Quote (RedFromWinter @ Mar 8 2024 10:57am)
This is spot on. And living that way generally means you are being taxed less. Obama ushered in 0 percent capital gains tax bracket for example. Even the better retirement setups don't get down to 0.
Canada has significantly cracked down on this in the past 10 years. For instance if you try to defer taxation by using a corp to hold your investments, equities for example it's taxed at the highest rate which is a staggering 50%. This prevents infinitely tax deferring and never removing it from your corp to your person's
We also implemented TOSI and put significant work into bolstering GAAR which is our general anti avoidance rules.
The problem is there's still so many ultra wealthy offshoring their money in tax havens and CRA does not have the talent or manpower to actually enforce GAAR.
This will ultimately always be the case in Canada if salaries remain unchanged. What talented individual goes and works for 100-150k. If you have talent in the areas of taxation you go charge out at close to $1,000 to 1,875 per hour. People don't want to face that reality but if you're sitting there making sub 300k the fact is you're just not in a talent pool that warrants paying you that much yet and that's every government worker in Canada. They chose work life balance, how are those people supposed to keep up intellectualy with those in the private world even with some use of external consultancies. Even if there's someone bright by chance there's 6 more better paid harder working ones working against that person on the other side of the fence finding a way to circumnavigate new rules.
This post was edited by SBD on Mar 8 2024 12:46pm