Corporate Business Tax Strategy that Works

As a business, you want to always minimize, legally, the amount of tax you have to pay.  You know how many expenses you already carry; you know how expensive everything is, including:

• Wages
• Rent
• Equipment and supplies
• Etc. etc.

Many of these expenses are fixed – you know the monthly or weekly burden.  Some of your expenses are variable; they depend on various factors.  Your taxes are, generally speaking, a fixed expense – you have to pay them, regularly and on time – but you should always be mindful that you should never overpay the government, and that there are ways to lower your tax burden, and they are 100% legal.  

Let’s go into some detail about our corporate tax planning strategy that can help a business not only control its tax commitments, but also ensures they are as low as possible.  Read on.

Corporate Tax Planning and Strategy

We help businesses all over Toronto and surrounding areas develop their own personalized corporate tax planning strategy.  We sit down with business owners, CEOs, CFOs, and General Managers to determine the best course of action, tax-wise, for their business, and identify areas where there may be tax savings and tax deductions or credit which could significantly benefit them.  Some of the areas we look at include:

Tax deductions – whether you ownyours is a small business, a medium-sized business, or a large business corporation, there are tax deductions within the Canada Revenue Agency (CRA) tax codes which can and should be taken advantage of for maximum benefit.  We sit down with business owners all the time to identify and take advantage of all tax deductions and credits which apply.  It can really add up, and contribute to lowering your corporate taxes.

Keep track of all receipts – this seems so simple, but it’s surprising how many business owners and their bookkeepers have difficulty with it.  Part of our corporate tax planning strategy includes diligently keeping track of all receipts and applying them as business deductions wherever possible for tax purposes.  There are likely items you can claim to lower your business tax burden – but you need the original receipts.  CRA does not accept credit card statements as a tax receipt.

Proactive analysis of your business taxes – over and above the obvious things a business owner can do, we assist by taking a “deep dive” into your return, and identifying areas which may be eligible for reduced taxes.  There are many potential areas your business can use to lower taxes, such as:

• Home office expenses
• Health insurance premiums you’re business pays
• Travel and auto-related expenditures
• Marketing expenses for your business
• Government programs, such as R&D credits
• Etc.

The Bottom Line – Creating a Corporate Tax Strategy the Works

The main takeaway is that, because the tax code is complex and wide reaching, you need to probe every possible opportunity for lowering your corporation’s tax burden, and taking advantage of everything that is legally available to your business.  It takes expertise and time – which you may not possess in-house.  That’s why partnering with a skilled accounting firm, well versed in the CRA, Canadian and Ontario tax laws, and all accounting procedures and requirements, can provide a deeper insight towards be such a help in developing an effective corporate business tax strategy.

We would be pleased to hear from you! Contact us with any questions or comments you may have.