The term “income splitting” refers to the transfer of taxable income from a higher-income family member to a lower-income family member to reduce the family’s overall income tax payable. The advantages of income splitting are clear: lower-income earners pay tax at a rate of 20 to 26 per cent, whereas higher-income earners may pay 47 to 54 per cent, depending on the province or territory of residence.
If you are a Canadian planning to work abroad, you need to find out whether your residency will change, because if it does, it may affect your Canadian tax burden. Will you remain a Canadian resident during the period of your assignment or will you break Canadian residency? When you cease to be a Canadian resident, you normally aren’t subject to Canadian tax anymore. However, if you remain a Canadian resident during your assignment, you still have to file a Canadian tax return and will be subject to taxation on your worldwide income.
The Latest at Collins Barrow
Montreal, QC – For the ninth consecutive year, Collins Barrow Montreal will take part in The Weekend to End Women's Cancer. In August, dozens of participants from the firm will join forces for OneWalk to Conquer Cancer™, the Jewish General Hospital's next-generation fundraiser.
With an increasingly global farm commodity market and a lower Canadian dollar, Canadian farmers are finding it much easier to sell their products in the United States. However, it is important that producers are aware of potential U.S. tax issues and filing requirements, particularly if this is common practice on their farm operation.
Red Deer, AB – Collins Barrow Red Deer LLP has opened new doors in Alberta. In addition to a second office in Sylvan Lake, the accounting, tax and advisory firm has moved from 5010-43 Street to a new address.
TORONTO, ON – Collins Barrow is proud to congratulate their 12 writers from offices across Canada for passing the demanding Common Final Examination (CFE). The rigorous three-day exam is a key milestone on their journey towards achieving the designation of Chartered Professional Accountant (CPA).
In Budget 2016, the Department of Finance announced changes to simplify the special reporting requirements for home builders, with taxable sales of new or substantially renovated housing that are “grandparented” under the transitional Harmonized Sales Tax (HST) rules (i.e. when a province joins the HST or increases the provincial component of the HST).
This technical bulletin covers the various developments from April to June 2016. Collins Barrow regularly publishes Technical Bulletin for the general interest of its clients and friends to highlight the continually changing accounting and assurance standards, and the interpretations thereof, in Canada.
Collins Barrow KMD LLP’s Mike Bondy recently delivered a presentation for the Zavitz Seminar Series titled ”Trudeaumania 2 and Trump Dynasty.” Mike shared an overview of the March budget and its effect on tax rates, outlining strategies for minimizing the impact of these changes.
Montreal, QC – Back to school is an exciting time for families, but for parents who work hard to cover the basic costs of raising a family, the extra burden of purchasing school clothes and supplies can be stressful financially.
Elora, ON – On September 1, 2016, Collins Barrow Wellington-Dufferin District will merge with Guelph’s Bairstow, Smart & Smith LLP, forming a new firm called Collins Barrow Guelph Wellington Dufferin. Edward (Ted) L. Smith and Sara B. Detweiler will be joining the merged firm as partners, while Bairstow, Smart & Smith LLP partner D. Andrew (Andy) Smart will join as principal.
Life insurance rules have remained relatively intact since 1982, but that’s about to change. Starting January 1, 2017, new income tax legislation will come into effect that will change some taxation aspects of life insurance policies. These modifications will impact taxpayers’ estate planning, and more specifically, cases where life insurance policies are purchased through a corporation.