Corporate Taxes

Taxes are what we do.

Not all accountants’ experiences are equal. Some are experienced in audit while others are experienced in controllership work. At our firm, each tax team member has over 10 years of experience working on taxes.

We can prepare various tax filings, which include, but not limited to, income tax return, GST/HST return, information returns (e.g. T1134, T1135), T4 and T5 slips and returns, etc.

We help companies in various sectors including Personal Real Estate Corporations (PREC), incorporated mortgage brokers, interior design, health and wellness incorporated professionals and clinics (e.g. physician, dentistry, chiropractic therapy, physiotherapy, counselling), IT consulting, management consulting, social media, import/export brokerage and online sales.

Here are some examples of tax matters that we’re experienced with:

1. Salary and Dividends

There are many factors to consider in determining the amount of salary and/or dividends to achieve the owner’s objectives. Factors including financial goals, personal income from other sources, CPP, EI, RRSP, medical expenses, mortgage qualification, investment income and moving costs eligibility.

For example, if a person wants to qualify for a higher mortgage amount when purchasing a property, then receiving dividends would give a 15% bump in their personal income due to the dividend gross-up amount. In contrast, if a person has significant moving costs, then under certain situations, receiving a salary would allow for tax deductions of certain moving costs such as realtor commissions and property transfer tax.

We can also work with your financial advisor to optimize the salary/dividend amounts so that you can achieve your goals.

2. Sales Taxes – GST/HST & PST

Do you sell products or provide services across Canada and/or internationally? Usually, depending on where the customer is located, the GST/HST would differ accordingly.

And do you know there are two ways to calculate your GST/HST – the Regular Method and the Quick Method? Under certain conditions, particularly if you’re in the services sector and don’t have a lot of expenses, you may benefit from using the Quick Method for accounting for GST/HST instead of the Regular Method.

Do you know if you sell certain products in BC, you may be subject to PST? Furthermore, if you buy certain items from another province or foreign country, there may also be self- assessed GST/HST and PST.

We will analyse your sales and purchases to ensure you’re in compliance with the tax authorities and maximize any potential savings (e.g. Quick Method).

3. Payroll Taxes

We can help calculate payroll taxes such as CPP and EI. Also, we can advise you of any employee taxable benefits that should be included in the employment income. We would also ensure the T4 slips and return are filed properly.

4. Business Deductions

There are many tax rules surrounding the eligibility and calculation of various deductions. For example, did you know that a business expenditure might not always be an expense? Sometimes, an expenditure can be an asset, which may have a different tax treatment than an expense.

And did you know that for a personally owned vehicle driven for business purposes, there are two different methods to calculate the amount of expenses deductible by the company? Depending on the mileage driven and the vehicle’s operating expenses, one method might yield a greater tax saving than the other method.

And did you know you can use your corporate dollars to pay for your life insurance (though not tax deductible) instead of your after-tax personal dollars?

Or perhaps are you wondering whether you can deduct, and how much, on travel expenses that contain both business and personal elements?

We will help you navigate on the complexities of business deductions in order to maximize your tax savings while minimizing potential CRA audit risks.

5. Corporation Structures

Depending on your business goals and potential restrictions from your professional body, different corporate structures have different pros and cons. Besides the most popular one company structure and the other common operating company and holding company structure, there are other structures that maybe worth exploring.

For example, by adding a trust to the operating company and holding company structure, you may be able to obtain significant tax savings when your company’s shares are sold if you meet the Qualified Small Business Shares criteria and you have unused Lifetime Capital Gains Exemption (at over $1,000,000 in 2024).

6. Voluntary Disclosure Program Application

Are you late on your corporate tax return(s) for more than a year past due? Did you or your previous accountant make a significant error on your past tax returns? Did you only recently discover that the T1135 Foreign Income Verification Statement is applicable to your past tax returns? If so, there is the Voluntary Disclosure Program (VDP) that can potentially waive some or all of the arrears interest and late-filing penalties associated with the errors and omissions, subject to certain conditions.

We’re experienced with filing the VDP application so that you can achieve the best results with CRA. We also work with tax lawyers to handle very complex situations.

We also deal with many other tax situations such as foreign income, foreign currencies, multi-provincial permanent establishments, dealing with CRA, application request for taxpayer relief of interest and penalties, etc.

We seek to maximize your tax savings while minimizing potential CRA audit risks.

We can also prepare Compiled Financial Statements as per Canada’s Compilation engagement standards.

If you’re looking for bookkeeping services too, please visit our bookkeeping webpage .

Corporate Taxes

Taxes are what we do.

1. Salary and Dividends

2. Sales Taxes – GST/HST & PST

3. Payroll Taxes

4. Business Deductions

5. Corporation Structures

6. Voluntary Disclosure Program Application

Let us take care of your taxes so that you can focus on building your business or practice.

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