“Canadians should take advantage of all eligible tax credits and deductions. In Canada, federal, provincial and territorial governments offer a variety of credits aimed at reducing the amount of taxes” says Navtaj Chandhoke, founder of World Wealth Builders, a Canadian real estate Investors training centre serving Canadians since 1993. “Canadians owe; however, in order to take advantage of tax credits, they must be identified and claimed on your tax return and get proper advice from Canada Revenue Agency and or their Tax professionals”.
Some often overlooked tax credits and deductions are as follows:
Apprenticeship Job Creation Tax Credit: Businesses that employ an apprentice in a skilled trade are eligible to receive a non-refundable tax credit equal to 10 per cent of the salaries and wages paid to the apprentice (or up to $2,000) in the first two years of an apprenticeship contract (registered with the federal, provincial, or territorial government).
Educational Examinations Tax Credit: Many students who acquire a professional status must pass a licensing exam which would carry an additional expense. Students who paid a qualifying institution to take an examination, in addition to their tuition fees, can generally claim this expense as a tuition tax credit.
Textbook Tax Credit: Textbooks for post secondary education can cost upwards of $200 per book. Students can claim textbook expenses up to $65 per month of study for full-time and $20 per month of study for part-time students.
Tradepersons’ Deduction for Tools: Many tradespersons must purchase tools up-front in order to earn employment income. Meeting the criteria for this tax deduction allows a tradesperson to expense up to $500 of the cost of eligible tools – including any GST or HST provincial sales tax, or HST paid – in their tax return.
Children’s Art Tax Credit and Children’s Fitness Tax Credit: Many Canadian children are involved in extracurricular activities. Parents are entitled to claim two tax credits of up to $500 each for each child under the age of 16, to cover expenses related to the cost of a child’s registration or membership in an eligible artistic, cultural, recreational or developmental activity and/or programs that endorse physical activity (such as hockey, dance, soccer, etc).
Caregiver Tax Credit: Canadian families that are providing in-home care for a dependant adult relative, including an aging parent, or other relative with a physical or mental impairment, may be eligible for a caregiver tax credit provided the dependant’s net income is below certain threshold amounts.
Tax Cheats are regularly investigated based on tips the public provides to the Canada Revenue Agency (CRA) the federal government department responsible for making sure people declare all of their income when they file their returns.
One program, known as the Informant Leads Program, allows people to provide information to the agency while protecting their identity. The program’s website encourages spouses to get in touch with details that reveal someone’s net worth, such as documents showing ownership of cottages and boats.
It’s one of the many tools the Canada Revenue Agency (CRA) has at its disposal for trying to recover the money it is legally owed so the government can spend it. Canada Revenue Agency (CRA) employees have a complex algorithm they use to identify who is most likely cheating on their taxes. The details of what they look for, however, are kept secret so as not to tip off the cheaters.
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Here is brief description of top ten tax saving tips. These are simple guidelines and are not rendered as professional advice. Your Chartered accountant can assist you professionally.
