When running a small or medium-sized business, the Canada Revenue Agency can feel like one of your biggest adversaries. But there are ways to save taxes in your business, says Stephen Thompson, a chartered accountant and author of Beat the Taxman (Wiley). Save a buck or two with these quick (and legal!) tips. (You might want to ask your accountant for more details.)
- If your income is in excess of approximately $31,000 and your spouse in is a lower bracket, pay your spouse a salary. But salary for family must be reasonable and for services rendered.
- Remember to request a refund of the GST and PST on accounts receivable that you have written off.
- Record all expenses to write them off. Tip: you can still claim an expense without a receipt. Just make sure to write down all the details of the expense (such as item purchased, name and address of supplier and amount paid).
- Consider non-cash gifts and awards to save your employees some tax.
Originally appeared on PROFITguide.com
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