who we are ?
Founded in 1990, Lotfi, Rafla & Associates S.A.R.F. has grown to become one of the most experienced Canadian tax consultancy and accountant firms.
Income splitting
Income splitting is the term that refers to techniques that are allowed by the Income Tax Act to reduce the total taxes of a family unit.
Incorporation Of A Company – Limited Liability
An individual may carry on business as an unincorporated proprietor (discussed in chapter 3) or as an owner of a legally incorporated company. In the latter scenario, the owner incorporates a company to carry on the business while he/she manages the day-to-day business activities.
Deductions Versus Credits
A deduction reduces the taxable income on which you pay tax. If you have a $100 deduction, your taxable income is reduced by $100 and your taxes payable are reduced by $100 times your marginal tax rate. Some items, such as medical expenses or charitable donations, generate tax credits and reduce your taxes payable by a set percentage of the expense or donation. The set percentage is the same for all taxpayers, regardless of income level. Thus, the tax saving you realize from these tax credits is NOT a function of your marginal tax rate.
Employee And Shareholder Loans
The Income Tax Act contains various anti-avoidance rules with respect to employee and shareholder loans that are designed to re-characterize the transaction to reflect the underlying economic realities.
If you hold investments in another country, in addition to reporting the income and paying tax in Canada, you may have foreign tax withheld from that income, or may be required to file a return and pay tax in that country. Some relief from this tax treaty.
Registered Retirement Savings Plan
The RRSP program is one of the best tax deferral opportunities available to the average Canadian. Contributions, up to a maximum amount, are tax-deductible. The tax on the income earned is deferred and not taxed until the funds from the RRSP are withdrawn.
Are You A Self-Employed Individual?
Several factors are considered in determining whether you are self-employed or an employee of the organization for which you provide services. The first considers the nature of the relationship between the individual performing the work and the person for whom the work is performed.
