Once you’re current
Tax planning done before the year ends, not after.
How and when to pay yourself, what to leave in the corporation, and how your structure affects what you owe, decided with current books while there’s still time to act.
What we look at
- Salary and dividend mix for owners
- Year-end planning review
- RRSP room and personal tax coordination
- Small business deduction review
- Corporate structure and holding companies
- Timing of large purchases and expenses
Behind on filings?
Planning needs accurate numbers.
Planning built on estimates isn’t worth much. If your corporation is behind, the catch-up comes first, and then the planning is based on real figures.
Catch-up & clean-upHow it works
Review the numbers
We start from current, reconciled books and last year’s returns, corporate and personal.
Compare the options
Different ways of paying yourself and structuring the year, laid out side by side with what each would mean.
Act before year-end
Decisions are made while there’s still time to carry them out, not explained after the fact.
Tax planning questions
Related guides
Should I pay myself salary or dividends?
It depends on your situation. Salary is deductible to the corporation, creates RRSP room and builds your CPP. Dividends avoid payroll and CPP contributions, but don’t create RRSP room. Many owners use a mix, and the right mix can change from year to year.
What is the small business deduction?
It lowers the federal tax rate on the first $500,000 of active business income of a Canadian-controlled private corporation to 9%. In Manitoba the provincial rate on that income is 0%. The limit shrinks when the corporation and its associated corporations earn more than $50,000 of passive investment income in the previous year.
Can I split income with my family through the corporation?
Only within the tax on split income (TOSI) rules. They tax most dividends paid to family members at the top rate unless an exception applies, such as the family member working in the business an average of at least 20 hours a week. Our PREC guide walks through the exceptions.
When should planning happen?
Before your fiscal year-end. Once the year closes, most of the decisions that matter are already made, so planning works best with current books a few months before year-end.
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See your path back to current before you commit to anything.
Book a free 15-minute call with Brian Catibog, our founder. Tell us what’s outstanding, and we’ll show you how we’d get you caught up and keep you there. The scope and price follow in writing.
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