Are you unknowingly setting yourself up to lose over 70% of the wealth you built up through capital gains in your Canadian holding company?

Many incorporated business owners are unaware of a significant tax trap lurking in their corporate structures, especially those with holding companies in Canada. Without proper tax planning, your estate could face double taxation—meaning you pay taxes on the capital gain of your assets inside the company, and then your estate pays tax again on the transfer of shares to your heirs upon your death. This could result in more than double the taxes you’d pay if you held these assets in your personal name.

In this episode, we break down the double-tax problem many Canadian business owners face and explore how recent government policies have made it harder for Canadians with holding companies to protect their wealth from excessive taxation. We’ll also reveal a tool that not only solves this problem but can also help you grow your net worth while you're alive and leave a better legacy for your heirs.

What you’ll learn:

Understand how double taxation could impact your estate and what it means for your holding company assets.
Discover why traditional tax minimization strategies may no longer work and what solutions we still have access to.
Learn how a properly designed corporate-owned life insurance policy is an important tool to not only preserve your wealth, but also supercharge your net worth inside your Canadian holding company.

Listen to this episode now to learn how to protect your assets from double taxation and set your family up for long-term financial success.

Resources

Canadian Wealth Secrets Show Notes Page

Consider reaching out to Kyle if you’ve been…

…taking a salary with a goal of stuffing RRSPs;
…investing inside your corporation without a passive income tax minimization strategy;
…letting a large sum of liquid assets sit in low interest earning savings accounts;
…investing corporate dollars into GICs, dividend stocks/funds, or other investments attracting corporate passive income taxes at greater than 50%; or,
…wondering whether your current corporate wealth management strategy is optimal for your specific situation.

This episode helps Canadian incorporated entrepreneurs, business owners and investors to determine what they should be doing to avoid the double-tax issue owners of Canadian holding corporations face when it comes to passing on their assets to their heirs. The Canadian Income Tax Act has made it hard on incorporated business owners to know what to do with their retained earnings and in many cases, sending funds to a Canadian holding company is the most sensible move. However, without the proper participating whole life insurance policy designed to help mitigate the tax consequences, some estates will be left with a tax bill that may tax up to 70% of the capital gains of corporate held assets.

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Canadian Wealth Secrets is an informative podcast that digs into the intricacies of building a robust portfolio, maximizing dividend returns, the nuances of real estate investment, and the complexities of business finance, while offering expert advice on wealth management, navigating capital gains tax, and understanding the role of financial institutions in personal finance.

Why Your Holding Company Will Be Double-Taxed in Canada (And How to Fix It)

Canadian Wealth Secrets

Why Your Holding Company Will Be Double-Taxed in Canada (And How to Fix It)