5 Tips For Limiting The Amount Corporations And Their Shareholders Pay The CRA
Corporations and their shareholders often end up paying more than expected to the CRA because of decisions made in previous years. To minimize taxes paid, there are strategies businesses can apply. It starts with setting up the correct corporate structure and involving the right people early. For example, involving an accountant in larger business decisions at the beginning, means that the business can minimize the tax consequences on purchases, like limiting the capital gains deduction.
- Make sure your current corporate structure reflects current tax law, and file proper returns along with keep good records.
- Get tax advice before major transactions, and plan for the capital gains deduction.
- Have an estate plan, and make sure your executors know to get tax advices as soon as possible.
“Just like any other big transaction, planning, or lack thereof, can have a huge positive, or negative, impact on the potential tax liability.”