How do I pay myself out of my corporation?

This question is asked by clients of accountants every year, particularly in January and February as annual filings and slips are prepared. The short answer is: it depends! It’s all in the “details,” especially if paying less tax is the ultimate objective – which is almost always the case.

Further to an initial session that focused on the “fundamentals” of shareholder compensation, this advanced session will look at additional considerations of greater complexity relevant to paying compensation to a shareholder. 

Topics covered include:

• Payment of Salaries and Bonuses
• Payment of Dividends
• Tax on Split Income (“TOSI”) Implications
• Dividends on Preferred or Special Shares
• Wasting Freeze Strategy
• Dividends to Trusts and Beneficiaries
• Case Study: TOSI Planning Strategies

Important note from the author: This course is a continuation of the course entitled “Tax-Efficient Shareholder Compensation – The Fundamentals” by Alex Garber. It is strongly recommended to take that course first, and this course second. Various content (including a case study) introduced in the initial course is further examined in this course.