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Tax Tips for Canadians

August 14, 2013

It’s never too early to start planning for your next tax filing. AG Tax professionals can assist you with your taxes, and give you qualified advice so you can adequately plan for your next filing.  Here are a few helpful tax tips that Canadian taxpayers should keep in mind when analyzing their tax situation:

•     Take advantage of all income-splitting and pension-sharing opportunities: Income splitting can save thousands of dollars in tax and can provide the pension income tax credit to the pension transferee. CPP pension sharing works by showing an increased income for the lesser earning partner. By fulfilling certain conditions, you can do the same with other retirement benefits. You can find out more about retirement pension sharing from your AG Tax consultant.

•    File a tax return even if you have no income: Sometimes low or zero-income earners think there’s no need to file a return. This mistake can cost you the opportunity to claim benefits and credits (like the GST/HST credit and the Canada Child Tax Benefit) which could entitle you to a refund after everything is taken into account.

•    Transfer any unused credits: A variety of tax credits, such as the Child Tax Credit, children’s tuition, education, and textbook credits can be used by parents and grandparents after the child’s income has been reduced to zero. It can even be carried forward to be used by the student later on when he/she starts earning money. Talk to your AG Tax consultant about the right steps for you.

•    Claim all eligible medical expenses: AG Tax experts think that it is one of the most overlooked tax breaks. Even certain travel expenses incurred for medical treatment can be claimed! Often people don’t bother to add it all up due to the income-related threshold applicable on these expenses.

•    GST Rebate: If you are already claiming most of the tax-deductible expenses, don’t forget to see if you qualify to claim the GST rebate on these expenses. Annual union and professional dues also qualify for GST rebate, if your employer is registered for GST.

•    Maintain a good record of your expenses: You may be surprised to know the different types of expenses that are tax deductible. Maintain receipts to claim these expenses or to file for tax credits.  However, extraordinary or huge expense and/or interest deduction claims can be red flags for CRA auditors. It is advisable to consult your AG Tax advisor and present all expense proofs to utilize the opportunities available to help you save on taxes.

•    Charitable donations: Claiming your donations in a future year (they can be carried forward up to 5 years) may be more advantageous. When your total donations are more than $200, the credit is much higher, approximately 50% depending on your province of residence. You may also look into combining donations with your spouse.

•    Be proactive with your taxes: AG Tax experts point out that you should strategically plan the acquisition and/or sale of investments so you can be prepared for the potential tax consequences, and additionally work to minimize tax liabilities.

•    Reporting of T-slips: If you fail to include a T-slip reporting income, and don’t bother adjust the return for the omission, you are exposing yourself to potential penalties. If you fail to report income in the current year and also failed to report income even once in any of the three previous years, you can be assessed penalties for “repeated failure to report income” which is 20 per cent of the amount you fail to report. It may be easier to consult a pro to handle your taxes.

AG Tax LLP Can Help

If you have any tax-related queries, need assistance with tax planning or filing your tax returns please contact us. Our team comprises of highly experienced tax professionals with extensive knowledge of U.S. and Canadian tax laws as well as cross-border compliance.

Furthermore, as a full service accounting firm, AG Tax assures complete assistance with even your most complex tax needs.

We can assist with:

  • Canadian Personal and corporate tax returns
  • Cross Border Taxation and Business Planning
  • U.S. Personal and Corporate Taxation
  • Disclosure of Foreign Assets and other information filings
  • Retirement planning
  • State Sales Tax & E-commerce Taxation
  • Estate Planning, Inheritance tax advice

To obtain a quote or to arrange for a consultation to discuss your tax related queries, please contact us at:

  •  416-238-5920 (Greater Toronto Area, ON)
  • 604-538-8735 (Greater Vancouver Area, BC)
  • 780-702-2732 (Greater Edmonton Area, AB)


Disclaimer: The information in this publication is accurate as of the time of its publication. AG Tax assumes no responsibility for changes to tax legislation subsequent to the publication of this document. The information provided is for general information purposes only and should not be acted upon without seeking professional advice. If you would like to engage our services, please contact our staff and obtain authorization to send our firm confidential information. A client relationship is not created by the transmission of information. A client relationship is only formed with our firm when a scope and engagement letter signed by the firm and the potential client detailing the terms of engagement is present.

ABOUTAylett Grant Tax, LLP
With offices across Canada, we are positioned to manage and process the full scope of your Canadian, US and US Canada cross-border tax filing needs.
12752 28th Ave, Surrey, BC, V4A 2P4
104–4220 98 St NW Edmonton AB, T6E 6A1
With offices across Canada, we are positioned to manage and process the full scope of your Canadian, US and US Canada cross-border tax filing needs.
12752 28th Ave, Surrey, BC, V4A 2P4
104–4220 98 St NW Edmonton AB, T6E 6A1

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