Understand the rules before you act

Are you considering a financial transaction that is not part of your ordinary routine? If so, it’s important to understand the tax rules that apply to your proposed action. In most cases, the opportunities available to save or defer income taxes arise at the preliminary stage, before you’ve completed the transaction. The preliminary stage is also the best time to evaluate and plan for the impact of GST/HST/QST and other types of taxes on the proposed transaction. If you wait until you have completed the arrangement to have your tax adviser review the situation, it’s usually too late. The best way to benefit from the rules is to conduct your tax planning well in advance.