In a recent article, we described the changes to income tax
rates that the provincial government has enacted and the increase
to income tax rates that the incoming federal government has
pledged to enact. Due to the magnitude of the tax rate increases,
it is evident that there are tax savings that can be realized if
income is received in 2015 rather than in 2016, particularly for
individuals earning more than CA$200,000 per year, as the top
marginal individual income tax rates are increasing for all types
of income in Alberta. Below, we discuss some tax planning
opportunities available to accelerate taxable receipts into 2015
and other planning considerations. To ensure they meet their
objectives, high-earning Albertans should consult their tax advisor
as soon as possible to determine whether the cost/benefit of
accelerating taxable receipts into 2015 is appropriate to minimize
the impact of these tax rate changes, or if alternate planning
would be more suitable.
