Rate of Return Calculator Retirement Planning Calc. Retirment Asset Allocation RRSP Graphing Calculator RRSP Tax Savings Calculator After-Tax Returns Calc. The rates are set by Parliament and reduced through international trade negotiations or unilaterally to meet the competitive needs of Canadian industry. When economists speak of the tax base being broadened, they mean a wider range of goods, services, income, etc. has been made subject to a tax. Federal tax credits are non-refundable.
Current examples are the married credit, charitable donations, medical expenses and tuition.
For example, you pay no taxes on the money you put into an RRSP until you take the money out. Tax deferral can be good if you anticipate being in a lower tax bracket at the time of withdrawal. You only pay tax when you dip into the annuity. This is usually to help pay for retirement. Unlike taxable savings, the taxes on the interest, dividends and capital gains of the tax-deferred savings are postponed until you dip into them.