spouse dies and the assets are passed on to other heirs, 50% of the capital gains of any stocks, bonds, real estate investments and other assets are taxable at the personal income tax rate.

Property planning is a complex matter so you can take help of a professional. Working closely with your Toronto tax accountant, you’ll find the estate planning process to be liberating. It will provide you with the peace of mind that comes from knowing your loved ones will not be burdened by resolving your personal and financial affairs.

Using Tax Havens to Avoid Paying Tax

Tax havens are countries that impose very low taxes or in any case no tax on investments and income earned out of that country. This is done to encourage people from investing in the country so as to boost the economic status of the country.

Tax haven countries impose no tax or very low taxes in order to attract investment in their financial and other sectors. Most countries co-operate under international tax treaties by exchanging information about foreign investments. However, in tax havens, strict bank secrecy and a lack of information-exchange provisions can result in transactions and foreign investments being concealed from tax authorities.

This allows rich individuals, Canadian banks and resource companies to avoid paying billions of dollars in taxes each year. There are legitimate reasons why a tax haven might be used, and tax administrators have no view on where Canadians invest as long as they comply with Canada’s tax laws. What the CRA is concerned about are investments, transactions and schemes that use tax-haven countries to reduce, avoid, or evade Canadian tax. Using tax-havens for tax avoidance and tax evasion is a growing concern for Canada as it is for other countries. The CRA is working closely with tax administrations of other countries in focusing its efforts on identifying offensive arrangements and taking corrective action.

Tax havens can be used in very straightforward ways such as setting up an offshore bank account to hide assets and income with the intention of not reporting the income. This is tax evasion. Tax evasion is a deliberate attempt to conceal or distort net income. Tax evasion schemes involving tax-havens may also be quite sophisticated, and take many twists and turns. Often, tax-havens are used to set up trusts or to create corporations or other entities that are used to make tracing assets as difficult as possible, including foundations designed specifically to disguise the true ownership of assets.

These entities are often used as part of larger tax plans to hide critical parts of the transactions. Such plans and transactions fall under the category of aggressive tax planning and may constitute tax evasion. Aggressive tax planning is a challenge confronting all developed countries.

It can involve very complex structures with both domestic and international elements. The objective of this type of tax planning is to get tax benefits that were never intended under the normal application of the tax laws. Aggressive tax planning manipulates transactions to avoid crossing the line to tax evasion.

Know About Canadian Cross-Border Taxation

International or Cross-Border Tax Services can be a tricky thing to deal with, since taxes on certain things might be higher or lower than others. Tax is not only the concern of the big business units but also people with offshore saving accounts or in any way liable to international tax. In some countries, food is taxes, while in others it is not.

In the United States, the income tax system is based on either citizenship or residence. This is not the case in Canada. Canadians living or working in the United States may find themselves taxed on their “world income” in both Canada and the U.S.

The U.S. tax system, administered by the IRS, is complex with many compliance and reporting requirements that are quite different from the Canadian system, administered by the CRA.

Engaging tax specialists with expertise in both the U.S. and Canadian tax systems may not longer be an option for most Canadians that have to deal with these complexities – not an option, just good sense.

The Canada-United States Income Tax Convention and other amending protocols are intended to prevent “double taxation” and enhance cooper ration between the two countries. The 5th Protocol (set of changes) to the convention was designed to:

• Eliminate source-country “withholding” tax on cross-border interest payments

• Allow tax payers arbitration to otherwise insoluble double tax issues

• Ensure that there is no double taxation on immigrant gains

While the convention may provide for certain tax exemptions, this does not include exemption from filing income tax returns id the U.S. Failure to file as prescribed in the U.S. can result in the exemptions sought being denied by the IRS and other penalties being imposed.

While the American economy has been struggling, the Canadian economy has remained stable, and it is now easier than ever for smart shopping Canadians to take advantage of the American dollar. Besides the value of the American dollar versus the Canadian one, another financial benefit for the shopper is the lower sales tax rate in the United States.

If you are a Canadian Resident, then you are taxed on your worldwide income and filing of returns to the Canadian Revenue Agency (CRA) is mandatory. If you are a non-resident, the taxation policy is different and you have to declare all Canadian income while filing the returns. But to know how to file your taxes, you first need to determine your residency status for tax purposes.

If you are doing some offshore tax planning, by investing some money offshore, then you should be aware that almost all countries have signed tax treaties with Canada, and if you are a Canadian Resident, then income from these investments will also be calculated and considered as income and will have to be declared while filing the income tax returns. But if you are a non resident of Canada, there are options for you to do some cross-border tax planning, but it is always better to avail the services of an income tax expert to help you.

Few Important Facts about Taxation of Non-Residents in Canada

Canadian Income tax is levied on the worldwide income of Canadian residents. However, there are certain types of income that is earned from Canadian sources that are taxable for non- residents. The Canadian residents will have to use the T1 Tax and Benefit Return and it is the same for individuals and sled employed individuals. The amount of tax that will have to be paid by the individual depends on the value of their taxable income. The taxable income is calculated by reducing the allowed expenses from the gross income received.

When you live outside the country during a tax year and are a government employee, part of the Canadian Forces or staff of an overseas school chain, you need to check on the rules that apply for one. The rules are usually from other family members and dependent children as well. Such rules make it easy for people working in such institutions.

Often there is confusion regarding taxation of non-residents as to whether one would be deemed resident or nonresident of Canada for legal and tax purposes. One is deemed a non-resident of the country and a resident of another country with whom Canada has a tax treaty. In such cases, for taxation purposes, one is deemed a non-resident of Canada. Again, the definition of residential ties is important to understand for such purposes.

If one has a home in Canada or a spouse or dependent that stays in Canada and if you own personal property in Canada such as a car or furniture and have social ties in Canada, you become liable for nonresident taxation. The tax obligations in such matters are as per the income that one generates from different sources in Canada. The type of tax one needs to pay and the income tax return needed to be filed is dependent on the kind of income that one receives. The sections Part XIII and Part I tax policies apply in such cases. These sections can be easily referred to online and one can understand their tax obligations and even file their returns online to save on consultancy fees and time.

Also nonresident corporations who have business interests in Canada and generate revenue from a business that is located in Canada will have to pay corporate tax to the Canadian Government. The clauses that govern the corporate tax in Canada are a bit complicated and the complications will only increase if you are a non-resident. If you are ‘carrying on business’ in Canada either directly or indirectly then the profit that is earned out of the business will be subject to taxation. Like in income tax, the residency status of the corporation will have to be determined and the corporate tax that is levied will be based on the residency status of the corporation.

Corporation Tax in Canada – An Overview

Canadian corporations are taxed differently than other forms of business. The most obvious tax change is that as a corporation is a legal entity in itself, the corporation is taxed separately from the individual. (As a business owner, you file both T1 (personal) and T2 (corporate) income tax forms.) But tax-wise, there are also different types of corporation, and the type of corporation determines whether or not the corporation is entitled to certain rates and deductions.

Basically in Canada, there are Canadian-controlled private corporations (CCPCs), and then there are the others. When it comes to corporate tax, Canadian-controlled private corporations (CCPCs) are the Cinderellas at the ball while other types of corporations are the ugly step-sisters.

Companies and corporations pay tax on profit income and on capital. These make up a relatively small portion of total tax revenue. Tax is paid on corporate income at the corporate level before it is distributed to individual shareholders as dividends. A tax credit is provided to individuals who receive dividend to reflect the tax paid at the corporate level. This credit does not eliminate double taxation of this income completely, however, resulting in a higher level of tax on dividend income than other types of income. (Where income is earned in the form of a capital gain, only half of the gain is included in income for tax purposes; the other half is not taxed.) Corporations may deduct the cost of capital following capital cost allowance regulations.

Starting in 2002, several large companies converted into "income trusts" in order to reduce or eliminate their income tax payments, making the trust sector the fastest-growing in Canada as of 2005. Capital tax is a tax charged on a corporation's taxable capital. Taxable capital is the amount determined under Part 1.3 of the Income Tax Act (Canada) plus accumulated other comprehensive income.

From 1932 until 1951, Canadian companies were able to file consolidated tax returns, but this was repealed with the introduction of the business loss carryover rules. In 2010, the Department of Finance launched consultations to investigate whether corporate tax on a group basis should be reintroduced.

Canadian corporation tax includes taxes on corporate income in Canada and other taxes and levies paid by corporations to the various levels of government in Canada. These include capital and insurance premium taxes; payroll levies (e.g., employment insurance, Canada Pension Plan, Quebec Pension Plan and Workers' Compensation); property taxes; and indirect taxes, such as goods and services tax (GST), and sales and excise taxes, levied on business inputs. 

If you want to pay your corporation tax promptly and file the T2 return on time, you need to know the tax year end of your corporation. The fiscal period of a corporation or the corporation's tax year has to be less than 53 weeks. New corporation can choose the tax year end while filing the first T2 return and the subsequent tax year can be calculated according.

A Guide to Estate Planning and real Estate Tax in Canada

Everyone needs an estate plan. It’s the single, most effective way to preserve your wealth and transfer your worldly goods efficiently, tax-effectively, and according to your wishes. It’s not something you do for yourself, but rather for the well-being of your loved ones.

Depending on your needs and objectives, your estate planning should include a will, one or more trusts, and in many cases, powers of attorney for your finances and health care. In an effective estate plan, these elements work together to provide for the security of yourself and those you care about.

For most people, the greatest tax exposure exists with respect to the cash and investments which are sitting within an RRSP or RRIF. Generally speaking, the full value of these "registered" accounts at the time of death must be reported as "income" in the person's final income tax return. The amount of income tax actually payable will depend on the deceased's marginal income tax rate in his or her final income tax return. (However, there are a few important exceptions, such as when the RRSP or RRIF is transferred to a surviving spouse.)

Other assets can also attract tax in your estate. For example, if you own a vacation home that has appreciated in value, a taxable capital gain may eventually have to be reported by your executors in your final income tax return, because of the "deemed disposition" on death. Similarly, if you have a portfolio of marketable securities, some of the long-held stocks may have increased significantly in value. Such accrued but unrealized gains as of the time of death will give rise to income tax in your final income tax return, unless there are large enough offsetting deductions or tax credits, such as charitable donations.

For estate planning purposes, you need to think about the capital gains taxes that will be imposed on your estate in the future. Tax rates change from year-to-year, and it is anybody's guess what the income tax rates will be a year from now, let alone in five, 10 or 20 years. Estate plan is a long-term proposition, and there is no way of knowing how long we will live.

Many provinces in Canada levy real estate tax (or property tax) on real estate based upon the current use and value of the land. This is the major source of revenue for most municipal governments in Canada. While property tax levels vary among municipalities in a province there is usually common property assessment or valuation criteria laid out in provincial legislation. There is a trend to use a market value standard for valuation purposes in most provinces with varying revaluation cycles. A number of provinces have established an annual reassessment cycle where market activity warrants while others have longer periods between valuation periods.

Owners of real estate in Canada, who are non-residents are liable to pay real estate tax and must apply for a Canadian ITN number if they have not already obtained a Social Insurance Number SIN.)Non-resident must show significant social ties to Canada or intention to settle in Canada long-term in order to become resident for tax purposes there.

Canadian Residents are taxed on their worldwide income similar to Canadian citizens. Nonresidents are taxed only at source on their income from sources within Canada including property rentals and the conduct of a business in Canada and generally must submit a Canadian tax return.

Choose an Expert Toronto Tax Accountant to Help you with Tax Matters

No one can help you better than a Toronto tax accounting firm when it comes to tax assessments. With their help, the data related to taxes and other important details are present in an accurate and comprehensible manner. One can always gain from specific services such as tax consulting and there are plenty of established firms in Toronto offering their consulting experience. Picking one is a difficult job but one must always choose the firm with a reliable and experienced team.

The firms in Toronto which are specialized in tax accounting also deal with cross border accounting. For them, having more to offer means much more for you to gain. They can aid with financial statements, offer tax strategies for small businesses and deal with cross border accounting and taxes. They have the ability to joggle with so many branches, having at the same time the needed energy to provide strong financial support.

Consulting the experts is the best method you can use to get the best of tax preparation. The tax accountants in Toronto could be the best place to start. Toronto tax accountant know how to address financial information and use his/her decision-making skills towards achieving their goals. They deal with financial, management and tax accounting, the last one being mainly used for interested customers to follow tax regulations. Certified experts can help with financial statements and audit records, always ensuring that the main principles of accounting are respected.

Toronto tax accountant specializes in matters of tax. A person that works in this area may focus on aiding individuals, small businesses and or corporations. A tax accountant that specializes in business may also provide consultation services to assist with decisions that may impact income taxes.

These experts might operate as a sole proprietor or as part of a small or large accounting firm. Both a large and small accounting firm can provide identical services. However, large accounting firms can often be much more expensive. There are benefits to dealing with either, selecting the best fit for you is a personal choice.

However, finding the best tax consulting expert in Toronto can take some time and effort to qualify the one that is right for you. With a little effort you can find one who is reliable, competitively priced, and easy to communicate with and delivers the best results for your income tax return. When looking to hire a professional income tax preparation expert, you can talk to friends, family or colleagues and see who has the most impressive testimonials. Another option is to do an online search.