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The article focuses on using registered retirement savings plans (RRSP) contributions to maximize Canadian Child Tax Benefit (CCTB) by increasing or decreasing the tax-free benefit when a family with three or more children changes their income. An example that illustrates how a family with five children living in Saskatchewan can take advantage by maximizing child tax benefit is discussed. Strategies on how families can maximize their tax savings and CCTB payments are provided.

The article presents the author's views concerning the significant of tax benefit system for children in Canada. The author highlights the need to restart the policy case for child benefits involving the obscured and confused work incentives for everyone. The author also emphasizes the refundable tax credit to consolidate existing measures in programs and impose a simplified structure for the tax benefit system.

The article reveals how income trusts rose in popularity and analyzes the legal changes that will likely end the use of these structures in Canada. These structures reportedly flourished in the country in the earlier part of the decade as well as provided significant benefits to investors exempt from Canadian income tax and investors not resident in Canada. It notes that tax efficiency is an important reason for the popularity of these income trusts. Also outlined are the tax benefits of the trusts for unitholders, including the provision to tax-exempt investors of a much higher net return relative to corporations by eliminating corporate level tax.

The article presents information on the provisions of the fifth protocol to the Canada-U.S. Income Tax Convention signed by Canadian finance Jim Flaherty and U.S. Secretary of the Treasury Henry Paulson on September 21, 2007. The protocol amends the treaty to provide for Canada's first limitation on benefits (LOB) provision in any of its tax treaties. The new LOB provision is intended to address perceived treaty shopping, by ensuring that Canadian residents can only obtain full benefits of the treaty where they meet the criteria to be a qualifying person. The criteria to be qualifying person are listed.