Step 3: legally minimize your taxes

In week three of the Kustom Design Level 1 Financial boot camp we covered the CRA, taxes, and tax reduction strategies.

Below are my notes from the class.

The Authority Hierarchy

  1. The Supreme Court of Canada
  2. Tax Court of Canada
  3. Canada Revenue Agency (formerly ‘Revenue Canada’, formerly Canada Customs and Revenue Agency (CCRA))

The CRA is a corporation, and their main line of business is collections or as they call it “to administer tax”. They are effectively a collection agency. In Alberta, they only adminster personal income tax not corporate.

The Tax Court of Canada

The tax court of Canada is a specialized court of law whose jusisdiction extends to several Acts of parliament, and most notable the Income Tax Act, the Excise Tax Act, and several provisions of the Employment Insurance Act.

This is a superior court to which individuals and companies may appeal to settle disagreements with the Canada Revenue Agency on matters of income tax, GST and employment insurance.

The Supreme Court of Canada

The Supreme Court of Canada is Canada’s final court of appeal, the last judicial resort for all litigants, whether individuals or governements.

The Canada Revenue Agency

Never ever give the CRA originals of anything! They have a history of accidentally losing documents.

Dealing with the CRA

Disclaimer

… nor is it responsible for the accuracy, reliability or currency of the information contained on our Web site and supplied by external sources.

CRA Disclaimer

Understanding Tax Brackets

Provincial tax rate for Alberta is a flat 10% on taxable income.

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