Tax Planning & Preparation

INTEGRATED TAX PLANNING AND TAX RETURN PREPARATION

Everything Revolves Around Taxation

Having an integrated tax planning and preparation practice within our firm gives us a greater understanding and ability to construct a robust financial plan.

tAX RETURNS

We prepare income tax returns for individuals, families and their small business. We review our client’s personal and business tax history to create a tax plan that maximizes after-tax income. We prepare and review the family and business tax structure with our clients on a periodic basis to ensure it is still meeting their needs and that nothing is causing unplanned tax liability, particularly when it comes to succession planning.

TAX PLANNING

Selling your home? Buying a rental property? Selling a business? Becoming self-employed? Undergoing a career transition? If you need information about how your plans will affect your current tax situation, we can help you with tax estimates and avoiding pitfalls. We also work with our clients’ current accounting and tax professionals to better provide an enhanced collaborative experience.

GET MORE INFORMATION
tax-planning
tax-planning
tax-planning
SHARE COMPENSATION PLANS

Has your employer offered you shares?  We can help you to understand the tax impact of accepting share options and compensation, exercising them, and selling shares.  Let us help you figure out how to make your shares work for you.

SELF-EMPLOYMENT

Let us help you learn about all the things you can deduct, paying quarterly taxes, record keeping and generally take the guess work out of being self-employed when it comes to your taxes.

The RCA is a retirement trust that allows for money, usually large sums like severance payments for executives, retirement bonuses, or compensation for business owners to be deposited into an RCA to mitigate tax. When funds are deposited from a company or employer into an RCA, the plan member is not taxed. The plan member can then later drawdown amounts of their choice after they’ve had a change in employment. For example, if an employee were to receive a $500k severance, instead of paying 48% tax on that severance (assuming the executive is already in the highest tax bracket), they could draw down $100k over a 5-year period, drastically reducing their tax paid on the severance and keeping more in their pocket.

An RCA (Retirement Compensation Arrangement) is a powerful, CRA approved retirement strategy. It’s best described as a “supercharged” RRSP because, unlike with an RRSP, there are no earning limits or mandatory withdrawals.

The RCA is a flexible retirement trust that lowers the participant’s tax rate by granting them flexible withdrawals from it. It is creditor protected and assets are taxed only at the time of withdrawal.
The RCA is ideal for high-income earners ($150,000+) such as business owners, athletes, executives, and incorporated professionals who wish to sustain their standard of living into retirement. A Retirement Compensation Arrangement (RCA) represents the highest level of retirement program available in Canada. The RCA is particularly popular with business owners who have cash in their corporations that they would like to withdraw without having to pay personal tax at the time the funds are withdrawn. This retirement trust is also well-suited for executives receiving large lumpsum payments such as severance or retirement bonuses.
Yes, unfortunately. Layoffs have increased during these difficult times and the RCA is the best way to ensure employees are better off with higher after-tax severances.
The RCA has come and gone in popularity over the years, largely due to the Canadian tax policy. Now that we are in a high tax environment (and likely increasingly post COVID-19), the RCA has become incredibly popular again. That said, many corporations aren’t that familiar with this powerful retirement tool and view it as a risk until they better understand how it works.
In our experience, it’s typically the executive getting bonused or severed who learns about this option from the advisory team here at CH Financial. If you are receiving a bonus or severance payment and would like to keep 40%+ more, then we highly recommend talking to our team, so you can suggest this option to your HR department. Now is a great time to call CH Financial because our team can answer any questions that your employer may have. As tax preparation specialists we are here to help you. We appreciate that it’s a very delicate conversation, but keep in mind that your employer receives the same tax deduction whether they set up the RCA or not, and once the final agreed-upon payment is made and/or the employee leaves the company, their liability with the RCA ceases.
The RCA will roll over to your spouse or significant other (if applicable). When your spouse or significant other passes away, the RCA can be passed down to children with no taxable disposition on the last parent’s death. This is an excellent way to pass money down to the next generation tax effectively while allowing your children or beneficiaries to draw down from the RCA for a period of 20 plus years.
Typically, 1-2 weeks. Your CH advisor will work with you and your employer to have them sign an agreement to set up the RCA. Once this has been done, the program can be funded.
The RCA is a retirement trust that allows for money, usually large sums like severance payments for executives, retirement bonuses, or compensation for business owners to be deposited into an RCA to mitigate tax. When funds are deposited from a company or employer into an RCA, the plan member is not taxed. The plan member can then later drawdown amounts of their choice after they’ve had a change in employment. For example, if an employee were to receive a $500k severance, instead of paying 48% tax on that severance (assuming the executive is already in the highest tax bracket), they could draw down $100k over a 5-year period, drastically reducing their tax paid on the severance and keeping more in their pocket.
tax-planning

Start The Conversation


ARE WE A GOOD FIT?


Like you, we’re selective about the long-term relationships in which we engage.

We’re looking for aspirational clients who require the whole spectrum of financial services because managing the whole is how we’re able to deliver unbeatable value – it’s our “secret sauce”.

If this describes you, let’s set up a meeting and get to know each other.

Close

Sign up for the Portfolio Minute newsletter

Are we a good fit?

We’re looking for aspirational clients who require the whole spectrum of financial services because managing the whole is how we’re able to deliver unbeatable value – it’s our “secret sauce.”If this describes you, let’s set up a meeting andget to know each other.

Full quote:

I just want to say we have been with your team since 1993, and we have never had any bad advice. The investments you set up for us during this time has paid for university education for our two granddaughters and provided a significant monthly income for us to augment our pensions.

Close

We are with you for the long run and are not going anywhere. Jeremy has told us that at these times the numbers tend to scare you, but you haven’t really lost anything if you don’t panic and sell.

Ken M, Calgary

With CH Financial since 1993

Full quote:

When I became a client of CHF it was a real game-changer as I was going through a very difficult time both professionally and personally.

I went through a divorce and the loss of a job and a parent, all within a 12-month period. While it was very tough to deal with at the time, I was reassured by the fact that the team at CHF had my back and really cared about me and what I was going through.

Looking back now, I’m not sure how I would have managed without the support of the CHF family.

Close

Jeremy and his team were there every step of the way to help me navigate my way through the complexities of a divorce and inheritance. They got me back on track both financially, as well as emotionally.

I have now been a client of CHF for over 10 years and thanks to their expertise, I know that my family will be well taken care of for many years to come. I am now in a position where I don’t need to worry about money thanks to a solid financial plan.

I would highly recommend the CHF team to others going through life-changing and difficult situations as your financial partner.

Linda, Victoria

Full quote:

As an investment industry professional, I am constantly on the go and maximizing my peak career earning years in my 40s. With travel and work commitments I am very limited for time to spend with family and do the things I love to do and chose CH Financial to allow me more freedom and lifestyle balance.

Being in the investment industry my whole career and an extremely busy professional, I know I could probably do a good job at managing my money as I work in the industry after all while I rely on and trust the CH Financial team that they will take care of the details, both growing my assets as well as taking care of every aspect of my financial situation, including my tax, investments and insurance, they simply take away the stress of having to worry about it all and help me to navigate the complexities for me so it all meshes together and importantly saves me valuable time and headaches.

Close

At the end of the day, the reality is I truly value my time and the opportunity cost of my time and would rather hire the best in the industry so ultimately my wife and I can do the things that we love to do, have more leisure time, relax and enjoy spending time in the great outdoors, exploring new countries, hiking in the mountains and volunteer work.

Since engaging CHF more than 5 years ago we have enjoyed significant growth in our investments but more importantly, we have peace of mind and sleep much better at night knowing the team at CHF has our financial back and anything financial they will take care of for us.

I would have absolutely no hesitation in recommending the team at CHF to other career-focused busy professionals who really value their time and lifestyle balance.

Kevin & Sharron, Calgary

Financial industry professionals

Full quote:

Prior to joining CH Financial as a client, I had been partially managing our investments and using a bank-owned broker for many years, with moderate success. When we became clients of CHF, I quickly realized how little I knew about the complexities of managing investments and the importance of seeking out the best specialists in the industry to assist with my family’s full financial picture.

Brian and the team at CHF encouraged us to take an introspective look at our assets and expenditures and even helped us implement a comprehensive budget. The team really stepped up to take care of all aspects of our financial picture, including portfolio design, CH Financial introduced us to a lawyer who took care of everything for us, estate planning and tax, while helping us simplify our financial affairs.

Being of the sandwich generation my wife and I spend considerable time caring for our surviving parents and our grandkids, so

Close

freeing up valuable time is essential to allow us to do the things we love to do. The team at CHF takes care of the details and today my wife and I enjoy a comfortable, stress-free financial situation.

Over the years as a client of CHF, both our portfolio and wealth has grown exponentially, more than we could have ever imagined. Now that we are both happily retired, having the CHF team in our corner helps us to sleep better at night knowing that our somewhat complex financial puzzle is being looked after by a team of people that really care, as opposed to being treated like a number by a big bank.

I would have no hesitation in recommending the CHF team to others looking for a superior financial home in Calgary and a safe place to invest your hard-earned money.

Ian C, Calgary

Comfortably retired thanks to CH Financial