Common Uses of a Holding Company

A Holding Company is simply a Company that owns the shares of another Company (a subsidiary Company). Usually Holding Companies do not do any active business. The active business is done in the subsidiary Company. Some common uses of a Holding Company include: A tax advantage in Canada exists in that intercorporate dividends between a subsidiary […]

Foreign Exchange Taxation and Financial Statement Rules

Financial statements may be prepared using rules to account for foreign exchange gains and losses (which form part of business income) that differ from the rules to calculate foreign exchange gains and losses for income tax purposes. These differences may significantly affect the taxable income of a business and consequently a thorough analysis of how […]

MoneyMatters Newsletter Issue 31

Loans to Spouse and Minor Children – Effective Tool for Income Splitting to Reduce Taxes May the 4th be with you! Time to take advantage of income splitting by having higher income taxpayers loan funds to lower income Spouses/Minor Children. The Prescribed rate of interest will fall to 1% on July 1, 2020. This low […]

MoneyMatters Newsletter Issue 30

RRSP Over Contributions – No Mercy Do you know your RRSP Contribution Limit? As we are coming up to the end of the year, many people are considering topping off their RRSP’s to maximize their 2019 tax deductions. However, we continually see some people who over contribute. In that case what happens? The Penalty For […]

MoneyMatters Newsletter Issue 29

Distracted Driving Will Now Cost You Insurability or at least Much More Money Do you drive for a living or have a fleet of vehicles in your business? Do you drive to work? Recent UCP changes to remove the cap rates on auto insurance premiums will have an unintended consequence. Insurance companies in Alberta have […]