Business Finance Terms, Explained Simply.

Learn more about common financial terms here.
Need more help? Our team is ready.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

What is Undepreciated Capital Cost (UCC)?

Undepreciated capital cost is the remaining tax value of a depreciable asset after CCA deductions have been claimed, the balance....

What is Tax Planning?

Tax planning is the proactive structuring of business and personal affairs to minimize tax owed within the law, the difference....

What is Tax on Split Income (TOSI)?

TOSI is a set of rules that applies the highest personal marginal tax rate to certain income received by family....

What is Tax Deferral?

Tax deferral is the strategy of delaying when tax becomes payable, allowing money to remain in a corporation or a....

What is a T2 Corporate Tax Return?

The T2 is the annual corporate income tax return that Canadian corporations must generally file with the CRA, regardless of....

What is the Small Business Deduction (SBD)?

The Small Business Deduction is a federal tax reduction that lowers the corporate tax rate on active business income for....

What is a Shareholder Loan?

A shareholder loan is money borrowed from or lent to a corporation, and the CRA monitors it closely to ensure....

What is a Section 85 rollover?

A Section 85 rollover is a provision of the Income Tax Act that allows eligible property to be transferred to....

What is Scientific Research and Experimental Development (SR&ED)?

SR&ED is the CRA’s tax incentive program that provides credits and deductions for eligible research and development expenditures, one of....

What is the difference between salary and dividends?

Salary is employment income paid to the owner-employee and is deductible to the corporation; dividends are distributions of after-tax corporate....

What is a Qualified Small Business Corporation (QSBC)?

A QSBC is a Canadian-Controlled Private Corporation that meets specific CRA tests at the time of a share sale, and....

What is a Prescribed Rate Loan?

A prescribed rate loan is a loan from a higher-income spouse or family member to a lower-income one at the....