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.
Vancouver 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
A Refresher – When to Incorporate Your Business
When to Incorporate
We recently published a blog post on small business corporate tax rates in British Columbia heading downwards to 11.5% on the first $500,000 by 2019. This reflects a 15% reduction in taxes from the current 13.5%. Considering that taxes are a big-ticket expense item for businesses, a 15% reduction is a huge discount. However, upcoming corporate tax rate reductions are only advantageous to businesses that can leverage them. Successful proprietors are often burdened ... Read MoreEffective Income Splitting Needs Professional Pre Planning
Income Splitting Pre Planning We are now firmly into the 2015 calendar year and with the New Year come new tax laws aimed at reducing your family’s tax burden (eg. recently announced family tax cuts) and changes to existing tax laws that reduce old benefits (eg. higher personal taxes on ineligible dividends).
Ineligible Dividends
Ineligible dividends are essentially the type of dividends that most profitable Canadian small business owners get from their corporations. They represent the ... Read MoreThe Costly Consequences of Pretending To Be An Incorporated Consultant
Canadian corporations enjoy a 13.5% corporate tax rate on the first $500,000 of taxable income from active business due to the small business deduction. Therefore, it makes sense for a corporation to structure its business affairs in ways that can take full advantage of this favourable tax rate. The majority of Canadian businesses qualify for the above benefit. However, some “consultants” who may have incorporated their service businesses may be taking advantage of the low corporate tax rate, ... Read More
Canadian Tax Planning for U.S. Executives Working in Canada
How U.S. Executives Working in Canada Are Required To File Their Tax Returns Many U.S. executives move to Canada, for both brief and prolonged periods, to manage Canadian head offices for multinational or parent companies. During their time in Canada, these executives become full time residents and are therefore required to file a Canadian tax return. Unlike Canada, the U.S. tax system is based on U.S. citizenship, and therefore the U.S. executive is burdened with the requirement to file both a ... Read More
No Taxable Income, No Rush to File – Think Again About Information Returns
Mew & Company, Vancouver Corporate Tax Accountants
Penalties for Filing Late with the Canada Revenue Agency
Sophisticated Canadian small corporations have good knowledge of the tax filing requirements and deadlines for their corporate tax return. Corporate tax returns are due six months after the business year end. The penalty for late filing is based on the amount of taxes owing on the date the corporate tax return is due. If the corporation had a bad year or is in an ... Read MoreBad Business Breakup Around the Corner?
Bad Business Breakup Around the Corner?
Business partnerships are never easy and can fail in both times of prosperity and times of strife. There are many reasons for breakup: bad financial results, good financial results, personality differences, lack of trust, conflicting visions, etc. Often, the knowledge of an impending breakup precedes the actual breakup by months, if not years. In the meantime, if lack of trust develops, the emotional ... Read MoreGetting the Most Out of Your Professional Tax Advisor
One of the first questions I ask a new prospective client is “Why do you wish to switch tax advisors?” The most common complaint is that there is a lack of proactive tax planning from the current advisor. The second common complaint is late filing penalties and interest fees. More specifically, the taxpayer often complains that the current tax advisor has been unresponsive to a tax planning request or has been too busy to make the client a priority. After being in practice for many years now, I ... Read More
