This glossary is organized by the five topical areas iAssure covers, plus a reference section for regulators and filings. Each term links to its own canonical page for deeper context and direct citation. All definitions are educational.
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Corporate Investing
Terms that shape how retained earnings are invested, taxed, and classified inside a CCPC.
- Active Business Income (ABI)
- Income earned by a Canadian Controlled Private Corporation (CCPC) from carrying on an active business, as opposed to passive investment income. ABI up to the small-business deduction limit is taxed at the low small-business rate. See Corporate Tax Flow. Full entry →
- Adjusted Aggregate Investment Income (AAII)
- The CCPC's total investment income for the prior year, with adjustments prescribed by the Income Tax Act, used to determine whether the federal Small Business Deduction is reduced. For every $1 of AAII above $50,000 the federal SBD is reduced by $5, reaching zero at $150,000. Reported on the T2 return. See The $50K Threshold. Full entry →
- Associated Corporation
- Two or more corporations deemed "associated" under specific Income Tax Act tests (common control, related-person ownership, cross-shareholding). Associated corporations must share the $500,000 small-business limit and the $50,000 passive-income threshold. A common trap where family members separately own distinct businesses but are forced to share corporate tax limits. Full entry →
- Capital Cost Allowance (CCA)
- The Canadian tax concept of depreciation: the annual deduction a corporation can claim for wear and tear on capital assets (buildings, equipment, vehicles). Rates and classes are prescribed by regulation. Relevant to corporations holding income-producing real estate or equipment-heavy operations. Distinct from accounting depreciation. Full entry →
- Capital Gains Inclusion Rate
- The fraction of a capital gain included in taxable income. Historically 50% for corporations. Proposed legislation has aimed to raise this to 66.67% above certain thresholds; the current rate should be verified with your CPA. See Corporate Tax Flow. Full entry →
- CCPC (Canadian-Controlled Private Corporation)
- A private corporation that is Canadian-resident and not controlled by non-residents or a public company. CCPCs benefit from the small-business deduction, the lifetime capital gains exemption on qualified shares, and RDTOH / CDA mechanisms. See Corporate Investing in Canada. Full entry →
- Corporate-Class Mutual Fund
- A mutual fund structured inside a single corporation rather than a trust. Allows internal swaps between funds without triggering capital gains, and typically distributes only capital gains and eligible dividends, reducing annual taxable income at the shareholder level. See Corporate Class Funds. Full entry →
- OpCo (Operating Company)
- The corporation that carries on the active business, contrasted with a HoldCo that holds shares of OpCo. Separating OpCo and HoldCo is a common structure for asset protection and tax-efficient strategies. Full entry →
- Passive Investment Income
- Income earned from investments rather than active business operations: interest, net taxable capital gains, most dividends from non-connected corporations, royalties, and rent not from an active business. Relevant for the $50,000 SBD grind threshold. Full entry →
- SBD Grind (Passive-Income Grind)
- The reduction in a CCPC's small-business deduction when the associated group's adjusted aggregate investment income exceeds $50,000. The SBD is reduced by $5 for every $1 of passive income above $50,000, reaching zero at $150,000. See SBD Grind. Full entry →
- Small Business Deduction (SBD)
- A federal tax deduction that reduces the corporate tax rate on the first $500,000 of active business income earned by a CCPC. Provinces provide additional SBD-like preferences. The federal SBD is clawed back based on passive investment income above $50,000 (the "SBD grind"). See SBD Grind. Full entry →
- Specified Investment Business (SIB)
- A corporation whose principal purpose is deriving income from property (interest, rent, royalties, dividends) rather than an active business, unless it employs more than five full-time employees in that activity. SIBs pay the higher general corporate rate on all income and do not qualify for the Small Business Deduction. A common trap for holding companies and private-lending operations. See Private Lending vs Corporate Investing. Full entry →
Corporate Life Insurance
Core concepts behind corporate-owned permanent insurance and its tax mechanics.
- Additional Deposit Option (ADO)
- An optional feature of some participating whole life policies that lets the policyholder deposit additional amounts (beyond the required premium) into the policy, subject to insurer limits and the Income Tax Act's exempt policy test. Each extra deposit typically purchases immediate paid-up additions, accelerating the policy's cash value and death benefit growth. For corporate-owned policies, ADO is the structural mechanism behind superfunding strategies: it is what lets a corporation move significant surplus capital into the tax-sheltered policy each year. Full entry →
- A policy feature where missed premium payments are automatically converted into policy loans against the cash surrender value, keeping the policy in force. Continues until the loan balance exceeds available CSV, at which point the policy lapses. Each APL invocation reduces the policy's ACB. A helpful safety net against accidental lapse; not a long-term funding strategy (the loan interest compounds and can erode the policy over time). Full entry →
- Beneficiary Designation
- The written instruction on a life insurance policy or registered account specifying who receives the proceeds at the insured's death. For corporate-owned life insurance, the corporation is typically the beneficiary so proceeds feed the CDA. Irrevocable designations cannot be changed without the named beneficiary's consent; revocable designations can. Beneficiary designations bypass the will. Full entry →
- Buy-Sell Agreement
- A contract among business owners specifying what happens to a departing owner's shares at death, disability, or retirement. Three main funding methods: life insurance (fast, clean), sinking fund (slow to accumulate), or installment purchase (debt load on surviving owners). Life-insurance-funded agreements generate a CDA credit on the deceased's policy, improving tax outcomes for the surviving owner. See Buy-Sell Funding: Death. Full entry →
- Cash Surrender Value (CSV)
- The amount a policyowner receives if they cancel a permanent life insurance policy before death. In whole life, CSV builds steadily with guaranteed and dividend-based components. In universal life, CSV equals the policy's investment account value less any surrender charges. For corporate-owned policies, CSV sits on the corporate balance sheet and can be pledged as collateral for bank financing. Full entry →
- Collateral Loan (Life Insurance) (Third-Party Collateral Loan)
- A loan from a third-party bank or credit union where the borrower assigns a life insurance policy's cash surrender value as collateral. Distinct from a policy loan (where the insurer itself lends). Under s.148(9) of the Income Tax Act, a collateral assignment is NOT a policy disposition, so no policy gain is triggered when the loan is taken. Lending limits typically 90% to 100% of CSV for traditional participating whole life, 50% to 90% for universal life depending on investment allocation. Interest can often be capitalized until death, at which point the death benefit repays the loan. Central mechanism behind corporate-owned whole life retirement-income strategies. Full entry →
- Criss-Cross Buy-Sell
- A buy-sell funding structure where each co-owner personally owns a life insurance policy on the other. On death, the surviving owner receives the proceeds personally and uses them to buy the deceased's shares from the estate. Simple and avoids some attribution issues, but premiums are paid with after-tax personal money rather than lower-taxed corporate money. Full entry →
- Death Benefit
- The amount an insurer pays to the policy beneficiary when the insured person dies. For corporate-owned policies, the death benefit is received tax-free by the corporation. The portion exceeding the policy's Adjusted Cost Basis is credited to the Capital Dividend Account, enabling tax-free distribution to shareholders or the estate. See CDA 101. Full entry →
- Dividend Scale Interest Rate (DSIR)
- The interest rate an insurer uses as one input to determine policy dividends on participating whole life policies. Distinct from the participating account's actual rate of return: the DSIR smooths investment performance over time (gains and losses amortized over roughly 15 to 20 years, unrealized bond movements typically not recognized), so changes lag the market. This smoothing produces dividend scales with substantially lower volatility than underlying markets. Major Canadian insurers publish DSIRs annually; typical range has been 5.5% to 6.5% in recent years. Full entry →
- Exempt Policy Test
- The annual test prescribed by the Income Tax Act that keeps growth inside a life insurance policy tax-exempt. If the policy's accumulated value exceeds the prescribed actuarial reserve (MTAR), the policy becomes non-exempt and its investment growth becomes taxable annually. Insurers design exempt-compliant products; high-deposit or superfunding scenarios require careful structuring. Full entry →
- Insurable Interest
- A legal requirement that the policyholder has a legitimate financial or emotional stake in the continued life of the life insured. Provincial and territorial insurance acts codify who has insurable interest: spouses, certain family members, and corporations in their shareholders, directors, employees, and key persons. Without an insurable interest, the policy is unenforceable. Corporations also have a pecuniary interest in borrowers (e.g., a bank requiring life insurance to protect a mortgage). The requirement prevents life insurance from being speculative. Full entry →
- Key Person Insurance
- Life or disability insurance owned by a corporation on a key employee or owner, with the corporation as beneficiary. Purpose: offset lost profit, fund a replacement search, cover personal guarantees on loans, or provide operating capital during transition. Premiums on key-person life insurance are generally not deductible, but death benefit proceeds are tax-free to the corporation and generate a CDA credit. See Key Person Insurance. Full entry →
- Level Cost of Insurance (LCOI)
- A pricing structure inside permanent life insurance where the insurance cost stays constant (or nearly so) for the life of the policy. Common in Whole Life and available as an option inside Universal Life. Higher early-year cost than YRT, but protects against the renewal-rate spike that makes YRT untenable at advanced ages. See Whole Life vs Universal Life. Full entry →
- Life Insured
- The person whose life is "measured" for insurance purposes: their health, insurability, and life expectancy determine the premium through medical underwriting. Must be a living person; a corporation cannot be a life insured. The death benefit is paid on the death of the life insured. Distinct from the policyholder (legal owner of the policy) and the beneficiary (who receives the benefit). Full entry →
- Move-to-Market Smoothing (Dividend Scale Smoothing)
- The actuarial practice insurers use to set dividend scales without passing market volatility directly through to policyholders. Unrealized bond gains and losses are typically not recognized; realized bond gains and losses are amortized over remaining term to maturity; equity gains and losses different from long-term expected returns are amortized at roughly 15% to 20% per year. The effect is that participating whole life policyholders experience much lower year-over-year variation in credited dividends than they would if the par account's annual market return flowed through directly. Full entry →
- Mutual Insurance Company vs Stock Insurance Company (Mutual Insurer)
- Two ownership structures for Canadian life insurance companies. A mutual insurer is owned by its participating policyholders; profits from the participating block are retained as capital or returned as dividends to policyholders. A stock insurer is publicly traded and owned by shareholders; under the Insurance Companies Act (Canada), approximately 3% of participating account earnings may be directed to shareholders rather than kept for policyholders. For participating whole life specifically, mutual ownership can be advantageous because the structure aligns investment decisions entirely with policyholder (rather than shareholder) long-term interests. Full entry →
- Net Cost of Pure Insurance (NCPI)
- A prescribed annual calculation (mortality rate times net amount at risk) representing the tax-cost portion of a life insurance policy's annual premium. NCPI reduces the policy's Adjusted Cost Basis each year. For corporate-owned life insurance held to death, the declining ACB means a larger CDA credit at the insured's death: policies held to maturity typically produce near-full-death-benefit CDA credits. Full entry →
- Paid-Up Additions (PUA)
- Additional pieces of fully-paid participating whole life insurance purchased inside an existing policy using policy dividends or optional deposits. Each PUA has its own guaranteed death benefit, guaranteed cash value, and itself earns dividends (compounding over time). PUAs are the primary mechanism by which participating whole life policies grow beyond their guaranteed values. A corporate-owned policy using the PUA dividend option will typically see both its cash value and death benefit rise each year even after base premiums end. Full entry →
- Participating Account (Par Account)
- A separate pool of assets managed by a life insurance company to back its participating whole life policies. All participating premiums are deposited into this account; all claims, expenses, taxes, and policyholder dividends are paid from it. Typical Canadian par account asset mixes include bonds, equities, real estate, commercial mortgages, private placements, and policy loans — a diversification that produces equity-like long-term returns with far lower volatility than pure equity. The par account's investment performance is the primary driver of the dividend scale interest rate. Full entry →
- Participating Policy (Par Policy)
- A whole life insurance policy where the policyowner shares in the insurer's participating account surplus through annual dividends (not guaranteed). Dividends are typically used to buy paid-up additional insurance, which increases both the cash value and the death benefit over time. Dividend scale history is a key quality signal when comparing participating insurers. Full entry →
- Permanent Life Insurance
- Life insurance designed to cover the insured for their entire life (no fixed end date) and containing a tax-exempt investment component. Two main types: Whole Life (insurer-managed, level cost) and Universal Life (owner-directed, flexible cost and investment). Corporate-owned permanent life is the cornerstone of CDA-based estate transfer. Full entry →
- Policy Loan
- A loan made directly by an insurance company to the owner of a permanent life insurance policy, using the policy's cash surrender value as collateral. Charged interest (rate set by the insurer, typically 5% to 7%), deducted from the death benefit if unpaid at death. Distinct from a collateral loan (where a third-party bank lends against the CSV). Tax consequence: a policy loan is treated as a partial disposition under s.148(9) of the Income Tax Act. The loan amount is tax-free up to the policy's adjusted cost basis; the excess is taxable as a policy gain. Policy loan repayments (up to the previously-taxed amount) are deductible from income. Full entry →
- Policyholder (Policy Owner)
- The legal owner of a life insurance policy. The policyholder makes all decisions the contract permits: changing beneficiaries (unless irrevocable), assigning the policy as collateral, surrendering, taking policy loans. Can be a person, corporation, trust, or partnership. For corporate-owned life insurance, the corporation is the policyholder. Distinct from the life insured (the person whose death triggers the benefit) and the beneficiary (who receives the benefit). Full entry →
- The point at which annual policy dividends from a participating whole life policy are large enough to cover the full required premium, so the policyholder no longer needs to make external premium payments. The offset date is first projected in the policy illustration based on the current dividend scale; actual offset depends on how dividends perform. If the dividend scale drops meaningfully after illustration, the offset date pushes out and external premiums may need to resume. Historically caused consumer harm when insurers illustrated unrealistic dividend scales (the "vanishing premium" disputes of the 1990s). Full entry →
- Redemption Buy-Sell
- A buy-sell funding structure where the corporation owns the life insurance policy on each owner and uses the proceeds to redeem the deceased's shares from the estate. Proceeds credit the CDA, allowing tax-free capital dividends to the estate. More tax-efficient than criss-cross in most cases, with specific attribution and grandfathering rules to navigate. See Buy-Sell Funding: Death. Full entry →
- Superfunding (Maximum-Funded Policy)
- The practice of making the largest deposits permitted while keeping the policy compliant with the Exempt Policy Test, maximizing tax-sheltered growth inside a permanent life insurance policy. Often structured as a short-term deposit plan (e.g., 10-pay). Corporate-owned superfunded policies are used as a tax shelter for surplus corporate capital that would otherwise accumulate in a taxable investment account. Full entry →
- Term Life Insurance
- Temporary life insurance coverage for a fixed period, commonly 10, 20, or 30 years. Lower cost than permanent insurance; no cash value. Usually owned personally, sometimes corporately for key-person coverage or buy-sell agreements when the need is finite. Full entry →
- Underwriting (Life Insurance)
- The insurer's assessment of a life insured's health, insurability, and financial need — determining whether to issue a policy and at what cost. Medical underwriting assigns a risk class (preferred, standard, substandard or "rated," declined) based on health, family history, and lifestyle. Financial underwriting ensures the amount of insurance is reasonable relative to the policyholder's income and need (preventing speculation). Once a policy is issued, the underwriting result is locked in: subsequent health changes don't increase premiums. This is why a healthy life insured's policy becomes more valuable over time if their health later deteriorates. Full entry →
- Universal Life Insurance (UL)
- A permanent life-insurance policy with a tax-exempt investment component inside the policy. The policyowner chooses the investment allocation and can adjust deposits. Frequently used as a corporate-owned policy to build tax-sheltered growth that funds future CDA credits at death. See Life Insurance as a Corporate Asset Class. Full entry →
- Whole Life Insurance
- A permanent life-insurance policy with a fixed premium and a guaranteed cash value (plus dividends on participating policies). Insurer manages the underlying investments. Popular as a corporate asset for its predictability and CDA-credit potential at death. Full entry →
- Yearly Renewable Term Cost (YRT)
- A pricing structure (typically inside Universal Life) where the annual insurance cost increases each year based on the insured's age. Cheap in early years, extremely expensive in the insured's 70s and 80s. Risk: the cost can exceed annual deposits, eroding policy cash value. See Whole Life vs Universal Life. Full entry →
Corporate Wealth Growth, Preservation and Transfer
Structure, freezes, trusts, and the mechanics of passing value to the next generation.
- Deemed Disposition (at Death)
- Under Section 70(5) of the Income Tax Act, the taxpayer is deemed to dispose of all capital property at fair market value immediately before death, triggering accrued capital gains. The main source of the "estate tax bomb" for incorporated business owners. Offsets include the spousal rollover (deferral to spouse), the Lifetime Capital Gains Exemption (on QSBC shares), and CDA-from-insurance extraction. Full entry →
- Estate Freeze
- A restructuring where the current owner exchanges growth shares for fixed-value preferred shares (Section 86 or Section 85 exchange), and the next generation receives newly issued common shares. Future growth accrues to the next generation; the founder's tax liability is locked in at today's value. See Estate Freeze. Full entry →
- Family Trust (Discretionary Trust)
- A trust where the trustees have discretion over which beneficiaries receive income or capital distributions. In Canadian corporate wealth strategies, often used alongside a HoldCo so that family members can receive dividends, capital gains, or capital flexibly. Subject to the 21-year deemed disposition rule: trust assets are deemed sold at fair market value every 21 years, usually requiring a roll-out to beneficiaries before that date. Full entry →
- HoldCo (Holding Company)
- A corporation that owns shares of one or more operating companies or passive investments rather than carrying on an active business itself. Used for asset protection, passive-investment segregation, family-share issuance, and estate strategies. See HoldCo/OpCo Structure. Full entry →
- Lifetime Capital Gains Exemption (LCGE)
- A personal tax exemption on capital gains from the sale of Qualified Small Business Corporation shares, qualified farm property, or qualified fishing property. The 2025 limit is approximately $1.25M per person (indexed annually). Multiplied across family members through a family trust can shelter several million dollars of capital gain at a sale. Requires the shares to meet the QSBC tests (asset purity and holding period). Full entry →
- Pipeline Strategy
- A post-mortem tax strategy that avoids the double-tax problem on shares of a private corporation held at death. The estate sells the deceased's shares to a new holdco, creating a shareholder loan. The loan is repaid over time with tax-free returns of capital rather than taxable dividends. Requires careful timing and legal work; Section 84.1 anti-avoidance rules and the "one-year rule" apply. Full entry →
- Purification
- Restructuring to remove or shelter passive investment assets from an OpCo so its shares qualify as QSBC and gain access to the Lifetime Capital Gains Exemption. Common techniques: paying out passive assets as tax-free intercompany dividends to a HoldCo, or spinning off an InvestCo. Should be done well before a sale, not on the eve of a transaction, due to specific anti-avoidance rules. See The Compounding Tax Bomb. Full entry →
- Shares of a CCPC that meet three tests: (a) at the time of sale, 90% or more of the corporation's assets are used in active business in Canada; (b) throughout the preceding 24 months, more than 50% of assets were so used; (c) the shares were held by the seller or a related person for the 24 months preceding sale. QSBC status unlocks the Lifetime Capital Gains Exemption. Corporate purification is often required to meet the 90% asset test. Full entry →
- Section 85 Rollover
- A provision of the Income Tax Act allowing a taxpayer to transfer eligible property to a Canadian corporation on a tax-deferred basis, in exchange for shares. Commonly used to move OpCo shares into a HoldCo without triggering a capital gain. Requires joint Form T2057 (or T2058 for partnerships). Full entry →
- Section 86 Exchange
- A provision allowing a shareholder to exchange all shares of a class for shares of another class of the same corporation on a tax-deferred basis. The primary mechanism for a classical estate freeze: existing common shares are exchanged for fixed-value preferred shares, and the next generation subscribes for new common shares at nominal value. Full entry →
Corporate Extraction
How corporate income reaches the shareholder: dividends, dividend-tax mechanics, CDA, and the integration framework.
- Capital Dividend Account (CDA)
- A notional account tracking tax-free amounts a corporation can distribute to its shareholders as capital dividends. The CDA increases with the non-taxable half of capital gains, net life-insurance proceeds received, and capital dividends received from other corporations. See CDA 101. Full entry →
- CDA Credit
- An addition to the Capital Dividend Account, typically from the non-taxable half of a realized capital gain or from net corporate life-insurance proceeds. Enables tax-free dividends to shareholders. Full entry →
- Connected Corporation
- Two corporations where one controls the other, or holds more than 10% of both voting shares and fair market value. Dividends between connected corporations are generally deductible (tax-free to the receiving corporation) as long as the payer received a tax refund from its RDTOH. This is the mechanism that enables tax-deferred dividends from OpCo to HoldCo. Full entry →
- Dividend Tax Credit (DTC)
- A non-refundable tax credit that reduces personal tax on dividends received from a Canadian corporation. Eligible dividends (paid from income taxed at the general rate) receive a more generous DTC than non-eligible dividends. See Tax Integration. Full entry →
- Eligible Dividend
- A dividend paid out of a corporation's General Rate Income Pool (GRIP), that is, income taxed at the general corporate rate. Receives the enhanced gross-up and enhanced dividend tax credit at the shareholder level. Full entry →
- General Rate Income Pool (GRIP)
- A notional account tracking corporate income taxed at the general corporate rate (not the small-business rate). Dividends paid out of GRIP qualify as eligible dividends. See RDTOH and GRIP. Full entry →
- Management Fee
- A fee paid by one corporation to another (commonly OpCo to HoldCo, or HoldCo to OpCo) for management services rendered. To withstand CRA scrutiny, the fee must be reasonable, well documented, and match actual services provided. A common mechanism for intercorporate income transfer, subject to specific anti-avoidance rules. Full entry →
- Non-Eligible Dividend
- A dividend paid from corporate income taxed at the small-business rate (that is, not from GRIP). At the shareholder level, it receives a smaller gross-up and dividend tax credit than an Eligible Dividend. In Québec 2026, the top marginal rate on non-eligible dividends is approximately 48.7%. See Tax Integration. Full entry →
- Part IV Tax
- A refundable federal tax on taxable dividends received by a private corporation, either from a non-connected corporation, or from a connected corporation that received a dividend refund. Rate is 38⅓%, matching the RDTOH credit. Refunded to the corporation when it pays taxable dividends to its own shareholders. A core part of the CCPC integration mechanism. Full entry →
- Policy Gain
- The taxable income arising when a life insurance policy is disposed of (surrendered, partially surrendered, or borrowed against beyond ACB), calculated as proceeds of disposition minus the policy's adjusted cost basis. Per s.148(1) of the Income Tax Act, 100% of a policy gain is included in income — distinct from a capital gain where only a portion is included. Life insurance policies are specifically excluded from being "capital property" under s.39(1)(a)(iii). Important implication: surrendering a long-held corporate-owned policy can produce substantial taxable income; keeping the policy until death avoids the policy gain entirely because death benefit proceeds are specifically excluded from the disposition definition. Full entry →
- RDTOH (Refundable Dividend Tax on Hand)
- A notional account tracking refundable taxes paid on a corporation's passive investment income. When the corporation pays a taxable dividend to shareholders, a portion of RDTOH is refunded to the corporation, partially offsetting the higher passive-income tax rate. Split into Eligible RDTOH and Non-Eligible RDTOH. See RDTOH and GRIP. Full entry →
- Tax on Split Income (TOSI)
- Rules that impose the top personal marginal rate on certain income split with family members, eliminating the tax benefit of splitting. Applies to dividends, interest, and some capital gains allocated to a spouse, adult child, or trust beneficiary who does not meet an exclusion (actively engaged, aged 65+, retired-spouse, "excluded shares," or a reasonableness test). Significantly narrowed income-splitting strategies after 2018. Full entry →
Tax Strategies
Cross-cutting tax concepts that apply across multiple pillars.
- Adjusted Cost Basis (ACB)
- In tax: the original cost of a capital asset adjusted for additions, returns of capital, and other specific items; the base from which a capital gain or loss is measured on disposition. In life insurance: a specific tax concept measuring cumulative premiums paid minus cumulative Net Cost of Pure Insurance, which reduces the CDA credit generated when a corporate-owned policy pays a death benefit. For mature corporate policies, the ACB typically rises in early years then declines toward zero in the insured's late 80s. See CDA 101. Full entry →
- Principal Residence Exemption
- A personal tax exemption that shelters capital gains on a property designated as the principal residence during the years of designation. One residence per family unit per year. Not available to corporations: a corporation holding a residence for a shareholder's use triggers taxable-benefit rules under subsection 15(1). Full entry →
- Tax Deferral
- The advantage of paying tax later rather than now, allowing pre-tax capital to compound. In the corporate context, earning income inside a CCPC (taxed at the low corporate rate) rather than personally (at a higher marginal rate) produces a deferral until funds are withdrawn as salary or dividends. See Tax Deferral Over 50 Years. Full entry →
- Tax Integration (Integration)
- The principle that combined corporate plus personal tax on corporate income flowed through to an individual should approximate the tax the individual would have paid directly. In practice, integration is imperfect and varies by province and income type. See Tax Integration. Full entry →
Reference
Regulators, filings, and institutional references that recur throughout the site.
- AMF (Autorité des marchés financiers)
- The Québec regulator overseeing financial advisors, insurance representatives, and securities dealers. Anton Ivanov is registered with the AMF as a Financial Security Advisor and as a Group Insurance and Group Annuity Plans Advisor. Full entry →
- CIRO (Canadian Investment Regulatory Organization)
- The national self-regulatory organization overseeing mutual-fund dealers and investment dealers. Anton Ivanov is registered as a Mutual Fund Dealing Representative under CIRO via Valeurs Mobilières WhiteHaven Inc. Full entry →
- CRA (Canada Revenue Agency)
- The federal agency administering Canadian income tax, GST/HST, and related programs. Issues the interpretations and T2 return forms governing corporate income tax. Full entry →
- Income Tax Act (ITA)
- The federal statute (RSC 1985, c. 1, 5th Supp.) governing Canadian income tax. Specific sections (85, 86, 112, 84.1, 70(5) and others) are routinely referenced in corporate tax-efficient strategies. Full entry →
- LICAT (Life Insurance Capital Adequacy Test)
- The capital adequacy test OSFI uses to measure the financial strength of Canadian life insurance companies. Expressed as a ratio of available capital to required capital. OSFI target is 100%; well-capitalized insurers typically report 140% to 180%. A healthy LICAT ratio affirms the insurer can meet policyholder obligations. Policyholders purchasing permanent life insurance (often 30- to 60-year commitments) are rightly concerned about long-term insurer solvency; LICAT is the public benchmark. Published annually by each federally-regulated insurer. Full entry →
- OSFI (Office of the Superintendent of Financial Institutions)
- The federal prudential regulator of Canadian banks, federally-regulated insurers, and private pension plans. Publishes capital adequacy requirements (including LICAT for life insurers), regulatory guidelines, and supervisory standards. Distinct from provincial insurance regulators (e.g., AMF in Québec) which handle licensing and conduct of business. Full entry →
- T2 Corporate Tax Return
- The annual federal corporate income tax return filed with CRA. The T2 is where a CCPC reports active business income, passive investment income, RDTOH, GRIP, CDA, and claims the small-business deduction. Full entry →
- WhiteHaven Securities Inc.
- The CIRO-registered mutual-fund dealer through which mutual funds are distributed on behalf of iAssure clients. Anton Ivanov is registered as a Mutual Fund Dealing Representative with WhiteHaven Securities Inc. Full entry →
