We’re Looking For a Corporate Law Clerk (Minimum 5 years of experience)

  We are currently looking for a Corporate Law Clerk to join our firm. We are looking to grow and are seeking new talent with exceptional qualities.   Working Hours:   Regular workday hours (Monday-Friday)   Start Date: Immediate.   Responsibilities: Drafting various legal documents, including but not limited to documents related to articles of incorporation, amalgamations, dissolutions, and complex tax reorganizations …

Wills & Estates Administration Clerk

 We are currently looking for a Wills & Estates Administration Law Clerk to join our firm. We are looking to grow and are seeking new talent with exceptional qualities.   Working Hours:   8:30am – 5:00pm or  9:00am – 5:30pm   Start Date: Immediate.   Responsibilities: Drafting Wills and Powers of Attorney; Organizing and attending meetings for execution; Preparing applications for Certificates …

Personal Services Businesses

A corporation has many benefits as a vehicle for Canadians who carry on small businesses. In addition to the benefits of limited liability protection, Canadian small business corporations are granted a variety of tax advantages under the Income Tax Act (the “Act”). These corporations enjoy a tax rate of appox. 15% on active income from business (compared to the top …

Income Splitting Post-Morneau’s Tax Proposals (Part II)

There are a number of methods used to accomplish income splitting, with advantages and disadvantages to each – for example, income could be split through paying salary to family members, dividends, or through the use of more complicated tools such as a family trust. The preferred method will depend on the tax and non-tax preferences of each business owner.  Click …

Non-Arm’s Length Transfers

Under Canadian tax law, special rules often apply to transfers of money and property between family and friends. The classification of whether a transaction is at “arm’s length” is an essential concept in the federal Income Tax Act (the “Act”). In many instances, a non-arm’s length transaction can give rise to tax consequences that do not correspond to its economic …

Shareholder Benefits and Shareholder Loans

Many Canadians operate their business through a corporation. Even though the finances of small business corporations are directly linked to the finances of their owner-managers, it’s important to remember that corporate funds are not personal funds and should not be treated as such. Treating your corporation like a personal bank account can lead to adverse tax consequences. Under the Canadian …

When is it Safe to Pay a Dividend?

The calculation of safe income has recently become important for business owners and their advisors in determining how to pay inter-corporate dividends. Generally, inter-company dividends can be paid tax-free in most privately owned businesses, provided that Subsection 55(2) does not apply to the dividend. If Subsection 55(2) does apply, the tax-free dividend is recharacterized as a taxable capital gain. Subsection …

Estate Freeze

When an individual passes away, there is a deemed disposition at fair market value (FMV) of all capital property owned by the individual on the date of death, including any shares of private corporations that the individual may own. There is an exception to this deemed FMV disposition for any property that passes to an individual’s spouse or common-law partner. …

Family Trusts 101 – Benefits and Traps

A trust can be an important vehicle in helping many Canadians achieve their estate planning goals. Through the use of a trust, Canadians can protect and continue to control/manage their assets as well as minimize and defer income tax liabilities through common planning techniques such as estate freezes, prescribed rate loans, and other income splitting strategies. However, trusts must be well …

Active Business Income (ABI)

Characterizing the different types of income that your business earns will have an impact on the rate of tax applied to the income earned. For instance, Canadian controlled private corporations (CCPCs) are granted a tax reduction on active business income, known as the small business dedution. Federally, in 2017, the first $500,000 of a CCPCs ABI is taxed at 10.5%, …