Frequently Asked Questions

To complete the authorization, you will need to

1. Log-on to your business account https://www.canada.ca/en/revenue-agency/services/e-services/e-services-businesses/business-account.html
2. In case you have several businesses linked to your account, select “name of company”  Business number 123456789
3. Go to profile
4. Go to Authorize representative
5. You will need our info as below

Firm BN: 860358035

Firm Name: Applebaum Commisso LLP

Authorization Level: 02

Details of program accounts: All programs and accounts

Expiration date: Do not set expiration date

Please see below links in case you need to register for my business accounts with CRA

https://www.canada.ca/en/revenue-agency/news/cra-multimedia-library/businesses-video-gallery/register-mybusiness-account.html

If your corporate federal tax liability exceeded $3,500 in the previous year, you will be required to make installment payments. These installments may be due either monthly or quarterly, depending on your eligibility. Detailed information regarding corporate tax installments will be provided in the year-end package that you will sign.

The most efficient way to manage corporate installment payments is by setting them up through your corporate online banking account. These payments are processed through a dedicated module, usually labeled "Pay Corporate Taxes," which is distinct from the general bill payment module you may be accustomed to. Please contact us to ensure this setup is completed correctly, including the accurate entry of your business number. Additionally, you can schedule future payments to avoid the need for monthly or quarterly reminders.

This is a complex issue, as it depends on individual circumstances and the company's tax situation. Generally, it is not advisable to pay a salary from a company that is already operating at a loss. However, if you need funds for living expenses and wish to contribute to an RRSP for retirement savings, paying a salary can be beneficial as it increases your RRSP contribution room. With the recent changes to the capital gains tax rate for corporations (effective July 2024), maximizing RRSP savings by increasing your salary is more advantageous than ever. Once your RRSP room is maximized, it is often wise to avoid withdrawing additional funds from the corporation, as this can defer significant personal tax liabilities. Consider using a holding company to manage the accumulation of funds. Please consult with a member of our team to discuss your specific tax situation in detail.

The answer depends on several factors, including:

1. Do you primarily drive to your office, or do you also visit clients or potential clients?
2. Is the car used for business purposes more than 50% of the time?
3. What is the fair market value of the car?

These considerations can significantly impact the tax implications for both the company and you personally. Therefore, it is essential to consult with a member of our team before making a final decision. Generally, if you cannot justify more than 50% business use (excluding commuting to work), it may not be advantageous to allocate the car to the company. However, you can still claim car expenses on your personal tax return as an employee, provided you earn a salary.

This is another situation where the answer depends on various factors. Many people incorporate for the wrong reasons. Typically, individuals incorporate to benefit from the lower small business tax rate—11.2% on the first $500,000 and 26.5% above that. However, this tax advantage only holds if the money remains in the company for retirement savings or business reinvestment. If you withdraw every dollar from the company, the tax benefits of incorporation are entirely negated.

Another common reason for incorporation is to limit personal liability. To ensure you make the right decision, please contact us for guidance.

Although life insurance premiums are not tax-deductible, it is still advantageous to hold life insurance within a corporation, as you can pay the premiums using pre-tax dollars.

Note: Ensure that the corporation is designated as the beneficiary of the policy for this benefit to apply. Upon the policyholder's death, the proceeds can be distributed from the corporation mostly tax-free through the capital dividend account.