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 […]
Transfer of Property for Less than Fair Market Value to Related Parties
Transfers of property between related parties for less than fair market value is always problematic. Consider two scenarios, one a typical Estate Plan involving a “gift” of property to a related party and second a transfer of property to a related corporation at a value of something less than fair market value. In the first […]
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 […]