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Tax Planning

You work hard for your money. We work hard so you can keep it.

Tax planning involves structuring your affairs to reduce your tax obligations to the CRA. There are many ways to reduce your taxes, such as incorporating a business, making contributions to a registered charity of your choice, or contributing to your RRSP or TFSA accounts. These ‘vanilla’ tax planning measures may not be enough. At Kalfa Law, we take you beyond vanilla and into advanced corporate tax planning measures that can significantly reduce your overall tax burden to the CRA.

Advanced Tax Planning

Advanced tax planning engages the use of income splitting, salary deferral, and loans and corporate structures that may involve several holding companies, operating companies, and family trusts.

It involves establishing a tax plan to enable you and your children to take advantage of the Lifetime Capital Gains Exemption (LCGE) on the disposition of Qualified Small Business Shares, allowing you to shelter up to $835,000 in taxes over the course of your lifetime. At Kalfa Law, we can determine whether a family trust may be right for you, multiplying the LCGE across all of your children.

Where necessary, we incorporate a holding company and draw up intercorporate dividends, which will allow you to invest your funds in a corporation and earn far more on your investment than you would personally while still within the new passive income threshold rules of $50,000. Where excess investment income is garnered, we coordinate life insurance to extract the trapped income from the balance sheet of the corporation.

Income Splitting Still Available

Recently, the federal government proposed changes to the rules of income splitting through dividend sprinkling in Canada. Despite what you may have heard, these measures have not eradicated all possibilities for income splitting. We have in depth knowledge of the new income splitting rules effective January 1, 2018. We know how to navigate the new rules so as to continue to take advantage of income splitting opportunities between you and your spouse and family.

With years of experience in corporate and tax law, Kalfa Law is your premier partner for your advanced tax planning needs.

If you own your own business, you can save on taxes. There’s plenty structuring that we can do.

Pay too much tax? We’re Here to Help™

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