Income Tax Act
Loopholes Tagged "Income Tax Act"
Plain-English guides to Canadian legal rights and workarounds related to Income Tax Act.
First Home Savings Account (FHSA)
The FHSA is the most powerful first-home savings tool ever created in Canada — combining the upfront tax deduction of an RRSP with the tax-free withdrawal of a TFSA — but many eligible Canadians have not yet opened one, and the contribution room you never open is contribution room you permanently lose.
CRA Objection & Tax Court Appeal
When the CRA reassesses your taxes and you disagree, you have a formal right to object — reviewed by an entirely separate Appeals Division — and if that fails, to appeal to the Tax Court of Canada using a simplified procedure for disputes under $25,000 that doesn't require a lawyer.
Income Splitting with a Spousal RRSP
A spousal RRSP allows the higher-earning partner to contribute to the lower-earning partner's RRSP, claim the deduction at a higher marginal tax rate today, and then have the lower-earning partner withdraw those funds in retirement at a lower marginal rate — potentially saving tens of thousands of dollars in lifetime tax.