With the annual tax filing deadline upon us, it’s too late for Canadians to take steps that will improve their 2006 tax situation, but it’s an ideal time to start thinking about 2007.

According to John Waters, tax expert with BMO Nesbitt Burns, tax planning should be a year-round process and all Canadians, particularly small business owners, should start planning their taxes well before next year’s April deadline.

“When tax time rolls around, you can hear the collective groan from everyone who has to start sorting their financial records to meet the deadline,” said Waters.

“My message is: Don’t put it off. Preparing your tax return presents an opportunity — not a necessary evil — to evaluate why you’re paying the taxes you are and how to change that for next year. Be proactive now and you may actually lower your 2007 tax bill.”

“There are many strategies, some very simple, that you may be able to use to reduce the amount of income tax you pay. The best strategy is to plan ahead.”