Death and Taxes Are Guaranteed. Overpaying Isn’t

A No-Nonsense Guide for Canadians Who Want to Keep More of Their Money

We all know the old saying: nothing in life is certain except death and taxes. It’s familiar, it’s overused, and it’s only half true. The part no one mentions is that overpaying your taxes is not a certainty. Yet every year, Canadians, especially high-earning professionals, hand over more money to the government than they legally need to.

Not because they’re careless.

Not because they’re avoiding planning.

But our tax system is complicated and absolutely not designed for simplicity.

The good news? A few smart, intentional decisions can dramatically change what you keep. You don’t need loopholes; you just need clarity and better structure.

Not All Investment Income Is Treated the Same

One of the biggest reasons Canadians overpay is that they don’t realize that different types of investment income are taxed very differently.

Interest income is fully taxable at your highest rate, which can be painful. Canadian dividends receive far more favourable treatment. Capital gains, especially long-term, are some of the most tax-efficient forms of growth. And return of capital, though often misunderstood, is one of the most useful tools for deferring tax.

If your investments aren’t in the right accounts, you’re likely paying unnecessary tax. Structure matters just as much as the investments themselves.

Simple, Everyday Strategies That Reduce Your Tax Bill

You don’t need complex structures or aggressive tactics. You just need to be intentional.

Maximizing your RRSP, especially if you’re a high earner, remains one of the most dependable ways to reduce your tax bill today.

Your TFSA should be working harder, too. It’s not meant to hold idle cash; it can hold the same investments as your RRSP, except the growth is tax-free forever.

If you’re incorporated, your corporation offers powerful opportunities like tax deferral, dividend control, and long-term planning advantages when structured properly.

And one of the most effective changes Canadians can make is matching the right investments to the right accounts: high-interest in RRSP/corporations, growth stocks in TFSA, and Canadian dividends in non-registered accounts. Many Canadians save thousands each year from this shift alone.

Tax-loss harvesting has also evolved. It’s no longer a December-only strategy; it’s a year-round tool that helps offset gains and lower your tax bill.

The Common Tax Mistakes Canadians Make

In our work with clients nationwide, we see the same avoidable mistakes again and again. Holding fully taxable investments like GICs outside registered accounts. Saving in non-registered accounts while RRSP or TFSA room remains unused. Not aligning investing decisions with long-term goals. Poor coordination between personal and corporate planning. Withdrawing in the wrong order in retirement.

None of these errors are dramatic but over time, they can cost people thousands.

The Best Time to Think About Taxes

Tax planning doesn’t happen in April. By the time you’re filing, the opportunities to save have already passed.

Real tax efficiency happens when you invest, when your income changes, when you prepare for retirement, when you sell a business, when you operate through a corporation, and every time life shifts direction. The earlier you plan, the more money you keep.

Final Thoughts: You Can’t Avoid Taxes   But You Can Avoid Overpaying

You can’t escape taxes, but you can control how much you lose unnecessarily. Smart tax planning isn’t about tricks, it’s about using the opportunities sitting right in front of you.

If you want clarity on what those opportunities look like for your situation, our team can help.

Whether through a complimentary tax-efficiency review or by joining our on-demand webinar, we’re here to ensure the money you work hard for works just as hard for you.

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This information has been prepared by Jai Gandhi who is a  Investment Advisor for iA Private Wealth Inc. and does not necessarily reflect the opinion of iA Private Wealth. The information contained in this post  comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any of the securities mentioned. The information contained herein may not apply to all types of investors.

iA Private Wealth Inc. is a member of the Canadian Investor Protection Fund and the Canadian Investment Regulatory Organization. iA Private Wealth is a trademark and a business name under which iA Private Wealth Inc. operates.