What is a Fiscal Year?
A fiscal year is the 12-month accounting period a corporation uses for financial reporting and tax purposes, and it does not have […]
What is a Family Trust?
A family trust is a discretionary trust that holds assets, often shares of a private corporation, on behalf of family members, enabling […]
What is Estate Planning?
Estate planning is the process of structuring personal and corporate affairs so that wealth transfers to the right people, in the right […]
What is an Estate Freeze?
An estate freeze locks in the current value of an owner’s assets and transfers future growth to the next generation or a […]
What is the difference between Eligible and Non-Eligible Dividends?
Eligible dividends are paid from income taxed at the general corporate rate and receive a higher gross-up and personal tax credit; non-eligible […]
What is a Dividend Refund?
A dividend refund returns a portion of the tax a private corporation paid on investment income when it pays taxable dividends to […]
What is Depreciable Property?
Depreciable property is a business asset whose cost is written off over time through Capital Cost Allowance, because its useful life extends […]
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 […]