Ask the CPA

RDTOH (Refundable Dividend Tax on Hand) is a notional tax account tracking refundable Part I or Part IV tax the corporation has paid; the CRA refunds $38.33 for every $100…

Dividends from a connected Canadian corporation are generally deductible in the recipient Holdco under Income Tax Act s. 112(1), producing no immediate income inclusion at the Holdco level. Part IV…

A passenger vehicle purchased for over $36,000 (before HST/QST) is Class 10.1, with a per-vehicle capital-cost cap of $36,000 for 2026 acquisitions and no recapture on disposal. Passenger vehicles at…

Yes, but only if the home office qualifies under Income Tax Act s. 18(12): it must be either the principal place of business or used exclusively to earn business income…

Under Income Tax Act s. 125(5.2), a CCPC’s $500,000 SBD business limit is reduced by $5 for every $1 by which adjusted aggregate investment income (AAII) in the previous tax…

Yes, you can owe your corporation money, but only briefly. Income Tax Act s. 15(2) deems any loan or debt owing by a shareholder (or non-arm’s-length person) to be included…

There is no single right answer. Salary generates earned income (RRSP contribution room, CPP entitlement, EI if opted-in) and is deductible to the corporation; dividends are simpler administratively but generate…

CRA uses risk-based selection driven by data-matching and industry benchmarking. The most common audit triggers for an Ontario CCPC are: unresolved shareholder-loan balances, repeated business losses on T2125 or Schedule…

Only up to your business limit. The Small Business Deduction under ITA s. 125 gives a Canadian-controlled private corporation (CCPC) the lower federal corporate tax rate on the first $500,000…

The T2 corporate income tax return is due six months after your fiscal year-end under Income Tax Act s. 150(1)(a). Corporate tax owing is due earlier: two months after year-end…