Proactive Tax Strategy, Not Passive Compliance
Tax compliance is the mandatory final step of a process that begins at the start of the fiscal year. Most traditional accountants simply record historical data onto tax forms; NorthBridge CPA proactively structures your business and personal holdings to legally minimize tax liabilities before transactions occur.
Our tax team evaluates your corporate structure, dividend/salary mix, holding companies, and capital gains exemptions to keep more capital working inside your business.
Core Tax Practice Pillars
1. Corporate Tax Planning & T2 Compliance
We prepare corporate T2 returns for private Canadian corporations, maximizing small business deduction (SBD) limits, accelerating capital cost allowance (CCA) claims, and structuring active vs. passive investment income to eliminate high passive tax rates under Income Tax Act rules.
2. Corporate Restructuring & Estate Freezes (Section 85/86)
Protect equity growth and defer tax liabilities when restructuring your business. We execute tax-deferred rollovers under Section 85 and Section 86 of the Income Tax Act to:
- Transfer business assets into holding companies tax-free.
- Implement estate freezes to lock in current values and pass future growth to the next generation.
- Access the Lifetime Capital Gains Exemption (LCGE) on qualifying small business corporation (QSBC) shares.
3. Personal, Estate & Trust Tax
Integrated corporate and personal tax planning ensures shareholders withdraw income in the most tax-efficient manner. We structure family trusts, manage prescribed rate loans, and optimize income splitting under Income Sprinkling (TOSI) rules.
4. CRA Dispute Representation & Legal Appeals
Receiving a CRA review letter or Notice of Reassessment creates significant exposure. Our tax team represents you directly before CRA officers and appeals divisions:
- Managing all written correspondence and file documentation requests.
- Submitting formal Notices of Objection to dispute improper tax assessments.
- Negotiating with tax authorities and supporting clients through the resolution process.
Corporate Tax Optimization Roadmap
| Phase | Timeline | Strategic Focus | Key Deliverables |
|---|---|---|---|
| 01. Diagnostic | Month 1–3 | Review past filings & historical CRA assessments | Exposure review & immediate savings matrix |
| 02. Structuring | Month 4–8 | Section 85/86 rollovers & holding company formation | Optimized corporate holding structure |
| 03. Pre-Year-End | Month 9–11 | Salary vs. dividend mix & CCA acceleration | Annual tax-minimization strategy |
| 04. Final Filing | Month 12 | Error-free corporate T2 & personal T1 preparation | Timely submission & CRA confirmation |
Institutional Tax Deliverables
- Corporate T2 Return & Schedule 50: Error-free corporate return with capital dividend account (CDA) tracking.
- Tax Planning Blueprint: Customized tax-minimization memorandum outlining dividend/salary recommendations.
- Section 85 Election Documents: Formal election forms filed with the CRA to confirm tax-deferred asset transfers.
- CRA Defense File: Complete legal response packages for CRA inquiries and reassessment reviews.
Who This Is For
- Private Business Owners seeking to reduce T2 corporate tax liabilities and optimize dividend withdrawals.
- High-Net-Worth Families looking to protect intergenerational wealth through family trusts and estate freezes.
- Corporations Subject to CRA Reassessments requiring experienced CPA representation and dispute defense.
- Investors & Real Estate Developers needing tax-efficient holding company structures.
Ready to optimize your taxation?
Speak directly with a Chartered Professional Accountant to discuss your corporate financial structure and compliance goals.