T2 Tax Planning for Professional Practices

Tax Planning

By: Larry Frostiak

PROGRAM: Business Services Specialist

WHY IS THIS COURSE ESPECIALLY TIMELY?

It is a time of great change in the incorporated professional services, from a demographic point of view, as more professionals plan their retirement/succession. In addition, Finance Canada has changed many rules around the taxation of incorporated small to medium sized businesses.  Furthermore, on July 18, 2017, Finance Minister Bill Morneau released a series of tax proposals which, if enacted, will have severe repercussions on Canadian private companies and their shareholders.  These may well be the most significant changes to how small business are taxed since 1972.  Strategies that have been used by business owners and their advisors, for decades, may no longer be valid.  Regardless of your political affiliation, advisors need to be aware of these proposed changes and understand what impact they will have on their clients. This course will highlight those rules and frame proper planning and compliance issues for busy professional tax and financial advisors charged with assisting these businesses.

CONTENT DESCRIPTION AND KEY BENEFITS:

The student will demonstrate the following competencies:

1. How does tax compliance differ for micro vs small to medium sized businesses?
2. Optimal Structures:  employee, commissioned, self-employed, incorporated
3. Shareholder matters for small to medium sized businesses and overall corporate/shareholder tax planning and a review of corporate structures
4. Variations:  incorporation rules for various types of professionals
5. Tax efficiencies:  income splitting, income averaging, tax exemptions and deferrals
6. HR and employee benefits:  for the family and for non-arm’s length resources
7. Top Ten Strategies  in Retirement Planning:  structuring income sources with tax efficiency
8. Selling a block of business:  shares vs. assets, evaluating access to Lifetime CGE
9. Getting a business ready for sale:  financing considerations & removing redundant assets
10. Top Ten Strategies for Succession Planning

EVALUATION COMPONENTS: 

Chapters end with multiple-choice and true-to-life scenarios found online, which test the practical application of the key concepts covered in the course, using professional software tools and calculators.  A review before the examination, called the Practice Management Thesis (PMT) prepares the student with a consolidated case study testing the practical application of course work.  A final exam is required for certification and examination.

MARKS ALLOCATION:

Recommended Reading - Additional Educational Resourcse: 

• Knowledge Bureau Report – weekly e-newsletter for breaking tax and investment news.
• Financial Literacy Books – Master Your Investment in the Family Business