Tax planning and tax returns in Toronto and North York

Tax work tied to the accounts

For most private companies, tax is not a separate project. It follows from the year-end financial statements, the way the owners are paid, and the decisions made during the year. Amir Rosenthal prepares the corporate return together with the year-end, then looks at the owners' personal position so the two fit together.

That approach suits incorporated businesses in Toronto and North York that have outgrown a bookkeeping-only arrangement and want one advisor who sees the whole picture.

Tax returns

• Corporate (T2) returns, prepared alongside year-end financial statements
• Personal returns for owners, spouses, and family members connected to the company
• Related elections and information forms that private companies are expected to file
• Responses to CRA review letters and requests for information

Returns are reviewed against the prior year and against what the owners actually did in the year, such as dividends paid, assets bought or sold, and loans to or from the company, so that the filing reflects the facts rather than just the trial balance.

Tax planning

Planning is most useful before a transaction, not after it. Common topics for owner-managers include:

• Salary versus dividends, and how much to leave in the company
• Holding company structures and moving funds between related companies
• Sharing the small business deduction among associated or related corporations
• Capital dividends, safe income, and other surplus questions
• Estate freezes and transferring a business to the next generation
• Tax structure on buying or selling a business, share versus asset

Some of these questions also need a supportable view of value, for example in a freeze or a transfer between family members. Because the practice includes business valuation by a CBV, the tax plan and the valuation can be done together. See also the family business office and estate freeze valuation.

Further reading: incorporating in Ontario: when it makes sense and Goudreau v. The King: estate freeze and valuation lessons.

Fixing what was missed

Private companies sometimes discover a late election, a missed information return, or a filing position that the CRA is now asking about. The work starts with the record: what was filed, when, and what relief is available. Where a penalty or interest is at issue, the options and their likely cost are set out plainly before anything is filed.

Who this is for

Owner-managed businesses, professionals with a corporation, family companies, and individuals whose affairs go beyond a simple return. Clients come from midtown Toronto, North York, and across the GTA. For local details see Toronto accountant and North York accountant. Research and development companies may also want to read about SR&ED and government incentives.