BU413 Chapter Notes - Chapter 8: The Cowboy Channel, Registered Retirement Savings Plan, Registered Retirement Income Fund
Document Summary
From the required textbook personal financial planning by kwok ho and. To explain the four fundamental tax minimization strategies: income deferral, income splitting, income spreading, and tax shelters. To illustrate these strategies with the specific techniques commonly available at the present time in canada. To provide basic information on two important income tax planning topics: medical expenses and disabled persons and post-secondary education. The general principal to defer income is if you can"t use the income for consumption purposes, you shouldn"t have to pay tax on it until you can. A registered pension plan (cid:523)rpp(cid:524) is established by an employer to defer income payable to employees to provide retirement income for them. Payments are made into by either or both the employer and the employee. The contributions are invested by a plan trustee and when the employee retires, he receives a pension from the plan.
