Types of Tax Planning
The objective of tax planning is to reduce or defer (or both) the tax cost of financial transactions.
There are many specific tax planning opportunities; all of them fall into one of three categories. 4
1. Shifting income from o
1. Which of the following entities are subject to income tax?
(c) joint venture
(e) limited partnership
Describe how the income earned by any of the non-taxable entities listed above is included in the
1. Explain this statement: It is not the nature of the service that determines whether or not one is
employed but, rather, the relationship which exists between the individual providing the service
and the entity receiving the service.
2. Distinguish betw
CHAPTER TWO: FUNDAMENTALS OF TAX PLANNING 21
Visit the Canadian Income Taxation website at www.mcgrawhill.ca/ olc/buckwold toview any updated tax
Tax planning is the conscious effort of directing ones financial activities in s