If you decide to leave Canada, you need to figure out the tax implications that might apply to you. As a non-resident, you will have no tax obligation on your income earned or received outside Canada but you might face a significant tax bill in the calendar
Read more →Subsection 39(1)(c) defines the business investment loss. It may arise from the disposition of: I. a share of a corporation that is a small business corporation, or II. a debt owing to the taxpayer by a Canadian-controlled private corporation. If a taxpayer is a corporation, the debtor
Read more →Owners of privately held corporations might be tempted to withdraw the extra cash in the corporation as a shareholder loan rather than reporting a salary or a dividend. The Income Tax Act has specific rules about shareholder loans. Since corporations often pay tax at preferred rates, the
Read more →Subsection 125(7) defines active business carried on by a corporation: “any business carried on by the corporation other than a specified investment business or a personal services business and includes an adventure or concern in the nature of trade”. Such an income is known as Active Business
Read more →Some corporations might try to use inter-corporate management fees to achieve the following objectives: 1. To reduce the taxable income of one company if it is not eligible for active small business tax rate. Canadian-controlled private corporations (CCPCs) are entitled to claim small business deduction on their
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