Jacks on Tax

By Evelyn Jacks, RWM, MFA, MFA-P, FDFS on March 13, 2025
Estimated reading time: 7 minutes

By Evelyn Jacks, RWM, MFA, MFA-P, FDFS on March 13, 2025
Estimated reading time: 7 minutes

Here are two ways to manage the effects of tariffs in Canada, plus three statements to prepare to ensure you’ll be OK.

The broad-based concern Canadians have about the effect of tariffs, including potential job losses or business failures, is an important trigger for individuals to get their financial affairs in order—sooner rather than later. For many Canadians, minimizing taxes can be the most are the most important, proactive financial step to counteract today’s financial fear factors. Here’s why.

A recent survey by Leger and BDO found that 83% of Canadians are planning to alter their financial plans, including cutting back on spending and reducing debt. But tax is equally important. It’s all about what you can do to control one of the biggest eroders of both income and your capital, and that’s the amount of tax you pay. Remember, what matters is what you keep.

The good news is that you do have some control over the amount of tax you pay on income and wealth. By contrast, little can be done about sales taxes, property taxes, carbon taxes and tariffs—except to control your spending.

When it comes to your income taxes, there are two important things you can do right away, which by default can also help you cope with the worry that comes with the political developments around the globe:

For each family member in your household, create and analyze these three financial documents:

The first two will need more immediate attention, and financial planning has a long-term strategy process attached to it.

For a snapshot of your current wealth position, create or update your personal net worth statements for each family member. Get a good handle on your tax-efficiency gaps, by optimizing tax-assisted investments that still have contribution room: registered retirement savings plans (RRSPs), tax-free savings accounts (TFSAs), registered education savings plans (RESPs), registered disability savings plans (RDSPs) and first-home savings accounts (FHSAs). For each, you will have to check for........

© MoneySense