The report described how several pharmacists in Ontario were found guilty of tax evasion when they failed to report income in the form of rebates from suppliers. Revenue Canada is investigating many more pharmacies in Ontario, and across the country. Simply put, tax avoidance is good tax planning and it can result in significant savings. Canadians have a self-assessing income tax system for both personal and corporate taxes. If any income is not reported, this is considered tax evasion.
Some people suggest that off-shore investments are a way to avoid taxes.
They are part of your total income and you must report them and pay the respective income taxes. There are those who say that it is simply minimizing income taxes. So much for vineyards in California and condominiums in Venezuela. However, this bow has two strings. The second string allows the income earned in the RRSP to accumulate tax-free.