The following report will explain in great details three ways in which one can minimize their tax by evaluating each of its pro's and con's. The following that will be discussed is Registered Education Savings Plan (RESP), Registered Retirement Savings Plan (RRSP), and capital gains income taxation.

Registered Education Savings Plan, or RESP, is a tax-deferred plan usually set up by family members to help save money for a young person's post-secondary education. The advantages are that all the income earned in an RESP can accumulate tax-free until it's withdrawn. Aswell, when it is withdrawn for educational purposes, only the growth is taxed in the child's hands, so there is little or no tax payable. Aswell the government gives 20% extra up to a maximum of $2000. The disadvantages are that the maximum savings is sometimes insufficient to pay for cost of university and if a child decides not to...