Calgary, Alberta (December 17, 2010) – Kustom Design Group of Companies CEO Michael Lepitre announced today that as the year gets closer to an end, now is a good time to not only do some last minute tax planning but to also look at the possibility of participating in a tax shelter and/or program to help save more on taxes.
“Tax shelters and programs have been around almost as long as taxes have been around,” said Lepitre. “Although they are not for everyone, they should still be looked at to see if, in fact, they do fit with an individual’s tax plan.”
Tax shelters are defined in the Income Tax Act and reduce taxable income and can include a gifting arrangement or acquisition of property, where it is represented to the purchaser or donor that the tax benefits and deductions arising from the arrangement or acquisition will equal or exceed the net costs of entering into the arrangement or property. In North America, a tax shelter is commonly described as any method that claims $1 in tax for every $1 spent, within four years. A tax program, as explained by Lepitre, uses tax deferrals and is an arrangement where individuals can get tax benefits immediately, but may have to pay taxes back in the future.
“Tax shelters and tax programs change on a regular basis to comply with the Income Tax Act,” said Lepitre. “It is important for everyone to make sure to always keep current and maintain due diligence to know exactly what the best tax programs are.”
While Lepitre has said that tax shelters and programs are not for everyone (due to the CRA’s challenge process) he noted that such programs are efficient and effective in saving people on taxes. Too, people should consider how (and how much) the tax program they choose impacts the charities, foundations and humanitarian causes it supports, and should not forget to check if the tax shelter group has a reliable legal defense team and funding.
“If participants are disciplined and invest their tax refunds, utilizing tax shelters as part of their balanced tax plan creates wealth that would probably not be attained otherwise,” concluded Lepitre.
“The wealthy know about them, so why shouldn’t you?”
About Kustom Design Group
The Kustom Design Group of Companies is a group of interconnected businesses that make up a full service accounting and financial firm. Based in Calgary, Alberta, and renowned for our expertise and experience in accounting and financing, Kustom Design knows that professional integrity is crucial. Our team of professionals offer year-round personal or business service that is tailored to each of our client’s financial needs through the funding, and wide selection, of accounting services, products and strategic planning.
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