With current low corporate tax rates some professionals are opting to forego taking money out of their company to place into an RRSP and are instead leaving the money in the company to invest, saving within the company and then using dividends from the company as a way to fund retirement. Is this a tax efficient approach? CIBC thinks it is. Their recent report on this topic can be found here: Continue reading →
Four Advantages of Using A Company for Your Business
Greater Cash Flows to Buy Assets or pay debt
Currently, a Canadian owned small private company in BC pays significantly lower taxes then an individual operating a non-incorporated business. This fact is useful if you intend to buy business assets or need cash to pay down business debt. Continue reading →
Buying a Business? Consider these issues.
Buying a business can be an exciting time. You’ve found something you believe will be a good investment and generate positive cash flow for years to come. Before signing on that dotted line, however, have you considered these factors:
- Why is the vendor selling? Continue reading →
What is this term in the Canadian Income Tax Act called “income”?
As a Canadian taxpayer we are all aware we should be taxed on our “income”. But do we know exactly what income is?
A closer review of the Income Tax Act will tell you that this term is not clearly defined. However, the legislation clearly tells us how to calculate taxable income. Continue reading →
Estate tips for British Columbians
This blog will consider some common estate planning scenarios as food for thought. Every person’s wishes and situation are different, and there are many estate planning alternatives to be considered to achieve an individuals goals. Here are a few to consider: Continue reading →
Can you explain the Canada Revenue Agency Voluntary Disclosure Program?
The Voluntary Disclosure Program is run by CRA to allow taxpayers to report additional unreported income from prior years or to correct overstated expenses. Examples of this may include unreported cash tips for service workers, foreign pension income or other foreign-sourced income streams which are all reportable in Canada. Continue reading →
How do I decide between dividends and salary from my company?
This blog will discuss some of the typical decision making processes that you should consider when discussing with your accountant the most efficient form of receiving income from your company. Each situation will, of course be unique, and even the same individual may have different objectives from year to year which require careful consideration. Continue reading →
Can I change a tax return that I have already filed?
As a chartered accountant in Victoria, this is one of the most common questions that I hear. The simple answer is yes, tax returns may be amended up to 10 years after they were filed. This may be done for personal or corporate tax returns. Continue reading →
Holding Companies, What are they and why do I want one?
As a business owner with a successful company have you ever wondered if you might benefit from a holding company? The answer may well be yes. Simply put a holding company is a company established to “hold” the shares (or other significant assets such as a building) of your operating company.
Why would you want to do this? Well, that answer will vary from situation to situation. Common reasons include: Continue reading →
TFSA Overcontribution Problems?
A big issue with the new Tax free savings accounts (TFSA) was revealed this week when the Canada Revenue Agency announced that it had issued more than 70,000 letters to taxpayers for penalties related primarily to over-contributions to TFSA accounts. Many people misunderstood the contribution rules which dictate that any withdrawals taken during the year may not be re-contributed until the year following if you were already at your contribution limit when the withdrawal was made. The penalty applied is 1% per month for each dollar of over-contribution until withdrawn. Continue reading →
