If you are looking for a simple and very effective way to shelter your investment income from income tax, consider a Tax-Free Savings Account (“TFSA”).
If for any two of three consecutive taxation years, your “net tax owing” is more than $3,000 (or $1,800 if you are a Quebec resident) after you file your personal income tax return, you can expect that the Canada Revenue Agency (“CRA”) will request that you pay your current year’s income tax in quarterly instalments.