Does your operating corporation pay dividends to a parent (holding) corporation?

Generally speaking, taxable Canadian corporations can pay dividends to other taxable Canadian corporations on a tax-free basis.  For instance, consider a typical corporate structure where an operating company (Opco) is wholly owned by a parent corporation (Holdco), which in turn is owned by individual shareholders.  A common practice used by many accounting practitioners is to…

Do the new mortgage rules affect you?

Effective October 17, 2016, all high-ratio mortgages (those where a borrower puts less than 20% down) must satisfy a mortgage stress test.  Essentially, a borrower must now qualify using a higher interest rate notwithstanding the fact that their lender is currently offering mortgages at a lesser rate. Q: What interest rate must now be used…