Tax Filing in Markham & Thornhill

TANgible Process for Tax Filing

TANgible Accounting helps our clients maximize their tax refund while staying within regulatory compliance.  We do that by searching for opportunities for tax savings, while providing guidance on avoiding common errors that can lead to significant tax liabilities.

Step 1:

Document Transfer

Courier or send your accounting information to our Accountants

Step 2:

Your TANgible Accountant

Your file is handled by our team of qualified CMAs, CPAs who specialize in taxes.

Our year-end bookkeeping services offer compilation of financial information.

Step 3:

Corporate & Business Tax Return Filed

Receive NTR (notice to reader), Financial Statements, E-file Tax returns, and more.

Our team of accountants and bookkeepers in Thornhill, Ontario can quickly bring your file up to date and assist with year-end preparation. Various tax services are available (*see below)

Tax Advisory Services are also available for small business owners interested in learning how to maximize allowable deductions.  We understand that not every client is the same, and tax planning must match your desired goals. Throughout the year, we communicate with our clients to align their business and personal goals, and design a realistic tax plan that allows them to minimize taxes while maintaining their personal standard of living.

* TAX SERVICES Include: Corporate Tax Returns / Business Tax Return (T2125) / E-filing / Notice to Reader / Personal Tax Return / Tax Planning / CRA Tax Audit

TAX PLANNING TIPS

A common question that arises from all business owners are: Should I take a salary or pay myself a dividend?

Each situation is different, and we look at the whole before answering that question. A corporation is a separate legal entity. To extract funds, you must either receive a dividend from the corporation or have it pay you a salary.

Detailed analysis is required to calculate the best mix of salary and dividends for your specific circumstances. The introduction of the eligible dividend regime has further added to the factors that must be considered in making this decision. There are now two tax rates that can apply to dividends, depending on whether they’re eligible or regular dividends. Speak to your TANgible Tax Accountant to receive details.

It should be noted that payment of a salary is deductible to your corporation, whereas dividends are paid from after-tax corporate profits.

Tax tip: Consider paying yourself a salary large enough to make maximum CPP and RRSP contributions.

Another common question from small business owners: When should I incorporate my business?

If you’re currently carrying on a business as a sole proprietor or in an unincorporated partnership, consider whether you should transfer your business to a corporation. It depends on your circumstances and the amount of income you earn. Your tax planner can calculate the numbers from a tax benefit perspective.

Business income earned as a sole proprietor or partner is subject to income tax at your personal marginal rates. However, if you operate your business as a corporation, income that qualifies for the small business deduction (ask us on whether you qualify) is taxed at a rate of 15% in Ontario.

Tax tip: The difference between your personal marginal tax rate and Corporation tax rate can be significant, which can be a deciding factor on incorporating your business. TANgible Tax Planner will advise you the advantages and disadvantages of Incorporation. We will also caution on the PSB (personal service business) rulings, and ensure that your business is NOT considered as “PSB.” We will discuss the problems with operating as a personal services business.

Testimonials

TANgible Accounting has been my trusted partner in Accounting and Tax with my sole proprietorship, which has now grown into a Corporation.  With their knowledge in tax planning and advisory services, I was able to save significantly in corporation tax.  With Samia’s exceptional analytical skills in understanding my business, we were able to work together in defining a corporate structure that minimizes taxes.

Mark V, Dark Vallena Studios Inc.