Tax planning whether for personal or corporate taxes is a process that helps you reduce the amount of taxes you’ll owe at the end of each year. There are a number of ways to develop strong strategies around your corporate taxes, but it primarily involves reducing your overall income, increasing your number of tax deductions throughout the year, and taking advantage of certain tax credits in the Canadian Tax code.
Your overall corporate tax objectives are usually consistent from one year to the next. You want to minimize personal and corporate taxes, both now and in the future, while protecting and growing your assets. Seems pretty simple, right?
Every financial decision or transaction you make, has a resulting tax implication. Then you have the constantly changing tax rules, and you realize the importance of reviewing and adjusting your tax strategies on a regular basis. This should be an integral part of corporate strategy and personal wealth management.
We work closely with small and mid size businesses and their owners, as well as high-net worth individuals and their families, to maximize cash flow and minimize tax liabilities.
One way a business can reduce taxes in Canada is Income splitting. This is a tax planning strategy where one taxpayer transfers a portion of his/her own income to another taxpayer who is taxed at a lower tax rate. There are various income splitting techniques that can be used. A small business owner can often income split with a spouse by employing the spouse in the business as a T4 employee or by having the spouse own shares of the corporation and receive dividends. Any salary paid must be reasonable and supported by the actual work done.
Another way is to strategize your Capital Cost Allowance. Rather than just deducting the cost of whatever depreciable property a business has acquired to use in their business in a particular year, they need to deduct the cost of the depreciable property over a period of years, through a capital cost allowance (CCA) claim.
With over 35 years of business experience, we have helped our clients enjoy sustainable personal and corporate tax savings through our tax planning approach and innovative solutions.
Working in the Oakville, Burlington, and surrounding areas, we generate results through
We prepare both personal, and corporate tax returns and handle all tax filing and reporting requirements to ensure compliance with provincial and federal taxation authorities.
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For answers visit Tax Planning Tax FAQs