🚀 go-pugleaf

"Peeassha" <peaashcha@hotmail.com> wrote in message 
news:gjvp5v$r2c$1@reader.motzarella.org...
>
> "Alan Baggett" <AlanBaggett@volcanomail.com> wrote in message 
> news:18b6bc34-ae6a-4714-b185-2cbd7e2e9c8f@g39g2000pri.googlegroups.com...
> Canadian Tax Test Results :CRA SOTW
>
> Failing grade on the Canadian Tax Test
>
> Average taxpayer scored only three out of 10 when asked about common
> personal taxation rules, but the company that conducted the survey
> says that is because of the complex changes made to the system
> recently
>
> SARAH DOUGHERTY, Freelance
>
> When it comes to knowing about tax rules that could save them money,
> Canadians aren't making the grade.
>
> That's the conclusion of the Great Canadian Tax Test, a recent survey
> commissioned by mutual fund company Mackenzie Financial. The average
> Canadian got only three of 10 answers right on the survey of common
> personal taxation rules.
>
> But the failing grade doesn't mean Canadians aren't knowledgeable,
> said Mackenzie spokesperson Sandy Cardy. Rather, the results signal
> just how difficult it is to keep up with a changing and complicated
> tax code.
>
> "Even a genius can't keep up with the number of changes," says
> Mackenzie Financial's Sandy Cardy.
>
> "I think Canadians are becoming increasingly sophisticated and tax
> savvy, but they can't keep up with the changes," said Cardy, senior
> vice-president of tax and estate planning for Mackenzie. "The results
> show even a genius can't keep up with the number of changes and the
> complexity."
>
> This was the second tax test conducted by Mackenzie, whose core
> business is mutual fund management. The company also offers wealth
> management services.
>
> Mackenzie runs the tax test as part of the education it provides for
> both independent financial advisers and those that sell its products,
> according to Cardy.
>
> On the last test two years ago, the average Canadian turned in a
> better performance, correctly answering six out of 10 true-or-false
> questions.
>
> Cardy chalked up the score slippage in the test done this fall to the
> introduction of a number of tax changes in 2007. These include the
> right to contribute to an RRSP up to age 71 instead of 69 and the
> abolition of an annual contribution limit for RESPs.
>
>
> Other questions on the test dealt with income splitting, the carry
> back of net capital losses, gifts of publicly listed stock, tax
> credits for children involved in qualified physical activities and
> capital gains on non-registered investments.
>
> Cardy declined to speculate why there were regional variations in the
> scores - Quebecers scored the lowest, Manitobans and Saskatchewan
> residents the highest - other than pointing out one of the questions
> dealt with a rule not applicable in Quebec. (The other rules in the
> test apply across the country.)
>
> Cardy thinks it's more difficult than ever for individuals to do their
> own tax planning. "A few decades ago, it was easier to go it alone and
> maximize your credits and deductions," she said.
>
> In recent years, governments have responded to lobby groups by
> adopting a slew of new rules, according to Cardy. Seniors, for
> example, are benefiting from new income splitting provisions. Income
> splitting allows one partner in a couple to allocate income to the
> other partner to reduce taxes.
>
> Canadians are pretty knowledgeable about RRSPs, said Cardy, but tend
> to miss out on credits and deductions, income splitting possibilities
> and education planning strategies.
>
> Plain old procrastination accounts for part of Canadians' failure to
> be more proactive about tax planning, Cardy said. Information overload
> is also part of the problem; between the Internet, self-help books and
> business news on television, taxpayers are swamped with advice.
>
> Personal finance Average taxpayer scored only three out of 10 when
> asked about common personal taxation rules, but the company that
> conducted the survey says that is because of the complex changes made
> to the system recently
>
> Cardy's bit of advice is to hire a financial adviser, who can act as a
> quarterback, bringing in other experts (for example, insurance
> specialists and estate lawyers) as needed.
>
> Patricia Lovett-Reid agrees complexity is one reason Canadians neglect
> tax planning. She also thinks lack of time is a big factor. Lovett-
> Reid is a senior vice-president with financial services firm TD
> Waterhouse Canada Inc., a business television host and certified
> financial planner.
>
> "Tax planning is about doing a lot of little things right," Lovett-
> Reid said in a phone interview from her Toronto office.
>
> "When people are looking to put more money in their pocket, they think
> about spending less," she said. "Tax planning falls to the bottom of
> the list."
>
> When Lovett-Reid hits the road to talk about tax planning and
> investment strategies, she sums up the priorities with a series of
> tips. Here is her list:
>
> - Split income with family members.
> - Maximize contributions to your RRSP and any RESPs for a child's
> education.
> - Borrow to invest.
> - Where possible, buy and hold investments to defer taxes.
> - Invest in a home instead of making someone else rich by renting.
> - Use dividend-paying investments, which are tax advantaged.
> - Maximize tax deductions and employee benefits. The latter might
> include preferential mortgage rates and reimbursement for travel and
> meals.
> - If you can earn self-employment income, it opens up doors to lots of
> deductions.
>
> Aside from working with a financial planner, Lovett-Reid recommends a
> book published annually by the tax and advisory firm KPMG called Tax
> Planning for You and Your Family, which is available in book stores.
>
> Canadians might not see the immediate, tangible benefits of hiring a
> professional to help with tax planning, but the investment pays off in
> spades, Cardy said. "If they were to take advantage of all (the
> rules), it would have a dramatic influence on their future net worth."
>
> � The Gazette (Montreal) 2007
>
> -----------------------------------------------------------------------------------------------------
> Miss a Tax Tale Miss a lot!
> Pop the link below into your browser to view the entire CRA SOTW
> Library!
> http://canada.revenue.agency.angelfire.com
> -------------------------------------------------------------------------------------------------------
> Alan Baggett - Tax Collector's Bible
>
> You can't split income with family members unless they're 18 or older or 
> the attribution rule will apply.

I thought you had to be retired?

Be interested to hear how a wage earner can split earned income with his 
wife.  As far as I know, can't be done.