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Understand CRA Interest and Penalties in a High-Interest Rate Environment

For years, corporate taxpayers paid very little attention to the bottom part of their annual corporate tax assessment notices.  That bottom part summed up late installment charges that are included in the final tax bill.  For years, installment interest charges hovered around 5% annualized so forgetting an installment or not paying the final balance owing on time had no material

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Higher Taxes All Around, More Tax Planning Opportunities All Around

Before the 2024 Federal Budget, all capital gains, earned personally or in a corporation taxed the same – 50 percent inclusion rate.  Post 2024 Federal Budget, all capital gains earned in a corporation taxed at an inclusion rate of 66.67 percent.  Capital gains earned personally is taxed at 50 percent inclusion rate for the first $250K and then increases to

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Corporate Investments – Post 2024 Budget

Capital gain planning for Canadian private corporations and their shareholders has become a more taxing math exercise post 2024 federal budget. There is plenty to consider given that capital gains earned in a corporation will have an inclusion rate of 66.67 percent versus the 50 percent inclusion rate for individuals. However, at the personal level, only the first $250K of

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