It’s 2016. Most people ring in the New Year with resolutions to hit the gym, cut out unhealthy foods, or kick drinking, but our tax planning experts want to help you get your corporate taxes in shape. Read on to read 5 tax tips that will help your big business blossom next tax season!
When planning your retirement, a Registered Retirement Savings Plan (RRSP) should top your list of priorities as a high net-work individual. However, the amount of money you should be investing into this asset depends entirely on how you intend to use it. If you foresee needing to access this savings plan before you’re retired, you’ll need to carefully manage how much money you’re paying into it. Any pre-retirement withdrawals you make from your RRSP will be taxed, meaning that the contribution room will essentially be lost.
If you ask anybody about mixing families and monetary affairs, you’ll usually be advised against it. However, tax planners know it needn’t be so messy, so long as you have the right business accounting firm on your side.
It’s really not complicated. If you have a spouse or child in a lower tax bracket providing services to your business, pay them a reasonable salary. This way, can provide your family members with the income they need for CPP, RRSP, and child care expense purpose.
When it comes to paying dividends, consider those family members who are shareholders in your company, or in a lower tax bracket. Those with no other supplementary income can be granted a tax-free amount anywhere from $9,000-50,000 in dividends, depending on their home province, and the availability of the general rate income pool.
Most tax planning accountants in Calgary will advise you to make charitable donations and provincial political contributions before year’s end, and we’re no different.
Along with all other corporate taxes mandated under the Income Tax Act, your final corporate income tax balances should be paid off within two months of year’s-end. Some CCPCs have a three-month window. Still, it’s already January – get cracking, and contact your tax advisors now. We offer fast, free consultations, and a reputable year-end accounting service.
To avoid facing any penalties;