1. Donating stocks is more cost-effective than giving cash directly, as it can exempt special business taxes.
2. New immigrants can establish an Education Savings Account, where the income generated from investments, capital gains, and government grants can defer taxes until withdrawal. When withdrawing as a student, the income is usually very low, resulting in minimal tax liability.
3. As the primary income earner in the family, one can contribute to a spouse's RRSP (Registered Retirement Savings Plan), transferring some income to the spouse and reducing the tax rate. After retirement, the investments in the RRSP can be transferred to an RRIF (Registered Retirement Income Fund), allowing this portion of savings to be tax-exempt while still providing income after retirement.
4. Investing in mutual funds at the beginning of the year is more advantageous, as the Canadian government calculates tax on capital investments at the end of the year. If investments are made at the end of the year, taxes must be paid regardless of whether there are profits.
5. Unconventional expenses such as pet food, cosmetic surgery, hair transplants, childcare during meal times, and bad debts from owning stock in a bankrupt or insolvent small company can all be used to offset taxes.
6. Expenses for tools purchased by skilled workers can be deducted from taxes, such as hardware tools for plumbers and electricians.
7. As long as the limit for public funds is not exceeded, investment income from tax-free savings accounts is exempt from taxes.