Owner-Manager Compensation (Incorp)

when do you get a tax deferral benefit from incorporating

if corporate tax rate < personal

what is the one limitation related to the amount when paying a salary

must be reasonable

what is the rule regarding unpaid renumeration

must be paid within 180 days after year end and a liability

what are two characteristics of cash salary payments

taxable at graduated ptc, deductible to corp

what are 3 characteristics of dividend payment as salary

non eligible divs 15% gross up/dtc, eligible divs 38% gross up/dtc, no deduction to corp

what 3 things can tosi apply to

taxable dividends from private corp, amount in respect of a debt obligation of a private corp, TCG/profit from disposition of share/debt of a priv corp

what are the 2 tax credits available against tosi

dividend, disability

explain how tosi works (2 points)

deducted from taxable income, top MR on split income added to part 1 tax

if someone is a minor, when is TOSI excluded

if split income on property acquired from death of parent or anyone if enrolled as FT student and eligible for disability credit

if your spouse is over 65 years old when is TOSI excluded

if amount would have been an excluded amount to the spouse

if someone is aged 18-24 what are the 4 circumstances when tosi is excluded

safe harbour return, reasonable return on contributions of arms length capital, not derived from related business, excluded business exception

if someone is aged >25 what are the 4 circumstances when tosi is excluded

not derived from related business, excluded business exception, reasonable return, excluded shares