How to reduce your corporate tax bill and extract funds tax-free — at the same time.

Business Owners

A corporate flow-through share transaction generates a CDA credit, allowing owner-managers of CCPCs to pay themselves tax-free dividends while simultaneously reducing corporate tax.

Sheltering Active Business Income

Whether you’re paid by salary or dividends, a corporate flow-through creates a CDA credit that does double duty: it lowers your corporation’s tax liability and lets you distribute income to yourself free of personal tax.

Sheltering Passive Income

Passive income over $50,000 is punitively taxed. Flow-through shares shelter that excess tax, and the resulting CDA credit lets you distribute the sheltered income to shareholders tax-free. For corporations with consistently high passive income, a CDE (Canadian Development Expense) strategy may be the better fit. Click here for a detailed explanation.

How It Works

Suitability depends on your corporation’s circumstances — including historical active and passive income, RDTOH, and retained earnings. Your company must also qualify as an Accredited Investor.

Before any transaction, we arrange a liquidity provider — typically an institutional investor — to purchase the shares at a predetermined price. The buy and sell happen on the same day, with proceeds returned within days of closing.

This is not an investment. It’s a “Bought Deal” transaction — you own the shares for no more than a minute. When it closes, you’re left with tax benefits and the proceeds of sale.