Do you want to withdraw cash from your closely held corporation
at a low tax cost? The easiest way is to distribute cash as a dividend.
However, a dividend distribution is taxable to you as a shareholder but it’s
not deductible by the corporation. But there are several alternatives that may
allow you to withdraw cash from a corporation and avoid dividend treatment. For
example, you might be able to receive capital repayments, or obtain reasonable
compensation for you (or family members), as well as certain fringe benefits.
If you’re interested in discussing these or other ideas, contact us. We can
help you get the maximum out of your corporation at a minimum tax cost.