Nobody likes to pay too much tax. Luckily, there are a
number of tax-saving measures that can help with just
that—both for businesses and individuals. But, in order to
capitalize on these opportunities, now's the time to review
your 2016 tax situation to see if any apply to you.
Salary, bonus or dividends? What's the right compensation
strategy for you?
If you're the owner-manager of a closely held
Canadian-controlled private corporation (CCPC), you should consider
the mix of salary, bonus and dividends in your compensation
package. A bonus is often preferred over salary, since the payment
can be deferred until after the company's year-end. Salary and
bonus are both considered earned income which is used to calculate
your RRSP contribution limit for the subsequent year. For 2016, you
will need earned income of $144,500 to make the maximum RRSP
contribution for the 2017 tax year of $26,010.
