Ownership and Tax Structures

Ownership & Tax Structures

Administration and transfer of voting rights
Cash flow and tax consequences
Exit strategies and liquidity
Tacit and beneficial ownership structuring
Asset protection and risk management
Stewardship and ROI benchmark/targets
$500,000 Small Business Capital Gains Exemption (SBCGE) on the sale of small business corporation shares
The duplication of the SBCGE with children or spouse using a trust
Utilization of the low small business tax rate on the first $300,000 of active income
Refundable Dividend Tax on Hand (RDTOH) strategies to reduce the overall tax payable
Increased deductible pension plan contributions created by the establishment of an Individual Pension Plan
The deduction of family medical expenses against business income through the creation of a Private Health Services Plan

To find out more about the Business Services we offer, please click on any of the links above.

In order to reduce taxes payable, the following broad principles are applied:

Assets Shifting: Moving assets from a fully taxed environment (e.g. salaries) to a tax preferred (e.g. capital gains, dividends) or tax exempt environment (e.g. principal residence, life insurance)

Income Splitting: Moving income to a taxpayer with a lower marginal tax rate

Tax Deferral: Deferral of tax payable (e.g. RRSPs, estate freeze)

Deduction Maximization: Ensuring transactions are structured in a way which maximizes the deductibility of costs (e.g. interest deductions, self employment costs)

Taxpayer Duplication: Creation of additional marginal taxpayers (e.g. testamentary trusts)

Tax Jurisdiction Utilization: Utilizing Alberta, offshore inheritance and pre-immigration trusts

Deduction and Income Matching:

The largest ongoing expense of the average Canadian is tax. Therefore any financial plan which does not fully factor in tax is deficient.

Owners of small businesses have many planning opportunities available to help alleviate the impact of taxes.

Ensuring that deductions can be utilized against income (e.g. charitable giving strategies).

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