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Understanding What Your Taxes Do For You

There are very few if any individuals who enjoy having to sit down to write a cheque to CRA for their end of year tax return. It really is important to stop and think about what you are actually writing a cheque for.   It is easy to fall into a trap of taking our very comfortable way of living for granted.

Thinking about where your tax dollars are going does really help to take away the sting of having to issue your tax cheque. Almost any Toronto accountant will tell you that when the cheque is required to go with the tax return that most people are really disgruntled about this. Really it isn’t so much that they have to pay taxes, it’s the disappointment in realizing that not enough taxes were deducted throughout the year, and here people are often hit with a substantial tax bill. When it comes off in small amounts with each pay cheque or monthly remittance it doesn’t seem as noticeable.
What would happen though if the Government were to turn around and say to Canadians you don’t have to pay taxes anymore? No doubt the initial reaction would be shouts of joy and lots of hats being tossed in the air. This euphoria would be short lived, however.
After a period of time when the roads and highways were no longer being attended to which are now paid out of the tax collected can you possibly imagine what driving would be like. You most likely would be replacing your vehicles every two years. Or at the very least be paying out a good chunk in car repairs. So money may not be coming out of your pocket for taxes but it is coming out for other benefits that you currently enjoy.
Your tax dollars play an important role in the entire infrastructure of our county. Our health care, education requirements and transportation systems all rely on this money. Then think of the indirect benefits. All of these elements take manpower to operate. If they no longer existed the unemployment rate would soar beyond recovery.
Toronto accountants may at times seem insensitive to the plight of the taxpayer who has to dole out more tax money at the end of the year. These experts realize with their financial expertise just how critically important the tax dollars are. At the same time these professionals also realize that people’s financial situations vary in different degrees. What one tax payer may not find difficult to pay in taxes it’s a great struggle for the next person. This is where to many the tax system seems unfair.
It always seems that those that are financially stable never seem to be hit as hard with taxes. It seems unfair and unjust and that the Government is favoring people with wealth. What it really comes down to is that these individuals have really mastered the art of strategic tax planning and know that their chartered accountants are instrumental in helping them achieve this.
It is important that no matter what your financial status is that you utilize the services of a Toronto accountant to make sure that you are taking advantage of whatever tax breaks are available to you. All too often the average person misses out on the potential tax benefits that are available to them.

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Sam Seidman, CPA, CA, LPA
629 Sheppard Avenue West
Toronto, Ontario
M3H 2S3

Telephone: (416) 398-1700
Fax: (416) 398-6226

Chartered Professional Accountant, Chartered Accountant, Licensed Public Accountant

Email: sam@torontoaccountant.ca

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The information provided here and throughout the site of TorontoAccountant.CA is intended for general tax information only, and should not be misconstrued as a legal source of information regarding your tax situation, or be used for any other purposes other than for general information.
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