Income Tax - Owner - Manager Compensation

Overview:

You will develop a practical framework for advising owner‑managers on compensation mix, comparing salary and dividends from both the corporate and shareholder perspectives, and integrating related inter‑company and shareholder‑level transactions. You will apply concepts through scenario‑based examples that consider different shareholder profiles, corporate types, and planning goals to support sound, defensible recommendations.

Course Content:

In this course, you will gain knowledge about the following topics:

• Compensation building blocks: employment income vs. property/dividend income; payroll and corporate considerations.
  
• Integration and tax‑rate mechanics across salary and dividend choices.
  
• Dividend types and planning levers; salary timing and accrual strategies.
  
• Shareholder loan rules and practical considerations.
  
• Inter‑company items: management fees, rents, and common small‑business structures.
  
• Case‑based planning: single, spousal, and unrelated shareholder scenarios; CCPC and non‑CCPC contexts; balancing tax and personal objectives.
  

Learning Objectives:

Upon completing this course, you should be able to:

• Compare the after‑tax impacts of salary versus dividends for corporations and shareholders, and articulate trade‑offs clearly.
  
• Select and document an appropriate compensation mix based on objectives such as cash needs, RRSP room, borrowing requirements, and benefit eligibility.
  
• Identify implications of dividend types (eligible, non‑eligible, capital dividends) and timing considerations for salary accruals and payments.
  
• Advise on related items that affect owner‑managers, including shareholder loans, management fees, rent, and inter‑company transactions.
  
• Incorporate relevant case‑law themes and common CRA positions when communicating planning choices and risks.
  

Who Will Benefit: 

Practitioners who advise owner‑managed and small‑business clients on compensation and related planning.