Corporate Income Tax

Documents at workplaceIncorporating your business makes ultimate sense once profits exceed your living requirements by a certain amount, as the surplus, if it remains within the company, is taxed at much more favourable results on corporations (encouraging companies to retain earnings).

However, even then there is still more that can be done to protect those earnings from taxation, or at least minimize the rate at which they are taxed.

Your options are wide and varied and, as your Chartered Accountant team, our role is to clearly describe your options and help you make informed business decisions.

The result will be that you take advantage of all possible options of incorporation and are able, in time, to pass-on your business with minimal fuss to the next generation, or if your goal is to sell, then the strategies selected may be different, but the result the same.

Our goal is to help you minimize your corporate income taxes! Our firm’s in-depth tax knowledge and years of experience enables us to accomplish this for you. With over 30 years of working in this area, we have the ability to identify strategic opportunities for your company to accomplish this!

There are a number of alternatives to choose from including, and not limited to, the establishment of an:

  • owner’s profit sharing plan
  • owner’s company retirement savings plan
  • owner’s deferred employee profit sharing plan

Our clients need tax advice at many different stages of their business’ life cycle. We recommend you talk to our team as you are seeking professional tax advice when:

  • your business becomes profitable and grows
  • your business structure becomes more complex
  • the government introduces new tax legislation and tax law changes
  • your business acquires another business or real estate
  • your business divests itself of an operating unit or sells a significant asset
  • your business expands internationally
  • you’ve decided to sell your business or transfer it to a family member
  • you are planning for retirement and the distribution of your wealth to your estate
  • you are preparing your will

Our firm is focused on providing value-added services to our private corporate clients. This is particularly true for the tax advisory services provided to our family-controlled businesses. We take a proactive advisor role with our clients to assist them in all aspects of corporate tax planning, owner remuneration, structuring & advising of significant transactions, dealings & representations on matters with taxation authorities.

We have access to the Tax Specialist Group (TSG), which is a collaboration of independent Canadian professional tax specialist firms who practice in the taxation area as recognized tax advisors. Through our TSG affiliation, we have access to member firms in Toronto, Calgary, Vancouver, Montreal, and Halifax, with a diverse range of tax services at an expert level.

Our overall objective of corporate income tax planning is to structure a business to minimize its income tax now and in the future. There are a number of alternative ways to accomplish this not limited to tax deferral, improved tax accounting and other methods of structuring the business to gain the best possible tax advantages.

However, there are any number of traps awaiting the unsuspecting entrepreneur, so call us at 905-528-0234 to start planning the tax strategies for your corporation today.

For further information regarding our services we recommend you review the Tax Planning Brochure, or browse through the many articles that Joe has written in the Resource Library.