SDG Chartered Professional Accountant

📢 Caption: Salary vs. Dividends – Your CPA Should Help You Choose Wisely

Thinking of how to pay yourself from your corporation? The choice between salary (T4) and dividends (T5) isn’t just about tax rates—it’s about your long-term goals. 💡

✅ Salary:
• Deductible to your corporation
• Generates CPP (Canada Pension Plan) contributions
• Increases RRSP contribution room (based on earned income)
• Preferred by mortgage lenders 🏠

✅ Dividends:
• No CPP or EI – lower payroll costs
• May be taxed at a lower personal rate
• But ⚠️ no RRSP room created
• Could impact retirement planning if no CPP is built up

📈 Smart Planning = Custom Mix
A seasoned CPA will tailor a mix of salary and dividends based on:
✔️ Your income level
✔️ Future lifestyle needs
✔️ Retirement goals
✔️ Mortgage plans
✔️ RRSP strategies

📊 What worked last year may not work this year. Let’s optimize your shareholder strategy.

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✅ Follow .accountants for more Canadian tax clarity.

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Over $1.7B in uncashed cheques just sitting with CRA — some over $100,000.

If you left Canada, overpaid tax installments, or had a major income year that dropped the next — you might be owed, not owing.

We’ve seen people pay CRA monthly while they were entitled to a refund.

That’s why tax planning matters.
Don’t leave money behind.

DM us to review your situation.

Know Your Audit Time Limits in Canada
The CRA has specific audit windows depending on the type of account:
• Income Tax (Individuals & Corporations): 3 years from the date of the notice of assessment (can be extended in cases of misrepresentation or fraud).
• GST/HST: 4 years from the filing due date or the date of filing, whichever is later.
• Payroll (source deductions): 4 years from the end of the calendar year.

Don’t leave your books vulnerable. Keep your records organized, and seek expert advice when needed.

SDG Accountant — Helping you stay compliant and audit-ready.

Capital gains vs business income?

Being taxed as capital gain is ideal due to the lower capital gains tax rate. Generally you are taxed as capital gain when you are NOT considered to be carrying on business.
You are generally considered to be carrying on a business if your course of conduct indicates that you are disposing of crypto-assets in a way capable of producing gains, with that object in view, and the transactions are carried out in a manner similar to a trader or dealer in securities. The following factors may indicate that you are carrying on a business:

Frequency of transactions – you have a history of extensive buying and selling of crypto-assets
Period of ownership – you hold your crypto-assets for a short period of time, and you turn them over quickly
Knowledge of crypto-asset markets – you have knowledge of, or experience in, crypto-asset markets
Time spent – you spend a substantial part of your time studying crypto-asset markets
Financing – you finance your crypto-asset purchases by some form of debt
Advertising – you advertise that you are willing to buy crypto-assets
For more details contact our office for a professional opinion!