Tax Advisors & Consultants Services Toronto
Individuals and families, as well as corporations, are involved in a continual process of tax planning in order to lower the total amount of taxes they pay. Starting with an audit, tax planning is an ongoing process that culminates in lower tax bills.
For businesses, as well as individuals and their families, tax planning aims to lower the total amount of taxes payable by the business and its owners and their family members, even though tax planning is a continuous activity. Auditing your tax returns is the first step in a long-term tax strategy that will culminate in lower tax bills. From the beginning of a company’s establishment and operation, a professional tax accountant and other Canadian tax and business experts are needed to develop an effective tax reduction strategy. Considering that tax legislation is constantly changing, our tax accountants in Toronto will ensure that your small business or corporate organization adheres to all applicable tax rules and regulations.
We offer professional Canadian income tax advice and assistance with:
- Creating a business structure for new ventures.
- Corporations and shareholder agreements are two types of agreements.
- Identifying tax planning alternatives for your company and corporation in order to reduce your income taxes is important.
- Small business tax counsel and medium business tax advice for small and medium-sized businesses are available to owner-managers.
- Partnership taxation and tax minimization are discussed.
- Taxation of joint ventures.
- Taxes that have not been filed, include corporate back taxes and personal back taxes.
- Providing advice on the tax implications of prospective transactions, including franchise tax planning, among other things.
- Real estate tax planning, including joint ventures, is covered in this section.
- Tax shelter and charitable tax-exempt organization issues.
- International tax planning and offshore tax disputes are two of the most common types of tax disputes.
- Incentives for scientific research and experimental development (SR&ED) are available under the Tax Incentive Program for SR&ED.
- Tax concerns with cross-border transactions, such as transfer pricing tax issues, are discussed.
- GST/HST, excise taxes, customs charges, capital taxes, property transfer taxes, income tax, and capital gains tax are all examples of taxes that can be applied.
- Taxation of CEO compensation and staff compensation, among other things. Agreements with independent contractors.
- Private pension plans are a type of pension plan that is paid out of one’s own pocket.
- RRSP failures are a common occurrence.
Income tax brackets in Canada are determined by a person’s total annual earnings. Total income earned by a Canadian determines the amount of income tax owing. The higher one’s earnings, the higher one’s tax bracket and, as a result, the amount of taxes one must pay. One way to save on taxes is to transfer some of your income to someone else who is taxed at a lower rate than you are. This is known as a “transfer of income” technique. There are a variety of methods for dividing one’s earnings.
The Tax Planning Aspects of Income Splitting: Salary Amounts
Small business owners are accustomed to splitting profits with their partners or associates. This can be accomplished if the partner is hired as a T4 employee in the business or if the partner owns stock in the corporation and receives dividends from the corporation. The employer must provide a suitable remuneration package that is justified by the actual work completed by the employee. Before starting your new job, we strongly advise you to have a signed employment agreement in place. To avoid falling victim to income tax attribution laws, spouses or children who want to own stock in the company must exercise caution in order to avoid having their income or capital gains on the property ascribed back to the spouse who originally owned those assets.
Sell Business Capital Assets After the End of the Fiscal Year
You can save money on taxes by selling capital assets (commercial real estate) after the end of the business taxation year because you can postpone paying income taxes on the gain and depreciation recapture until after the end of the next year’s taxation year.
Take into consideration the impact of dividends versus salary/bonus income when comparing tax burdens.
Taxes can be reduced for both individuals and businesses by utilizing a combination of salary or bonus payments as well as dividend payments. Performing income tax planning and computations on a year-to-year basis will be required by the corporation’s accountant in order to finish this work.
It may be possible to set up a private pension plan for yourself.
In the case of corporations, contributions to registered pension plans for employees and shareholders can be deducted as business expenses for income tax purposes. It is not necessary for employees to pay income taxes on the RPP contributions made by their employers. Private pension plans, which can be used as an alternative to a Registered Retirement Savings Plan (RRSP), can be established for owners and managers, and they are an effective tax planning tool.
Shareholder Loans must be repaid within two years of the loan’s expiration date, unless otherwise specified.
The removal of money from the company by shareholders and owners is subject to tax repercussions and requires the completion of specific processes. If a shareholder loan amount is repaid between two business year ends (i.e. by the end of the following year), the amount of the loan is not taxable to the shareholder/owner who made the loan (borrower). If the debt has been outstanding for two corporate year ends, according to Section 15(2) of the Income Tax Act, the entire amount is included in the shareholder’s income. However, for stockholders who failed to pay interest on the loan or who paid interest more than 30 days after the end of the tax year, an untaxed gain for unpaid interest is presumed to have occurred.