International Save Taxes in Canada Using Life Insurance

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Tax payments are headaches and at the same time mandatory. Be it road construction, all the government services that we get, expenditures in defense of a country etc, finance for all these things comes from the taxes. Taxes for different things are different and fall with different rules and regulations. These are followed and collected according to international tax rules and Canadian taxation system is also not left untouched of them.

Here comes the hard core requirement for a Tax specialist. A tax specialist takes care of all the taxes associated with your firm and your personal accounts, their terms, their different percentages. He doesn’t only make sure that all your taxes are paid in time but also helps you in saving taxes where possible with his vast knowledge and expertise in tax industry.


The general tax the government collects from everyone is income tax which is levied on based on your salary and is required to be paid to the government time to time on a fixed percentage depending on how much your annual salary is amounting. Any big businessmen would never like income tax police to rush in to his territory because of tax payment issues. Tax are not only collected for salary but there are many taxes to be paid in an year like house tax, water tax, taxes for real estate, corporate taxes a businessman must take very good care of, taxes on residents and non-residents and much more which a normal person is less aware of. If you own a home and use water, you are supposed to pay home taxes and water taxes. If you are a resident of Canada, the tax rules and regulations for you will be different from the ones who are non residents. A tax expert can put you out through all this math work and help you manage your tax, pay them well in time and save wherever possible.

Canadian Tax laws are implemented by both federal as well as provincial governments.According to the 1930 ruling of the Canadian Supreme Court:

  • It is imposed by the tax rules of the country
  • Implemented by the public body
  • Revenue generated to be used for public utility
  • Direct Taxation
  • Indirect Taxation

Direct Taxation is levied on people, property or transactions within the country or for people outside the province conducting transactions within the country. The Canadian Revenue Agency is responsible for the collection of taxes in the country for both the federal and the provincial governments. The Canadian people evaluate the tax liability and then file their returns according to the tax norms. They themselves calculate the deductions, tax credits etc. and submit their returns to the local public agency authorized by the CRA. If anyone who does not pay the taxes in the stipulated time will be penalized and beyond that the legal action might be taken against the defaulter.

CRA is responsible for collecting taxes in the manner mentioned below:

  • Income tax is collected in the provinces through a unified system
  • Corporate taxes for all the provinces
  • The Harmonized Sales tax (HST) which is excess of GST in the provinces, is also collected by the CRA

Personal income taxes are one of the largest sources of revenues in Canada accounting for almost 40% of the total tax collected. Federal government imposes the maximum percentage of the personal taxes and the provincial agencies charges comparatively lower percentage of taxes. The higher income groups pay higher percentages compared to the low income groups. It is a progressive method of tax system. Only 50% of the income gained from capital investments by the individuals is charged. Income generated through dispute settlements and lawsuits are not taxed. Tax saving schemes and retirement policies provide opportunities to the individuals to save their personal income tax. Companies and organizations are taxed on the profits generated through investment in the capitals. However this is however this is a very small percentage compared to the personal income tax.

The countries, with which Canada has tax treaties, help in protecting the Canadians from double taxation. A citizen who is a non-resident may apply to CRA to avail such benefits under the International tax schemes. CRA also takes into account that no tax is diverted and hence a financial loss is not caused to the country.

Income taxes are among the biggest expenses you have to pay during your life. Canadian citizens may very well pay as much as almost half of their annual income back to the government every year. Luckily, there are many tools you can use for managing your finances in a way that you'll end up with significant savings and cut your taxes dramatically.

A large part of tax savings strategies deal with spreading your earnings through your inner family network and thus getting the benefits of lower tax brackets.

  • Family Loans & Accounts Structuring
  • Own & Spousal RRSP Contributions
  • Claiming Home Office & Deducting Home Expenses
  • RESP Contributions
  • Medical Contributions
  • Employing family members
  • Donations to Charity

From 2009, there's also a new tool in effect called Tax-Free Savings Account (TFSA). Life insurance products also offer significant advantages and can be useful tools for lowering your taxes and paving the way for maximizing wealth.

In the event of your death, they don't have to pay any additional probate fees and there's no tax liability. You don't pay any taxes on the proceeds. Depending on your insurance package, your savings grow sheltered from taxes and you can also use accumulation funds to offset your future premiums with pre-tax dollars rather than after tax dollars.

Cash values inside policies can be accessed at any time within certain limits through a policy loan or partial surrender. Often, these financial tools can create the equivalent of a tax-free income stream. However, be sure to understand that straight cash withdrawals are subject to taxation. Donations and charitable giving in the form of life insurance policies are tax-deductible.

Get Your Canada Income Tax - Online Tax Refund

The Canada Revenue Agency (CRA) starts the process of the tax returns at the mid February. You need to start early so that you may not miss the tax filing deadline. Moreover, after filing your income tax return, at least four weeks you need to wait for checking on the status of your Canada tax refund.

According to how and when you file your income tax return determines the length of time it make the CRA to process your return. As online filing method or e-filing is the fastest, easiest and safe method, you may certainly avail of this electronic filing method.

Suppose you prefer paper filing method and file before April 15, it will take around four weeks and if you prefer electronic filing method, you may get your refunds within two weeks. It means that you are supposed to file your income tax return online as early as possible so that your file may get processed soon.


However, to get more information on your income tax return you may contact the CRA directly or visit their website if you seek information. For instance, if you are willing to get by mail, it may take considerable time compared to getting your tax refund Canada online.

Although I had no idea about them before hand (same as 99% of the Canadian population) there is quite a lot of Income Tax help in Canada available in the form of 'tax strategies' which can minimize your Income tax bill. The concept of tax shelters is legal in Canada and has been proved so in court

Tax shelters are in the business of tax credits which allow much greater savings than tax deduction schemes.

The shelter I opted for was a donation tax shelter; this meant that I was able to save on my taxes and donate large quantities of HIV drugs to Africa. Research your options and take control of your tax money.

With the help of internet filing your taxes will be much easier as compare to earlier.

However the ratio of filing Canada Taxes Online in people is too low. Here are some Numbers which indicates the situation of Current filing situation.

  • Paper - 11.29 Million returns (42.4%)
  • Net file - 4.63 Million returns (17.4%) - The system that individuals use when filing their taxes through software applications like TurboTax, Utile, etc...
  • Exile - 10.24 Million returns (38.5%) - The system that tax professionals use to file other people's taxes.
  • Teleflex - 445,067 returns (1.7%) - An automated system used for VERY simple tax returns.
Is it was worth saving the money for the tax-software? In addition, filing your taxes online provides a much quicker turn-around time for your tax-return if the management owes you money!

The next query is what are the expenses to the tax-payers of Canada to have a paper-tax filing structure? Surely an online tax filing technique must be cheaper than paying direction employees for data-entry. What about insertion the paper-forms online so everybody can file online and the data-entry step is impassive!

If you wish to file your Canada tax return to the Canada Revenue Agency (CRA) before the deadline, you should know how to do it accurately.

It is the middle of February, when the Canada Revenue Agency begins the process of Canadian income Tax Returns. You should file your taxes early so that your return may get processed early. It is really difficult to learn about the processing time taken by the CRA for your return because it depends on the way you file your taxes and the time when you submit your return file. If you file your return before the 15th April and you choose paper filing then you will get your return processed within four weeks. If choose TELEFILE, EFILE or NETFILE for your return, then your file will be processed within two weeks.

And, if you file your Income Tax Return after 15th April using paper filing method, then you will have your return being processed within six months. For TELEFILE, EFILE or NETFILE return will take two weeks to get your file processed.

There are certain things you should remember while filing your Canadian taxes online. You should pay the exact amount of tax you owe. You should not miss the deadline for paying taxes set by the CRA. The deadline for filing Tax Return is 30th April. If you file your income tax return after the deadline, then the Canada Revenue Agency will charge you a penalty and interest on your unpaid amount.

Preparing for Taxes in Canada and Income Tax in Canada

As tax season approaches, so does the anxiety felt by most tax payers. The Canada Child Tax Benefit (CCTB) - A tax free, monthly payment designed to help families with the cost of raising children. Some of the highlights of the budgets that tax payers should be aware of prior to this year's tax season are:

• Pension Income Splitting
• Increase to the age limit for RRSP from 69 to 71
• New Child Tax Credit (discussed above)
• Registered Disability Savings Plan
• Investment Tax Credit for Child Care Spaces
• Lifetime Capital Gains Exemption increase from 500K to 750K
• Working Income Tax Benefit
• GST Cut to 5% effective January 1, 2008
• Lowest personal income tax rate will be reduced to 15% from 15.5%
• Basic Personal Amount increased to $9,600 for 2007 and 2008 and to $10,100 for 2009.

For Quebecers, the 2007 the provincial budget was released with a number of changes to the provincial-government tax and benefit programs administered by Revenue Quebec. A certified accountant is trained to know how to best reduce your tax burden, or increase your refund, all while reducing the stress of tax season.


If you're a small-business owner, there are some important items you'll need to be aware of when it comes to income tax in Canada. It's not always business as usual when it comes to tax time. For this reason, it'll be important to have a tax accountant on your side that understands everything there is to know about how to save you money when tax time arrives. After you've had a chance to read the information below, you'll have a better understanding as to why a tax accountant will be an important asset when it comes time to file taxes.

1.) Submitting Your Tax Returns on Time or before the Deadline

One of the most important items you'll need to understand about tax time in Canada will be to submit your tax returns on time or before the deadline. So you will want to make sure that you submit your tax returns on time.

2.) Using Tax-Free Savings Accounts

When saving money, use a TFSA or tax-free savings account. 3.) Utilizing Home Office Expenses

4.) Understanding the Tax-Free Automobile Allowances

Another area of concern will be the tax-free automobile allowance. If you have to use your automobile for anything related to your business, a tax can be deducted. 5.) Hiring a Professional Accountant

As a small business owner, the CRA doesn't look kindly on businesses preparing their own taxes. In addition to professionally filing your tax return, they will also be able to provide you with important tax advice that you should take advantage of.