Planning and Compliance

·         Help you to minimize your corporate-tax liability with their expert knowledge of the rules

·         Sort out the wide array of business issues including bonuses, year-end, shareholder-management remuneration

·         File the completed set of integrated documents with the Canada Revenue Agency (formerly Revenue Canada or CRA) properly and on time

 

Dividends Still Most Tax-Efficient

Despite these current changes, dividends will remain the most tax-efficient way to receive income from a corporation, as the tax rate for non-eligible dividends will be less than the tax rate from a salary. But for owner-shareholders earning active business income in their corporations, review the mix of salary and dividends paid out from their corporation.

They should consider paying themselves more dividends in 2013, and reducing the dividends to be paid in 2014, as the rate will go up next year. And, if clients do not need income, they will still benefit from a significant tax deferral by having the business income taxed in their corporations at the low small business rate and keeping the profits invested for the future.

Finally, for retired business owners receiving income from their corporation, the reduction in gross-up amounts might bring relief, as the claw back rules for OAS and GIS are based on the grossed-up amount of dividends.