A corporation is a separate legal entity. This requires your corporation to file its’ own tax returns, separate and distinct from your personal tax returns. The fact that as an individual you may own the corporation does not change this requirement.
Canadian controlled private corporations offer owner-managers an opportunity to use the income tax act to their advantage by using the lower tax rates available with corporations. Proper income tax planning and structuring will allow the owner-managers to in fact “income split” with their own corporation.
Tax efficient structuring for your financial affairs, personal and corporate, results in a lower tax bite and increases your overall wealth retention, and like most financial decisions, needs to be in place before it becomes history.
TALK TO US …
