Tax Planning
Evaluate compensation, deductions, corporate structure and upcoming transactions before decisions become irreversible.
Tax planning is what you decide before a year end or a transaction, not what gets reported after it. Compensation mix, corporate structure, the timing of a disposition and the use of registered accounts are the levers, and most of them close once the year has ended.
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Key facts
| Corporate planning window | Before fiscal year end — most corporate levers close at that date |
|---|---|
| Personal planning window | December 31, except RRSP contributions which run 60 days into the new year |
| Compensation | Salary builds RRSP room and QPP; dividends avoid payroll but build neither |
| Split income | Dividends to related persons face the top rate unless an exclusion applies |
| Authorities | Canada Revenue Agency and Revenu Québec |
Tax planning is about the decisions you make before year-end, not after. A&S Financials helps individuals and business owners structure compensation, time transactions, and organize their affairs to reduce tax within the rules of the CRA and Revenu Québec. We look at the full picture — salary versus dividends, incorporation, investment income, and major purchases or sales — so you can act with confidence and no surprises at filing time.
Book a consultationWhat we offer
- Salary, dividend and bonus planning
- Incorporation and corporate structure review
- Timing of income, purchases and dispositions
- Investment and capital-gains planning
- Family income-splitting where available
- Year-round proactive tax reviews
The levers close at year end
A corporate year end fixes almost everything: the salary-versus-dividend mix for the year, whether a bonus is accrued, how much CCA to claim, whether a shareholder loan was cleared, and whether the corporation stayed inside the small business limit. After that date the return simply reports what happened. This is why a conversation in the last quarter of the fiscal year is worth more than one in the following spring, and why we schedule planning work around year ends rather than around filing deadlines. Personal planning mostly runs to December 31 — capital loss harvesting, charitable donations, medical expense claim periods — with RRSP contributions the notable exception, deductible against the prior year if made within 60 days of the year end.
Deferral is worth more than it looks, and less than people assume
The Canadian system is built around integration: earning income through a corporation and paying it out should produce roughly the same total tax as earning it personally. The real benefit of a corporation is therefore deferral, not rate arbitrage — tax is lower while the money stays in, and the balance is paid when it comes out. That makes the value entirely dependent on how much is retained. A corporation that distributes everything each year captures very little; one that retains and reinvests captures a great deal, compounding at the corporate rate. It also means the plan changes when the business changes. Growing retained earnings eventually bring passive income into play, which grinds down the small business limit and can make a holding company the next step.
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Frequently asked questions
When should we do planning work?
Can I still split income with my family?
Is a holding company worth it?
Do you publish your fees?
Can planning reduce tax on a business sale?
Speak with a Montréal CPA
Contact us to discuss your accounting and tax needs — in the language you prefer.