What is a Deemed Dividend?
A deemed dividend is an amount the CRA treats as a dividend for tax purposes even though it was never formally declared, […]
What is a Corporate Reorganization?
A corporate reorganization is a restructuring of how a business is legally held or operated, changing the corporate structure, share classes, or […]
What is a Canadian-Controlled Private Corporation (CCPC)?
A CCPC is a private corporation incorporated in Canada that is not controlled by non-residents or public corporations, and the status unlocks […]
What is Capital Property?
Capital property is any asset held for investment or long-term use whose disposal produces a capital gain or loss rather than business […]
What is the Capital Dividend Account (CDA)?
The Capital Dividend Account is a notional CRA ledger that tracks amounts a private corporation can distribute to Canadian shareholders completely tax-free […]
What is Capital Cost Allowance (CCA)?
Capital Cost Allowance is the CRA’s system for deducting the cost of business assets over time, the tax equivalent of depreciation, applied […]
What is an Arm’s Length Transaction?
An arm’s length transaction is a deal between unrelated parties acting independently in their own interests, the standard the CRA uses to […]
What is Adjusted Cost Base (ACB)?
Adjusted cost base is the CRA’s measure of what was paid for a capital property, including acquisition costs and improvements, and it […]
What is Working Capital Management?
Working capital management is the active discipline of managing the timing of cash coming in and going out, to ensure the business […]
What is Working Capital?
Working capital is current assets minus current liabilities, the net short-term financial resources a business has available to fund its day-to-day operations. […]
What is Work in Progress (WIP)?
Work in progress is the value of work that has been started but not yet completed or billed, a balance sheet item […]
What is Trust Accounting?
Trust accounting is the strict segregation and tracking of client funds held in trust, a legal and regulatory requirement for lawyers, real […]