The Greenard Index

Do you dread preparing the accounting records for your corporate tax year end? We make the analysis of the investment component as painless as possible. Getting ready for your corporation’s year-end involves many moving parts.

Over half of the corporations we work with have a shareholder situation that is relatively straightforward — either a sole shareholder or jointly owned with their significant other.

As a portfolio manager, our No. 1 objective is to help our clients achieve their goals — both financial, such as a desired level of income in retirement, and non-financial, such as making a charitable impact.

In my introductory accounting textbooks, it talks about how a corporation can not die. It also mentions that all corporations have one or more voting shareholders. The voting shareholder(s) appoint one or more directors to oversee the corporation.

Corporations have a notional account that is referred to as the Refundable Dividend Tax On Hand (RDTOH) — in fact, as of 2019 corporations have two of these notional accounts.

In Canada there are two types of dividends: “non-eligible dividends” and “eligible dividends.” Eligible dividends are subject to a larger “gross-up” than non-eligible dividends, but as a result, they are eligible for a larger dividend tax credit.

Our professional clients and business owners who are incorporated (combined we will refer to both as “business owners”) must juggle a few different balls when it comes to determining corporate versus personal taxation, and the overall combined tax ef

When a corporation is set up for an active business, it is typically referred to as an operating company. Once our clients have retired from the active business, the operating company is often sold, closed, or converted to a holding company.

Dentists, doctors, lawyers, accountants and other professionals have the option to incorporate. These corporations are often referred to as professional corporations (PC).

Taxation for corporations is different from taxation for individuals. Our corporate clients can take advantage of many things: tax deferral, income splitting possibilities, tax-efficient dividend payments, etc.