Knowledge Bureau Poll: Tax Cut Doesn’t Cut It!

The Notice of Ways and Means Motion was released on May 27, but the 1% tax rate cut going into effect on July 1, didn’t cut it with Knowledge Bureau Report readers who responded to our May Poll.  A decisive 90% of respondents said “No” when asked: does the new government’s promise to cut the lowest personal income tax rate by 1% to 14%, (14.5% in 2025) go far enough to help Canadians impacted by high costs?  Here were their comments and suggested alternatives based on real life experiences with the after-tax income their struggling clients are left with:

In many ways, Canadians have put the Great Recession behind them. Yet, the cloud of global uncertainty is casting a pall on Canadians’ expectations and businesses’ spending.

If you have a new relationship in your life, it’s important — although often not the first priority — to understand the tax consequences of living with your sweetheart in a family unit.

A recent Supreme Court of Canada (SCC) decision Canada v. GlaxoSmithKline Inc., 2012 SCC 52, adopts a broad test for transfer pricing, which may provide multinational corporations a new strategy for mitigating taxes, namely, transferring funds to sister companies in lower-tax jurisdictions.

Pursuant to Section 133 of the Constitution Act 1867, the Parliament of Canada is required to pass all legislation in French and English, with both versions having equal force.

The Canada Revenue Agency (CRA) has been charged with reducing red tape and making it easier for small businesses to do business.

Save $10 if you buy before October 30, 2012!