This seminar provides you with a working knowledge of the tax effects of the use of salary and dividends as compensation to owner-managed business from both the shareholder and corporate perspective. The course will look at inter-corporate transactions for small businesses including management fees, rent, and intercompany loans. Case study examples are used to illustrate a variety of situations from both perspectives so that practitioners can obtain a working knowledge to make appropriate calculations and understand the considerations that should be made in assisting clients with tax planning.

• describe the tax rates applied to and the flow-through costs with respect to each of salary and dividends from both a corporate and a shareholder perspective
• apply relevant taxation principles to assist clients in understanding the best mix of salary and dividends for their individual situation
• calculate the tax effects of salary vs dividend distributions to both corporations and shareholders
• describe the different types of dividends available to corporations and different timings available for payment / accrual of salary payments
• describe additional transactions including profit sharing, rent and management fees
• describe the use of shareholder loans and taxation impacts to the owner-manager
• describe how to use intercompany transactions to effectively plan transactions among small businesses corporations

• definitions, types and important facts about salary and dividends
• taxation rates and payroll considerations from the shareholder perspective
• taxation rates and payroll considerations from the corporate perspective
• transactions involving shareholder loan accounts, rental income and expenses, management fees and intercompany transactions
• case law - CRA rulings relevant to owner-managers
• case studies looking at situations for single shareholder, married shareholders, unrelated shareholders and a variety of shareholder goals (tax goals such as RRSPs, childcare, etc and personal goals such as obtaining lending)
• case Studies looking at situations for both CCPC and non-CCPC corporations and the effect on dividend types / tax effects
• take-away summary of concepts

Course Content Created: January 2025

Presenter

About This Product

On-Demand Courses by CPA PRO are either video recordings from live seminars, or video recordings produced specifically for the on-demand audience. Slides and any corresponding handout materials are included where available.These titles are eligible for Verifiable CPD Hours – in order to claim these hours as verifiable, you will be required to successfully complete a short quiz. You will be able to print or save your electronic certificate of completion.

Note that some courses comprise both formal instruction and self-directed exercises. In such cases, participants must complete both components to claim full CPD hours, or must reduce their reported CPD hours accordingly.

Please note that not all on-demand courses include downloadable materials such as course notes or slides.

How to get started

Upon completion of purchase, go to mylms.bccpa.ca and log in using your CPABC Online Services credentials. Click “Go to your Courses and Materials” to go to your Learning Center, then find and click on your course title.