For many Canadians, Canadian taxation is a real financial issue. As a Canadian, you pay a large amount of income tax each year. In general, your return is low or zero. Few of us are financially free, you may want to consider extending your work life, or worse, have to reject your family’s important things to pay for a mortgage (qualifying charitable donations).
Have you ringed for yourself? He did it for me.
For the past 5 years, along with my wife, I have been looking for ways to gain economic freedom. In other words, find a lifestyle that suits what I want and deserve. We began to explore ways to optimize revenue and reduce expenses. That is the data we found to describe the tax (qualifying charitable donations) burden of Canadians.
Although most Canadians pay $500,000 in their lifetimes, they save an average of only $5,000 at the age of 65. Does this sound good? I am not saying that we should not pay taxes; we have a health and education system that most countries do not have. In my research, I also found that 99% of Canadians do not legally use the tax system to get everything we are entitled to. This is why we are reducing the burden of income tax in Canada.
Your money in your pocket
Although the Canada Revenue Agency did not announce this fact, if Canadians make qualifying charitable donations in a smart way, they can maximize the benefits of tax returns. At first it really surprised me, so I will explain it as clearly as possible. I found a tax haven. This is not a tax evasion. It is totally illegal (also known as tax evasion). Tax evasion is something that the rich use to get rich.
Details: how does it work?
Tax avoidance measures are forms designed by very smart lawyers and accountants who can legally use the tax system.
- According to the Canadian Income Tax Law, everyone must save as much tax as possible even if the prosecutor does not like it.
- This is the legal principle that allows tax avoidance work, which is harmful to the Canada Revenue Agency.
There are many types of tax avoidance measures, just like in any industry, some are not a good idea, you should do a good job before choosing a specific shelter. After many (very) research, my wife and I participated in the open market structure plan, one of the main reasons is:
- This shelter has a fair market value, which means that when a project is donated to a charity, an independent appraiser is used to evaluate the project rather than the relevant person in the plan. So far, only tax havens that have not complied with this rule can succeed in court. Make sure your tax avoidance plan doesn’t have this problem.
Then I will try to define the principle according to my understanding:
- I want to buy 100 laptops for Indian children. So, I went to the bank and asked for a loan of 100 laptops.
- The loan will be 4 years and I will pay the loan interest for 3 years immediately. Then I went to a technology company that gave me 100 laptops.
- I received their consent, returned the same item, and received all the money I spent.
- I will now hand over 100 laptops to a registered Canadian charity and I will receive a receipt for the amount I paid. I attached this statement to my tax return and received a 50% tax credit.
- Pay the remaining interest for three years and one day after one year, and go to the foreign market to buy 100 portable laptops that are much cheaper than I am from Canadian technology companies.
- After they returned to the technology company, they gave me my money to pay my loan in full.
- My tax benefits are greater than my cost, which is the definition of a tax shelter in the Canadian Income Tax Law.
In fact, the tax avoidance plan did all this for me, so all I have to do is pay the interest on the original loan.