Tyler Veriker, BBA - GoTo Wealth & Estate Planning

07/12/2026

09/23/2025

If you're a Business Owner or Incorporated and looking to invest extra cash here’s a friendly breakdown of how Corporate Non-Registered Investments are taxed in Canada.

1. The Basics

When a corporation invests its extra cash (in stocks, bonds, mutual funds, GICs, etc.), the income it earns isn’t sheltered like an RRSP or TFSA. Instead, the income is taxable inside the company each year.

There are three main types of investment income:

Interest income (e.g., GICs, bonds)

Dividends (from Canadian or foreign companies)

Capital gains (from selling an investment for more than it cost)

2. Interest Income

Fully taxable in the corporation at the high passive investment tax rate (often 50%+ depending on province).

Part of this tax is refundable later when dividends are paid to shareholders (see RDTOH below).
👉 Key point: Interest income is the least tax-efficient form of investment income for a corporation.

3. Canadian Dividends

When your corporation receives dividends from Canadian public companies, they are taxed at a high rate initially.

But part of the tax goes into a refundable account (RDTOH). When your corporation pays dividends to you (the shareholder), some tax is refunded back to the corporation.
👉 Key point: The system is designed so that, in the end, you and your company together pay about the same tax as if you had earned the dividend personally.

4. Foreign Dividends

No dividend tax credit in Canada.

Taxed just like interest income at high passive rates.

Foreign withholding taxes (e.g., U.S. 15%) usually apply and cannot be fully recovered inside a corporation.
👉 Key point: Foreign dividends are the most heavily taxed type of investment income in a Canadian corporation.

5. Capital Gains

Only 50% of a capital gain is taxable inside the corporation.

The taxable half is taxed at high passive rates (again, with part refundable).

The non-taxable half goes into the Capital Dividend Account (CDA), which can be paid out tax-free to shareholders.
👉 Key point: Capital gains are the most tax-efficient type of income in a corporation.

6. Refundable Tax System (RDTOH)

Corporations pay very high upfront tax on passive investment income.

A portion of that tax goes into a notional account called Refundable Dividend Tax on Hand (RDTOH).

When the company pays out dividends to shareholders, some of that tax is refunded to the company.
👉 Key point: The government ensures overall tax integration, but you have to actually pay yourself dividends for the refund to happen.

7. Small Business Deduction Grind

If a corporation earns more than $50,000 of passive investment income in a year, its small business limit (the $500,000 of active business income taxed at the low small-biz rate) starts to shrink.

At $150,000 of passive income, the small business deduction is completely eliminated.
👉 Key point: Too much investment income can increase the tax rate on your active business profits.

8. Big Picture

Interest & foreign dividends = least tax-efficient

Canadian dividends = neutral (after refunds)

Capital gains = most tax-efficient (plus tax-free CDA)

✅ KEY Takeaway: Corporate investing is advantageous, but the type of investment income matters a lot. A proper tax-efficient investment strategy to align with Corporate & Personal goals can save significant tax over time.

We're here to help. Please reach out if you have any questions!

09/05/2025

🎒📚 Back to School Reminder for Parents 📚🎒

As your kids head back to school, it’s also a great time to think about their future education.

Did you know you can grow your savings for your child’s college or university through a Registered Education Savings Plan (RESP)?

✅ Government Grants – The government will match 20% of your contributions up to a lifetime maximum of $7,200 per child, through the Canada Education Savings Grant (CESG).
✅ Tax-Deferred Growth – Your savings grow tax-free.
✅ Flexibility – Funds can be used for tuition, books, or even living expenses.

Starting early means you give your child a stronger financial foundation for their future—and peace of mind for yourself.

💡 Even small contributions add up over time, especially with government incentives.

📞 Contact us today to learn how an RESP can fit into your family’s financial plan.

👉 Let’s make sure your child has the opportunities they deserve.

07/15/2025

The Los Angeles Lakers: A $10 billion Story on Wealth Creation

The Los Angeles Lakers, one of the most successful and iconic teams in the NBA, recently sold for a staggering valuation of $10 billion USD. This sale marks the most expensive transaction for a sports team across all major leagues, setting a new benchmark in the world of professional sports. For perspective, the second-largest sale in history was the Boston Celtics, which sold for $6.1 billion USD in March 2025.

Let's break down the numbers...

The Lakers were last sold in 1979 to entrepreneur Jerry Buss, who purchased the team for $68 million USD. Turning $68 million into $10 billion over 45 years is a feat that few can fathom. This equates to a compounded annual return of about 11.6%.

SO.... is this kind of return only achievable by millionaires or billionaires? Not at all.

If an investor had placed their funds into the S&P 500 Index back in 1979 — and reinvested all dividends — they would have achieved an annualized return of approximately 12.2% by June 30 2025. That equates to about $13 billion today, outperforming the Lakers investment by about $3 billion, or 0.6% per year.

Of course, this comparison simplifies the scenario. It doesn’t account for taxes, fees, etc. OR the unique emotional value of owning a sports franchise. However, the underlying message remains clear: you don’t need access to exclusive, high-profile investments to achieve strong financial returns. What you need is time, discipline, and consistent exposure to the market.

Two Key Takeaways:

• You don’t need to be a millionaire to build wealth: Whether you’re investing millions or just a few hundred dollars, the market rewards patience, consistency, and a long-term mindset.
• The power of compounding: Investing in the stock market can deliver returns that rival even the most exclusive asset classes, amplified by the reinvestment of dividends.

The Return from LA Lakers sale assumes purchase price of $67.5 million January 1, 1979, and sale of $10 billion on June 30, 2025, compounded annually. S&P 500 returns from January 1, 1979, to June 30, 2025, and accounts for dividend reinvestment.

Source: Morningstar Direct, RBC GAM.

01/14/2025

We are seeking a highly organized and proactive Client Service Representative/Administrative Assistant to support our team in delivering exceptional service to clients and ensuring smooth day-to-day operations. This role requires a detail-oriented professional with excellent communication skills.

Key Responsibilities:

Administrative Support: Provide comprehensive administrative assistance, including scheduling meetings & managing calendars. Prepare, edit, and distribute correspondence, reports, and presentations with accuracy and professionalism.

Client Interaction: Serve as a point of contact for client inquiries, ensuring timely and accurate responses.

Compliance and Records: Maintain accurate records and ensure all documentation complies with industry regulations and company policies.

Team Collaboration: Support various departments with special projects and contribute to team initiatives as needed.

Qualifications:

Strong attention to detail and ability to prioritize tasks in a fast-paced environment.

Excellent verbal and written communication skills.

Discretion and professionalism in handling sensitive client and company information.

Proficiency in Microsoft Office Suite (Word, Excel, PowerPoint, Outlook) and familiarity with CRM systems.

What We Offer:
1.) Competitive salary and benefits package
2.) Opportunities for career advancement in the financial services industry
3.) Professional development opportunities, including training and certifications

Job Title: Client Service Representative/ Administrative Assistant
Location: Miramichi /Hybrid
Job Type: Full-time

11/05/2024

There is no one-size-fits-all solution for financial wellness, as everyone has different needs, preferences and circumstances. However, there are some general steps that you can take to help improve your financial wellness.

What are your next steps?

What is financial wellness? Read this article for tips to help you manage your money better and work toward financial well-being.

10/28/2024

It was a pleasure to host 2x sessions last week for Business Owners & Incorporated Professionals in light of Small Business Week.

The information shared Thursday on “The Importance of Goal-Based Planning for Business Owners” was very insightful, thank you to my co-hosts, Alvin Bell & Morgan Vickers.

Friday’s sessions entailed a great discussion about “Attracting & Retaining Employees”. Thank you, Ian Gerrish for co-hosting!

Patti Somers, Executive Director, from The Chamber did a fantastic job organizing!

Sometimes as business owners we get so busy working “in” our business that we don’t take enough time to work “on” our business. Happy to share the notes if you missed either session!

10/23/2024

Looking forward to tomorrow mornings 8:30am session for Business Owners.

05/09/2024

If you're a motivated professional looking for an opportunity in the Financial Services Industry, we'd love to chat! We're in need of a bilingual Financial Advisor to service both new & existing clients. Industry experience is an asset but not required. Ideally the candidate would be based in Moncton, Miramichi or Fredericton!

Please reach out to me directly if you have any questions!

01/22/2024

It was an honor to host the 2024 Greater Miramichi Chamber of Commerce Awards Gala. It was truly a fantastic evening that highlighted many Business Owners & Entrepreneur's in the Miramichi area.

Congratulations to this year's award recipients.
MacCallum Building Supplies (2009) Ltd
Cole Price Construction
Theriault & Hachey Peat Moss Ltd.
Travelodge by Wyndham Miramichi
Carrefour communautaire Beausoleil

Special mention to Greg Turner - MLA, Moncton South / Député, Moncton-Sud for doing an incredible job as Guest Speaker. Patti Somers, Excutive Director of the Greater Miramichi Chamber of Commerce for a doing a wonderful job planning such a great event!

Look forward to hearing more success stories again next year!