Canada Income Tax Information
February is Tax Time in Canada so since its that time of year we shoud refresh ourselves on these basics-
What is an RRSP and can it reduce my tax? A registered retirement savings plan (RRSP). This is a retirement plan that the Canada Revenue Agency registers and that you or your spouse or common-law partner establish and contribute to. Deductible RRSP contributions can be used to reduce your tax. Any income you earn in the RRSP is usually exempt from tax for the time the funds remain in the plan. However, you generally have to pay tax when you cash in or receive payments from the plan. If you buy or build a home for yourself or for someone who is related to you and is disabled you can withdraw from RRSPs. March 1, 2006 is the deadline for contributing to your RRSP for the 2005 tax year.
Good websites to visit when trying to find out about Taxes would be The Canada Revenue Agency (CRA) found on the web at www.cra-arc.gc.ca. You may also need the help of the Tax Court of Canada which is found at www.tcc-cci.gc.ca.
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