Twelve days of tax tips – Day 3

Grant Thornton LLP wants to remind Canadian taxpayers and businesses that now is the time to employ end-of-year tax planning strategies that can help reduce the overall tax burden.

On the third day of tax tips, accelerate your business expenses into this year’s higher tax rates. The federal corporate income tax rate of 16.5% will fall to 15% for 2012, and the general corporate tax rates and/or small business tax rates of some provinces, such as Ontario, are also declining. Therefore, it makes sense to accelerate expenses to 2011 to reduce the amount of income being taxed now.

Other days of tax tips:

Day 1: Switching year-end bonuses into dividends

Day 2: Maximizing the small business deduction

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