FAQs

What are the other Benefits of Incorporation ?

Limited liability of the shareholders.
Existence of the company survives death of a shareholder and/or changes in ownership.
Allows for multiple stakeholders; shareholders and creditors.

What should I bring or Send in?

Trial Balance, Balance Sheet, Income Statement, and General Ledger. If applicable; Aged Account Receivable, Accounts Payable Listings and the Bank Reconciliation for the year end.
All Canada Revenue Agency Correspondence received during the year.
Details of any changes in mailing address, share ownership, etc.
Any other official documents considered relevant to the year end. (When in doubt please enclose.)

Why are CAs performing privacy audits? What are the benefits to businesses? What are the benefits to consumers?

CAs are in the business of helping build trust — around financial statements and now issues like privacy — and this is a natural evolution of the services they provide to clients.
Benefits to businesses are that they can establish trust with consumers, build their brand, and manage privacy-related risks. Benefits to consumers are that they have increased confidence and trust in a business that has had its privacy practices independently audited.

What does independent audit mean? What does it entail?

An independent audit involves testing the people, processes, technology and controls that ensure a company is following its stated privacy policies and practices.
An independent audit report provides assurance that a company is doing what it says. Independent means performing the audit objectively and without conflicts of interest.
Chartered Accountants (CA) are in the business of providing assurance services, the most well recognized of which is the financial statement audit.
An audit report signed by a CA is valued because CAs are knowledgeable about financial accounting and assurance matters, and are recognized for their independence, integrity, objectivity and discretion.
Financial statement assurance is only one of the many kinds of assurance services that CAs provide. They also provide assurance on subject matter such as internal controls and compliance with specified criteria.
The business and professional experience, subject matter expertise (privacy, security and control) and professional characteristics (independence, integrity, objectivity and discretion) needed for such engagements are the same key attributes that enable a CA to comprehensively and objectively assess the risks and controls associated with systems reliability. In addition, CAs are required to follow comprehensive ethics rules and professional standards when providing professional services.

What are the Tax Benefits of Incorporation?

Active business income retained in a corporation is subject to a 14.5 % tax rate on the first $500,000 of income earned annually (which may be the most significant tax benefit of incorporation, dependent upon the amount of profits retained in the company).
Incorporation allows for the introduction of inactive shareholders for income splitting purposes.
Incorporation allows for the use of corporate profits for business expenses that are not tax deductable, (includes 50% of meals & entertainment, golf dues and fees, life insurance, etc.).
Opportunity to access the $750,000 capital gains exemption on the sale of qualifying small business corporation shares

What should I bring or Send in?

A copy of the prior year’s Notice of Assessment.
T3, T4, and/or T5 slips, RRSP Contribution slips, Donation slips, Childcare receipts, Children’s Fitnessreceipts, Medical receipts: (if the amount exceeds 3% of net income or $2000), and Official Tuition slips:(T2202A).
Summary of all Capital Transactions for the year (proceeds & cost).
Business Revenue and Expenses summarized by major categories: (detailed receipts not necessary). As well, any asset additions and dispositions during the year (i.e. computer equipment etc.).
Any other Official Tax Receipts that may be applicable, (when in doubt please enclose).