When it comes to saving on their taxes, the wealthiest Canadians sometimes seem to have all the answers.From incorporation to offshore tax shelters to trust funds, the opportunities to dodge the taxman appear to be endless.
Here are a few ideas:
Sheltering investment income
Income-splitting and prescribed rate loans
While this strategy is particularly effective for wealthier Canadians within the highest tax bracket, there are benefits for the average Canadian too. If one spouse is in a higher tax bracket than another, they may want to shift some of that taxable income to another family member, including children.
Permanent life insurance
Written by Julia Mastroianni for Financial Post