This blog explores how the CRA taxes passive income earned inside a corporation, why those rules exist, and what they mean for business owners. It breaks down the mechanics of high corporate tax rates, the Refundable Dividend Tax on Hand (RDTOH), and the Small Business Deduction (SBD) grind, showing how they limit the use of corporations as tax shelters. It also highlights strategic alternatives like the TFSA, RRSP, and FHSA, which offer benefits corporate investments can’t.

This blog explores Canadian tax residency rules for individuals and corporations, tax treaties, and compliance essentials!