Canadian Income Taxes

Ivan can assist in complying and preparing corporate, trust and personal income tax returns. In Canada, income taxes are generally applied at the federal and provincial levels, with some exceptions. Income taxes vary by province, type of company, type of income, and income level. Tax credits too, vary by province, industry, region and specific situations of each taxpayer.  In most provinces, only one income tax return is filed annually for both the federal and provincial taxation authorities. In Quebec, income tax returns must be filed at the federal and provincial levels.

Ivan also offers assistance to companies in optimizing their small business deduction which is available to Canadian Controlled Private Corporations (“CCPC”). CCPC’s tax rates vary by province, and are typically significantly lower than other taxable corporations in Canada.

Every corporation that does business in Canada (including foreign entities and not-for-profit organizations) must file an annual income tax return. Various tax credits are available to corporations and vary by province. Some of the more common credits include:

  • SR & ED
  • Multimedia
  • Manufacturing and Processing
  • Design
  • Designated Regional Tax Credits

Farming and super capital gains deductions are available to farmers and CCPC shareholders respectively; if applied correctly, these deductions can be multiplied with various family members.

Personal income taxes can vary significantly between provinces and income levels, the differences in top marginal tax rates between provinces can be as high as 11%. Ivan can assist individuals in reducing their income tax burden by determining if tax credits are available to them, such as:

  • Dependent
  • Disability
  • Equivalent to dependent
  • Caregiver
  • Medical
  • Donation
  • Age
  • Tuition and education
  • Spouse
  • Pension
  • Investment

Identifying deductions such as child care, business, exploration and development, disability, carrying charges, and RRSP can assist tax payers in reducing their overall income tax burden.

Trusts, depending on their nature, usually have to file annual income tax returns. Rules can be complex on available deductions, credits and how taxes payable are calculated. Ivan can assist taxpayers in identifying if trusts can be used as a medium to reduce or split income taxes and the common pitfalls associated with creating trusts.