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Mr. Clean *

Case Study #3

BUSINESS NAME: Restaurant Supplies Corporation*
INDUSTRY: Industrial Supplies

Client's Situation/Problem:

The business owner collects Old Age Security (OAS), CPP, Pension Income, Registered Retirement Income Fund and Rental income. His wife also has numerous sources of income. The owner does not wish to pay so much income to himself that his OAS is clawed back.




Like many clients, planning compensation to minimize taxes is a key service we can perform for our clients.



How The situation was improved:

Every year we determine how much should be paid to the owner to allow the maximum to be paid to the owner without triggering the dreaded OAS claw back. The effects on pension splitting are included in the calculations.



How the solution “Created Value for the Business”:

By maximizing the salary to be paid to the owner the remaining profit can be left in the company and only have the small business tax rate applied.



What this meant to the client:

Paying less tax while at the same time maximizing what can be taken out of the company.




Compensation planning reduces the total tax paid by the company and the owner.
Let’s talk and “Create Value for YOUR Business”.




*Names have been changed to maintain confidentiality.