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Shareholder Remuneration Strategies
An effective remuneration strategy for owner-managers is vital. We minimize the combined corporate and personal tax payable so that shareholders can maximize their after-tax income. This involves a thorough review of available remuneration strategies, which often change from year to year as tax rates and circumstances change.
In particular, we review whether the business should limit its income to $200,000 or $300,000 and whether any investment income can give rise to tax refunds. We consider tax-effective ways to withdraw funds (such as through capital dividends or reduction of share capital). We evaluate the shareholder's tax position, taking into consideration marginal tax rates, AMT exposure, RRSP eligibility, and other factors.