Phone: 902-865-6580

 Peverill & Associates Inc.

                  Chartered  Professional Accountants

I am amazed sometimes by how little Canadians understand about our tax system.  So here is the 20 second version. You pay income tax when you earn money either through salary, interest or dividends. You pay sales tax when you spend money -  this is called HST or GST. You also pay sin taxes when you purchase alcohol or tobacco.

You pay tax when you hire people - employers pay payroll tax through their portion of EI and CPP.

The only way to avoid paying tax on earning income is to have your investments in a Tax Free Savings Account (TFSA). Everything else is taxable either now or in the case of RRSP’s later. People ask me – ‘Is this income taxable?’ The answer is always yes.

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