Accounting + Tax

How Canada’s SR&ED Should Affect Your Startup’s Tax Planning

by

by Rob Farrow, SBA (www.suttoninnovation.com) As an SR&ED tax specialist working with micro-businesses doing eligible experimental development, I have noticed a tendency among practitioners at small and medium-sized CPA firms to rely on traditional income-versus-dividend analyses for tax planning. However, because eligible salaries for development teams can typically result in refundable investment tax credits of … Read more

Eligible Dividends and the Small Business Deduction

by

EXAMPLE: Taxpayer with total income before dividends of approximately $30,000Actual Taxes Payable with Eligible Dividends of $300,000 The tax rate on eligible dividends is much lower than the rate on “other than eligible dividends” (see table below). However, there must be sufficient “general rate income pool” (GRIP) to pay eligible dividends from. Dividends  Income Tax … Read more