Income Tax Planning Explanation by Toronto Tax Lawyer

Tax Planning – Introduction by Canadian Tax Planning Lawyer

Tax planning or tax minimization for individuals and corporations is an ongoing process that minimizes taxes through various strategies, maximizes tax credits while at the same time protecting assets. As one of the leading Canadian tax lawyer firms with over 25 years of tax planning and implementation experience, we provide innovative tax solutions tailored to your personal or corporate situation. Our founding and senior income tax planning lawyer is also a Chartered Professional Accountant who brings an accounting background and skill set to help understand your problems. We help our tax and business clients plan and implement effective tax minimization strategies and structures to meet their tax and business objectives. Our tax minimization advice is innovative, creative and practical and our implementation is timely and effective.

Tax planning or tax minimization for individuals and families and corporate tax planning is an ongoing process to reduce the overall taxes owing by the family or the corporation. Tax planning or tax avoidance involves using legal techniques to reduce taxes owing by maximizing deductions and credits, through income splitting and deferring taxes. The taxes saved are basically a cumulative result of different tax planning strategies. Tax planning and avoidance is legal while tax evasion or tax fraud is not. Our Experienced Canadian Tax Lawyers will review your individual situation and make use of a variety of tax planning techniques in conjunction with your financial adviser and accountants.

Tax Planning for Wealth Accumulation

The accumulation, enhancement and then preservation of wealth requires a combination of investment acumen and insight as well as tax planning strategies. Through systematic, organized and effective tax planning techniques our leading edge Toronto tax lawyers will reduce, minimize or defer your Canadian income tax burden. Our acknowledged leaders in personal income tax planning can assist you and your professional advisers to realize and fulfill your wealth accumulation objectives. We can also assist you in devising strategies to minimize or defer the tax payable upon your death and by your estate or heirs, including reducing probate taxes through the use of an alter ego or other trust, all within the framework of comprehensive will and estate planning.

Tax Deferral Planning

A tax deferral strategy is a common component of a tax plan. The technique involves a delay of the payment of current taxes into future years. By deferring tax you eliminate the tax liability this year but you will have to pay the deferred income tax down the road in future years. Generally tax deferral has 2 advantages; first it is better to pay tax tomorrow than it is to pay tax today since you keep and use the money; and second tax deferral typically puts the control of when you have to pay the tax in the hands of the taxpayer instead of in the hands of CRA. A simple example of a tax deferral is to delay the sale of an asset from December to the following January, thereby deferring the capital gains by one year. Other examples include RRSPs & RESPs which are the most common forms of tax deferral generally available. There is a tax deduction when the contribution is made and the money is taxed in a later year when withdrawn.

Corporate Tax Planning

For owner-managers and closely held companies, our innovative Ottawa tax planning lawyers can assist the entrepreneur by devising and implementing tax efficient planning including customizing the compensation package and devising private pension plans, devising income splitting strategies as well as developing a retirement and business succession plan. This means that we will assist you in the tax effective and orderly transfer of your business and your wealth to family members and of the planning and implementation of your business succession plan and transfer of your corporations to family members, employees or other persons.

Estate, Trusts and Will Planning

While there are no gift taxes in Canada, CRA levies a capital gain on assets on death. We can assist you with:

  • Reviewing existing wills and estate plans and drafting tax effective wills
  • Estate Planning to reduce income taxes and probate fees on death
  • Intra-family gifting and generation skipping asset transfers
  • Tax effective income splitting techniques

Succession Planning

What happens to your business on death? Will some family members be involved but not other? We can advise you and help implement your succession planning:

  • An orderly transfer of your business to the next generation or to outsiders
  • Dealing with family members who are involved and not involved in the business
  • Planning the effective transfer of business control to maximize value
  • Drafting shareholder agreements

Tax Reorganizations

Is your corporate structure tax effective? Do you have a holding company, or too many holding companies? Do you have several different businesses in the same corporation? Tax free reorganizations can assist:

  • Set up of holding company
  • Tax effective split up of assets among family members or different corporations
  • Amalgamation of too many corporations
  • Asset protection strategies
  • Full utilization of tax losses/deductions within the corporate group

Transaction Tax Planning

All business or investment transactions have tax implications. How you plan and implement the transaction determines the tax efficiency of your investment or asset. We can help:

  • Decrease capital gains tax on sales of business or assets
  • Effective tax structuring of business acquisitions

As top Toronto tax lawyers we have extensive experience in the following tax planning areas:

  • Canadian business and personal tax planning
  • Tax effective structuring of investments and transactions
  • Advising on and implementing sophisticated estate freezing and income splitting techniques
  • Simple or sophisticated Will and Estate planning
  • Tax aspects of corporate and commercial law matters
  • Tax effective structuring of the purchase and sale of businesses or divisions
  • Creation and implementation of business structures
  • Incorporation of Professional corporations and registration with the professional governing body
  • Advising clients on asset protection strategies in a tax effective manner
  • Advising clients on the use of domestic trusts to minimize income taxes payable or to achieve non-tax objectives
  • Owner-manager & executive compensation, including Retirement Compensation Arrangements and Individual Pension Plans (IPP)
  • RRSP meltdown strategies
  • Tax planning for the immigration and emigration of individuals, corporations, trusts and capital
  • Residence Determinations
  • Tax planning for Canadians investing outside of Canada and non-residents investing in Canada
  • Federal Goods and Services Tax - GST/HST
  • Advance income tax rulings

Toronto Tax Lawyer Tax Planning Help

Assisting Canadian taxpayers with these tax matters requires a thorough knowledge of the Income Tax Act and Canadian tax law as well as the rules relating to the ownership and transfer of property. In addition to knowledge of income tax law, our innovative Toronto tax lawyers have knowledge of probate and estate law, trust law, wills and wills variation law, family law, elder law, creditors' rights and remedies, corporate law, and the rules & procedures of tax litigation as well as negotiation and advocacy skills. Equally important our tax lawyers are accessible. They are available when you need to reach them.

Our years of experience and knowledge enable us to fully understand the tax opportunities and problems facing our clients and to find the appropriate solutions for their specific situations and to deliver those services and implement the solutions in a timely and highly professional and efficient manner. Contact one of our experienced Toronto tax lawyers for tax planning help.

For more information please click on:Income Tax Planning.


Team of Canadian Tax Lawyers

Nathaniel Hills

Nathaniel Hills

Nathaniel completed his Juris Doctor degree at Osgoode Hall Law School where he excelled in the areas of tax law and legal writing and research.He successfully completed all of the requirements of Osgoode’s Taxation Law Curricular Stream

Carson Pillar

Carson Pillar

Carson Pillar articled with us and then joined our tax law firm as an associate Canadian tax lawyer having been called to the Ontario bar in June 2016. Carson runs our Calgary tax office. Carson earned his Juris Doctor from Western University and graduated in 2015.

Ian Thomas

Ian Thomas

Ian Thomas joined our Toronto tax law firm as an articling student (student at law) in July 2016 and upon becoming a Canadian tax lawyer in June 2017 he becomes our latest tax associate. Ian earned his Juris Doctor from Osgoode Hall Law School and graduated in 2016.

Tigra Bailey

Tigra Bailey

Tigra Bailey has now joined our tax law firm as a summer tax law student and is expected to return as an Articling Student in 2017-2018. Tigra is completing her Juris Doctor at Queen’s University and her expected graduation date is in 2017.

Ildi Makrai

Ildi Makrai

Ildi has joined the law firm of Rotfleisch & Samulovitch PC in June, 2000 and brings over 25 years of legal secretarial experience to the firm. She started as a Legal Secretary and after obtaining Certificates from The Institute of Law Clerks of Ontario

Jamin Chen

Jamin Chen

Jamin Chen joins our tax law firm as an articling student in September 2016 after earning his Juris Doctor from Allard Hall at the University of British Columbia.

Rotfleisch & Samulovitch P.C.

2822 Danforth Avenue
Toronto, Ontario M4C 1M1

Phone : 416-367-4222

Fax : 416 367 8649

Email : david@taxpage.com

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