Business Use Of Income Tax Reduction
Income tax reduction is widely used in business to make investment and capital expense decisions. Small business can purchase equipment such as trucks or tractors, and office business can write of computers, furniture, and other expenses.

Personal Use Of Income Tax Reduction
The options available to individuals to tax shelter earned income are however more limited. Contributing cash or securities to an RRSP or RESP is one of those options.

Investment Tax Credits
Another option available to individuals is to make investments that qualify for Investment Tax Credits. The BC Equity Capital Program manages a Tax Credit Program that we participate in. It in particular provides Tax Credits for investments in Internet technologies commonly called New Media.

Public Awareness Of Tax Credit Programs
This really should be entitled "Lack Of Public Awareness Of Tax Credit Programs". While these are enabled by the Federal Government and typically operated by Provincial governments, the individual investments are typically sold as what the BC Securities Commission calls Exempt Securities. While the BC Equity Capital Program is operated by the BC Government, the securities issued by the participants are typically not subjected to the same level of scrutiny that public company securities are. They are therefore treated by the BCSC with the same level of advisory cautions that all private securities are.

Bad Apples In The Exempt Barrel
This extra cautionary level was prompted by past exploitation of some tax benefits and exploitive marketing practices for certain private securities. CRA crack-down on for example Charitable Giving tax shelters, and BCSC enforced compliance in securities marketing has significantly alleviated this in recent years.