A PHSP is a Canada Revenue Agency (CRA) approved plan that allows the medical expenses of employees to become a deductible business expense for the employer. This nationwide plan provides affordable medical coverage for the self-employed, and small business owner. Large corporations benefit from a low cost plan, while employees are provided with an exhaustive list of eligible expenses. While incorporated businesses have no applicable limits, unincorporated business must adhere to the maximum limits set out in the Income Tax Act, Section 118.2(1).

Highlights
Low Cost Non-Taxable Benefit
The PHSP is a low cost plan with no deductible, no monthly premiums, and no renewal charges. It allows the company to provide employees with a non-taxable medical benefit while allowing the company to fully tax deductible expense.

Deductible Business Expense
A PHSP is an effective way for a business to convert all health, medical and dental expense into a fully tax deductible business expense. This can result in a very significant savings for both the small business owner and the large corporation.

Combine with Other Health Plans
A PHSP can stand on its own, or can be used as an add-on to an existing plan. Employers determine coverage limits for each class of employee, and can individualize the plan as needs change. Expenses not covered by traditional insurance plans, can become eligible expenses using the PHSP.

Extensive Coverage
The PHSP is your medical coverage; therefore it is your choice. Allowable expenses are listed in the Income Tax Act, Section 118.2(2) and include braces, Chinese medicine, crowns, insulin treatments, massage therapy, orthopedic shoes and much more.

An EPSP is a mechanism available under the Income Tax Act that allows an employer to corporately deduct deposits made into a Company Trust that would normally be paid as income or bonuses to an employee. Both the employer and employee are exempt from CPP payroll deductions, as well as other related taxes, for example EI. Some of the highlights of EPSP include:

Highlights
Income Splitting
An EPSP allows income splitting between family members to save tax dollars by utilizing lower income taxation levels. "Kiddie tax" is not applicable.

Tax Circumvention
There is no payment taxes payable for both the employer and the employee.

Increase Cash Flow
Cash flow is increased both personally and within the corporation.

• Personally by combined income tax savings from income splitting and tax circumvention
• Corporately by tax circumvention

Bonus Surrogate
The EPSP can be utilized as an alternative to providing bonuses to employees.

Tax Deferral
Depending on the business fiscal year end, taxation can be deferred for up to 18 months.

Retirement Planning / Wealth Accumulation
The EPSP is a great way for accumulating wealth or saving for retirement without requiring more income, but rather by utilizing savings that are generated.

A Health and Welfare Trust is an arrangement, established under the Income Tax Act, between an employer and its employees where the employer agrees to provide one to more benefits for employees and/or their families. The corporation makes tax deductible contributions to the trust to reimburse the trust for payment of the premiums and expenses incurred in providing the benefits.

Highlights
Uses Pre-Tax Dollars
A HWT uses pre-tax dollars to pay for expenses that would normally be paid with after-tax dollars yet remains a non-taxable benefit to the members.

Acceptable Benefits
Accidental Death and Dismemberment, Wage Loss Replacement plan, Salary Top Up / Continuation, Long Term Care, and Provincial Health Service premiums can all be expensed through trust.

Increase Cash Flow
Higher premiums result in larger savings. Typical 50% savings on costs incurred to provide acceptable benefits.

Ability to Roll-in Existing Components
The HWT can be set up to hold existing insurance policies, and health services such as Private Health Services Plan (PHSP).

Flexibility
Eligible benefits are allocated b classes of employees.

Benefits Protection
Under current legislation Critical Illness benefits remain tax free to the beneficiary even though premiums are being paid by the trust.

A Retirement Compensation Arrangement or RCA is a trust registered with the Canada Revenue Agency (CRA). It allows employers and individuals to make tax deductible contributions for the future benefit of designated individuals. The RCA has the highest level of contributions to a tax sheltered plan allowable by the CRA. Contributions to an RCA do not affect RRSP or Registered Pension Plan (RPP) contribution limits. The flexible settlement options of the trust allow beneficiaries control over the timing of income recognition.

Highlights

• Large annual contributions toward retirement savings
• Age not a factor in determining contributions or distributions
• Front and back leveraging (not recommended in most cases)
• Assets are secured from creditors
• Multiple individuals may participate in a single plan
• Strategy for key employee retention (Golden Handcuff)
• Large deductions reduce/eliminate corporate tax
• Ideal for company principals taking more income than their current lifestyle requires

An Individual Pension Plan or IPP is a defined benefit pension plan registered with the Canada Revenue Agency and the provincial regulator. It allows individual between the ages of 40 to 71 to substantially increase their retirement savings compared to a Registered Retirement Savings Plan or RRSP. Not only are the regular annual contributions greater than an RRSP, the expenses incurred in managing the assets are also tax deductible. This allows for further contributions to top-up the plan and maximize the assets available for tax-sheltered growth.

Highlights

• Larger regular contributions than RRSP (25-70% more)
• Potential to purchase optional Past Service back to 1991
• Additional contributions available for members who retire prior to age 65
• Plan expenses are deductible by the plan sponsor
• Assets are secured from creditors
• Multiple individuals may participate in a single plan
• Multiple corporations may participate in making contributions-obtaining the deductions
• Plan surplus belongs to the participants

Insured Annuity strategy is perfect for those who have entered into retirement or are approaching retirement. If you are cautious with your capital and prefer fixed-income investments, we recommend this strategy for you. It consist of two separate, but complementary products, which are:

• a prescribed life annuity contract
• an exempt permanent life insurance contract

The insured annuity strategy is specifically made for clients who:

• have retirement assets invested in fixed income investments
• express interest in preserving capital for heirs
• want to maximize their after-tax on their retirement income

The insured annuity strategy offers:

• guarantee income for life
• preferential tax treatment of annuity income
• permanent life insurance protection
• the continuation of client control of their capital in a tax-advantaged life insurance policy
• flexibility to change policy beneficiary, and coverage amount (subject to any underwriting requirements)
• estate preservation from life insurance proceeds paid to beneficiaries at death (tax free)
• eliminate probate fees on death benefit with named beneficiary other than the estate (not applicable in Quebec)