Tax planning is the disciplined act of making decisions before year-end so your filing position is both efficient and defensible. In Canada, planning must align with statutory rules (Income Tax Act), CRA administration, provincial differences, and anti-avoidance principles such as the General Anti-Avoidance Rule (GAAR). Planning also needs to respect the reality that the CRA may review claims and ask for documentation. BOMCAS Canada’s Tax Planning Canada service is designed to help individuals and owner-managed businesses plan responsibly: identify opportunities, quantify outcomes, document decisions, and implement in a way that stays CRA-ready.
Tax Planning Canada
What tax planning is (and is not)
Tax planning is not “buy something to reduce tax.” It is not an aggressive scheme that collapses under scrutiny. Good planning is:
- legally grounded in the Income Tax Act;
- defensible against anti-avoidance analysis, including GAAR principles;
- documented, consistent, and supportable with records if CRA asks.
Who needs tax planning
Tax planning is valuable for:
- Individuals with multiple income sources (employment + investments + side business).
- Self-employed professionals managing tax installments and deductions.
- Families coordinating credits and life events (marriage, separation, dependents, moving).
- Owner-managers deciding between salary and dividends, timing purchases, and structuring growth.
- Businesses with GST/HST complexity (ITCs, mixed supplies, multi-province operations).
Benefits of proactive tax planning
Lower “surprise tax bills.” Planning reduces the risk that your first awareness of a tax problem is a balance due shortly after year-end. For corporations, CRA explains payment timing is often two months after year-end—well before the six-month filing deadline.
Stronger compliance posture. Planning includes documentation standards: what to keep, how to label it, and how to align bookkeeping with tax positions (which matters if audited). CRA’s business audit guidance makes clear the CRA examines business books and records to support filed amounts.
Reduced exposure to anti-avoidance problems. GAAR exists to deny tax benefits of avoidance transactions that misuse or abuse provisions of the Act, while balancing the need for certainty in planning. Legitimate planning should be engineered to withstand that lens.
Planning areas BOMCAS can support
Because “planning” can sprawl, BOMCAS scopes planning in practical workstreams.
Personal tax planning.
We focus on optimizing decisions that are common to Canadian households: timing of income and deductions, charitable giving strategy, and preparation for major life events.
We also plan around deadlines. The CRA confirms typical filing/payment timelines (April 30 for most; June 15 filing for self-employed; payment due April 30).
Owner-manager and corporate tax planning.
We help owner-managed businesses plan compensation, year-end timing, and compliance pacing. We integrate corporate filing and payment reality (file within six months; pay generally within two months).
CRA-ready documentation planning.
When CRA asks for supporting documents, it expects responses within the letter’s timeframe and wants the documents requested, provided through secure methods. A planning engagement includes building a practical documentation system, not just an idea list.
GST/HST planning integration.
Tax planning should not ignore GST/HST, especially for growing businesses. CRA explains ITCs are the mechanism for recovering GST/HST paid/payable on purchases related to commercial activities, subject to eligibility and documentation. Planning can include ITC discipline, filing frequency optimization, and quick method feasibility (when appropriate).
The BOMCAS tax planning process
Plan step one: Intake and goals.
We identify what “success” means for you: lower taxes, more certainty, better cash flow, compliance confidence, fewer surprises.
Plan step two: Fact base and constraints.
We gather last return(s), year-to-date financials, payroll summaries, GST/HST reports, and major upcoming events (property sale, business expansion, incorporation, etc.).
Plan step three: Scenario modeling.
We build scenarios and compare outcomes (tax payable, compliance workload, risk). We also identify areas that require additional documentation to be supportable.
Plan step four: Recommendation memo + implementation checklist.
You receive a structured recommendation and an implementation plan that your team can follow.
Plan step five: Implementation support.
We can help coordinate with bookkeeping and filings so the plan is executed correctly.
Engagement options and pricing
- Planning Snapshot (Individuals): a focused planning review before filing.
- Owner-Manager Planning Cycle: quarterly or semi-annual planning with execution checklists.
- Integrated Planning + Compliance: planning combined with personal and/or corporate filing, plus GST/HST integration.
Pricing varies—contact for quote. (Exact pricing is unspecified.)
Compliance and legal considerations
- The primary governing statute is the Income Tax Act.
- Anti-avoidance is a fundamental compliance consideration: the GAAR provision is in the Income Tax Act and is designed to deny tax benefits from avoidance transactions that misuse or abuse the Act.
- CRA administrative processes create practical compliance requirements: responding to CRA document requests within specified timelines and using secure submission tools.
- The CRA Taxpayer Bill of Rights describes expected treatment and rights when dealing with CRA, which matters in planning-to-defend workflows.
This page is general information and not legal advice. Tax outcomes depend on facts; planning must be tailored.
Client scenarios
Scenario A: Owner-manager wants to “stop overpaying” and plan cash flow.
A small incorporated business has unpredictable draws and no installment plan. We map corporate payment timing (balance due is generally two months after year-end) and implement an installment and reserve strategy so tax time does not create a cash crisis.
Scenario B: Self-employed professional with multiple revenue streams.
A professional has employment income, consulting income, and investments. We build a “3-bucket” plan: documentation readiness, quarterly check-ins, and a filing strategy aligned to CRA deadlines for self-employed individuals.
Scenario C: Growth business with GST/HST pressure.
A business is claiming large ITCs and wants to reduce audit risk. CRA explains ITC eligibility and record support requirements; we audit-proof their ITC process and assess whether the quick method could simplify remittances (where eligible).
FAQs
Is tax planning legal?
Yes—planning is legal when it follows the law. Anti-avoidance rules (including GAAR) exist to deny tax benefits from abusive avoidance transactions, so legitimate planning must be defensible.
When should tax planning happen?
Ideally before year-end, and earlier for businesses. Remember corporate payment timing can be shortly after year-end (often two months), so planning is not something to start at the six-month filing deadline.
Does planning reduce CRA review risk?
Planning cannot eliminate review, but it can strengthen documentation and consistency. CRA review programs may request documents after filing; being organized improves outcomes.
Can tax planning include GST/HST?
Yes. CRA explains ITCs and GST/HST filing/reporting obligations; planning should integrate these to avoid unpleasant surprises.
Trust signals
BOMCAS markets itself as a full-service firm supporting tax and accounting across Canada, including tax planning and management content and services. The planning methodology described here is designed to align with CRA administrative expectations and statutory anti-avoidance principles.
If you want clear, legitimate tax strategies—documented and ready for CRA scrutiny—contact BOMCAS Canada.
PHONE: 780-667-5250; FAX: 780-851-2520; EMAIL: info@bomcas.ca; https://bomcas.ca.
