Avoiding TFSA Pitfalls: Over Contributions, Residency Issues, and Other CRA Traps

By Thomas Nykoluk, CPA, Craig Ross

Since their introduction in 2009, Tax-Free Savings Accounts (TFSAs) have become a staple in Canadian financial planning, offering a straightforward way for individuals to grow their savings without the drag of taxes on investment income or capital gains. The flexibility of TFSAs, which allow for tax-free withdrawals at any time and for any purpose, has made them especially popular among clients of all ages. Yet, this flexibility can also create traps for those who are not careful, leading to costly compliance issues that often catch even experienced taxpayers and advisors by surprise....

The Potential Cost of Holding Life Insurance in a Corporation

By Candace Flater, CPA, CGA, Davis Martindale

When planning for your estate, corporately held life insurance is often an option that is considered to reduce the estate's tax burden or for tax efficient succession planning for privately held corporations. There is often a misconception that life insurance held in a corporation can be withdrawn on a fully tax-free basis. This article considers circumstances where unintended tax consequences may arise on corporately held life insurance....

Cost-Sharing for GST: Risks and Rewards

By Seth Germsheid, Indirect Tax Associate, Kingston Ross Pasnak LLP

Cost-sharing arrangements continue to be a useful planning tool for GST purposes, particularly where one or more parties are unable to recover all, or any, input tax credits. However, CRA is quick to challenge these arrangements when they don't align with the facts. This article provides an understanding of cost sharing arrangements and the tax-efficiencies they can generate, outlines CRA's position, and details some of the most common implementation issues....