RDTOH and Passive Investment Income in a CCPC, With Numbers
What RDTOH Is and Why Your Corporation Has One If your corporation holds investments, you have probably seen your accountant mention RDTOH and moved on. It is worth ten minutes, because it explains why your corporation pays a punishing rate on investment income and how you get most of it back. Refundable dividend tax on […]
Capital Dividend Account: How to Pay Yourself Tax Free Dividends
What a Capital Dividend Account Is, and Which Corporations Have One There is one way to take money out of your corporation without paying a cent of personal tax on it, and most owners either do not know it exists or find out about it years too late. It is called the capital dividend account. […]
Asset Sale vs Share Sale in Canada: Which Is Better When You Sell?
Asset Sale vs Share Sale: The Short Answer for Sellers and Buyers You have an offer for your business. Then the buyer’s lawyer says they want to buy the assets, not the shares, and your accountant goes quiet. That one word changes your after tax proceeds by a lot, sometimes by hundreds of thousands of […]
Cross Border Tax Accountant: When a Canadian Only CPA Isn’t Enough
Do You Need a Cross Border Tax Accountant? A Quick Checklist Most Canadian accountants are excellent at Canadian tax. The trouble starts when your situation touches the United States, because the two systems do not talk to each other and the penalties for missing a form are far larger than the tax itself. The pattern […]
Fractional CFO in Canada: What It Costs and When You Need One
What a Fractional CFO Does, and What It Costs in Canada You have a bookkeeper. Your accountant does the year end. And yet nobody in your business can tell you whether you can afford to hire two people next quarter, or why cash keeps disappearing in a profitable year. That gap is what a fractional […]
Notice to Reader vs Review vs Audit: Which Does Your Bank Want?
Which Financial Statement Do You Need? The Short Answer Your accountant just asked whether you want a compilation, a review, or an audit for this year end. Your bank sent a letter asking for “financial statements.” Nobody explained the difference, and the price gap between the three is thousands of dollars. Here is the plain […]
The GST/HST Quick Method: Will It Save You Money in BC?
Should You Use the Quick Method? The 30 Second Test If you are a consultant, contractor or small service business in BC collecting GST, there is a good chance you are remitting more than you need to. The Quick Method is a CRA election that lets you keep part of the tax you collect, and […]
Section 85 Rollover: Moving Assets Into Your Corporation Tax Free
What a Section 85 Rollover Does, in One Paragraph You have been running a business as a sole proprietor for six years. It is worth $300,000 now, most of that goodwill you built yourself. Incorporating sounds sensible until someone points out that transferring the business to a corporation is a sale at fair market value, […]
Corporate Minute Book in BC: What Belongs Inside and What It Costs
What a Corporate Minute Book Is and Why BC Law Requires One Most BC business owners meet their minute book twice. Once when the lawyer hands it over at incorporation, and once when a buyer’s lawyer asks for it and discovers nothing has been filed in nine years. The second meeting is the expensive one. […]
CRA Mileage Rate 2026 and the Logbook That Survives an Audit
The 2026 CRA Per Kilometre Rates Two things go wrong with vehicle claims in Canada. People use the wrong rate, and people cannot prove their kilometres when CRA asks. The first costs a bit of money. The second can wipe out the entire claim. For 2026 the reasonable per kilometre rates are 73 cents for […]