What is tax?
Tax is a fee levied by Federal or Provincial Governments on business or individuals. The Canadian tax system is administered by the Canada Revenue Agency (CRA). Its mandate is to administer and enforce the tax laws.
Without proper tax planning and knowledge of the myriad of tax laws, not only can you miss the opportunity to lower the tax payable to CRA, but you may be subject to reassessments and additional tax and penalties.
Corporate tax planning
Corporations are subject to tax; however, nobody wants to pay more than they should. Through tax planning, your tax bill can often be greatly reduced within the legal limits. Taking advantage of government tax incentives such as Research and Development, tax elections and regulations may better position your company for future growth.
Personal tax planning
Whether you have a family trust in place or you receive dividends or a salary, you want to make sure your personal tax is as low as possible within the legal limits. A starting point would be to understand your overall financial affairs and identify strategies that help you work towards achieving your goals.
Whether you want to pass the business to the next generation or sell it to a third party, you need to understand your tax options so you can choose the right exit strategy that makes sense for you and your family. Without a proper tax plan in place you could miss significant tax opportunities. It's never too early for succession tax planning!
Estate tax planning helps to minimize the erosion of asset values at the date of death, through deferring tax on the growth in estate value to the next generation. You need to plan for tomorrow, today!