Understanding Dividends and Taxation in Canada
Understanding Dividends and Taxation in Canada Dividends are payments made by corporations to their shareholders, representing a share of the company’s profits. These distributions are taxed differently than regular income in Canada. The Canadian tax system uses an integration mechanism to ensure that income earned by a corporation and subsequently paid to shareholders as dividends […]
RDTOH, ERDTOH, and NERDTOH Explained
RDTOH, ERDTOH, and NERDTOH Explained: A Strategic Tax Guide for Canadian Companies In Canada, corporations are subject to a range of taxes that can impact their business decisions, profitability, and financial planning strategies. One such tax mechanism that is significant to both public and private corporations is the Refundable Dividend Tax on Hand (RDTOH) system. […]
Defining Bare Trust- Key Features and Benefits
Bare Trusts in Canada: in general, and in Canada. Introduction A bare trust is a simple yet effective vehicle for holding assets in Canada, offering a transparent and flexible approach to asset management. This article explores the functionality, characteristics, and general guidelines of bare trusts, along with their provisions under Canadian law. By understanding how […]
Deemed Disposition and Tax- Emigration- Leaving Canada
What is Deemed Disposition? Deemed disposition” refers to a tax concept where an individual or entity is considered to have disposed of an asset for tax purposes, even though the asset may not have been sold or transferred. This can trigger tax consequences, such as capital gains or losses, depending on the situations. It’s crucial […]
Introduction to Partnerships in Canada
As we all know Partnership is the involvement of two or more persons for the achievement of a common motive generally the profits from business. It may be made through the verbal or the written agreement. It may be for profit or not for profit. In general, the partnerships are written for the rights/duties of […]
Canadian Dental Care Plan
The Canadian Dental Care Plan(CCDP) is a federal government program to provide coverage for Canadian residents who do not have dental benefits. This program is in addition to the already run programs by any government and the benefits of those do not lapse. Benefits will be coordinated between the programs and no benefits will be […]
Foreign Assets Reporting
CRA wants every person holding foreign properties above specified value to submit each year information regarding the foreign assets and income earned on those assets with a view to plug tax evasion and tax avoidance. Each year a form needs to be filled through which CRA gets all the information about the foreign properties for […]
