A tax deferral strategy is a common component of a tax plan. By deferring tax you eliminate the tax liability this year but you will have to pay the deferred income tax down the road in future years. There is a tax deduction when the contribution is made and the money is taxed in a later year when withdrawn. The taxes saved are basically a result of tax planning strategies which include maximizing deductions and credits by deferring taxes. To seek assistance you can call our expert Canadian tax lawyers at 416-367-4222 or email us at firstname.lastname@example.org.