Business Matters June 2015

The June edition of Business Matters is available directly from our website along with past copies as well as Tax Tips and Traps. Download Business Matters In this Edition …. Salary or Dividends The way a bonus is paid has a significant effect on corporate and personal after-tax income. You’re Hired Human rights legislation governs all hiring practices. Improve the…

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Why Use an Accountant?

Accountants do more than your bookkeeping and prepare your taxes. In fact, an accountant with a professional designation has expertise in finance, business management, technology, taxation, and business management. Your accountant has a stake in you and your business. We are your advisor and counsel who can be depended on to deliver objective advice. Other ways an accountant can help you includes: Succession…

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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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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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Selling Your Business & Saving Taxes

You started your business from scratch and built it into a successful enterprise. Perhaps you want to retire and spend time with your family or maybe you want to move on to something different. Either way the value built up in your business will result in a tax a tax bill. Luckily the Income Tax Act provides you the opportunity…

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What is an Estate Freeze?

An estate freeze is not a mid-winter funeral! If you have a business, the estate freeze is a way to fix the value of your business or investments and transfer future growth to your children and beneficiaries. The result is that you can split income by shifting capital gains and dividends to other family members and minimize the taxes due at…

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