Business Finance Terms, Explained Simply.
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A prescribed rate loan is a loan from a higher-income spouse or family member to a lower-income one at the....
A personal services business is a corporation the CRA treats as a disguised employment relationship, typically an incorporated contractor providing....
Term life insurance provides coverage for a fixed period at a lower premium; permanent life insurance provides lifetime coverage and....
Passive income is investment income earned inside a corporation, interest, rental income, and taxable capital gains, that does not qualify....
Owner compensation planning is the deliberate design of how income is extracted from a corporation, balancing salary, dividends, and other....
A non-arm’s length transaction is a deal between related parties, family members, a shareholder and a corporation, or entities under....
The LCGE is a federal exemption that allows eligible Canadian business owners to shelter a significant portion of capital gains....
Instalment penalties are interest charges the CRA imposes when required tax instalments are paid late, short, or not at all,....
Income splitting is the practice of directing corporate income to family members in lower tax brackets to reduce the household’s....
HST and GST are consumption taxes collected by businesses on behalf of the CRA; input tax credits allow recovery of....
Home office expenses are the portion of household costs, rent, utilities, internet, and maintenance, that an incorporated business owner can....
An OpCo is the operating company that runs a business; a HoldCo is a separate corporation that sits above it,....