Family planning

If you pay too much tax, raise your hand. Wow. That many? Okay, class, we might be able to fix that. At least a little.

And why this week?

Seems like a great time given what politicians on two sides of the border just did. To the south, the Trumpster unveiled a tax-cut plan which will slash the corporate rate by a stunning 43%, end estate taxes, simplify tax brackets and drop the load on the wealthy. In Canada, the finance minister says his new goal is to take ‘dead money’ retained inside small businesses (usually called profits) so the government can spend it on civil servant pensions and such.

The contrast is, well, stunning. Since Mr. Morneau has indicated he doesn’t really care what you think, perhaps you should return the favour. Legal tax avoidance – taking complete advantage of every break the system offers – is critical to everyone’s financial health. For example, don’t keep tens of thousands sitting in a HISA where the dribble you earned is 100% taxed. Instead, move it into a TFSA to create a tax-free dribble (much better in equity ETFs, though). Of course, if you transfer the money into an RRSP, the feds will send you a tax rebate for giving yourself funds you already own. Later on, when you take a year off to pursue hot yoga and find yourself, you can cash it in and perhaps pay next to nothing.

In short, if you’re not making maximum TFSA contributions or shoveling up to 18% of your earned income into an RRSP, you’re gifting money to the government. If that makes you feel socially responsible, lovely. But for the rest of us, this is tense. Taxes are out of control.

Speaking of RRSPs, Derek Holt – the chief economist at Scotiabank – recently delivered this piece of tax warfare in an internal document on housing:

Make a $19.2k RRSP contribution just three months in advance of buying a home…
• …assuming a 30% tax rate, deposit $6k tax refund back into RRSP…
• …then withdraw the allowed $25k maximum under the HomeBuyers’
• …to be repaid to the RRSP in equal installments over 15 years starting 2 years after withdrawal with no interest penalty and the payments are not counted in mortgage serviceability calculations…
• …at, say, a 4% rate of interest, this equals $8k in interest savings over 15yrs…
• …which means the initial $19.2k RRSP deposit has been parlayed into an effective down
payment of about $33k, or an extra 70%+
• No restrictions on the source of the original RRSP deposit (can borrow for it, ‘gift’, etc).
• ie: the zero-down mortgage can still theoretically exist
• If a couple, and both are first time homebuyers, double all of the math above (ie: turn $38k from liberally allowed sources into a $65k down payment)

If a major bank’s showing clients how to take $38,000 and game it into $65,000 through exploiting the system, it might indicate we’ve all hit a tax wall. And this is even before T2 Hoovers out the savings of small business operators, vets, docs and the local John Deere dealership.

Well, here are ten of my fav ways to reduce your tax bill thanks to two simple words – income-splitting (as opposed to sprinking).

  • If you make more money than your spouse (in a higher tax bracket) take your piteous crumbs and use them to pay the household expenses. Have your spouse devote all of his/her take-home income to investing. Because your squeeze has a lower marginal rate, your family will keep more of the investment gains.
  • Open a spousal retirement plan for a less-taxed partner. The full deduction comes off your bigger income but the other person gets the money. Wait three years, and it can be withdrawn at the lower spousal rate. Can result in big savings.
  • Swap stuff. She gives you her departed mother’s irreplaceable jewelry (for God’s sake, don’t lose it) and you give her a bunch of ETFs. Now the financial assets are still in your family, but taxed in her hands at a lower rate (assuming there’s an income disparity between you).
  • Take the beefy monthly cheque T2 now sends you for having kids and invest it in growth assets in their names. Capital gains made here will not be attributed back to you. If they grow up and become rock stars, you keep it.
  • If you’re a wrinkly, split your CPP or pension with your spouse.
  • Give money to your adult children. No, not for a condo down payment, but instead to maximize their TFSAs – on the understanding they give it all back (with gains) when they turn 50 and leave the basement.
  • Loan your spouse a whack of money to invest. You will need to collect a tiny bit of interest annually on the loan (the rate is just 1%) but all the money the other person makes will not be attributed back to you. So if your partner’s in a lower bracket, it’s a big win. Plus the interest paid is tax-deductible.
  • Max your RRSP, of course. Not so much for retirement, but for tax-shifting between periods of your life. Layoffs, job losses, mat leaves, sabbaticals – there are many times when regular income drops and tapping into money which grew tax-free can save your marriage.
  • Stick the max into an RESP for your kids. No deduction for doing so, but the money will grow without tax and the feds will send a grant worth up to 20% of what you contribute annually. Open a family plan, not singles. And beware the hospital-stalking baby vultures with their crappy offerings. Go self-directed.
  • Hire your spouse or your kids to labour in your small business doing useful things. Yes, this is exactly what Bill Morneau is throwing a hissy-fit over, but you’ll get the immense satisfaction of watching some CRA goon burn up hours of time only to conclude that, yes, your wife is actually a productive, contributing human being worth being paid. Plus, she’s deductible. What a turn on.

202 comments ↓

#1 paul on 09.27.17 at 6:32 pm

This is how small or one man business owner are talking if I hide one dollar from Justin I have a dollar if I don’t this is my tax dollar minus 40% tax plus 13% hst.
So I have 47 cents to invest at 6% compounded it takes 13 years to get my dollar back if I don’t pay tax on the interest/gain

#2 Lost...but not leased on 09.27.17 at 6:36 pm

U snooze U loose

#3 Happy Housing Crash Everyone! on 09.27.17 at 6:38 pm

House of cards crashing down you DIRTY SHYSTERS.

Happy Housing Crash Everyone! :-)

#4 a7g29 on 09.27.17 at 6:39 pm

First!

#5 Happy Housing Crash Everyone! on 09.27.17 at 6:39 pm

It’s coming you SHYSTSER

https://betterdwelling.com/canadian-real-estate-buyers-lose-25-buying-power/

Happy HAPPY housing Crash Everyone! :-)

#6 Free By 40 on 09.27.17 at 6:39 pm

Some great tax advice there Garth, good to know for the future.

I have to say though, that “hiring your spouse” is another tax avoidance scheme small business owners often get away with. I’ve seen many a small businesses “hiring” their children and spouse to do “work” when in reality they do nothing. Give them a “salary” of $15,000 each and there’s a load of tax free money already. It’s not like the CRA are going to come checking if your son or daughter is actually working for you, you can just say they do administration or bookkeeping and be done with it.

#7 TEMPLE on 09.27.17 at 6:42 pm

“Hire your spouse or your kids to labour in your small business doing useful things. Yes, this is exactly what Bill Morneau is throwing a hissy-fit over, but you’ll get the immense satisfaction of watching some CRA goon burn up hours of time only to conclude that, yes, your wife is actually a productive, contributing human being worth being paid”

Well done, Garth. By missing the point, you actually reached the correct conclusion. Morneau’s changes are about stopping tax law abuse, while still permitting legal and valid ways of transferring income to family members. I fail to see why you went on a bender over this. It’s simply an adjustment to make sure the spirit of the law matches the rule of the law. Like you said, it’s about “job creators”. Well, this just makes sure those jobs are real rather than tax evasion.

#8 Howard on 09.27.17 at 6:42 pm

Great tips….for marrieds (and/or with children).

What about for us (happily) single, child-free citizens?

May have to eventually team up with one of my similarly happily-single friends and enter into a marriage of tax convenience.

#9 Timmy on 09.27.17 at 6:44 pm

This is some of the best advice you have given…thanks!

#10 Stone on 09.27.17 at 6:50 pm

I understand all of the above except this one:

Take the beefy monthly cheque T2 now sends you for having kids and invest it in growth assets in their names. Capital gains made here will not be attributed back to you. If they grow up and become rock stars, you keep it.

Garth, are you saying you can open a non-registered investment account in your child’s name even when they are under 18 and plug the money into ETFs?

#11 [email protected] on 09.27.17 at 6:52 pm

Well written ! There is fewer tax deductions, so we better use all we can before they are classed as unfair and taken away.

#12 Ben on 09.27.17 at 6:52 pm

I definitely like these types of posts.

Very informative. Thanks Garth

Keep them coming.

#13 Doug t on 09.27.17 at 6:53 pm

C – commies
A – apathetic
N – nanny state
A – anti-entrepreneur
D – debt loaded
A – a**hats

RATM

#14 kommykim on 09.27.17 at 6:53 pm

RE: Well, here are ten of my fav ways to reduce your tax bill thanks to two simple words – income-splitting (as opposed to sprinking).

Thanks Garth. This is much more productive.

#15 MF on 09.27.17 at 6:54 pm

Never thought I’d defend any of these morons policies but the attack on the public sector is wrong.

https://www.fin.gc.ca/afr-rfa/2016/report-rapport-eng.asp#_Toc463249479

That’s a breakdown of the government’s expenses in 2016.

-most of the revenue goes back to the population in the form of benefits (EI, child tax).
-the operating expense is only 17% of the Total.
“Public servants” carry out the laws enacted by elected officials. So blame the liberals and vote them out if you disagree.

Starting to think this private vs public is just some click bait (seriously).

MF

#16 Pk on 09.27.17 at 6:56 pm

Fdddffdfdfirst

#17 Lead Paint on 09.27.17 at 6:57 pm

The Conservative Party of Canada really needs to launch ads letting the public know that “Liberals are attacking small business while protecting their own trust funds.”

Try to show how hypocritical their populist ‘protecting the middle class’ rhetoric really is. Hit them where it hurts.

#18 Victor V on 09.27.17 at 7:00 pm

“Take the beefy monthly cheque T2 now sends you for having kids and invest it in growth assets in their names.”

We’ve got two kids and used to receive the UCCB which helped subsidize the crazy amount we pay for child care in Toronto. Thanks to T2 and his new CCB program, because we are ‘successful’ middle class Canadians earning over $200K, we now qualify to receive zero.

Our first taste of ‘tax fairness’ came early — the battle continues.

#19 steph on 09.27.17 at 7:01 pm

So much for me… IT dude with no family :(

It’s dead Jim.

Poor me another scotch.

#20 JustMe on 09.27.17 at 7:01 pm

This Is Why Millennials Favor Socialism

came the crash of 2007-2008. Millennials watched as their parents lost their jobs and their houses. big corporations and banks were bailed. millennials realized that the “trickle-down economics” theory didn’t work.

Getting an education became more expensive, student loans rose and workers beginning their careers had more debt than any other generation before them.

Many are still living with their parents. Others are putting off big-ticket items like marriage and buying houses as they slowly pull themselves out of debt.

If European countries can make socialism work, how that can be a bad thing, they ask.

http://www.huffingtonpost.com/entry/this-is-why-millennials-favor-socialism_us_58ed0feae4b0145a227cb8d3

#21 Ray Skunk on 09.27.17 at 7:06 pm

Mrs Skunk is currently on the phone, talking with her best pal who lives out in AB. Pal’s husband is a self-employed contractor (incorporated), doing skilled stuff up in the oil patch.

It just dawned on me that maybe, just maybe, this whole tax grab is another way of the Laurentian elite sticking it to the Alberta contributors (and then taking the proceeds and pissing it away on their Quebec-based billionaire pals running (ruining?) Bombardier).

After all, PM Butts has advocated elimination of the carbon industry – may as well get a head start by punishing the workers within it, with the added bonus of screwing the western Conservatives.

Never mind the perennial question of Quebec seceding from Canada, Alberta should consider it. And if they do, I should bloody well go and join them.

#22 Seattlelight on 09.27.17 at 7:08 pm

You forgot gifting money to your parents. If they have one of those gold plated pensions, or have incorporated, they may have extra TFSA room you can use.

#23 highan'dry on 09.27.17 at 7:08 pm

“Give money to your adult children. No, not for a condo down payment, but instead to maximize their TFSAs – on the understanding they give it all back”??? (love that part)…okay done and dunner!

#24 Smartalox on 09.27.17 at 7:08 pm

When drawing money out of savings to cover job loss or a sabbatical, consider taking it out of your TFSA first, instead of the RRSP. You’ll pay no tax on the withdrawal, and you’ll keep the contribution room.

At present, if you withdraw money from an RRSP, the ‘contribution room’ is lost, and taxes are payable – usually deducted at source – except in cases like the 1st time home buyers plan, and lifelong learning plan.

There was some talk about making RRSP withdrawals available for all sorts of occasions, but I don’t think that it is going forward.

#25 MSM-Free Zone on 09.27.17 at 7:12 pm

As usual, America’s #1 serial liar will expect Congress to rush a vote on a bill without providing any of the details.

We’ve all seen how that has worked out in the past.

#26 Stone on 09.27.17 at 7:12 pm

Stone on 09.27.17 at 6:50 pm
I understand all of the above except this one:

Take the beefy monthly cheque T2 now sends you for having kids and invest it in growth assets in their names. Capital gains made here will not be attributed back to you. If they grow up and become rock stars, you keep it.

Garth, are you saying you can open a non-registered investment account in your child’s name even when they are under 18 and plug the money into ETFs?

——

Found it. Informal trusts. Interesting.

#27 Ryan on 09.27.17 at 7:15 pm

Re: #18

>200k? Cry me a f*****g river.

#28 Smartalox on 09.27.17 at 7:15 pm

@ Happy Housing Crash #5

By my calculations, in Vancouver, the decline in purchasing price that will come with the B20 rules for uninsured mortgages are closer to 40% and 45%, the latter figure representing the prime + 300bp stress test for mortgage renewals and investment properties.

#29 Keith in Rio on 09.27.17 at 7:17 pm

Why go to all that work ?

If you are single or married, but with no 2 legged 18 year amortized mortgages running around, and a significant net worth……..just leave the damn country.

My accountant figures “Kanaduh” will lose $1MM of taxes from my departure over the actuarial balance of my life. When I think of all the SJW Antifa snowflakes that don’t get my money, a great big smile breaks out all over my face.

Liberals are the pallbearers of society an globalism is z crime against humanity. Starve the pigs out.

#30 Fish on 09.27.17 at 7:17 pm

#8 Howard on 09.27.17 at 6:42 pm
Great tips….for marrieds (and/or with children).

What about for us (happily) single, child-free citizens?

May have to eventually team up with one of my similarly happily-single friends and enter into a marriage of tax convenience.

*******[

I need names Howard, Names!!!!

#31 wallflower on 09.27.17 at 7:19 pm

sprinking – now there is a word in search of a definition

my suggestion:
spinning your money situation into one which avoids taxes, evadishly

#32 Pete on 09.27.17 at 7:20 pm

Lead Paint on 09.27.17 at 6:57 pm
The Conservative Party of Canada really needs to launch ads letting the public know that “Liberals are attacking small business while protecting their own trust funds.”

Try to show how hypocritical their populist ‘protecting the middle class’ rhetoric really is. Hit them where it hurts.
—————————————————————-

LOL….your kidding right? You do know CONs are all about the elite and their trust funds? You do understand CON represent the elite?

#33 Prophecy on 09.27.17 at 7:22 pm

What happened to the USD/CAD exchange rate? Did Poloz talk down the Loonie today?
Or is Toronto real estate collapsing as Garth promised?
For they shall eat merrily and build condos for pumpkin spice lattes as thy Liberal Trudeau hides his wealth like a nudist in public.

#34 Bob Dog on 09.27.17 at 7:28 pm

Outsourcing.

Why can’t we outsource the government to India. Probably 80% of what the government does is simple clerical non sensitive paper pushing. I don’t see why we can’t save a ton of money, reduce corruption and simplify government by outsourcing. No more pensions, no more mindless civil servants who can never be fired to laid off.

If the royal bank can outsource why can’t we tax payers.

#35 Smoking Man on 09.27.17 at 7:28 pm

I can see buz that deal in cash will be reporting much lower sales after the T2 theft of small buz.

Going to happen

#36 Lee on 09.27.17 at 7:32 pm

#13 Doug t,

What’s wrong with communism?

#37 Andrew Woburn on 09.27.17 at 7:34 pm

One hundred years ago, a retail giant that shipped millions of products by mail moved swiftly into the brick-and-mortar business, changing it forever. Is that happening again?

https://www.theatlantic.com/business/archive/2017/09/sears-predicts-amazon/540888/?utm_source=feed

#38 JustMe on 09.27.17 at 7:36 pm

If European countries can make socialism work, how that can be a bad thing, they ask.

—————————————————————————

List of Countries by Personal Income Tax Rate (percent)

Sweden 57.10
Portugal 56.50
Denmark 55.80
Austria 55.00
Belgium 53.70
Finland 51.60
France 50.20
Italy 48.80
Greece 48.00
Ireland 48.00
Germany 47.50
Iceland 46.30
Spain 45.00
UK 45.00
Switzrld 40.00
U S A 39.60
Norway 38.52
Canada 33.00
Hong Kn 15.00
Russia 13.00

https://tradingeconomics.com/country-list/personal-income-tax-rate

#39 crossbordershopper on 09.27.17 at 7:40 pm

trump is coming up with the simplified tax strucutre, and corp tax is 20% flat, and on the personal much lower than canada, effective and marginal rates.
so, even being honest, go to america, so go to america.
the little people are walking over the border for cheques from canada as shown on the CBC in great detail yesterday evening.
so plan, as garth saids, which is go to the usa. thats what everyone in canada with an entrepreneurial spirit, and wants to improve his financial position. why bother with all this canadian stuff.
pls help make america great again

#40 Yanniel on 09.27.17 at 7:42 pm

Thank you very much Garth.

If you were even more gracious, could you please shed some light on the questions below?
———————————————————-
Point 1 (“Take your piteous crumbs and use them to pay the household expenses. Have your spouse devote all of his/her take-home income to investing”):

My wife and I share a joint bank account? Money for the rent, groceries, etc. and also for investments is taken from that pool. How can we then differentiate who gets to pay for the household expenses vs who gets to invest (money is coming from the same spot)? Also, what’s the benefit if we only invest in TFSA and RRSP?

———————————————————-

Point 3 (“Swap stuff”):

Does the stuff to be swapped have to be acquired prior to the marriage? How does one legalize the “swap” (Is it sufficient to say “I gave you this and you game that”)? Again, what’s the benefit if we only invest in TFSA and RRSP?

———————————————————-

Point 4(“Take the beefy monthly cheque T2 now sends you for having kids and invest it in growth assets in their names”):

Can you invest money on behalf of your kids in a non-registered account? What kind of account should be used for this?

———————————————————-

Point 7 (“Loan your spouse a whack of money to invest”):

This will only work for non-registered investments, right? How does one legalize the “loan” between spouses?

#41 Dave on 09.27.17 at 7:43 pm

Great advice, thanks!

#42 Renter's Revenge! on 09.27.17 at 7:45 pm

#27 Ryan on 09.27.17 at 7:15 pm
Re: #18

>200k? Cry me a f*****g river.

Lol. They just should take all our money and then give it back to us in the form of “benefits”. Most people would probably be happy with that situation.

Geez Victor, where do you think the money for the UCCB comes from? They have to draw the line somewhere.

#43 Yanniel on 09.27.17 at 7:46 pm

“Found it. Informal trusts. Interesting.” — Thank you Stone.

#44 mathman on 09.27.17 at 7:47 pm

RE# 27 Ryan

I take it you don’t live in the GTA or YVR. A 200k pretax family income does not make you a baller, with our current tax regime you fall into taxpayer purgatory. Taxed like a 1%, no benefits and having to live rather frugally.

I’m not saying I want or need any handouts, simply making a factual argument that 200k is not anything at all that it seems.

Spouse #1 120k/year

NI =86K

Spouse# 2 – 80k/yr

NI – 63K

total – 149k

Even better if you are really successful and single or single income making 250k/yr, you are left with $152k and have the pleasure of paying >53% MTR.

You are right on one account, high income earners should be crying.

Math

#45 X on 09.27.17 at 7:47 pm

Taxes are out of control. Garth

OMG so true.

#46 Free By 40 on 09.27.17 at 7:50 pm

#33 Prophecy on 09.27.17 at 7:22 pm
What happened to the USD/CAD exchange rate? Did Poloz talk down the Loonie today?
________________________________

I think it’s more to do with Trump’s tax speech, which is also why US stocks were pretty strong today.

#47 XLS doc on 09.27.17 at 7:52 pm

#18 “We’ve got two kids and used to receive the UCCB which helped subsidize the crazy amount we pay for child care in Toronto. Thanks to T2 and his new CCB program, because we are ‘successful’ middle class Canadians earning over $200K, we now qualify to receive zero.”

Tip#11: If you have the RRSP room, you can significantly reduce your net family income (line 236) and you will qualify for the CCB. Instant 5+% return on ‘investment’.

#48 ImGonnaBeSick on 09.27.17 at 8:00 pm

#27 Ryan … you’re jealousy is a pleasant change to the normal comments here. Please keep up your mediocrity… God knows your PM is great at it.

#49 Doghouse Dweller on 09.27.17 at 8:00 pm

#21 Ray Skunk
The Laurentian elite sticking it to ~~~~~~~~~~
——————————————————-
Possibly the ROC (restOcanada)
I had inquired on the blog ( No Feedback) why all the all the labour sponsored funds in the ROC went totally broke and the one large Quebec fund is making money hand over fist with sketchy companies like BBD.B and others, even after having lost a fortune with the MBS fiasco.
Politics + Financial Eng + tax loopholes ?
I really wish I was informed enough to figure this one out ?

https://www.fondsftq.com/en/a-propos/qui-sommes-nous.aspx

#50 young & foolish on 09.27.17 at 8:04 pm

“Starting to think this private vs public is just some click bait ” — MF #15

Well, people really do expect a lot from government … more and more all the time. So who is going to pay?
It’s easy and kind of thoughtless to blame public service workers.

#51 Jungle on 09.27.17 at 8:06 pm

So FEDS lower taxes; are we still competitive? Are tariffs the answer against globalization?

And can we have more on how to make your wife tax deductible?

#52 Dolce Vita on 09.27.17 at 8:08 pm

#5 Happy Housing Crash Everyone!

The Better Dwelling and this one:

http://www.huffingtonpost.ca/2016/10/19/mortgage-rules-canada_n_12560134.html

Both differ in their max. affordability calculations even though their rate assumptions are not that far apart.

All suffer from the same problem, they do not state their TDS and GDS assumptions.

For example, CMHC uses 35% GDS and 42% TDS, TD Bank recommends 32% GDS and 40% TDS and RBC recommends 30-32% GDS and 37-40% TDS.

If you are handy with Excel, better to calculate there the mortgage payment at +2% of the rate you found, GDS and TDS.

If you exceed either of them, use Goal Seek to figure out the maximum mortgage you can afford by having it recalculate the mortgage amount so as not to exceed either GDS or TDS.

This way, as rates increase, all you do is change the rate in your Excel model and repeat the above.

Better than waiting for someone to post an article on what you can afford with few assumptions provided or shock when talking to [email protected]

#53 Cloudy on 09.27.17 at 8:10 pm

Great article Garth. I, and all the dogs, are grateful for this free, useable, meat-and-potato advice. My second child is now almost 4 hours old. Time to get started on her RESP.

#54 Nonplused on 09.27.17 at 8:11 pm

What exactly does Moroneau mean by “dead money” trapped in small businesses? The man clearly hasn’t a clue.

I have some “dead money” “trapped” in my small business. That’s because my small business income varies a lot from year to year. For example I’m minting some money right now, but last year was $hit and so was the year before, but the year before that was great. So in the lean years I lived off the money in the company and paid all taxes that were due. This year I am charging the corporate bank account back up because, well, the industry I work in is basically going broke so I expect next year to be lean again.

But “NOOOOooooooOO!” Mr. Turdeau and Mr. Moroneau think I should pay the maximum tax bracket in the year the company made the money and I should just go to the food bank in lean years. What a couple of jerks.

Oh well I suppose that’s how socialism works. Socialist governments evolve by each cycle finding a smaller group to take money from to give to a larger group. It doesn’t have to be fair or test for any sort of achievement or whether it has a positive or negative affect on the economy, all that matters is that it produces more votes. All the while the ultra-rich and the political class are protected.

So, in a country like Canadistan where 3.4 million people work directly for the government and only 2 million people work for themselves as a small business operator, you have to expect that the government is going to try and stick it to the 2 million to gain the votes of the 3.4.

Minimum wages do the same thing. In every study ever done the old economic theories still hold, if you artificially raise the price of something demand will drop. This is why they tax tobacco and alcohol so ridiculously. It’s suppose to discourage demand and they know it does. The government knows that they won’t increase revenues by raising the taxes on tobacco, people just go buy e-cigs and that technology is likely only in existence because tobacco is just too expensive, but anyway it proves the point. If you raise the cost demand will drop. This is what happens with raising the minimum wage too, anybody who can’t earn their keep at $15 dollars an hour gets skidded and must seek government assistance. But it doesn’t matter to the government because if 60% of the workers keep their new $15 an hour jobs that’s enough votes to win even if 40% of them are now unemployable. That’s how you do it in a socialist democracy. Always find a new way to pit 60% of the population against the other 40%.

Unfortunately, though, there is always an end to the game, and it looks like Venezuela. You don’t need a hurricane to totally destroy a country, just socialism.

#55 millmech on 09.27.17 at 8:17 pm

#18 Victor V
Good on you for making the cash, my kids are out on their own, between me and the GF we pull in the same with no benefits except for the RRSP refund which we will max out to reduce taxes to this government.
There is a great post on Financial Samurai called “Stealth Wealth” , in this climate of class warfare it is required reading and follow the practices.
Our plan is to semi retire at 55 and work part time, retire fully at 60, draw down RRSP tax free, take early CPP,OAS and pensions at 65 relax and enjoy life.

#56 Raging Ranter on 09.27.17 at 8:17 pm

@#20 Justme, that happened in the US, not here. The 2009 recession in Canada was a mere blip compared to what they endured in the US, or compared to what Canada went rough in the early 90s or early 80s. That article does not describe the Milllennial experience in Canada at all.

#57 Raging Ranter on 09.27.17 at 8:22 pm

@#32 Pete, Trudeau is a trust fund baby. So was his father. Harper wasn’t. Neither is Scheer. Your assertion: debunked.

#58 Bigdude on 09.27.17 at 8:23 pm

#40 Yanniel

Re Point #1:

Yes Garth is talking about the situation where both spouse’s TFSA’s and RRSP’s are maxed are you are into taxable/non-registered investing and one spouse is in a higher tax bracket than the other.

Re the joint account…just open another account and have the lower earner’s pay direct deposited to that account, then send all that money to that spouse’s discount brokerage account for investing. Or if you don’t want to deal with changing the direct deposit from the joint account to the new account, just transfer the entire amount of the lower earner’s pay to the new account from the joint account as soon as it arrives on pay day…then move it to Questrade or whatever.

What you need to show if the CRA comes sniffing around is that all the money invested in the lower earner’s name is in fact his/her money so that the lower earner’s tax rate is applied to any earnings. Either of the approaches above does that….you have a ‘paper trail’ showing all the lower earner’s $ was invested, while the higher earner’s money went to household expenses from the joint account.

And if there is any excess in the joint account at the end of the year, use that to max out the TFSA contributions for both spouses the next year. It doesn’t matter if the lower earner’s TFSA is funded by the higher earner as the returns aren’t taxed!

#59 JustMe on 09.27.17 at 8:24 pm

When I retired early my income dropped 50% but my taxes dropped 75%. I no longer have to pay EI or CPP. In fact, I now collect CPP. Once OAS kicks in, my net income after deductions will be about the same as when I was working.

I used the low income years before I was eligible for CPP to withdraw RRSP in a lower tax bracket.

I have more money than ever, since I don’t have to save for retirement anymore.

Now I’m considering withdrawing all my RRSP before age 65 to reduce the clawback of the age amount and OAS.

https://retirehappy.ca/minimizing-old-age-security-clawback/

http://www.taxtips.ca/filing/ageamount.htm

#60 Doghouse Dweller on 09.27.17 at 8:25 pm

all the all the labour sponsored funds in the ROC
correction — every labour sponsored fund in the ROC

#61 BirdDog on 09.27.17 at 8:27 pm

A CCPC with unrelated shareholders can split income. A CCPC with shareholders now divorced must split income. A CCPC with married shareholders cannot split income

LOL

#62 millmech on 09.27.17 at 8:31 pm

#27 Ryan
Instead of whining you should be mining the high income earners on how they got where they are ie education and skill set, books and people that influenced them, monetary belief and handling systems, how they invest. Successful people in general like to share their knowledge and watch others succeed and are great mentors who can steer you away from catastrophic mistakes.

#63 Bigdude on 09.27.17 at 8:32 pm

Garth’s point about maxing out a child’s TFSA on the understanding it gets returned to the parent later is brilliant for parents funding their child’s post-secondary education! A real win-win. The parent gets more TFSA room to invest for the years the child has has no $ to invest, and later when the child hopefully has a job and is ready to invest the TFSA is emptied out and the $ given back to the parent. Why is this a win for the child? Well their TFSA limit has been increased by the returns the parent earned while they were using the account. Love it!

#64 Nonplused on 09.27.17 at 8:35 pm

Oh and then I forgot about premier Couillard in Quebec. Another total jerk-tard. He’s calling for another national bailout of Bombardier which Turdeau will probably give him while at the same time trying to squish Alberta who makes the fuel for their airplanes. What do they expect to run the airplanes on? Pixie dust? I say at this point it’s probably best to give Turdeau and Couillitard exactly what they want and shut off all the carbon based energy flowing from Alberta to Ontario and Quebec. “There’s your carbon free economy, a$$wipes!” It’ll look like Puerto Rico in a week no hurricane required.

So just a bit more ranting and then I’ll stop. Gasoline comes from oil. Natural gas heats your house. Natural gas and coal do all the heavy lifting when it comes to charging your precious iPhone. There is currently no alternative. Electric cars won’t cut it they are powered by coal for the most part. Yes, that’s right, coal. Where did you think they were getting the electricity, from a pixie powered solar panel? No, they don’t they get it from the regular mix of coal, natural gas, nuclear and some hydro. Cut the coal and natural gas and guess what? No cell phone, no car, and no Bombardier planes.

Politics is so disingenuous. I mean how can Turdeau stand there and say he is going to create a carbon free economy when it’s amply evident what that sort of society would look like? Think hunting rabbits with a crude bow and arrow in your rabbit skivvies. No cell phone, no car, now grocery store. But some how Turdeau and his ilk have convinced a great may people that saving the carbon based fuels for the ultra rich is worth the rest of us living in a tepee and tilling the fields by hand.

Look, it’s simple folks. If you want a carbon free economy, start at home. All of the technologies available to the government are currently available to you, at the same cost. See how you do. You will have to live like a bushman, only without the firewood. No heat in the winter, no air-conditioning in the summer, no running water, no car, no phone, no TV and only what food you can grow by hand. Good luck and I wish you well. If you figure it out maybe I’ll join the movement but right now all you a$$wipes are doing is railing against the very system that keeps you alive. You will die, and die quickly, if you truly go carbon free. Even the so called bush people don’t really do it because they all have a 4-wheeler and a chain saw that run on gas.

#65 Willy H on 09.27.17 at 8:36 pm

Trumps’s tax reforms will likely be as successful as his health care reforms.

Déjà vu …

It’s well worn 1980’s trickle-down economics that generally results in hundreds of billions in additional national debt, a dramatic increase in the gap between the wealthy and growing underclass while bloodied middle class zombies stagger along for the repeat ride!

A proposed American corporate tax cut of 43% will certainly stimulate Wall Street (& Bay Street) financial analysts with many a bull market wet dream, ultimately it’s pure orange fiscal fantasy.

We all seen this adult movie before, it definitely does not end well!

#66 Mean Gene on 09.27.17 at 8:38 pm

Snivel servants pensions but also the elephant in the room Old Age Security, which is going to cost a fortune in a couple decades.

Reversing the eligibilty age back to 65 from the planned age increase to 67 by the Conservatives, foolish idea.

#67 common sense on 09.27.17 at 8:39 pm

Wow Poloz got the word from Janet not to raise interest rates anytime soon and to not make Janet look bad or pressured into a DEC rate increase and not a peep from anyone here?

One and done Poloz. Let’s see if Janet’s Cohones add a hike and send the system reeling..

What a complete joke.

#68 PastThePeak on 09.27.17 at 8:40 pm

Taxes are out of control, and going to get worse. Double digit deficits in a growing economy (with some strong spurts), with a government which has no interest in spending restraint. The Beast wants more revenue and it knows where it can get it without hurting reelection chances.

#69 The future is small business on 09.27.17 at 8:43 pm

Trudeau better listen to some Jack Ma about small business

https://www.youtube.com/watch?v=VJBVGbe8g9g

#70 Wrk.dover on 09.27.17 at 8:44 pm

Every tax dollar you pay is matched by too much more in Govt. spending. Shock the Monkey, starve the Beast. You only have to pay income tax on income….delete some and save your energies for someday. You will need them then.

#71 FLHTK on 09.27.17 at 8:46 pm

wow really great tips tonight! Keep them coming!

I also think more businesses are going to be doing cash deals and reporting less income on their taxes, can’t wait
Cash is King!

#72 Bend your knee on 09.27.17 at 8:46 pm

Bend your knee for Canadian tax revolt.
“Not my PM”

#73 crowdedelevatorfartz on 09.27.17 at 8:54 pm

@#52 nonplussed
“to create a carbon free economy when it’s amply evident what that sort of society would look like? Think hunting rabbits with a crude bow and arrow in your rabbit skivvies. No cell phone, no car, ….”
++++++

If that means people will actually look at me while Im talking to them rather than nodding while texting……… I’m all in.

#74 Smoking Man on 09.27.17 at 8:55 pm

Been watching clips in question period. Shear eviscerating T2 and M1.

T2 calls small business Wealth Canadians. Yeah like the chines guy and his wife running a maks milk are rich.

What do T2 and M1 rich kids who never did a startup? Spoiled brats.
M1 married into it, a toyboy.

This is war.

#75 VICTORIA TEA PARTY on 09.27.17 at 8:57 pm

MAGA–ON A ROLL…BUT TO WHERE?

The US Commerce Department’s proposal to rabbit-chop Bombardier with a 219 per cent import duty on its C-100 jets looks like an opening salvo from Trump Inc.

It’s just the beginning…more to come?

Another salvo COULD arrive early next year.

That’s if Trump unilaterally scraps NAFTA saying talks failed “just because.” He’s already threatened to do so, many times.

Then he’d probably begin trade negotiations directly and separately with Canada and Mexico.

This could give Trump the upper hand letting him quell any Congressional bitching and griping over worries of undesirable trade outcomes for the US.

He’ll then be free to play off one country against the other to get superior trade and business deals for his people.

This might also present an opportunity for him to pressure both Mexico and Canada to buy more US armaments, including those Boeing F-18 Super Hornets for Canada, because of “threats” from NK, and Islamic fundamentalism.

Throughout this process will be Trump’s overarching threat, unilateral border imposts of a sort to be determined by the US only.

Trade will continue amongst the three amigos regardless.

But it will be a worrying time for the two “colonies.”

This is the classic definition of the word “screwed”.

That trade stuff also plays into Trump’s desire for major income tax cuts for the US.

How?

If Congress rejects those Trump tax-cut proposals, then look for the next best strategy: ramping up of domestic industries repatriated from abroad, fuelled with tax deferments at the state and local levels (that don’t require federal legislation), and those protectionist border tariffs.

So, there WILL be tax breaks of a sort. But on our backsides, not the Yanks.

But if Congress approves the plan then we’ll be in real economic hot water “competing” with the US and saddled by our new higher taxes.

Regardless, more US jobs would be created and the massive US debt will be on the road to more stability.

Trump’s really big plan is to save the American imperium from itself, fiddled as it has been by various incompetent Deep States over the decades.

BUT the collateral damage to us would be unknowable for a stressful while especially with those proposed new taxes.

I’ve read reports of the ongoing NAFTA talks and how “well” they are apparently going. I don’t believe it.

Why, because the US is controlling the agenda. That’s the way it does business. It will be ever thus.

So, it’s the tin-ears of the federal Liberals’ new tax changes, belief in unicorns and gender-obsessed snowflakes vs a rampant American president.

This’ll be interesting in a bad way.

#76 ScaredOfBidding on 09.27.17 at 8:57 pm

Hello Garth,
I am saving today’s post forever, in my google drive account along with some of your other posts for my reference.
Question about: “Take the beefy monthly cheque T2 now sends you for having kids and invest it in growth assets in their names. Capital gains made here will not be attributed back to you. If they grow up and become rock stars, you keep it.”
So, only T2 cheque worth of money can be invested in kids’ accounts? Or Can I just go ahead and invest say CAD$10k per year on each of Kids’ name in an investment account at a discount brokerage?
If this can be done, that is great.

Thank you.

#77 Al on 09.27.17 at 9:00 pm

“Taxed like a 1%, no benefits and having to live rather frugally

total – 149k”

If you gotta live ” frugally” on 150k youre doing it wrong.

#78 Doug t on 09.27.17 at 9:03 pm

My wife retired in March at 57 – with all this taking place I am seriously thinking of “retiring” myself at 55 and live off our investments and work under the table for cash.

RATM

#79 Im_Inadequate on 09.27.17 at 9:05 pm

#38. Do you pay provincial tax? Thought so. Combined together the taxes, Canada ranks pretty high up on that list.

#80 Pete from St. Cesaire on 09.27.17 at 9:08 pm

This is why they tax tobacco and alcohol so ridiculously. It’s suppose to discourage demand and they know it does.
———————————————————–
I don’t believe that the high price cuts consumption. I have never encountered anybody who didn’t have their smokes. I drove cab for years and I saw it all of the time. People couldn’t pay their fare or even eat but they always had their smokes.

#81 Tremblant110 on 09.27.17 at 9:10 pm

If your wife works for you and receives a salary when she retires she gets CPP. So you and her both get CPP. Good benefit

#82 Kat on 09.27.17 at 9:13 pm

Why should the tax payers fund your childcare , you make a ton of money pretty sure you can afford the hit. We live on a quarter of what you make and use that money for things like food. Your greed us unbelievable. I agree taxation is out of control but when you complain about living frugally on over $200k. a year you have a problem bigger than paying for childcare. I look forward to the day we don’t qualify and make that much.

#83 Tremblant110 on 09.27.17 at 9:16 pm

Spousal RRSP is beneficial if wife is younger as your withdraw rates can be based on her younger age and amount is less leaving more in the RRSP for investment. Assuming you can live with the less amount.

#84 big bucks on 09.27.17 at 9:21 pm

The problem if more and more people start contributing to their RRSP will be the lost tax revenue the gov’t will have to make up somewhere else and perhaps even start taxing them(differently) or TFSA’s in the future.Tough to beat a gov’t hell bent on taxing the crap outta you.Great advice though.

#85 Smoking Man on 09.27.17 at 9:35 pm

A funny thing happened on the way to Hakim Optical at the RBC plaza today.

I was on a drunken rampage at Seneca a few months ago, I lost my quad focal sunglasses and regular glasses.

So I’ve been getting by on an old set of long visions shades for driving, and reading glasses. Swapping them out 100 times a day. I lost the set of long driving glasses in Nashville. I drove 100 miles with my reading glasses.

Anyway, I called in for a new set, it was ready today. So I’m in my favorite shorts, commando it was hot. Black Nectonite tee shirt and 2 dollar flip-flops. I park underground, level P2.

With my wife trailing behind screaming at me to memorize landmarks so we can find our way back.

Boom. Off into the distance, I recognize a big wig from RBC Capital Markets, an overweight chic that has a big job, only because she was a shit trader, and perfect for globalism and the promotion of diversity and inclusion who’s has eviscerated straight white men on linked in many times.

Well, I did a shit load of good work for her people, and she loved me before my drunken DM Rant a while ago with photographic evidence at the general store of who the legendary Smoking Man was.

She broke off eye contact the second she realized it was me, her slow walk turned into a sprint, big woman in high heels, now that’s risk. She could not take a chance speaking to bugs bunny just in case the janitor might be a witness.

Anyway, I have total pissed of the globalist machine, I’m proud of that.

Now, how do I make the new glasses work now that I’ve been wearing reading glass for 5 days?

#86 Leo Trollstoy on 09.27.17 at 9:40 pm

#33 Prophecy on 09.27.17 at 7:22 pm
What happened to the USD/CAD exchange rate? Did Poloz talk down the Loonie today?

It’s range bound as I predicted

Canadian economy strong

US economy strong.

Both trading good job and gdp numbers

Inflation healthy and stable

Deflation never was

As foretold

You’re welcome

#87 Long Branch Apprentice on 09.27.17 at 9:44 pm

#20 JustMe

Millennial favor socialism because they’ve never lived in a socialist country. That, and many of us don’t understand math or how taxes work. Most of us think sharing a wall with a neighbour is “making it”.

We’re a sad, foolish lot who would rather deal in the currency of “likes” than risk a bit of safety for reward.

Many of us will never truly know financial freedom.

But of few of us just might.

#88 -=jwk=- on 09.27.17 at 9:45 pm

Shrug.

Either they fix the loophole or I become my own small business of 1 person. Oh, my wife can ‘do the book keeping’ and my two kids can both earn the tax free minimum too.

I will not be hiring anyone else. I will not be investing in anything else in the business. I will not be taking any risk really. Just a pure tax dodge, thank you very much.

I am kind of looking forward to it! Either way this is win win for me….

#89 Leo Trollstoy on 09.27.17 at 9:51 pm

#46 Free By 40 on 09.27.17 at 7:50 pm
I think it’s more to do with Trump’s tax speech, which is also why US stocks were pretty strong today.

Bingo bongo!

#90 AR on 09.27.17 at 9:53 pm

Yes, this is exactly what Bill Morneau is throwing a hissy-fit over, but you’ll get the immense satisfaction of watching some CRA goon burn up hours of time only to conclude that, yes, your wife is actually a productive, contributing human being worth being paid. Plus, she’s deductible. What a turn on.

Or your husband.

Indeed. I was making a point. Over 80% of the people negativity impacted by the Morneau agenda will be females, the spouses of primary business operators. What an awful thing for a feminist government to do. — Garth

#91 Leo Trollstoy on 09.27.17 at 9:55 pm

#77 Al on 09.27.17 at 9:00 pm
If you gotta live ” frugally” on 150k youre doing it wrong.

Hafta ageee w dis

#92 DON on 09.27.17 at 9:55 pm

What’s our current state…What’s our future?

Current State of Canada (not a complete list)

1) BIS warning
2) Over indebted Canadians
3) BOC now concerned (raised rates for a number of reasons-perception also included)
4) Recent GDP (mostly due to credit debt)
5) Alberta – Certain businesses recovering but not all.
6) Trade Wars and possible lower US corporate taxes
7) Housing bubble talk all over the place
8) Housing is not affordable for most people – even those who can afford the monthlies.
9) Yet more OSFI rules coming
10) All levels of Gov of still over spending (they should learn to live within their means also)
11) Not many Canadians are Financially minded.
12) MSM advertisements written by industry “experts”
13) Other forms of renewable energy ramping up
14) Good paying jobs disappearing and pensions with them
15) Retirement of the largest generation (well underway)
16) We are not in Kansas anymore Dorothy.
17) Known corruption and fraud in the realty and mortgage business (complicit news rags)
18) Banks started to raise rates (they know what’s coming)
19) Incompetence in the government and public sector management.
20) Millens are marching to a different tun (socialism or some hybrid?).
21) A three month downturn in real estate in the largest market
22) Move up buyers being priced out
23) Money laundering in Casinos with foreign ties
24) Harder to attract talent due to housing prices
25) Prices going up and wages haven’t really moved for 10 -15 years if not longer in some cases
26) Please fill out the rest…as there are more for sure.

The future state does not look good unless there are some new developments or Unicorns on the horizon. The hang over is coming – it is just a matter of timing. If you can’t see it…well good luck! You can’t say Garth and others didn’t warn you.

#93 bellend on 09.27.17 at 9:56 pm

head south and be done with it…..

#94 Russ on 09.27.17 at 9:58 pm

Free By 40 on 09.27.17 at 6:39 pm

Some great tax advice there Garth, good to know for the future.

I have to say though, that “hiring your spouse” is another tax avoidance scheme small business owners often get away with. I’ve seen many a small businesses “hiring” their children and spouse to do “work” when in reality they do nothing. Give them a “salary” of $15,000 each and there’s a load of tax free money already. It’s not like the CRA are going to come checking if your son or daughter is actually working for you, you can just say they do administration or bookkeeping and be done with it.

———————————-

Hey Freebie,

This one is easy. Just put in the spouse or child’s job description:
“… and other duties similar to a civil servant.”

They don’t need to do anything to earn the income.

#95 MF on 09.27.17 at 10:13 pm

34 Bob Dog on 09.27.17 at 7:28 pm

This might be the stupidest comment I have ever read.

Hey Bob, why don’t we outsource YOUR job to India??

MF

#96 Smoking Man on 09.27.17 at 10:19 pm

Canadians, if you can. Stop paying taxes.

#97 MF on 09.27.17 at 10:23 pm

Haha I remember reading all these posters yelling at Screwed Canadian Millennial for “whining and blaming others”.

Now we have a bunch of people “whining” about public servants who keep your streets safe getting paid a livable wage.

Too bad he/she is not here to call out you idiots.

Here’s a thought, dont like the policies enacted by our elected officials? Then campaign and raise awareness or run for office yourself.

Lol what a joke you people are.

MF

#98 Ian on 09.27.17 at 10:24 pm

I think the Plozzer was just trying to cool the CAD rise today. He got 70 pips out of it, but likely won’t last long, and then back up she goes.

I still think BoC is on for October and December but it’s defintely getting murky folks.

#99 Calamity Jane on 09.27.17 at 10:25 pm

“Hire your spouse or your kids to labour in your small business doing useful things. Yes, this is exactly what Bill Morneau is throwing a hissy-fit over, but you’ll get the immense satisfaction of watching some CRA goon burn up hours of time only to conclude that, yes, your wife is actually a productive, contributing human being worth being paid. Plus, she’s deductible. What a turn on.”

We do this – my sibling and I both actively work in our family business and my Mom did work full time in the office but is now my Dad’s personal assistant full time. We were surprised by the CRA at the beginning of the summer, they had a visit (intimidation attempt?) snooping around to find out if we actually work at the business. Interesting timing given the current “proposed” tax reform don’t you think? Seems like our family has their attention and they were trying to find out if we were income sprinkling or splitting…. all of which were legal at the time but made me wonder if they were out visiting others to try to size up who they would catch with the changes.

#100 Keep Calm and mow the lawn on 09.27.17 at 10:26 pm

people, relax, he stanks will not be doing any b-20 ‘stress tests’,
why?: hst revenues are in the toilet – big time!
2nd quarter , 3rd q etc from ALL RE related sources,

the government will NOT tell you that

the goal of the ‘test’ has already been achieved

#101 not 1st on 09.27.17 at 10:28 pm

Garth, T2 and Moreno today called equity investments “dead money”….and you are not outraged??

#102 NOTHING SURPRISES on 09.27.17 at 10:29 pm

If you’re a wrinkly, split your CPP or pension with your spouse. – Garth
……………………………………………………………………………

My understanding under the ITA you may split your pension income other then CPP.

and

Splitting is actually not what happens and not really true. The Act only allows a $2000 amount for your spouse under pension splitting.

I have been doing this. If I’m wrong I certainly would like to be corrected.

#103 Bombardier on 09.27.17 at 10:44 pm

Payback time for Trudeau’s tweets.

For the arrogant interviews of NAFTA reneg Canadian officials.

After this opening step Canadian negotiators go back to the drawing board and sit at the table as little girls and boys.

#104 Stress test today, avoid the rush on 09.27.17 at 10:47 pm

100 not 1st on 09.27.17 at 10:28 pm
Garth, T2 and Moreno today called equity investments “dead money”….and you are not outraged??

linguistic programming to get y’all ready for money with an expiry date, to ‘stimulate’ the economy

#105 Lisa on 09.27.17 at 10:49 pm

Or…just buy Bitcoin.

#106 NoName on 09.27.17 at 10:51 pm

#85 Smoking Man on 09.27.17 at 9:35 pm

Now, how do I make the new glasses work now that I’ve been wearing reading glass for 5 days?

—-
this

https://plus.google.com/+SophieWrobel/posts/9vkQ3BZUrMz

and that
https://plus.google.com/+SophieWrobel/posts/Vmgx6Fv7xsM

#107 morrey on 09.27.17 at 11:02 pm

for 5 years this pathetic blog has been predicting gloom and doom for the VCR market… ain’t going to happen.

“A new survey says Vancouver is the world’s sixth most expensive city to buy a condo and the eighth most expensive market for a single-family home”.

read and weep

#108 Fiendish Thingy on 09.27.17 at 11:15 pm

C’mon Garth- Trump’s plan largely benefits the 2%, slams the poor, and adds 4 TRILLION to the US debt over 10 years.

Do you really support that kind of irresponsibility and inequality?

#109 BC_Doc on 09.27.17 at 11:27 pm

Re: paying family to do work— I already have wife and kids doing office work for me. Am planning on expanding my spouse’s duties. I am a DIY investor with a three fund portfolio (plus some GICs and savings accounts). I am going to have my wife take over looking after the corporate investments— will pay her 1% of the assets under her management in compensation for her expanded duties (her salary will be increased).

#110 Fuzzy Camel on 09.27.17 at 11:27 pm

Easy solution to T2 new bogus tax on business.
Cash deals. It is now our duty, to dodge paying as much tax as possible.

Every time the liberals get in power, taxes go through the roof, everyone responds by driving the underground economy through the roof.

#111 DIY on 09.27.17 at 11:31 pm

I see alot of questions around Garth’s point:. “Take the beefy monthly cheque T2 now sends you for having kids and invest it in growth assets in their names. Capital gains made here will not be attributed back to you. If they grow up and become rock stars, you keep it.”

I’ve already asked at the bank branch level and with the investment services. I was told you need to invest in trust but that I would ultimately be taxed on the gains. I’m not clear either on what Garth is referring to.

The bank advice is incorrect. Capital gains earned by the kids are not attributable. Interest and dividends are. — Garth

#112 Bob Dog on 09.27.17 at 11:33 pm

Hey MF #95, the royal bank did outsource many IT jobs and Canadian banking data to India. If this were a legitimate country with a government that actually represented the people of Canada, the royal bank would have been stripped of its bank charter so it can complete on a level playing field with every other Canadian corporation.

I see nothing wrong with outsourcing government beurocracy if my banking info is also in India.

#113 Ponzius Pilatus on 09.27.17 at 11:35 pm

Hugh Heffner died today at 91.
He had a rich life.
How about you, stock chasers ?

#114 n1tro on 09.27.17 at 11:36 pm

#7 TEMPLE on 09.27.17 at 6:42 pm
Well done, Garth. By missing the point, you actually reached the correct conclusion. Morneau’s changes are about stopping tax law abuse, while still permitting legal and valid ways of transferring income to family members. I fail to see why you went on a bender over this. It’s simply an adjustment to make sure the spirit of the law matches the rule of the law. Like you said, it’s about “job creators”. Well, this just makes sure those jobs are real rather than tax evasion.
——————————-

Let me get this straight since I’m not that bright. You bitch about “fairness” when someone takes part of their income and pays it out as dividends to their spouse but clap like trained seals when the same person puts their spouse on the “payroll” as an employee even though the taxes paid works out to be about the same?!

Unbelievable.

#115 DIY on 09.27.17 at 11:44 pm

Did some digging and think I found the answer in the investing for kids question from the web:

“Any dividends/interest generated by the account are taxed to the contributor (ie. in my case, I would take the tax hit – not great).

“However, capital gains are taxed in the hands of the beneficiary (ie. the children – bonus!). With capital gains taxed in the hands of minors, this would result in very little tax in most situations.”

I think the latter part is what Garth is talking about.

Exactly as stated. Capital gains will not be attributed back. Other forms of income are. — Garth

#116 Gentle ,Loving Kindness on 09.27.17 at 11:48 pm

An interesting comment on an article in the FP. It states there is a conflict of interest in Finance Ministers Morneau tax proposals against small business. The main tax alternatives available for small business owners is run his father, and the Finance Minister is a major stake holder in this insurance /Pension Company,”Morneau Shepell”

Chris Wilson ·
Chief executive officer at Hydro power
It’s becoming clear that some very wealthy Canadian shareholders tied to Finance Minister Bill Morneau are positioned to benefit handsomely from the proposed federal tax changes for incorporated small businesses and professionals. As Canadians, we should be paying very close attention.
Just yesterday my husband and I learned about pension-type savings options for small business owners called Retirement Compensation Arrangements (RCAs) and Individual Pension Plans (IPPs, geared more towards business owners in their 50s).
These retirement savings plans/products were suggested to us as potential next steps if the proposed federal tax legislation affecting small business goes through. (For context, given our incorporated structure, if the legislation is passed, any income we draw when we retire will have been taxed at a rate of 73%. Clearly, this doesn’t seem like a fair deal for a lifetime’s worth of work, so we—like every other incorporated small business owner out there—are working hard to understand what our options are.)
Today, from an All Nova Scotia article (Sept 19), we learned that the largest provider of these pension plans in Canada is none other than Morneau Shepell.
That’s right, Morneau Shepell—the multinational benefits/pensions consulting firm founded by Federal Finance Minister Bill Morneau’s dad, William Frank Morneau, Sr. in 1966, with annual revenue in 2016 totalling $592 million Cdn. It’s the largest benefits and pension firm in Canada.
Today, William Frank Morneau is listed as honourary chair and founder of Morneau Shepell on the company’s website. And Bill Morneau, according to the All Nova Scotia article, “…controls over 2.2 million Morneau Shepell shares worth over $47 million based on the closing stock price on Monday.”
If the federal government brings in their proposed tax changes, led by Justin Trudeau and Finance Minister Bill Morneau, incorporated small businesses across Canada will be forced to close their holdings companies and opt instead for other retirement savings strategies… like the private pension plans offered by Morneau Shepell.
So who really stands to benefit from the legislation that’s being positioned as changes to make the tax system fairer?
That’s right: Bill Morneau, major shareholder in Canada’s largest pension corporation. Bill Morneau, Canada’s Federal Finance Minister. Bill Morneau, the guy who keeps saying he’s closing “loopholes” and “fancy accounting schemes” that give wealthy Canadians unfair advantages over the middle class (…you know, those greedy farmers and doctors and local business owners and such).
While doctors are making calls to healthcare organizations offering jobs south of the border, and small business owners nearing retirement are looking at having to work for several more years, and family farms and businesses passed on through generations face being penalized for passing them down to their kids (and rewarded for selling them to anyone other than their kids), and young couples who’ve put everything on the line to start their dream business come to terms with the fact that the rug has been pulled out from under them, Morneau Shepell directors and shareholders must be rubbing their hands together in eager anticipation of the windfall to come their way.
If there’s a “fancy accounting scheme” that deserves the government’s full attention right now, including a thorough Conflict of Interest investigation, I think it’s staring them right in the face. Copy and share

http://business.financialpost.com/news/economy/enjoy-it-while-it-lasts-headwinds-are-gathering-for-our-economys-growth-spurt#comments

#117 Mark on 09.27.17 at 11:54 pm

Some of the Trump tax ‘reforms’ actually purport to reward prior bad behavior. For instance the lower tax rate on ‘repatriation’ of earnings ‘trapped’ in foreign subsidiaries. Effectively rewarding and forever encouraging companies to retain earnings in “offshore” subsidiaries (‘offshore’ in name only — the actual “money” is largely invested in the US economy directly or indirectly) as they know that they’ll get away with extorting politicians for lower repatriation rates.

Since most of the grassroots Trump base, the small business owners, the RE owners, etc., do not have access to such offshore accumulation of corporate earnings, he is going to face a lot of blowback over the issue.

Like Trump’s attempt to reform Obamacare, I think all of Trump’s proposed ‘reforms’ will go nowhere. If anything, the fiscal situation of the United States demands higher, not lower taxes, and attacking the tax abusers, not rewarding them is the likely course of action.

If this is why the Dow is at, what, 23k, and the TSX is only 15,6k (though creeping up to the 16,5k target I predicted early this year), then its a long ways down.

As for Bombardier, good grief, talk to anyone in the aircraft industry and they’ll tell you that there is no competition between Bombardier’s and Boeing’s product lines as they exist today.

#118 Pete from St. Cesaire on 09.28.17 at 1:31 am

Garth, T2 and Moreno today called equity investments “dead money”….and you are not outraged??
linguistic programming to get y’all ready for money with an expiry date, to ‘stimulate’ the economy
————————————————————-
That’s a good point. Zimbabwe already issued paper money with an expiry date printed on it. Very clever man, Gono, he saved the country.

#119 Dave on 09.28.17 at 1:53 am

Hey quick update from Regina…just sold our 1100sq ft Lakeview bungalow on two lots. Assessed at 415,000 in 2014. Sold for 385,000 this month. Potential buyers couldn’t sell to buy ours. Majorly renovated modern house, in best area of town. Nothings selling here. Bought a mid century modern 1700 sq ft bungalow for 570,000. It was listed over 600k, assessed at 660k in 2015. Ridiculously over renovated, we got a good one. But the market in regina is tanking hard. Buyers market. People losing their shirts here. Brad Wall spent us into the ground. Heads up!

#120 Jan on 09.28.17 at 1:54 am

Funny true story. Today on news1130 in Vancouver the story was that detached housing sales in the city is down but condo sales are up. At 10 am new1130 announced that Remax had called and said that the story can’t be right and asked the station to pull the story until Remax could do research and confirm these facts. Funny that the radio station threw Remax under the bus by stating they had called and asked for the story to be pulled.

#121 Old Song on 09.28.17 at 2:27 am

#5 HHCE
It’s coming you SHYSTSER

What????? Still hasn’t come?

You’ve wished us a happy crash 6724 times.

And still we have to wait for it?
How much longer, pray tell us.

Or maybe just seek some professional help for your trauma.

#122 Late Great on 09.28.17 at 2:32 am

Good bye NFL. Well, it was going to die one day anyway it’s too violent and only has one country that supports it. But I have to admit I did not predict the method or avenue of the failure.

Could you have ever suggested to me that the spoiled multi-millionaire players in the NFL would ever disrespect the anthem and the flag? Ok take a knee but not even take the field? Could you imagine the uproar if the Toronto Maple Leafs decided to stay in the dressing room for the US anthem??? Toronto would get nuked the next day.

Trump is an idiot savant. He will win the NFL flag-anthem thing. NFL football was always an anomaly, only sport in the world only one country plays. But ratings are down 14% this week, will be down a further 28% next week, and they won’t be able to finish the season. So sad, one guy and a really bad idea can kill the whole thing in less than one season.

And the thing is nobody can figure out what the players are protesting. They don’t even know. But they are making it look like they hate their fan base. Oh well good bye then.

#123 Midnights on 09.28.17 at 2:51 am

What pensions for gov’t officials?
https://www.armstrongeconomics.com/world-news/pension-crisis/the-pension-crisis-coming-to-a-boil/

#124 AGuyInVancouver on 09.28.17 at 2:57 am

Whingeapalooza 2017 continues…

#125 Stan brooks on 09.28.17 at 5:46 am

bill is an idiot

Period.

#126 Nick on 09.28.17 at 6:15 am

Hi Garth,

A great set of tax avoidance tips. My question is, how are you supposed to track all this?

For example, putting money into your 18+ yr old kids TFSA. How do you prove to the CRA that you put that money there?
Or what about joint non-registered accounts for a married couple? I put in $10K but my lower income spouse puts in $1K and that $11K is used to by shares in 1 ETF. How do I track that on my tax return? Is that something a financial advisor can track?

Thanks,

Nick

#127 Dharma Bum on 09.28.17 at 6:30 am

“Of course, if you transfer the money into an RRSP, the feds will send you a tax rebate for giving yourself funds you already own. Later on, when you take a year off to pursue hot yoga and find yourself, you can cash it in and perhaps pay next to nothing.”
——————————————————————–

Hey! Now THAT’S what I’m talkin’ about!

#128 Dharma Bum on 09.28.17 at 6:37 am

#103 Bombardier

“Payback time for Trudeau’s tweets.”
——————————————————————

Lest anyone think otherwise, we (Canada) are simply a bug that the U.S. can decide to squish under their boot at any time.

We are nothing. ZERO. Nada. Zilch.
We exist economically because, well, they let us.

Within 24 hours, if they decided to, we could be overrun by their military and forced to submit.

We are free and independent, until they decide otherwise.

Know who your masters are, and proceed with caution.

Do not poke the bear.

#129 Balmuto on 09.28.17 at 6:54 am

“As for Bombardier, good grief, talk to anyone in the aircraft industry and they’ll tell you that there is no competition between Bombardier’s and Boeing’s product lines as they exist today.”

Wrong, the Bombardier C-Series is a direct threat to Boeing’s 737 family:

https://www.google.ca/amp/s/amp.businessinsider.com/bombardier-cseries-airbus-boeing-threat-enter-service-swiss-2016-7

#130 RE Investor on 09.28.17 at 7:54 am

RE: #121 Old Song on 09.28.17 at 2:27 am
LOL…Great comments!!!! You’ve wished us a happy crash 6724 times. And still we have to wait for it? How much longer, pray tell us. Or maybe just seek some professional help for your trauma.

Although I think ‘Happy Housing Crash Everyone’ guy is in the Marketing Profession, so there really isn’t any cure for him.

hmmmm, It seems like the Average Detached Home price in Toronto is getting back to Spring 2017 prices, but that’s the usual trend for September, so I really don’t care. Still looking for a house in a decent rent-able area that meets my criteria. Lots of time to do this.

https://toronto.listing.ca/detached-home-price-history.htm

Month Sales AvgList AvgSold MonthChange MonthChange(%)
September 397 $999,900 $1,065,000 $170,000 18.99%
August 471 $899,900 $895,000 -$65,000 -6.77%

#131 Ezzy on 09.28.17 at 7:56 am

#20 JustMe ; sorry, I must have missed the boat. European countries make socialism work? Why don’t you talk to the people of those countries and ask them about the insane tax rates, high rates of social assistance, and significant portions of the youth that are unemployed and will most likely never own their own residence. Remember, Germany is not a mirror for Europe, it’s just the country that bent the EU to its desires at the cost of others. And if we ever decide to be honest with ourselves, in this country, we’d soon realise that the economy of a socialist Canada wouldn’t stand a hope-in-hell against America’s.

#132 Smoking Man on 09.28.17 at 8:06 am

I’m calling the NHL about to get Huge in the USA.
Players will not take the globalist knee to the Ice.

NFL fans will finaly embrace hockey.

#133 maxx on 09.28.17 at 8:21 am

#6 Free By 40 on 09.27.17 at 6:39 pm

“It’s not like the CRA are going to come checking if your son or daughter is actually working for you, you can just say they do administration or bookkeeping and be done with it.”

Relevant point and just the mindset that helped evolve the current tax changes – there are probably many who “sprinkle” income to family employees that actually do diddly-doo-dah. These are the ones government needs to route out. If arms-length businesses don’t get this gray area to play with, family businesses shouldn’t either.

You can’t just say that your spouse, daughter or son are doing administration. Evidence of their efforts can easily be found. “Signatures” of their efforts are easily available, through login, keystrokes and paper trails; low-tech, manual jobs should include a log of dates and hours worked for pay attributed to that family member. CRA could also put together targeted sets of questions to ascertain the declared work input of a family employee. Family members ought to be processed in precisely the same way as an arms-length employee in conventional private-sector work and CRA don’t need to target every family business, every year. But family businesses should be forced to document hard evidence of every single declared hour of family involvement for pay.

I’m all for paying my fair share, but cheats really grind honest peoples’ gears and eventually just make it harder for everybody.

Especially the ones who shoulder risk AND pay their taxes in full.

#134 crowdedelevatorfartz on 09.28.17 at 8:26 am

@#120 jan
“At 10 am new1130 announced that Remax had called and said that the story can’t be right and asked the station to pull the story until Remax could do research and confirm these facts…..”
++++++

And the MSM would never THINK of doing a followup interview with a spokesperson from ReMax on the 6pm “News” about that phone call or their “facts”……
Dont wann bite the hand that feeds them.

Kudos to News1130 for throwing it out there…..

#135 crowdedelevatorfartz on 09.28.17 at 8:29 am

@#121 Old Song

A slow death by a thousand financial cuts is far more satisfying……
‘First they came for my Audi, then thay came for my Rolex, now CRA is sniffing around………”

Happy Housing Crash you lying, conniving, sales commisioned SHYSTERS.

#136 rainclouds on 09.28.17 at 8:31 am

#102 Surprises “Splitting is actually not what happens and not really true. The Act only allows a $2000 amount for your spouse under pension splitting.I have been doing this. If I’m wrong I certainly would like to be corrected.”

You should Get tax advice, you are incorrect. It is as Garth indicated. Never heard of the 2k cap…….

#137 crowdedelevatorfartz on 09.28.17 at 8:36 am

@#121 Old Song

True story.
My neighbor across the street at work was yelling on his phone the other day. I was out grabbing the mail. After he hung up I asked him who was pissing him off so much.
“My Realtor'( The realtor sold his house a year ago and my neighbor is renting until the markets crash)
“Why?”
“He’s down on his luck and needed a place to stay so I let him move in for a while …rent free”
“Whats the problem?
“He’s a slob, he’s eating me out of house and home, drinking all my booze and last night he brought his girlfriend over(another realtor) and partied all night.”
“Throw that parasite out! he can live with his “girlfriend”( I helpfully suggested).
” I am”, was his reply.

It’s already started.

Happy Housing CRASH sales commission shysters

#138 CRA is coming on 09.28.17 at 8:44 am

#96 Smoking Man on 09.27.17 at 10:19 pm
Canadians, if you can. Stop paying taxes.
………………………………………………………………..
Sure go ahead. We already know where your small purloined pittance has been stashed. You can run but you cant hide old man.
https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/informant-leads-program.html

#139 crowdedelevatorfartz on 09.28.17 at 8:48 am

@#128 Dharma Bum
Total agreement.

As for Bombardier.
Another coddled, propped up, company based from Quebec recieving endless Federal handouts.
Embrar from Brazil bitterly complained about Bombardiers govt largess to no avail.
Now its the US govts turn and baby Trudeau just found out what happens when he steps on the Elephants toe…..squashed like a bug.
Trudeau didnt look too happy answering questions in the Parliament Hill foyer yesterday.
Finally.
The selfie absorbed, pretend PM is being forced to make decisions that have real ramifications.
Rising interest rates, rising taxes, trade wars……and baby Trudeau is there to save us.
Canada is headed for a recession if this crap continues….

Happy Housing Crash sales commisioned shysters.

#140 Canadian Bear Poker on 09.28.17 at 8:50 am

#128 Dharma Bum on 09.28.17 at 6:37 am
#103 Bombardier
“Payback time for Trudeau’s tweets.”
——————————————————————
Lest anyone think otherwise, we (Canada) are simply a bug that the U.S. can decide to squish under their boot at any time.
We are nothing. ZERO. Nada. Zilch.
We exist economically because, well, they let us.
Within 24 hours, if they decided to, we could be overrun by their military and forced to submit.
We are free and independent, until they decide otherwise.
Know who your masters are, and proceed with caution.
Do not poke the bear.
……………………………………………………………..
Bears have balls, find the balls and kick em once. The bear will go down like a baby. The USA is on weak ground, they are no longer the leaders of the free world. They are hangers on with a madman taking them for a one way ride.
https://www.youtube.com/watch?v=3edi2Wkr5YI

#141 Yanniel on 09.28.17 at 8:54 am

You are very gracious Bigdude. Thank you for your explanation.

#142 Belgium on 09.28.17 at 8:59 am

Hey #38 JustMe

Belgium!

Incredible the grey market and outright amounts of cash under the table.

From house repair (only the guys doing stuff visible from street claim it, if the same guys are working inside or on the back, all cash; government regulators can only ask for paperwork from the street side)

To house sales (asking price minus a “percentage” = recorded paid price, “percentage” handed under the table via envelope to sellers at your house warming party (sellers invited, as per custom), reduces taxes all round)

And on and on. Never got around to owing a house there, but I did my research to see how things are done for a future purchase (never happened, got transferred, shrug)

The same will (is) happening here, and will ramp up.

#143 not 1st on 09.28.17 at 9:00 am

Garth, you just ran into a govt that has disdain for invested funds calling them “dead money” and you recommend people invest more? Thats a little reckless.

Who is to say the TFSAs arent the next taxed vehicle when people get a few hundred K in there. I dont trust the govt especially with T2 at the helm. His lapdog Moreno should have known better.

Registered savings vehicles will not be taxed. Not a chance. Suicide. — Garth

#144 PQ on 09.28.17 at 9:04 am

Great advices. Would think most here would already be aware of those, but great for sharing with others.

Don’t forget here in Québec you get another 10% on RESP. I don’t know for other provinces.

Keep the advices comin

#145 mother on 09.28.17 at 9:14 am

Most analysis of the trump plan shows it does not help the middle class and benefits the upper class. Trickle down, lol.

#146 Whipster1 on 09.28.17 at 9:19 am

Flop…. here’s one in Tsawwassen 1152 Jackson way. Just dropped 320k to 1.758mil. Not sure what the purchase price was a few yrs back. Only listed for over 20 days and already significant drop….actually quite a few dropping in t town here.

Whip

#147 Happy Housing Crash Everyone! on 09.28.17 at 9:21 am

You evil dirty SHYSTERS.
https://www.bloomberg.com/news/articles/2017-09-28/toronto-london-among-riskiest-housing-bubble-cities-ubs-says

You dirty scum are you advising your clients that Toronto is a ridiculous bubble? Dirty SHYSTERS scum.

#148 For those about to flop... on 09.28.17 at 9:54 am

#146 Whipster1 on 09.28.17 at 9:19 am
Flop…. here’s one in Tsawwassen 1152 Jackson way. Just dropped 320k to 1.758mil. Not sure what the purchase price was a few yrs back. Only listed for over 20 days and already significant drop….actually quite a few dropping in t town here.

Whip

////////////////////

Hey Whip , are you and “When the whip comes down” the same person?Just curious.

Also I will try and have a look out that way this weekend.

What I can tell you is another 170m was wiped off Vancouver asking prices this month.

The reductions are getting larger again just like they did this time last year and perhaps something worth pointing out is that out of that 170m, a portion of that is houses on their second or third reduction and so they are doing the Grouse Grind whether they like it or not…

M43BC

#149 John of Grant on 09.28.17 at 9:54 am

#46 Free by 40
#33 Prophecy on 09.27.17 at 7:22 pm
What happened to the USD/CAD exchange rate? Did Poloz talk down the Loonie today?
________________________________

I think it’s more to do with Trump’s tax speech, which is also why US stocks were pretty strong today.
————————————————

Had a lot to do with Poloz generally talking negative on the economy on Wednesday and indicating that the future moves will largely be data driven.

“The Canadian economy is not well prepared for a negative shock to the economy,” Poloz said.

#150 off-leash area on 09.28.17 at 10:09 am

#147 Happy Housing Crash Everyone!

You evil dirty SHYSTERS.
You dirty scum… Dirty SHYSTERS scum.

—-

At this point your rant is boring, turning into a counterproductive parody.

The more you keep repeating this, is the more obvious that you are suffering from a very personal problem that goes beyond the public issue. The help you need can’t be found on a blog.

#151 Always better to rent on 09.28.17 at 10:11 am

Downtown Toronto townhouse recently (~6mo) sold for $2million. (~$7500/mo mortgage @20% down) Now available as a luxurious pad for $5900/mo as advertised on BlogTO. http://www.blogto.com/city/2017/09/rental-week-251-roxton-road-toronto/

Someone has got to be hurting.

#152 Stan Brooks on 09.28.17 at 10:15 am

#133 maxx on 09.28.17 at 8:21 am

All that work is not really needed in a fair family based tax system.

Families should be taxed as entity.
These are the days of part time work.

Why should one working person in a family of 4 that works 60 hours (assuming same qualifications) for example pay higher taxes than a family of 4 with 2 working members who work 30 hours a week?

Our tax system is a retarded idiocy!
Period.

There is no such thing as ‘income sprinkling’ anywhere else in the world.
Germans or even in US will die of laughter if the read the Wild Bill’s mubmo-jumbo on the topic.

So instead of scaring people better reform the retarded (for the lack of stronger words) tax system.

————————————

Registered savings vehicles will not be taxed. Not a chance. Suicide. — Garth
————-

I have my own opinion on that.

If they can steal the savings from small Businesses they surely can steal the savings from TFSAs and RRSPs
by either taxing them or outright confiscating them in some form of ‘nationalization in exchange of income’ scam scheme after which they will inflate their promised obligations.

I put no trust in the words of thieves.

There are too many takers and too few workers.
Banks need their cut.
Oligopolies need their cut.
State and provincial employees need their cut and subsidized fat pensions.
Municipalities need their cut.

and no one has any money, mostly debt.

So yes, I see confiscation/theft of savings/investments coming in one form or another.
Prepare for that.

I give it 8-10 years.

#153 OttawaMike on 09.28.17 at 10:18 am

Oh look — Canada is one of the countries with the most newly minted millionaires.
Oh look– half the countries listed are a socialist paradise.

Including Norway.

https://www.bloomberg.com/news/articles/2017-09-28/here-s-where-the-most-millionaires-are-being-minted

This surely plays against the drama of the end of Canada as we know it due to the upcoming corporate tax changes.

#154 Lee on 09.28.17 at 10:35 am

#143,

JT is not a very smart politician. So don’t be surprised if he sacks TFSAs.

#155 IHCTD9 on 09.28.17 at 10:37 am

Yesterdays Blog post is my kind of topic :).

More refined than my methods of course, but I do take advantage of a couple of these techniques. You can also tackle taxation on the spending end:

Avoid Retail spending like the plague, shop for “like new used” on Kijiji, Craigslist, Ebay and similar. There is an amazing diversity of things folks buy and never even open the box.

Just the other day a machinist out on the floor asked me if I’d be interested in buying a 2017 Grizzly 700 Camo. His buddy bought it late last year, parked it in his garage, and it’s been sitting there ever since. He’ll take a 2000.00 hit at least, and it’s fresh out of the crate. Too busy to ride he says – many more deals like this are out there. There is an easy way to save huge on taxes buying a used machine compared to new as well.

Work for a company that has equipment and materials you can use for your own personal use? Do your project at work and tell your boss to just take a dollar equivalent amount of hours off your pay – WIN.

Trade labour with your pals. Tell your drywall hanging buddy to finish your basement while you do upper and lower ball joints, complete brakes, and control arm bushings on his Silverado 2500HD. HUGE WIN.

Quit smoking, quit drinking, don’t start with the weed, don’t gamble. No worse a tax slave could you ever be. If you must, get your cigs from the reserve, brew your own, keep your dealer’s phone number, and if you gamble – do it in Vegas where at least you get something of an experience for your losses. DOUBLE WIN.

If your car breaks, fix it yourself with good used parts. If your house needs a new deck, build it yourself and buy the material from the local FNR. Need a little help around the yard? Hire the neighbours kid and pay him/her cash. WIN ALL WEEK

Advanced folks can tackle their super high taxed conventional energy useage to lower or eliminate it. Play with alternative fuel, for instance I am building a charcoal powered truck – zero gas/diesel usage. Heat with tax free and cheap alternate fuels like straw, wood, etc. Electricity production is also possible with free fuel, and minimal technical expertise required. ONE IN A MILLION WINNER.

The spending end of tax elimination is a wide open field of possibilities, and a good hobby to get into.

#156 Smoking Man on 09.28.17 at 10:38 am

Just rented a 2900 sq/ft brand new house for 2k per month. cable and internet included. Six more houses on the same street for rent in this new subdivision.

#157 Stan Brooks on 09.28.17 at 10:38 am

#151 Stan Brooks on 09.28.17 at 10:15 am
#133 maxx on 09.28.17 at 8:21 am

All that work is not really needed in a fair family based tax system.

Families should be taxed as entity.
These are the days of part time work.

Why should one working person in a family of 4 that works 60 hours (assuming same qualifications) for example pay higher taxes than a family of 4 with 2 working members who work 30 hours a week?

Our tax system is a retarded idiocy!
Period.

There is no such thing as ‘income sprinkling’ anywhere else in the world.
Germans or even in US will die of laughter if the read the Wild Bill’s mubmo-jumbo on the topic.

So instead of scaring people better reform the retarded (for the lack of stronger words) tax system.

===============================

This is why the lying politicians want to speed up the proposed theft from the small Businesses:

1. Selecting ‘consultation’ period in the summer.
2. meeting with 3 (three!) selected nurses, or 3(three!) selected Business owners (just see the wild Bill and T2
pictures in the media) to show ‘support’ for their idiotic proposals.
3. rejecting ANY public discussions on the topic.
The air head made announcement in UN as a done deal during consultations! What an incompetent butt head!
4. Trying to play down the scale of the theft.

The arrogant wild Bill told the press that there is misinformation out there.

The only misinformation on the topic I have seen is his own idiotic government sponsored paper which is full of false statements, open lies, reviews of selected cases only and presentations of his own bureaucratic opinions as facts.

In a normal country he will be fired immediately and potentially sued for conflict of interests and incompetence, public offense and discrimination.

So the crooks are arrogant enough to speak on behalf of all of us/Canadians, reject any meaningful fact based feedback, lie, speed up important decisions and discussions, refuse any talk on related topics:
– family taxation
– taxation of gains on real estate, including primary residences.
– taxation of the rich, including stock options and public companies stock holders.

These people are not representing the Canadians, this is not how we do Business in Canada.

#158 Deplorable renters on 09.28.17 at 10:52 am

#156 Smoking Man on 09.28.17 at 10:38 am
Just rented a 2900 sq/ft brand new house for 2k per month. cable and internet included. Six more houses on the same street for rent in this new subdivision.
..

Is that what it costs in the Caribbean?

#159 FOUR FINGERS WATSON on 09.28.17 at 10:52 am

Registered savings vehicles will not be taxed. Not a chance. Suicide. — Garth
……………………..

I bet u a bag of mice that Turdo could tax tfsa’s and his voter base would say “yah brother tax those suckers” and he would get elected again.

#160 Deplorable kids on 09.28.17 at 10:53 am

Sure give your kids $$$

But don’t expect to get it back!!!

#161 Victor V on 09.28.17 at 10:59 am

Toronto, London among cities most at risk of housing bubble, UBS says

http://www.bnn.ca/toronto-london-among-cities-most-at-risk-of-housing-bubble-ubs-says-1.869439

Toronto and London are among the cities most at risk of a housing bubble as economic optimism and low borrowing costs push up property values in urban areas worldwide, according to UBS Group AG.

The Canadian city, which entered the index of 20 locations for the first time this year, has the most overvalued housing market, while London was the third-riskiest in Europe after Stockholm and Munich, the Swiss bank said in a report published on Thursday.

#162 Ian on 09.28.17 at 11:16 am

Interesting little scan I just did on FXC (the CADUSD exchange rate fund).

iVolatility.com, a service I use that has technical and option analysis, lists it currently as “bearish, slightly volatile”. The call / put ratio is at 4.5, which would have been the people playing the upside as it ran up. But I think there is a correction here, and it may be heading back into the mid – high 70s.

This will give the Plozzer more comfort to raise in October and December.

#163 Stan Brooks on 09.28.17 at 11:18 am

#153 OttawaMike on 09.28.17 at 10:18 am
Oh look — Canada is one of the countries with the most newly minted millionaires.
Oh look– half the countries listed are a socialist paradise.

Including Norway.

https://www.bloomberg.com/news/articles/2017-09-28/here-s-where-the-most-millionaires-are-being-minted

This surely plays against the drama of the end of Canada as we know it due to the upcoming corporate tax changes.

———————————

No it does not play against the drama.

The proposed tax changes are not impacting the really rich.

They hit pretty much the middle class/small private Business owners.

They/the small Businesses are not high net worth individuals.

Bill and T2 are.

Is there a budget for online trolls in the Lie-berals budget or it is volunteer work/in exchange of a promised favors or a public sector dream job?

#164 Kayaker23 on 09.28.17 at 11:22 am

Today’s post and comments were awesome!! I like what Garth is writing lately as he’s seeing the writing on the wall by our government and providing some solid intel…

Did anyone catch Jim Roger’s comment about his vision of a massive financial shake down soon to play out for the world to see. Though I can’t vouch of Mr. Roger’s comments I always remember my grandfather forewarning me that every generation will face an epic financial meltdown – and the main culprit is that we humans are programmed to over reach. The housing bubble is a great example and I sit here and wonder am I being an alarmist or does my inner kayaker say that things are about to happen in a big way!! Maybe Garth’s book about hunkering down and cementing in the generator he wrote a decade ago has some serious merit after all – the timing was just a tad off.

What’s life without a bit of drama!!

#165 IHCTD9 on 09.28.17 at 11:23 am

#153 OttawaMike on 09.28.17 at 10:18 am
Oh look — Canada is one of the countries with the most newly minted millionaires.
Oh look– half the countries listed are a socialist paradise.
____________________________________

Just about every country on that list is expanding its millionaire population via a corrupt top slice in government and/or insane RE prices.

Look at Russia – yeah, that’s all legit wealth gain for sure lol! Indonesia – it’s easy to clock decent gains when you’re starting at zero.

Canada? Yeah – those gains have nothing to do with RE at all – none. Our manufacturing and technology companies are kicking ass and taking names – that’s where all these new millionaires are coming from – not RE lol!

Several countries on that list are also breaking records for the number of millionaires LEAVING the country.

Take out YVR/GTA RE gains and Canada would be off of there instantly. So would half the countries on that list. If you take out millionaires gained due to corruption – there goes the other half.

#166 bguy1 on 09.28.17 at 11:32 am

Why family vs individual for RESPs?

#167 IHCTD9 on 09.28.17 at 11:40 am

#32 Pete on 09.27.17 at 7:20 pm

LOL….your kidding right? You do know CONs are all about the elite and their trust funds? You do understand CON represent the elite?
_______________________________________

Harper and Co pull a surprise increase in taxes on Trusts that end up costing Canadian Corporations over a BILLION dollars every single year in additional tax payments to the Federal Government.

Trudeau sticks it to small family businesses trying to scrape 250 Million together, but steers clear of any line of questioning asking what the Liberals are doing about the gaping tax loopholes in Trust Funds (that M+T both exploit).

Pete – go get your head examined.

#168 bdy sktn on 09.28.17 at 11:47 am

Exactly as stated. Capital gains will not be attributed back. Other forms of income are. — Garth
……….
Thx for covering this

Attribution seems pretty foggy to me.

Do 50 or 100 dollar birthday gifts , when invested, attribute back to grandma?

My child has a money bags uncle. Does a 50k gift every couple of years attribute back to him?

My wife is so awesome in bed I gave her a 200k gift. Is that not allowed???

Thx

#169 OttawaMike on 09.28.17 at 12:06 pm

156 Smoking Man on 09.28.17 at 10:38 am

Just rented a 2900 sq/ft brand new house for 2k per month. cable and internet included. Six more houses on the same street for rent in this new subdivision.
——————————————–
Doesn’t it hurt to walk around with horseshoes up your ass all the time, smokie?

#170 Asterix1 on 09.28.17 at 12:09 pm

So is this officially a “dead cat bounce”? Prices up in Toronto by 7.7% from the recent lows.

Yet, inventory is going up. Who the hell is buying and at higher prices on top of that?

https://www.zolo.ca/toronto-real-estate/trends

#171 I'm stupid on 09.28.17 at 12:14 pm

I know you advise against the Smith manoeuvre, but what if the primary goal was to reduce taxable income?

$200k income
Wife 95k income

23k rrsp contribution (me)
17k approx rrsp contribution wife

Taxable income
$177k me
$77k wife

1million heloc at 3.5% yearly interest approx 35k

New taxable income
142k me
77k wife

I know I’ll be setting myself up for a tax bomb later on but is it a strategy I should entertain?

#172 IHCTD9 on 09.28.17 at 12:23 pm

#140 Canadian Bear Poker on 09.28.17 at 8:50 am

Bears have balls, find the balls and kick em once. The bear will go down like a baby.
____________________________________________

Indeed, and you will have no problem finding the brass ones that clank on the USA, because they are absolutely enormous. You’re not going to get very close to them either, but you could try to take a swing if you don’t mind getting flattened like a penny on a rail.

Just ask Trudeau…

#173 hamilton on 09.28.17 at 12:36 pm

Hi Garth,

Saw below in the Toronto sun, So funny!

Century 21’s Pamela Prescott likes to refer it as “the scare.” It was in April when the average home price in the GTA reached an all-time high of $920,000. Thanks to fair housing measures introduced by the Ontario government in spring, and to a market correction that always seems to take place after a price surge, the average home prices have since dropped by 20 per cent to $732,000 as of August. Welcome to the world of real estate in Toronto where perception is everything. In hindsight, the panic buying and bidding wars we saw last spring did not make sense. Easy to say now but maybe everybody should have waited for the inevitable correction to take place. For a review of what happened and what can be learned from the experience, I turned to Prescott, who started in the real estate industry over 40 years ago, originally as a top sales person and now owner of Century 21 Heritage Group Ltd. She was formerly on the Toronto Real Estate Board of directors and vice-chairman of ethics. And in her blunt assessment, the media, the buyer and the agents can all share the blame for what took place last spring. “My theory is that buyers did not adjust their expectations and realtors (sometimes) don’t know how to deal with that,” she says. That got magnified by the media and all the reports of runaway prices and bidding wars. You would have been hurt too if you did not get good advice from your realtor, but the point is, six months later, we can all learn from last spring’s experience. Lesson one: Don’t just look at year-over-year. If you did a strict year-to-year comparison only, you might have missed it what really happened. For example, average prices in August 2017 were $732,000 only slightly higher than the $710,000 in August 2016. That’s only about three per cent so no big deal, right? Prescott’s point is that a month-by-month comparison produces a whole different perspective. It was an unusual year in the sense of the shortage of listings which reached an incredibly low 4,100 in December 2016 before crawling back to 7,000 in January, 10,000 in February, 17,000 in March, 22,000 in April, 25,000 in May, back down to 19,000 in June, 14,000 in July and in 11,000 in August. That up and down number of listings helps to explain the huge fluctuation in short-term prices and in effect, created a seller’s market in April. “Most people don’t understand the economics of it, and when fear enters it you get a market driven by emotion rather than sound thinking,” she says. Lesson two: Don’t panic, the fundamental rules of economics apply. It’s often overlooked that if you are buying and selling in the same market, what is the difference? Selling high leads to buying high and there is no real profit made. And buyers who bought first thinking their unsold property would only go up in value probably should have known better. Again it’s all relative. People obviously did get scared because affordability seemed to be slipping away, but think of it in the long-term, says Prescott. “20 years ago, mortgages were $300,000 and interest rates were 15 per cent. Now mortgages are $1,000,000 and interest rates are three per cent.” Not even accounting for inflation, do the math and you start to realize that monthly payments are about the same. Lesson three: Look beyond the overall GTA numbers and see what is happening in the neighbourhood. Prescott says it’s also worth noting that not all municipalities and all neighbourhoods have experienced a 20 per cent average price decline. The areas of Whitchurch-Stouffville, Newmarket, Aurora, Markham, Richmond Hill, Oshawa and Clarington have dropped by more than 20 per cent; while Halton Hills (up 11 per cent) and Scugog (up 6 per cent) actually saw price increases. And that’s the other mistake people make, looking at overall GTA averages for prices when neighbourhood values fluctuate wildly. Regardless, there is no need for further panic. Prescott’s prediction is that the market will remain in a balanced state for the foreseeable future. Meanwhile, she’s calling for buyers to do their homework and not to let their realtors off the hook. “Interview them and make sure they have your best interest at heart,” she says. Sound advice from somebody with four decades of experience in the business.

Let’s hope she’s better at real estate than punctuation and formatting. — Garth

#174 Smoking Man on 09.28.17 at 12:44 pm

NFL losses a big sponsor

“For the 29 States we operate in, this isn’t much to them, but it’s a lot to us. The Tombras group is our ad agency in Knoxville and our national media buyer for both TV and Radio…… and don’t look for Hardwick on the NFL either. Our companies will not condone unpatriotic behavior! TAKING A STAND…NOT A KNEE!”
……………

Big push back to communist globalism.
Yeah!!!!

#175 OttawaMike on 09.28.17 at 12:46 pm

#165 IHCTD9 on 09.28.17 at 11:23 am

Read the article.

The figure does not include wealth in real estate. It is invested cash.

#176 Alternate Universe on 09.28.17 at 12:47 pm

Ugh,
Why are we living in an alternate universe where everything is up side down?

Somehow, a mental health patient is in the White house.

And Toronto will honour a crack addicted hoodlum with a Stadium.

WTF people….
“Bad” and “Wrong” and “Toxic” are the new hip now?

https://globalnews.ca/news/3773982/toronto-stadium-rob-ford/

#177 BoomerKid on 09.28.17 at 1:04 pm

#24: When drawing money out of savings to cover job loss or a sabbatical, consider taking it out of your TFSA first, instead of the RRSP. You’ll pay no tax on the withdrawal, and you’ll keep the contribution room.

At present, if you withdraw money from an RRSP, the ‘contribution room’ is lost, and taxes are payable – usually deducted at source – except in cases like the 1st time home buyers plan, and lifelong learning plan.

There was some talk about making RRSP withdrawals available for all sorts of occasions, but I don’t think that it is going forward.

——-

I disagree with this as a general rule. It is almost always better to withdraw from a RRSP rather than a TFSA if you have a low-income year (eg. job loss, unpaid maternity leave or sabbatical, etc.). You want to take advantage of your low-tax year to to take money out from your RRSP, which needs to eventually be taxed as income. You’ve already received the major benefit of an RRSP over a TFSA by getting the deduction when you put the money in.

The only time you would want to withdraw from a TFSA instead of an RRSP if you needed money in a high-income year (eg. you had an unexpected expense but you are already paying income tax at a high marginal tax rate).

Contributions are a different story. There are instances when it makes more sense to contribute to an RRSP over a TFSA (eg. high income earner who is at the highest marginal tax rate or who expects income to decrease in the future) and there are instances when it makes more sense to contribute to a TFSA over an RRSP (eg. low-income earner who expects a higher income in the future).

#178 BoomerKid on 09.28.17 at 1:15 pm

#171: “I know you advise against the Smith manoeuvre, but what if the primary goal was to reduce taxable income?”

——–

In addition to the standard caveats of leverage, the central premise of the Smith maneuver as I understand it is that you use the gains from the investments to pay off your mortgage. This is incredible dangerous because it relies on consistently good returns in order to fund your mortgage. This is high risk because a streak of poor returns or losses could cause you to lose both the investments and your home. Assuming you are investing in equities, some years or poor returns and/or losses is pretty much guaranteed in the short to medium term.

Although there can be a role for borrowing to invest and claiming the tax deductions (although probably not a good idea for most people), I think you have to have the ability to pay off the debt and fund the costs of the debt from a secure source that is separate and uncorrelated with the investments.

#179 IHCTD9 on 09.28.17 at 1:18 pm

#175 OttawaMike on 09.28.17 at 12:46 pm
#165 IHCTD9 on 09.28.17 at 11:23 am

Read the article.

The figure does not include wealth in real estate. It is invested cash.
_____________________________________

I did.

It does include wealth generated from the sales of RE.

Said sales being what many executed in YVR/GTA over the last couple years.

My area is full of cash-out lotto winner ex-Torontonians who bought themselves a real nice house out here, and likely still were able to stuff 7 figures into their investments after paying cash for the house.

#180 Asterix1 on 09.28.17 at 2:41 pm

“UBS Global Real Estate Bubble Index
Toronto tops the list”

https://www.ubs.com/global/en/wealth-management/chief-investment-office/features/global-real-estate-bubble-index-2017.html?campID=MediaRelease

1. Toronto 2.12
2. Stockholm 2.01
3. Munich 1.92
4. Vancouver 1.80

But hey! Keep buying these inflated properties in GTA, all newspapers and RE industry are telling us everything is perfectly fine. Ha ha!

#181 fancy_pants on 09.28.17 at 2:45 pm

RESP is the easiest way to get $7200 free per child for post secondary. your returned contributions you can take back for yourself tax free (they were already taxed before you shoveled it in) and the other 20% the gov’t shoveled in is free $ for your kids education. even if the lot sits there earning 1%, you are still better off than pretty much anything else b/c you made a 20% immediately.

do not avoid RESPs. these are no brainers.

#182 jess on 09.28.17 at 2:50 pm

calling the kettle black?
boeing vs bombardier

Subsidy Summary

Subsidy Value No.of Awards
State/Local $13,905,820,091 184

Federal (grants and allocated tax credits)
$491,204,046 702

TOTAL $14,397,024,137 886

=================================
Loan / Bailout Summary

State/Local loans, bond financing and venture capital $3,576,477,388 31

Federal loans, loan guarantees and bailout assistance (not including repayments)
$70,102,732,334 390

TOTAL $73,679,209,722 421

https://subsidytracker.goodjobsfirst.org/prog.php?parent=boeing

#183 Dirty Shyster,u can call me 'scum' on 09.28.17 at 2:58 pm

What a great day today. Peace and love to all , esp HHCE. Can’t decide whether it’s golf or a spin on the yacht in this glorious sunshine. God it’s great to be an ex-yvr realtor, i retired at 29. So much money without hardly any work. Now it’s all play. Just by sticking to the proven truism that real estate always goes up, an easy fortune can be made by just about anyone. Try it!

Life is grand.

#184 Stan Brooks on 09.28.17 at 3:04 pm

#116 Gentle ,Loving Kindness on 09.27.17 at 11:48 pm

Seriously?
Wow!
If true, this is why probably lil Bill was so persistent, rude and fast, he probably wanted to sneak it under the radar, in hope the apparent conflict of interest will remain hidden?
This is not arrogance any more, we are talking about completely different ball game here.

So these are the champions of the middle class who speak of fairness and taxing the rich?

#185 jess on 09.28.17 at 3:10 pm

small tribes

the “swamp”= dollars drained …credit default risk swa (m)p
============================

Masters, creator of the credit default swap, to leave JPMorgan
Stephen Gandel
Apr 02, 2014
http://fortune.com/2014/04/02/masters-creator-of-the-credit-default-swap-to-leave-jpmorgan/
” She responded to the swipes by saying the problem wasn’t the instrument but the way people used it.

“Unfortunately, tools that transfer risk can also increase systemic risk if major counterparties fail to manage their risk exposures properly,” she said.

…”the Federal Energy Regulatory Commission investigated whether traders in her commodities division manipulated California’s electricity market. JPMorgan paid a $410 million settlement to end the case without denying or admitting wrongdoing; Masters wasn’t implicated in the matter. Dimon agreed to sell the business to a Swiss trading firm called Mercuria Energy Group in March 2014, and Masters resigned.
===========================
Blythe Masters Tells Banks the Blockchain Changes Everything …
https://www.bloomberg.com/…/blythe-masters-tells-banks-the-blockchain-changes-ev…
Aug 31, 2015 – Blythe Masters,
https://en.wikipedia.org/wiki/Blythe_Masters
https://www.bloomberg.com/news/features/2015-09-01/blythe-masters-tells-banks-the-blockchain-changes-everything
The only way to tamper with it would be to seize control of most of the computers holding the blockchain in their memories, which miners call the “51 percent attack.” Such an assault has a better chance of materializing in the next Bond flick than in reality, says Matonis, who’s also an editorial board member at CoinDesk.
==================
distributive ledgers
http://www.investopedia.com/terms/1/51-attack.asp

Fool’s Gold: How the Bold Dreams of a Small Tribe at J.P. Morgan Was Corrupted by Wall Street Greed and Unleashed a Catastrophe, by Gillian Tett: Spear’s Book Awards Financial Book of the Year 2009.

#186 jess on 09.28.17 at 3:50 pm

tit for tat trade wars/ tax wars

Caterpillar declined to appear today in front of the European Parliament’s Inquiry Committee investigating the Panama Papers scandal. The US-based machine engineering company is alleged to have illegally used a Swiss subsidiary to record profits from its international spare parts business to minimise its tax burden. In contrast, Caterpillar decided in March 2017 to close its Belgian plant and by this laying off 2000 workers. Caterpillar is registered in the EU Transparency Register of European Parliament and Commission and thus has access to key policy makers. Registration in the Transparency Register for lobbyists allows for entrance passes to Parliament’s premises yet also requires to follow the Code of Conduct including the obligation to cooperate with Parliamentary inquiries.
The Green Plan for Transparency and Integrity in the European Parliament suggested the sanction of a withdrawal of badges for those who fail to cooperate with inquiries. The new rule was adopted in December 2016.

============
see

The Whistleblower Behind Caterpillar’s Massive Tax Headache Could …
https://www.bloomberg.com/…/the-whistleblower-behind-caterpillar-s-massive-tax-he…
Jun 1, 2017 – The construction giant faces a $2 billion IRS bill and possible criminal charges, while the accountant who tipped off the feds stands to make a …
Caterpillar Tax Probe: IRS Thinks the Company’s Filings Don’t Add Up …
fortune.com/2017/07/03/the-irs-thinks-its-on-to-something-in-its-caterpillar-probe/
Jul 3, 2017 – The IRS has found what it considers to be the first evidence supporting its suspicions of tax evasion by Caterpillar, according to the WSJ.
MEP Sven Giegold, financial and economic policy spokesperson of the Greens/EFA group commented:

“Caterpillar has to lose its entrance passes to the European Parliament for their refusal to answer questions on their tax avoidance to the public in today’s Parliamentary hearing. Shying away from the European Parliament’s public hearing on Caterpillar’s efforts in tax dumping will not keep such practises under wraps.

The European Parliament does not allow companies to tweak its nose. On our demand, Parliament adopted new rules to withdraw entrance passes of companies that fail to cooperate with Parliamentary inquiries. Parliament’s President Tajani and General Secretary Klaus Welle must implement those rules now for the first time.”

http://www.sven-giegold.de/2017/caterpillar-should-lose-its-entrance-to-the-european-parliament-for-its-boycott-of-todays-hearing-on-its-tax-avoidance/

#187 I'm stupid on 09.28.17 at 3:57 pm

178 Boomerkid

Thanks for the reply, the goal is to use the interest payments to offset taxable income. My question still stands, if you’re not relying on market gains to pay the debt is this a worth while manoeuvre?

No. The Smith move is not recommended. — Garth

#188 Mike on 09.28.17 at 4:45 pm

Doctors south say, they got a tax lottery up North.

Doctors north ‘threat’, I will move South – but not many move…..clearly they got a tax cheating lottery here.

Corporate taxes high down south(even after Trump dumb them down, Canada is lower!!!), and they cant issue paychecks to diaper changing spouses down there.

Canadian doctors as ‘tax cheats’. Well, Justin & Bill, happy with what you have done to people’s heads? What a pathetic way to retain power. — Garth

#189 Yuus bin Haad on 09.28.17 at 4:46 pm

“watching some CRA goon burn up hours of time …”

C’est exactement &‌ccedil;a, Garth – c’est un jeu.

#190 Victor V on 09.28.17 at 4:55 pm

Billionaire Seymour Schulich calls Morneau tax plan ‘political suicide’

http://www.bnn.ca/billionaire-seymour-schulich-calls-morneau-tax-plan-political-suicide-1.869864

“At my old age I feel I may speak my mind. To see someone I truly admired commit political suicide is heart wrenching,” Schulich wrote in the email today. “For an alleged $240 million (about 1% of what our governments mismanage annually) to make visceral enemies of our farmers, small businessmen, dentists, doctors, accountants, venture capitalists, etc.”

“Trump will steal our best VC … kids which I am spending $100 million +++ to cultivate,” he wrote.

“This new conservative leader will eviscerate (sic) our drama boy and you for years to come,” Schulich wrote. “Is this what you went into politics for???”

#191 Dolce Vita on 09.28.17 at 4:56 pm

#130 RE Investor

1 month +’ve does not make a trend.

4 months -‘ve does. Also, Sept unit sales about 1/3 of prior year unit sales.

B20 coming. Fewer qualified buyers, less mortgage money to spend. Perhaps a rate increase or 2 before the May 2018 peak selling season.

I suspect people trying to avoid B20 and future rate increases are buying now before the qualifying or affordability hammer comes down.

Still, unit sales 1/3 of what they should be without B20 and more rate increases, that cannot be good.

Certain you will get your buying wish soon enough.

#192 Smoking Man on 09.28.17 at 5:02 pm

#138 CRA is coming on 09.28.17 at 8:44 am
#96 Smoking Man on 09.27.17 at 10:19 pm
Canadians, if you can. Stop paying taxes.
………………………………………………………………..
Sure go ahead. We already know where your small purloined pittance has been stashed. You can run but you cant hide old man.
https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/informant-leads-program.html
…..

The only thing left for them to get are my book sales revenue. The swine will be dearly disapointed. When I file this year getting 10 years of tax credit refunds.
Disability is a bitch.

#193 jess on 09.28.17 at 5:02 pm

Pamela Prescott likes to refer it as “the scare.”

“Chicago gangster Al Capone for tax evasion. Capone’s trial and subsequent 11 year jail sentence acted as free publicity for the agency. Both the public and corporations began to fear the American Tax Man.

The IRS used their fearsome reputation to target other high profile alleged tax delinquents including Andrew Mellon, heir to an aluminium fortune, banker, and Treasury Secretary under President Hoover. This culminated in tax cheats, (including bankers and gangsters) posting and hand delivering tax returns with cheques to Internal Revenue offices all over the country. This fear, therefore, had a silver lining since the collected revenues first helped push America out of its Great Depression and built and rebuilt the industrial and financial infrastructures of the modern American state.”

https://www.taxjustice.net/2017/05/19/evading-tax-avoiding-tax-evasion-decades-british-governments-shied-away-tackling-cross-border-crime/

U.K. Tax Evasion Law Creates Cross-Border Concerns

#194 Happy Housing Crash Everyone! on 09.28.17 at 5:13 pm

#130 RE Investor

You dirty lying greedy evil SHYSTER your “profession ” is coming to an end. Canada hates elementary school drop out SHYSTERS. High school is a pipe dream for some of your dirty scum.

#195 crowdedelevatorfartz on 09.28.17 at 5:18 pm

@#150 Off leash

Oh I don’t know. I find his honesty quite refreshing.

@#183 Dirty Shyster
” i retired at 29…..”

+++++++++

Bwahahahahahahah
Surrrrrue you did.
I think you missed the part where HHCE called you a liar………..

#196 Aaron on 09.28.17 at 5:31 pm

Re: #39 crossbordershopper

trump is coming up with the simplified tax strucutre, and corp tax is 20% flat, and on the personal much lower than canada, effective and marginal rates.
so, even being honest, go to america, so go to america.
the little people are walking over the border for cheques from canada as shown on the CBC in great detail yesterday evening.
so plan, as garth saids, which is go to the usa. thats what everyone in canada with an entrepreneurial spirit, and wants to improve his financial position. why bother with all this canadian stuff.
pls help make america great again

===============================

You can keep it.

After living in the U.S. for about 12 years, Australia for 5, and now back in the U.S. for a little less than a year I’m looking forward to moving back to Canada in November. Sure taxes are better in the US, on the other hand, I also get to walk past 20-30 homeless people on my way to and from work and am routinely asked for cash. There have been 40+ (The police claim 48, the paper is reporting 59 dead due to gun violence) murders in my city of 200,000 (~million in the metro area) so far this year. A few weeks ago, I got to go to sleep listening to the sounds of a women getting blasted 15 times by a handgun about a block from where I live (she’ll apparently live). They don’t even bother tracking how many people get shot in the city each year. Theft is rampant. I’ve had a bunch of small things stolen from my office by the cleaning staff. I routinely get text messages from my employer warning me about a nearby armed robbery, or various other “police incidents”.

I’ve got really good medical insurance through my employer, but it still cost my $100 bucks after insurance to get an eye exam. Trump’s tax cut would most likely result in my taxes going up.

Moving back to Canada, I’m getting a better paying job than the one I have here, though it doesn’t pay as well as what I got in Australia. Housing where I’m going will be substantially cheaper. In general, I suspect my overall quality of life will be way better.

If you are looking at getting out of Canada for a better standard of living go to Australia or New Zealand. Don’t bother with the U.S. The place is a rundown dump, with incompetent or corrupt politicians. The voting system here has been so gerrymandered that voting is pretty much a sham at the State level and the politicians are working on making it a sham at the Federal level. As you can see with the most recent failure of a repeal of Obamacare, Congress is incapable of doing anything to move the U.S. forward. Between out of control debt, a broken Social Security System, racial tensions, gun crime, and moronic leadership, the U.S. is not the place of the future.

#197 jess on 09.28.17 at 6:04 pm

help make america great again

– bleaching the sidewalks in San Diago due to hep outbreak

and now the portable pots are removed from the tent dwellers – buckets or bush

https://www.theguardian.com/us-news/2017/sep/08/anaheim-homeless-toilets-confiscated-public-health-crisis

that is no kid in the basement could be a professor!

https://www.theguardian.com/us-news/2017/sep/28/adjunct-professors-homeless-sex-work-academia-poverty

https://www.rattle.com/sestina-for-adjuncts-by-rebecca-snow/

#198 maxx on 09.28.17 at 6:39 pm

#157 Stan Brooks on 09.28.17 at 10:38 am

#151 Stan Brooks on 09.28.17 at 10:15 am
#133 maxx on 09.28.17 at 8:21 am

“………..These people are not representing the Canadians, this is not how we do Business in Canada.”

“Not how we do business in Canada”? Some of that, hopefully, is about to change.

Yes, our taxation system is retarded; it needs bigger teeth with development and implementation of greater expertise to collect in those corners that have healthy elephants hiding in them;

You make some very good points which I completely agree with – most particularly wrt the über rich pushing the tax reduction envelope to the ends of the galaxy by way of virtuoso tax advisory talent, and then course, tax deduct;

The implementation absolutely does stink;

Nevertheless, I’m fed up with opaque work-around treatment of income.

What I’m most fed up with is government waste, vanity projects to the point of insanity and treatment of the public purse as though it doesn’t belong to the people who paid into it. What kind of message does that send to tax payers?

We need more transparency at all levels of the food chain and for everybody to pay taxes owing.

That’s how fairness is done in Canada. Or ought to be.

#199 Spectacle on 09.29.17 at 12:10 am

A late night post. The family dog had to be put to sleep. A major catastrophic event required an early leave from earth.

Makes you revisit the path.

Many will miss Jake the rescued Jack Russell.

Lived a balanced and diversified life, amidst the turmoil (puppy mill rescue) he was born into, first owner abandoning him because the Vet said he had 2 weeks at best. Our Family nurtured and raised him for 6 plus years.

..be missed little buddy. Family planning Yes, but can’t plan for that!

#200 Derek on 09.29.17 at 12:30 pm

Garth, if your kids provide legitimate assistance to you small business and you pay them for their work, do you have to pay for their WSIB, CPP, EI and such?

#201 Where's The Money Guido Coleman? on 09.29.17 at 5:56 pm

I guess since the hammer might come down on properties involved in the BC Casinos-organized crime money laundering; this property is auctioning itself off this weekend in the Kelowna area for NO MINIMUM BID!
Assessed at $3.2 million, they tried to skin someone earlier, by trying to sell it for $6.5 million.
If you’re the lucky bidder, expect the cops at the door to confiscate the property once the details of where the money came from to buy it initially, because who can take a $3 million loss like that. The owner says he wants to travel, maybe as far away from BC and their
I’m sure there’s going to be a lot of confiscations and surprised buyers as the gov’t gets their money one way or another.
$100sof millions have been washed thru BC Casinos since this was detected in 2012 and hidden by the criminal cabal BC Liberals by turfing the Joint Illegal Gaming Investigation Team.
And this all on the day they’re opening a new casino in downtown Vancouver led by a conflicted insider of the company:
https://beta.theglobeandmail.com/news/british-columbia/former-lottery-corp-ceo-michael-graydon-was-in-conflict-of-interest-bc-audit-finds/article19552217/?ref=http://www.theglobeandmail.com&

http://northerninsights.blogspot.ca/2014/04/money-laundering-and-casinos-who-knew.html

This is the history BC Liberals left BC taxpayers!

https://thetyee.ca/Opinion/2017/04/10/BC-Liberal-Falsehoods-Scandals-Whole-List/

#202 Where's The Money Guido Coleman? on 09.29.17 at 5:59 pm

Oops I missed something:
I guess since the hammer might come down on properties involved in the BC Casinos-organized crime money laundering; this property is auctioning itself off this weekend in the Kelowna area for NO MINIMUM BID!
Assessed at $3.2 million, they tried to skin someone earlier, by trying to sell it for $6.5 million.
If you’re the lucky bidder, expect the cops at the door to confiscate the property once the details of where the money came from to buy it initially, because who can take a $3 million loss like that. The owner says he wants to travel, maybe as far away from BC and their “extradition”…….