Canada Money withdrawal from corproration

[Dragan]

Can I withdraw money from my corporation to pay my yearly personal tax insalments?

 

[DrStrangeLove]

Are you asking whether the corporation can pay your property tax bill for you, and have the corporation report it as an expense? That's usually not allowed, since you and your corporation are not the same legal person, and your property tax bill has no relationship to your corporation's operating activities. You'd have to report the payment as taxable income to yourself from the corporation if your corporation is not a passthrough. And your taxing authority (I'm assuming we're talking CRA or a provincial DOR) would likely flag it as suspicious.

If you're the sole (and thus controlling) shareholder in the corporation, you can always increase the amount of salary you draw as an employee so that you have enough to pay that bill. But having the corporation pay that bill for you....yeah, no, that's asking for an audit from your friendly neighborhood CRA auditor.

 

[puckdrum]

It's possible to withdraw money from your corporation to pay your personal tax installments, but it's important to make sure you're doing it correctly and following all the rules and regulations. I suggest consulting with a tax professional or accountant who can advise you on the best way to handle this and ensure you're not breaking any laws or putting your business at risk.