Recently, I decided to crunch some tax numbers for shareholders of a CCPC who are hoping to increase their take home pay in order to get into the BC real estate market. Canadian taxpayers know that the tax rates in recent years have crept up. What is commonly less known is that the tax rules and rates pertaining to dividends received from a CCPC have also shifted in recent years that a detailed analysis based on current rates and rules would be worth revisiting.
Canadian Tax Issues 2021 and Beyond
The BC economy is reopening slowly. We need to start planning for the “normal” time again as the physical threats brought about by the pandemic subside. Which means, bc tax planning will move up in importance in the very near future. With all the government assistance and money printing that went on during the heart of the pandemic, taxpayers who owned assets benefitted greatly from asset appreciation. Assets such as real estate, stocks, bitcoins, etc. appreciated tremendously during ... Read More
Tax Structure When Buying an Incorporated Business
A very quiet and painful spring 2020 comes to an end in BC. As the BC economy reopens pieces at a time, the impact of the Vancouver covid-19 pandemic lockdown on different sectors of the economy will become more evident. For young or mature business owners, this past spring was a time of inner reflection. There was plenty time for planning, whether to acquire existing business to bolster one’s market share or exit an existing business and spend more time pursuing activities that are ... Read More
When Are My 2019 Income Taxes Really Due?
The week of March 16, 2020 will be forever remembered by all Canadians. For many of us, whatever Spring Break trip planned along with everything else entertainment was cancelled that week.
2019 Incomes Taxes Due Date Extended
For accountants who file taxes for a living, we were provided specific deadlines by Ottawa. All personal and information returns were extended to June 1. There was no extension for the self-employed who are due on June 15. And Ottawa ... Read MoreVancouver Tax Planning Post Covid-19 Lockdown for Canadians
With the curve flattening in BC, I am going to practice optimism and leap back to the future to discuss tax planning for BC individuals and small businesses for the 2020 year end.
Operating loss utilization
There will be businesses with operating losses for this fiscal year. Losses can be carried back three years whether you are proprietor or an incorporated business. Note that many of the financial assistance received under the Canada Emergency Response Plan for ... Read MoreTime to Reconsider Remuneration Method for CCPC Shareholders
During the summer of 2017, CCPC shareholders and tax advisors across Canada were surprised with by the announcement of new tax rules and restrictions that were being planned by the Minister of Finance. Basically, Ottawa felt that the existing rules at the time were too generous for the CCPC shareholders and intended to scale the “tax perks” down considerably. Almost two years later and with much drama during the interim, the new tax regime is now in place and time will tell how much extra ... Read More
Last Chance Tax Planning for 2018
As 2018 comes to an end, tax advisors across Canada are busy restructuring and planning many corporations to respond to the new tax rules that came into existence this year.
BC's New Tax Law Called Tax on Split Income (TOSI)
The biggest new tax law introduced this year is Tax on Split Income or TOSI for short. TOSI is so complicated that many tax advisors use a flowchart to visually follow the rules to assist in determining where the taxpayer stands with this rule this year. As ... Read MoreVancouver Tax Planning for CCPC’s As We Approach the Second Half of 2018
As the summer of 2018 comes to an end, vancouver tax advisors are starting to contemplate the tax planning work that will be required for CCPC come fall 2018. At the start of 2018, tax advisors and incorporated businesses awaited the 2018 federal budget with high level of anxiety. After all, the initial announcement to eliminate the tax deferral advantage that a CCPC enjoyed using its after-tax business income to earn passive income was severely punitive. As time passed and Ottawa responded ... Read More
Vancouver Tax Planning Dilemmas As 2017 Come To A Close
2017 has been a year of drama for Vancouver tax advisors and I am happy that it is coming to an end. I have to admit, it is not so much January 1, 2018 I am looking forward to. I am anxiously waiting for the 2018 budget date which may bring all Canadian private corporations more clarity on their financial and tax future. Vancouver Tax Planning - Changes For Private Coporations On July 18, 2017, Ottawa proposed dramatic changes to the taxation of private corporations. Since then, Ottawa has ... Read More
Vancouver Tax Planning: Time to Look at the Capital Dividend Account
As we reach the mid-point of the 2017 calendar year, it has been a good financial year for many British Columbian investors. Real estate gains continue and, for equity investors, the stock market has been on a tear since the fall of 2016. Vancouver Corporate Tax Planning With the conclusion of the personal tax-filing season, summer and fall is the time for corporate tax planning. The one tax planning item that should be looked at this year, due to such favorable macro-financial conditions, is ... Read More
