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On Jan 6, 9:37 am, "Canuck57" <nos...@nospam.com> wrote:
> "Peeassha" <peaash...@hotmail.com> wrote in message
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> news:gjvp5v$r2c$1@reader.motzarella.org...
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> > "Alan Baggett" <AlanBagg...@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.- Hide quoted text -
>
> - Show quoted text -

Where the article states:
 ' - Split income with family members.'

It was assumed that they were speaking of non-employment income.

i.e. if a husband and wife have a joint savings account that earns
interest income, they could attribute that income in a manner that
benefits the pair best.