It is also important to analyze the tax impact of your business decisions and ensure your private company is structured in a way that helps you efficiently manage taxes now and in the future. And, if your business is like most, you may also be seeking to reduce your federal and provincial corporate income and capital tax burden.
You can draw on the resources and knowledge of private company tax professionals who will keep you informed about changes that affect your private company. Working with professionals who bring valuable industry experience to your team can help you identify and address tax issues specific to your industry and sector.
With them, you can develop an approach to reducing your overall tax burden by, for instance, assessing the effectiveness of your business structures, planning the form of receipts and expenditures to achieve enhanced tax treatment, structuring acquisitions and dispositions tax-effectively, and identifying available tax opportunities.
Canada's complex, multi-layered, and continuously changing tax laws present a significant tax compliance challenge to private companies doing business in Canada. Your business could benefit from knowledgeable advice on the vast spectrum of tax concerns.
Companies ranging from growing owner-managed businesses to large private enterprises should satisfy their Canadian and where applicable, US and international tax reporting obligations efficiently and cost-effectively.
Meeting These Challenges
Fortunately, Canadian private businesses have many options to enhance their tax status and help lower their overall tax burdens. Our tax professionals work closely with you to examine all of your reporting requirements. This, in turn, can allow you to:
- Enhance your business' tax accounting methods and systems, whether you report under Canadian GAAP, IFRS, or other standards
- Enhance the benefits of tax deferral or expedite your expense claims
- Prepare tax and information returns, tax elections, estimates, ruling requests, voluntary disclosure requests, and other correspondence with federal and provincial tax authorities
- Respond to audit requests from federal and provincial tax authorities, and effectively manage a tax audit and related negotiations with the authorities.
You also have access to an international network of Tax professionals who can advise on any local tax requirements wherever your private company does business. As well, you can benefit from extensive industry experience to help you identify any tax issues specific to your sector."
As the owner-manager of a private company, another essential matter to address is compensation. You want your business to be a success and you should also draw an income. The question is, how do you determine what portion of the profits will form your salary?
As private company advisers, we can work with you to help determine and recommend an effective and tax-efficient approach to structuring your compensation. Strategies for doing this include deferring income to the next calendar year by accruing bonuses, enhancing capital dividend payments, or setting up a holding company. We can help you crunch the numbers to calculate a favourable salary/dividend mix and weigh the tax benefits of the various options open to you.
Working together, we can help you develop an appropriate compensation strategy for your circumstances.