Owner-managers can receive remuneration in a number of ways. The most common is by way of salary or dividends. Other less obvious methods include:

  • Management fees
  • Bonuses
  • Loans from the corporation
  • Use of automobile
  • Entertainment and club dues
  • Death benefits
  • Retirement allowances
  • Deferred income plans
  • Health benefits

Recent changes to corporate and personal tax rates have made it more enticing for leaving funds in a corporation. However, this must be balanced against the cash needs and other personal financial plans of the owner-managers and their families.

We take a broad approach in formulating the remuneration strategies for owner-managers, taking into consideration multiple factors such as corporate and personal tax rates and implications for various forms of remuneration, alternative minimum tax, retirement planning, income splitting opportunities and the capital gain exemption.

Contact us or book an appointment to find out how we can help you. We are also accessible via our E-Service.

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