Individuals and Corporate Tax Planning in Canada
Tax planning is the process of minimizing your tax liabilities in order to minimize your overall tax burden. Through the use of tax exemptions, deductions, and credits, a tax professional can assist you in navigating the complexities of tax legislations and assessments in order to reduce your tax liability.
In simpler terms, individual and corporate tax planning aims to reduce the tax you pay legally, by leveraging the Income Tax Act to structure your business affairs strategically.
Link between Tax planning and your family
It is essential to file a family’s tax returns together rather than separately. Some tax credits can be passed to other family members, and in some cases, tax credits are calculated depending on the family’s overall income. The family therefore requires a comprehensive tax strategy.
Salary v. Dividends | A Crucial Consideration
As a business owner, you have a claim over the income your business is generating. One of the common dilemmas almost every business owner faces, is whether to get paid by dividends, or by payroll. Salary is a tax-deductible expense for the corporation, whereas dividends are not. However, the recipient will pay less tax on dividends.
Both the options have their limitations and advantages associated with them. It is highly crucial for a business owner to plan things well in advance and withdraw money according to their strategy.
Why hire an expert?
Corporate Tax planning is a key as income taxes by virtue is a big chunk of expenses in a business, and hiring professionals is key to help your business grow. This will allow you to focus on what you do best – run your business and generate revenue.
Moreover, it can be challenging and daunting to figure out how to minimize your tax liability while maximizing your wealth and income, which calls for careful tax preparation. The reduction of tax liabilities is an important aspect of wealth planning.
Good corporate tax planning entails aspects like – how to handle dividends, tax credits, retirement, salary, and income splitting
At Toronto Tax Boutique, we have a team of tax planning experts who can help clients take advantage of every opportunity to save money on their taxes. We work with you very closely to develop a plan that is customized to your specific needs and helps reduce your overall tax burden. Furthermore, our tax experts are well experienced in handling variety of cases across different industries and are well aware of the ongoing tax legislations to help you with the optimum tax planning strategy based on your needs.
Planning services at Toronto Tax Boutique offer services that look at the bigger picture.
What is the best time of the year to plan your taxes?
Based on our experience, for tax planning, we believe the sooner we plan the taxes the better it is for the overall business; nevertheless, it is never too late as we can always prepare for a better financial year.
To plan your taxes with our expert advice on Tax Services, contact us today to get started.