- Canadian Tax Resource Blog - http://blog.taxresource.ca -

Beware of Year-End Tax Deadlines For Corporations

Over the next few weeks, I will publish a series of year-end tax planning that build on the 2009 Year End Tax Planning Strategies [1] article posted November 19th. Here is a list all of the year-end tax planning articles [2].

Corporations should be aware of the following deadlines:

Also note that a corporation may chose a year-end other than December 31st when they are established.

* A Canadian Controlled Private Corporation (CCPC) that has active business income (as opposed to investment income) benefits from a much lower federal tax rate on the first $500,000 of taxable income and may provinces have similar reductions. For 2009, the rate of federal tax on active business income is 11% whereas the federal rate on income above the limit is 19% and the rate on investment income is 34.67%. Therefore, a CCPC that has taxable income over $500,000 may benefit by issuing a bonus to the owners when income exceeds $500,000 to avoid potential double taxation.

[4]