Search

In this paper, the author studies the association between religious affiliation and investment income as a proxy for individual rates of time preference, defined as the propensity to sacrifice present satisfaction in the anticipation of increasing future satisfaction. Data from the 2001 Census of the Canadian population is used to look at how religious affiliation is associated with the proportion of income coming from investments (a proxy for past rates of time preference) for individuals of working age (15-64). Two models (OLS and logistic) are used in order to compare by religious affiliation the magnitude of the proportion of income attributable to investments and the propensity to invest. Although there are a few exceptions in terms of cross-regional heterogeneity, individuals of Jewish affiliation tend to receive more investment income (as a proportion of their income) than Protestants, who tend to receive more than Catholics. As for the propensity to obtain any investment income, the results are more nuanced although a similar pattern can be observed. The contribution of this paper is to quantitatively assess the association of religious affiliation with time preference through the use of an investment income variable, an endeavour which has not been undertaken so far and which complements the literature on the economic outcomes of religion and the sociological determinants of time preference. [ABSTRACT FROM AUTHOR]

Copyright of Canadian Tax Journal / Revue Fiscale Canadienne is the property of Canadian Tax Foundation and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The rules governing the Canadian taxation of foreign affiliates are most often considered in the context of multinational corporations. In this article, the authors explore the effectiveness of tax integration taking into account both foreign and Canadian domestic taxation in respect of private corporation shareholders. The overall effective tax rates that may apply are modelled for foreign accrual property income and capital gains based on varying foreign tax rates. The trends observed from the models may be surprising to some. First, the foreign affiliate regime may provide tax-deferral opportunities in certain circumstances. Second, capital gains earned through a foreign affiliate are subject to significantly higher effective tax rates since the private corporation capital dividend mechanism does not apply. In light of these findings, the authors consider tax-planning alternatives to reduce the ultimate tax cost to shareholders for foreign capital gains, including the use of safe-income dividends. Key considerations in computing the safe income of a Canadian corporation holding shares in a foreign affiliate are outlined to assist practitioners. [ABSTRACT FROM AUTHOR]

Copyright of Canadian Tax Journal / Revue Fiscale Canadienne is the property of Canadian Tax Foundation and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Holding companies are widely used by private business owners in Canada, for both tax and commercial reasons. With changes in federal and provincial legislation and tax rates, the benefits and risks of using a holding company should be regularly re-evaluated. The authors provide an overview of some of the more common tax benefits derived from the use of a holding company, in particular the saving and/or deferral of tax on investment income, income splitting, capital gains exemption planning, and tax minimization on the purchase or sale of a business. The authors also discuss a number of tax considerations that arise with the use of a holding company, including access to the small business deduction, shareholder-manager remuneration, and the realization of business investment losses. [ABSTRACT FROM AUTHOR]

This article discusses the policy behind the fresh start rules and reviews the proposed amendments to the rules. If the recommendations of the Advisory Panel on Canada's System of International Taxation are adopted, there should be a greater focus on the characterization of income as foreign accrual property income or active business income, resulting in an even greater focus on the application of the fresh start rules. The authors highlight some of the issues and anomalies contained in the proposed amendments and suggest further changes to address these matters. [ABSTRACT FROM AUTHOR]

The introduction of the tax-free savings account (TFSA) represents a significant development in personal tax savings options for Canadians. Commencing in 2009, Canadians aged 18 and over will be able to contribute $5,000 annually to a TFSA. Investment income will accumulate tax-free, and there is no taxation of withdrawals. There are foreign precedents for this type of savings vehicle, and it is widely anticipated that the TFSA will be very popular with Canadians. As a consequence, financial institutions, corporate employers, and individual investors are all assessing the impact of the TFSA and preparing for its implementation. [ABSTRACT FROM AUTHOR]

Given the propensity of Canadians to migrate, it is likely that migration has a large impact upon the distribution and redistribution of income across regions. Such impacts may be magnified within the older population, as their relocation involves the transfer of nonearned income such as pensions, retirement investments, or other income supplements from province to province and so return migration to a province of birth following retirement subsidizes local economies. By using methods proposed by Plane in 1999, income-based versions of demographic effectiveness are applied to evaluate the movement of nonearned income in the Canadian context among Canada's older population. The analysis uses data drawn from the 2001 Canadian Census, and focuses upon the older population (aged 60+ in 2001) who reported nonearned incomes in 2000. The paper distinguishes between four types of nonearned income, including (i) Old Age Security and Guaranteed Income Supplements; (ii) Canada/Québec pension plan benefits; (iii) Retirement Investment income; and (iv) Investment Income. The objectives of the paper are twofold. First, it documents the movement of nonearned income between Canada's provinces, focusing upon the demographic effectiveness of the observed flows. Second, the paper explores the potential for primary, return, and onward migration to redistribute nonearnings income across Canada, and the significance of regional income redistributions by each type of migration. Results illustrate the importance of migration in transferring nonearned incomes over space, and the particular importance of return migration as a vehicle to redistribute nonearned income to economically depressed provinces. [ABSTRACT FROM AUTHOR]

Copyright of Canadian Tax Journal / Revue Fiscale Canadienne is the property of Canadian Tax Foundation and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The article presents the financial performance of the Canadian Meteorological and Oceanographic Society (CMOS) 1977. Most of it were comparable to 1976 because it reflects a stable situation with a net gain of just over $3,000. The modest gain is contributed to the lower operations costs and a delay in the publication of the CMOS booklet. The income statement for 1977 shows an increase of the Society's equity of $3,004.93 over the previous year-end balance. The budget statements for 1978 and 1979 indicate a substantial increase in income and expenditures.

The article presents a review of the article "Determinants of the Choice Between Roth and Deductible IRAs," by Warren B. Hrung, that was published in the 2007 issue of "The Journal of the American Taxation Association." It states that both the individual retirement accounts (IRAs) in the U.S. and registered retirement savings plans in Canada are designed to encourage individuals to save for their retirement. It is inferred that the incentives in both plans are offered in the form of a tax deduction at the time of contribution, and a tax exemption for investment income accruing in the plan. According to this article, Roth IRAs provide a tax-exemption for annual returns while funds are invested in the plan.

Two charts depicting quarterly changes in several components of government finances in Canada from 2009 to 2011 including, revenue sources like investment income, and taxes on production and imports, and expenditures like, interest on the public debt, are presented.

Two charts are presented which list Canadian balance of international payments from its current account on several sectors including goods, services and investment income.

Two charts depicting quarterly change from 2008 to 2010 in various components of current account of Canada including, total current account receipts, investment income receipts, and goods and services payments, are presented.

Two charts depicting quarterly change from 2008 to 2010 is various components of income level in Canada including, interest and investment income, accrued net farm income, and government enterprise profits, are presented.

Two charts depicting quarterly change from 2008 to 2010 in various indicators related to the international trade of Canada including, current account balance, investment income, and goods received, are presented.

Two charts related to Canadian balance of international payments from 2008 to 2010 are presented including one depicting the total current account, goods and services, and other depicting the investment income, current transfers, and receipts.

Two tables depicting the government revenue and expenditure of local government of Canada in 2009 and 2010 are presented including investment income, transfer payments of federal government and total current expenditure.

Two tables depicting the government revenue and expenditure of total government of Canada in 2009 and 2010 are presented including social insurance, investment income and taxes on income from business.

Several charts depicting the Canadian balance of international current account including total current account receipts and payments, goods and services receipts and payments and investment income receipts and payments from 2008 to 2010, are presented.

Several charts offering information on gross domestic product of Canada via income including labor income, interest and investment income and capital consumption allowances from 2008 to 2010, are presented.