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 the CRA […]
What is Tax Planning?
Tax planning is the proactive structuring of business and personal affairs to minimize tax owed within the law, the difference between paying […]
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 members from […]
What is Tax Deferral?
Tax deferral is the strategy of delaying when tax becomes payable, allowing money to remain in a corporation or a tax-sheltered structure […]
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 whether the […]
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 Canadian-Controlled Private […]
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 it is […]
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 a corporation […]
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 the most […]
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 profit to […]
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 qualifying is […]
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 CRA’s published […]