Flaherty’s Tax Cuts

Posted on November 12, 2007 at 1:10 pm
Filed Under Canadian Taxes, Financial Planning

Finally some positive tax news for Canadians.

On October 30th, the federal government presented a “mini-budget,” which outlined a number of initiatives designed to create tax savings for Canadians. It was clear that tax cuts were the main priority of Flaherty’s announcement, which is a great thing for Canadians.

GST reduction: The most noticeable savings will come into effect on January 1, 2008 when the government plans to reduce the GST by 1%, bringing the total tax to 5%
Basic Personal Amount increase: Come tax time in April, Canadians will be able to claim a basic personal amount of $9,600 — up from $8,929
Lowest personal income tax rate reduced: One of the government’s pledges is to reduce the lowest personal income tax rate to 15% from 15.5%, retroactive to January 1, 2007
Corporate tax cut: For businesses, the Tories have promised to gradually reduce the corporate income tax rate to 15% by 2012, starting with a 1% drop in 2008
Small business tax cut: Small business owners will receive an early tax break when the small business income tax rate falls to 11% in 2008, one year earlier than scheduled.

Your Take-Away: Taxes can be an overwhelming issue for many Canadians to try and understand on their own, or without the help of a Professional. If you fall into any of the above categories, my suggestion it that you invest your time and money to speak with an Accountant about how you can benefit from these changes. Our experience tell us that if you hire a knowledgeable CA that you will benefit in multiple ways and more then pay for their hourly fees with your current and future tax planning.

Have a magnificent Monday!

Chris

Bookmark to: