You Are Paying More Than Needed (SECRETS for Canadian Businesses)

We break down two major Canadian corporate tax advantages—the small business deduction (up to $500,000 of active income when passive income is under $50,000) and the capital dividend account (CDA)—and explain what counts as active vs. passive income for a Canadian-controlled private corporation. We review why Ottawa changed corporate tax rules in 2018, how passive income is taxed at roughly 50%, and how earning more than $50,000 of passive income can claw back the small business deduction, with the deduction eliminated at $150,000 of passive income. We discuss how passive income in a holding company can still affect associated operating companies, the role of refundable dividend tax on hand (RDTOH), and why excess corporate cash needs a plan. We also outline tax-code strategies such as participating whole life insurance (tax-exempt growth and CDA benefits), corporate-owned critical illness with return of premium, and individual pension plans, plus using insurance to fund buy-sell agreements and avoid forced partnerships. 00:00 Biggest Corporate Tax Breaks 00:49 Active vs Passive Income 02:00 Why Rules Changed in 2018 05:39 Punitive Passive Tax Rates 08:58 SBD Clawback Explained 10:34 Holdco Does Not Shield 14:04 RDTOH and Integration 16:24 Common Mistakes and LCGE Risk 20:53 Tax Code Solutions Overview 22:09 Permanent Insurance Strategy 24:40 Capital Dividend Account Basics 28:07 Accessing Cash and Deductions 31:04 Critical Illness Return Premium 33:43 Funding Buy Sell Agreements 37:00 Final Call to Action Want a professional second opinion on your finances? 📈 🗓️ Schedule your financial plan review here: https://austaris.com/contact 🌐 Connect With Austaris Website: https://austaris.com Instagram:   / austariscapital   Business Inquiries: [email protected] If you found this video helpful, don't forget to Like, Comment, and Subscribe for more insights! 🔔 ======================================================================== ⚠️ Disclaimer: This video is for entertainment and educational purposes only and does not constitute formal financial or legal advice. Financial Advice Disclaimer: All content on this channel is for education, discussion, and illustrative purposes only and should not be construed as professional financial advice or recommendation. Should you need such advice, consult a licensed financial or tax advisor. No guarantee is given regarding the accuracy of the information on this channel. Neither host nor guests can be held responsible for any direct or incidental loss incurred by applying any of the information offered.