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Mississauga Tax Services
Accounting Company in GTA. Computerized bookkeeping by us will allow you to concentrate on what you do best, you business. Let us do what we do best, accounting and taxes. Just bring in your financial information including check stubs, deposit books and bank statements and we will provide you with a Profit and Loss Statement along with a Balance Sheet.
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Canadian Pension-Retirement Income Tax Splitting Services

The MTS offers accounting services and help to businesses in GTA, Ontario, Canada. © Mississauga Tax Services 2012
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Canadian Pension-Retirement Income Tax Splitting Services

With the passing of the federal Budget, we can expect to enjoy thousands of dollars of annual tax savings, by lowering taxes paid, and increasing tax credits and government benefits. Retirement income splitting allows you and your spouse (including common law) to lower your total taxes throughout retirement.

Beginning this year, any Canadian resident with eligible income can allocate up to 50% of that income to their spouse. If you are under 65 years of age, eligible income includes employer pension income, as well as some death benefits. If you are 65 years of age or older, eligible income also includes lifetime income paid from Registered Retirement Income Fund (RRIF), Life Income Fund (LIF) and Locked in Retirement Income Fund (LRIF), and Deferred Profit Sharing Plan (DPSP).

On receiving benefits from an employer pension, you can split up to 50% of that pension with your spouse, regardless of age. In doing so, each of you can then use the annual tax credit on up to $2000 eligible pension income. Sources of retirement income not eligible for splitting include Old Age Security, Guaranteed Income Supplements, income from Retirement Compensation Arrangements, and RRSP withdrawals (non-annuity).

Each of you will need to make an election in your tax return specifying what portion of your income is to be deducted from the person who actually received the income, and request that it be included in the other spouse’s income. This direction and the amount can be changed annually. The greater the difference between your incomes, and marginal tax rates, the more significant your tax savings will be.

Once you and your spouse are both 60 years old, or older, you can also apply to share up to 50% of the Canada Pension Plan benefits you earned while you lived together. To do this, you must contact the Human Resource department of the federal government.

By leveling your retirement income between you, pension splitting can increase your use of age credits, providing you are 65 years old. Don’t forget, however, there is claw back that can reduce the base for the age credit. Couples who split incomes may also avoid or reduce the Old Age Security (OAS) claw back as well. Spousal Registered Retirement Savings Plans (Spousal RRSPs) can also help you balance your income levels.

Spousal RRSPs allow you to make a RSP contribution to your spouse’s RSP, then deduct that contribution from your own income. Providing your spouse waits three tax years before withdrawing funds from a Spousal RSP, they can then include the amount withdrawn as their own income. Under the new retirement income splitting rules, only 50% of income can be split, and then only when the higher income spouse reaches the age of 65. Spousal RSPs allow you to shift income at any age.

OUR CLIENTS Businesses - We value your business and want to contribute to your success. Whether you are a business that is just getting off the ground, in rapid expansion, or mature, you can count on us to understand your unique needs and to provide innovative solutions to address them. We provide services to clients in many industries, including manufacturing, media, technology, telecom, logistics, transportation, consulting, professionals, etc. Non-Profit Organizations - Nonprofit Organizations have increased responsibilities to donors, members, funding agencies, regulatory agencies, and other stakeholders. We can help you with assurance, accounting and tax services specific for Nonprofit Organizations to ensure that your organization is running smoothly and efficiently. Many of our team members are also dedicated volunteers in various Nonprofit Organizations Individuals - You worked hard for your money, and earned your success. We can help you preserve personal and family wealth through tax minimization strategies, estate planning, and developing a sound financial plan. We will spend the time to assess your individual situation and provide recommendations to suit your particular needs. We work hard to build long-term relationships with all our clients. Our clients include manufacturers, media, telecommunications, technology and logistic companies, charities, non-profit service providers as well as individuals.

OUR COMMITMENT Ethics & Integrity - Are the cornerstones of our practice, and of our profession. We will apply the highest standards of professional integrity, objectivity and independence at all times. We will always be honest, truthful, up-front, and open. Whether you are a client, a Canadian business, or a member of the investing public, you can expect and trust that Gary Booth CA is firmly committed to these guiding principles. Client Satisfaction - We will always be available for you to seek help in understanding our work or in implementing our suggestions. We are happy only when you are satisfied with our service. We firmly believe that your perceptions of our performance is reality. Your feedback is critical to our ability to continually innovate and improve. We look forward to your ideas, comments, and suggestions. Quality & Excellence - We are committed to delivering services of the highest quality to you, our clients. Our team of professionals are dedicated to acquiring knowledge so that we can continuously improve services to you. Our services are designed to help you add significant value to your business, and meet your goals and expectations.

TAX TIPS - To assist you better we are providing a resource page for information on individual and company tax information. We understand the critical issues involved with filing taxes and have made available the tools to help you with this challenge. The fiscal-year end can be daunting but with proper preparation this task can be easy. We have added a checklist for your convenience to help with assembling all necessary documentation. Please contact us if you would like a a more customized procedure specifically designed for you.


Links

Business Development Bank of Canada | Canada Business Service Centres & Taxation Ontario Business | Canada Customs and Revenue Agency | Canadian Federation of Independent Business |
Workplace Safety and Insurance Board | Gary Booth - Chartered Accountants Canada


 

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