The Money Scope Ep 10: Investing in a Canadian Corporation

In this episode, we cover investing in a Canadian corporation. Investment returns earned in a corporation are generally taxable. However, the way that the taxes work is complicated. There are potential pitfalls if you don’t pay attention.

Efficiently flowing investment income from your corporation into your personal hands is the holy grail of investing for incorporated business owners.

Join us for this episode to avoid tax booby traps in your corporate investment account.

“Basically, a corporation is a separate way of managing the income and expenses for the business — and separate from the owner themselves.”


“You want to have a low-cost, well-diversified, robust investing strategy first, and then think about taxes second.”


“Eligible dividend income and capital gains can flow tax efficiently through a corporation. Other types of investment income flow through a little less efficiently. As long as you’re paying out dividends from the corporation, the tax drag on growth is still pretty reasonable.”


“The issue of unfavourable tax integration is actually even worse with foreign dividend income.”


Leave a Reply

Your email address will not be published. Required fields are marked *