Tax planning is the process of developing a financial plan with consideration for the tax implications. Tax plans can involve relatively simple strategies, such as timing claims of RRSP contributions and charitable donations to maximize tax, or, for example, the complex planning required to transition ownership of a family business to the next generation. Effective tax planning must take into account various considerations, including residency, financial assets, timing of cash flows, and uncertainties in tax law. As with any other types of planning, it is both wise and necessary to establish your tax plan before undertaking the transactions. If you create your plan after the fact, your options are severely restricted. Also, there are life events and changes for which it is a good idea to review your tax plan, such as:
