Did you incorporate your business?
Understanding shareholders, withdrawals and contributions
What can shareholders do for reduce taxes payable?
Bonus Accrual
A bonus of [amount] was accrued. The bonus is deductible from the corporation’s current year income on the basis it is paid to the [employees’/shareholders’] within 180 days from the corporation’s year end by taking the applicable deductions for CPP and EI premiums and remit the dedcuts by the due date
Dividends
The following dividends were paid to shareholders during the taxation year, helps reporting income on person tax returns.
Does the dividends have a refundable portion on Part I, III or IV taxes payable? how to reduces corporate taxes.
What are your record keeping requirements? Here is the link record keeping
What are CRA payment guidelines? CRA make a payment guidelines:
Shareholder Loan Balance
The following shareholder loan balance needs to be repaid within one year after the corporation’s fiscal year end to avoid negative tax consequences:
Capital Dividend Account
The capital dividend account (CDA) tracks amounts that can be paid to shareholders tax free. As at [year end] the corporation has an estimated CDA balance of [amount]. Since the CDA is a running balance, it may have changed since the corporation’s year end. As such, please contact us if you would like us to determine the corporation’s current CDA balance from which it can pay a tax-free capital dividend. In addition to the calculation, an election must be filed with CRA along with other prescribed documentation. Please contact us if you would like to pay a capital dividend or discuss the process in further detail.
Other information about corporations?
CRA T1134 Information Return Relating to Controlled and Not-Controlled Foreign Affiliates forms page:
www.canada.ca/en/revenue-agency/services/forms-publications/forms/t1134.html
CRA T1135 Foreign Income Verification Statement forms page:
According to the information you provided, the Company held foreign property in [fiscal year] with a total cost of more than $100,000 CAD. Upon completion of your review of Form T1135, please sign the certification section of the form and send back to us so we can electronically file the form on your behalf. Failure to file this form could result in significant penalties.
We are looking forward in hearing from you, if you would like more information about our pricing for bookkeeping, payroll or corporate taxes please contact us
Summary
What are shareholders payments?
dividends, salary, bonus can be other options
Depend on ability to make the payroll taxes on salary or bonus if you are having investment income or receiving dividends
These are a fee tips for your view, any questions please contact us