Business Tax

Read more about the article Borrowing From Your Corporation
Business / Corporations

Borrowing From Your Corporation

If you have a business corporation, your income will normally consist of salary or dividends. However, given the right circumstances, your corporation may be able to lend you money tax-free. There are some things that you need to be aware of. First, if the company extends you a low or no-interest loan, there will be a taxable benefit added to…

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May 30, 2012
Read more about the article Income Splitting For Business Owners
Business / Corporations / Tax Planning

Income Splitting For Business Owners

Income splitting can produce some pretty dramatic results. Consider the case of a married, self-employed individual whose taxable income is in excess of $250,000. Assuming the spouse does not work, the tax bill would be $94,700 (in Ontario). If this couple were to split their income equally, their combined tax bill would drop to $77,700, a savings of $17,000. Now if…

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May 10, 2012