For most successful business owners, one challenge that arises frequently is the question of how to access their accumulated retained earnings in a tax efficient manner. In reality, this is a question that is best dealt with well in advance of when funds are required, but there are now many avenues available.

Some of the issues we consider is when the funds will be needed and what they are needed for, such as whether they will be used for retirement income supplements or re-invested personally. In some cases, the solution is rooted in estate planning. The answer to these questions generally are not prohibitive, but rather help determine the best strategy to achieve the desired outcome. Think of it as the key to unlocking your money.

The Tax Act has numerous provisions to accomplish these objectives and one of the rights established by the Canada Customs and Revenue Agency (CCRA) is that Canadians can arrange their affairs to pay the least amount allowed under the law. Unfortunately, many are simply not aware of all of the provisions available to them.

At Strategic Edge, we always put tax planning initiatives ahead of investment planning, in order to maximize the funds that can be invested, or spent, depending on objectives.

We start with gathering information, then work diligently to understand the specific objectives, and finally, provide a variety of recommendations. We do not intent to supplant your current advisors, particularly your accountant, whom we are pleased to work with directly at no additional charge.

Our belief is that your legal and accounting advisors, controller, business manager, and other members of your planning team, have already established the underlying structure to accommodate your plans, which may include holding companies, inter-vivos or testamentary trusts, wills, insurance programs and intricate succession plans. We do not wish to circumvent the value of what has been done to date, but rather augment that planning with the various vehicles at our disposal.

Accessing your retained earnings in a tax efficient manner, and delivering the funds when, where and for the purpose you require, is a specialized field, and one we have found existing advisors embrace as a valuable addition to their efforts in assisting you in your planning.

Contact us today to access the information to access your money.