Corporate Tax Planning

We as Canadian business owners are provided with a unique corporate tax planning opportunities that are available to us and our families.  Two key Corporate tax planning strategies that you need to be aware of are:

Small Business Capital Gains Exemption

The current Small Business Capital Gains Exemption of $813,600(2017 Year) on the sale of a Canadian-controlled private

Corporation (CCPC) eligibility is calculated based on three key criteria:

  1. Does the corporation carry on an active business
  2. What is the value of the assets, if any, owned by the Corporation but not used in the active business
  3. What percentage of the corporation’s assets are not used in an active business

Family Trust

The Family Trust is a flexible way to involve family members of the business owner in the business without giving them a direct interest.

The family trust permits the dividends paid on the corporation’s shares and some or all of the capital gain that may be realized on the eventual disposition of the corporation’s shares amongst the members of the family.