Richard CanfieldPodcast Host and IBC Advisor, Ascendant Financial · Authorized Infinite Banking Practitioner | Author of 4 Books

Tax Rates for the Personal & Corporate Environment 💲🧾

21 Apr 2023 · 1 min

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Richard Canfield explains how Canada taxes active and passive income differently depending on whether you're an individual or a corporation. Individuals pay higher rates on active income, corporations the opposite. The video moves from definitions to concrete examples.

Chapters

The Tax act has basically sections that have specific rules relating to active income and passive income. In the personal environment, generally, active income is actually taxed much more unfavorably and passive income is taxed much more favorably. In the corporate environment, it's actually the opposite. Active income is taxed much more favorably and the passive income is taxed much more heavily. Let's just look at it from a very general standpoint, which I think most Canadians understand is capital or money coming into you. Now, how each individual or corporation gets capital coming into them is going to be different.