The Silent Partner in Your Company's Investment Income

Is the Government Your Silent Partner?

When your corporation earns investment income, the tax rate can exceed 50%. That means for every dollar your investments earn, the government takes more than half. There's a better way.

The Problem

Investment income earned inside a Canadian corporation is subject to:

• High corporate tax rates (often 50%+)
• Refundable taxes that may never be recovered
• Double taxation when funds are distributed

The Solution

Corporate-owned permanent life insurance allows investment growth on a tax-deferred basis. The cash value grows without annual taxation, and can be accessed tax-efficiently.

How It Works

• Corporation purchases permanent life insurance
• Premiums are paid with corporate dollars
• Cash value grows tax-deferred inside the policy
• Death benefit passes to beneficiaries tax-free
• Capital dividend account credit eliminates double taxation

The Result

More money stays in your corporation and ultimately in your family's hands, instead of going to the government.

Contact Barrons to learn how to reduce the government's share of your corporate investments.