Terms with Category Taxation
- Private Health Services Plan (PHSP) — Acronym, Canada, Important,
- A method for businesses to provide health benefits for their employees that is both tax deductible for the business and non taxable for the employee.
➥ Provides tax-deductible health and dental benefits in Canada. - Private Healthcare — Definition,
- Health services no provided by the government, often paid out of pocket.
- Property Tax — Definition,
- A levy by a city on real estate and personal property whose amount varies depending on the property's value.
- Provincial Sales Tax (PST) — Acronym, Canada,
- A sales tax collected by some Canadian provinces.
- Provision for Credit Losses (PCL) — Acronym, Canada,
- The amount deducted from income equal to the amount by which a bank adjusts its loan balances to reflect anticipated losses on them.
- A margin set by companies to compensate for losses due to unpaid credit.
- Real Estate Attorney — Definition,
- A lawyer who specializes in the transfer of land and buildings and property tax issues.
- Recognized Gain or Loss — Definition,
- The amount of gain or loss reported for income tax purposes. You may be able to defer recognizing gain or loss on certain property exchanges, such as like-kind exchanges.
- Refund — Definition,
- To give back, return, or repay.
- Registered Education Savings Plan (RESP) — Acronym, Canada, Very Important,
- An investment vehicle used for a child's post-secondary education.
➥ RESPs are offered by most financial institutions in Canada. - Registered Retirement Savings Plan (RRSP) — Acronym, Canada, Very Important,
- A savings plan introduced by the federal government to encourage Canadians to save money for retirement. The investment and the interest earned on it is sheltered: it will not be taxed as long as it is left in the plan.
➥ Tax deferred investment contribution used to reduce income tax. - Retained Earnings — Definition,
- All of the profits or losses accumulated from prior years and from the present year's income statement, minus dividends paid to you.
- Return — Definition,
- Any increase in value or in income you earn on purchase or investment.
- Revenue — Definition,
- Money earned by a company from its business activities.
- Reverse Mortgage — Definition, Important,
- A loan that allows an older homeowner to convert built-up equity into cash. The loan comes due when the owner dies, sells the house or moves out.
- Royalty Income — Definition,
- Payment for the use and exploitation of certain kinds of property, such as artistic or literary works, patents and mineral rights.
- Sales Tax — Definition,
- Federal and / or provincial taxes that are applied to purchases.
- Seasonal Unemployment — Definition,
- The loss of jobs due to changes in the climate and other conditions. Forestry, fishing and construction are affected by climate, while retailing is affected by seasons and holidays. For instance, at Christmas, retail employment is higher than in January.
- Second-To-Die Insurance — Definition,
- Life insurance that only pays a death benefit when both spouses have died, commonly used in estate planning.
- Self Employed Person (SEP) — Acronym,
- A person who runs a trade or business, rather than working as an employee for someone else. You are self-employed if you are a sole proprietor or a partner working in a business. You can be an employee and self-employed at the same time if you have an independent business outside your regular employee hours. To qualify for many business tax exclusions and deductions, the enterprise must make a profit in three of five years. In most cases in order to qualify you must take and average of the last 2-3 years tax assessments.
- Short Tax Year — Definition,
- A tax period less than 12 months long, resulting from a business start-up or the transition to a tax year ending on a different date.
- Social Insurance Number (SIN) — Acronym, Canada, Very Important,
- Every person who has an income or pays taxes must apply for this number, which is assigned by the Government of Canada. You must, by law, provide this number to financial institutions with which you have an interest-bearing deposit account.
➥ A nine-digit number that you need to work in Canada or to have access to government programs and benefits. Banks may also request your SIN for tax purposes or to verify credit checks. - Surplus — Definition,
- When an entity's income exceeds its expenses.
- Tax (TX) — Acronym,
- A levy paid by an individual or entity that is collected by a government.
➥ Bank account transaction code. - Tax Credit (TC) — Acronym, Important,
- Tax credits are used to reduce the amount of the tax owed. Tax credits are more valuable than deductions because they directly reduce the amount of tax owed, rather than reducing the amount of income that is taxed.
- Tax Deduction — Definition,
- An expense that governments allow you to subtract from your income before computing your income tax.
- Tax Deferral — Definition,
- The postponement of taxes to a later year, usually by recognizing income or a gain at a later time. Remember, this only delays your tax liability; it doesn't eliminate it.
- Tax Deferred Annuity (TDA) — Acronym, Important,
- A type of annuity where taxes are deferred until the annuitant decides to withdraw money from the annuity.
➥ More commonly known as a Tax Sheltered Annuity (TSA). - Tax Exempt (TE) — Acronym, Very Important,
- Income that is not subject to tax. Income exempt from federal tax may, however, be subject to provincial taxation.
- Tax Instalment Payment Plan (TIPP) — Acronym, Canada,
- A popular property tax payment plan that allows you to pay your taxes monthly without any penalties or additional charges.
- Tax Liability — Definition,
- The total amount of tax you owe.
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Private Health Services Plan -
Real Estate Attorney
Real Estate Attorney
