Posted on: 24-07-08 13:25:18
Thanks for your response . For future reference , if you click on a person's profile there s a link to send email . Kindly avoid sharing your email id on public forums . I have noted so please feel free to edit it out from your previous post . Thanks for all the help .
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Fido.
Fido Pls check yr mail and lemme know if u rcd it ..AG
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Growing Old Is Mandatory ..Growing UP is Optional
Yes . Incidentally the same person is recommended by another CD . I will contact him . Thanks.
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Fido.
I have contacted the same person and will be touch basing with him again this week.
Yesterday someone advised me not to have any employees in the company including myself to save on the EI & CPP as well as the fact that biz tax rates are lower than individuals . This set up would help save more .
I had a question - what happens if I have to sponsor someone - I need to show personal income .... to which he replied that if the Incorporation shows you as the sole director/s , you can show your business' income as a proof of your own income.
Can some one validate this please ?
I was initially planning to make me and my spouse as salaried and then after deducting these expenses , calculate the tax liability of the Inc . Is there a site / book where all this information can be found ?
Thanks .
Vikshr ~ please check your pm .
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Fido.
Quote:
Originally posted by Fido
I had a question - what happens if I have to sponsor someone - I need to show personal income .... to which he replied that if the Incorporation shows you as the sole director/s , you can show your business' income as a proof of your own income.
Can some one validate this please ?
Yes he is right, you can use your business income in support of sponsorship application
Quote:
Originally posted by Fido
I was initially planning to make me and my spouse as salaried and then after deducting these expenses , calculate the tax liability of the Inc . Is there a site / book where all this information can be found ?
Though, the tax system has been devised in such a way that combined corporate and personal tax liability will be same regardless of the salary and dividend mix, perfect integration however doesnot always exist...To minimize total corporate and personal tax liability owner should consider the appropriate mix of salary and dividend... this perfect mix differs from person to person, and can be determined only after looking at the complete tax position of the individual and the company... following factors may be considered for instance:
- whether tax credits or losses are available to reduce corporate tax, in which case dividends may be preferable to salary..
- dividends when taken with other tax preference items, may result in alternate minimum tax (AMT). Sufficient salary/bonus may eliminate or reduce AMT
- Salary or bonus creates earned income necessary for RRSP contribution... while dividends do not..
- there is federal small business deduction available to CCPCs
- existence of payroll related expenses.. e.g. cpp and EI (though you dont pay EI on your salary if you own more than 40% of the company)..
and so on...
Fido, I will get back to you PM shortly...
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Vik
In addition to all the above suggestions
we have some of the cool tax saving stratagies.
We can discuss them privately - no obligation - free of charge
send me PM
exdubai
Can the Inc pay for employed director's vision / dental insurance ? I remember my ex company was paying for it . What other kinds of Insurance/s can the company expend on for the directors and submit them as biz expenses ?
How about well ness benefit . Like gym expenses and all . Again my ex company was paying wellness benefit to a cap of C$ 200 pa .
What are other expenses which can be admitted by CRA which though being an expense from the company can become a part of the director's benefit ......
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Fido.
