Medical Practitioners

Under the newly revised Business Corporations Act, doctors (both physicians/specialists and dentist) are not only allowed to incorporate their medical practices, they are also permitted to have children, parents and spouses participate as non-voting shareholders of the Corporation. COWAN & TAYLOR PROFESSIONAL CORPORATION has already assisted numerous health practitioner’s incorporate and save a lot of tax dollars.

The potential benefits are phenomenol! Let us give you an example:

Health practitioner’s annual net salary: $200,000

1. Old Income Tax approximately $100,000 (without other tax breaks) resulting in $100,000 take home income.
   
2. New Corporate Income Tax $36,000 (without other tax breaks) PLUS
   Dividend to spouse up to $35,000 (tax free) PLUS
   Dividends to two adult children up to $35,000 (tax free)

     $200,000
     -($36,000)
     $164,000 residual
   -($115,000) tax free income splitting
      $49,000 INCOME
    -($17,640)
      $31,360 - final income with Revenue Canada

   Total taxes paid: $53,640
   Take home $146,360

   Savings: $46,360