This comprehensive course provides an in-depth understanding of tax planning for small businesses, with a focus on optimizing tax efficiency. It covers the challenges faced by small business owners when determining business vs personal expenses and assets, and strategies for tracking automobile expenses, dealing with taxable benefits, and shareholder benefits and loan issues.

The course begins by discussing the different types of income, including active business, investment, and employment, and how to calculate active business income. It explores the advantages of active business income for Canadian-controlled private corporations and the criteria for the small business deduction, which causes reduced taxes payable.

To optimize tax efficiency, the course covers key considerations for taxation of active business income, including deductible business expenses such as home office expenses, travel expenses, entertainment expenses, and vehicle costs. It also highlights the criteria that must be followed to ensure that these expenses qualify for deductions and how professionals can help their clients track and deduct eligible business expenses.

Furthermore, the course explains the differences in tax obligations between employees and contractors and the responsibilities of corporations in paying salary, net of payroll deductions, and remitting them to CRA. It also explores strategies for minimizing tax liability on investment income, including capital gains, non-capital losses, and shareholder loans.

The course also covers the common challenges faced in advising clients on expenses and assets, including the nuances in criteria to consider when advising on expenses and assets, maintaining proper documentation and support to track financial performance, and balancing business operations and organizing records.

By the end of this course, students will have the skills and knowledge necessary to plan and manage small business taxes effectively.

This course will be relevant to small business owners, accountants, bookkeepers, and tax professionals who want to optimize tax efficiency for themselves and their clients.