Creating Success Through Setting Goals

With the beginning of a new year, many businesses and business owners take this as an opportunity to set new goals for the business and themselves. While ‘new year’s resolutions’ rarely succeed, goal setting and achieving is a common trait of successful businesses. As professional accountants, we know that “what gets measured, gets managed.” This […]

What are Tax-Free Capital Dividends?

What are Tax-Free Capital Dividends? Capital dividends are a special type of dividend that Canadian controlled (maybe use “owned” instead) private corporations ( CCPC ) can pay to their shareholders on a tax-free basis. The Canada Revenue Agency ( CRA ) uses the capital dividend account ( CDA ) to keep track of the capital […]

Small Business Deduction May Be Limited

Under the Income Tax Act of Canada, small business Corporations must share the Small Business Deduction if they are either Associated (these are known as the Association Rules), or if not Associated, a corporation receives income from another Corporation in which it or a shareholder of that corporation, owns shares of that payor corporation (these […]

Independent Contractor or Employee?

In times of outsourcing, downsizing and economic cutbacks, it may be advantageous for a company to hire individuals as independent contractors to perform some of the functions that are being performed by that company’s employees. However, simply calling someone an independent contractor does not make it so. CRA will look behind the title of an […]