The Canadian Medical Association has updated its taxation guide for members for the current year.
Tax Tips for the Physician and Physician in Training is a popular guide prepared annually by Dr. Brian Cummings, a well-known physician consultant on financial matters.
“One of the most significant expenses you will incur during your professional career will be taxes — specifically, federal and provincial income taxes,” writes Cummings in the introduction to the guide. “For 2014, up to 50% of your taxable income could be paid in the form of income taxes. As such, it is prudent to avail yourself of all available deductions and tax credits to minimize taxes payable and maximize your cash flow and financial position.”
Cummings starts with an overview of the February 2014 federal budget, and notes that it did not change personal or corporate tax rates but focused on providing targeted and affordable measures, as well as tightening perceived tax loopholes.
In addition to general tax advice, Cummings also deals with issues specific to physicians-in-training, such as the CaRMS (Canadian Residency Matching Services) applicant registration fees and the final-year medical student bursary.
Cummings concludes by noting, “like medicine, tax law is frequently complex and often requires the involvement of qualified professional advisors, such as a tax accountant and/or tax lawyer.”
While the 34-page guide is comprehensive and covers an extensive list of topics, Cummings cautions the information is intended for discussion and educational purposes only. He says members should “customize their personal action plans to best fit their personal and professional aspirations.”
Members are also advised to consult with professional advisors to ensure that all their specific needs are met.