One aspect of the tax considerations in asset allocation is that:
A) dividends and capital gains are taxed at a higher rate than interest income.
B) tax laws in Canada are constantly changing making it difficult to forecast future tax rates.
C) investors must pay capital gains on an accrual basis.
D) retirement programs can no longer offer tax sheltering with capital gains and income taxed as ordinary income.

Question

Quizplus · Accepted Answer

Tax laws, including those in Canada, are subject to frequent changes, which can make it challenging to predict future tax rates and their impact on investment decisions. This variability affects asset allocation strategies as investors try to anticipate and mitigate their future tax liabilities.

One Aspect of the Tax Considerations in Asset Allocation Is