Tax season can be a stressful time for anyone, especially if you’re an entrepreneur or small to medium sized business owner. Many Canadians are confused by the complex tax system we have in place, and this lack of understanding could pose challenges to the growth and success of your business. Don’t worry though - you’re not alone.
This week’s episode features Faisel Syed, Founding Partner of Square Law Group, a boutique law firm specializing in tax planning, defense and litigation for corporate & commercial law, family law, and real estate.
“Make sure that you’re planning. It’s not hard to have a consultant who is an accountant or [a lawyer or both] that can help you make sure that you avoid the pitfalls from a business perspective, a legal perspective, and a tax perspective.” — Faisel Syed [0:49:47]
Faisel is a lawyer and CPA with a long history specializing in tax planning and dispute resolution. In this episode, he shares some insider tips to help you understand tax law and avoid legal run-ins should your business be audited.
“If you miss your timeline, you’re dead – so don’t miss your timelines. It’s one of the biggest things you can do to save yourself.” — Faisel Syed [0:49:34]
We also discuss the importance of being in control of your own accounting destiny, and how to navigate between incorporating versus being a sole proprietorship.
“[For any company] where there’s risk, you want to use a corporation. – Your liability is limited there. That’s just a legal perspective. From a tax perspective, if you’re earning more than you can use, then you don’t want to be in a sole proprietorship.” — Faisel Syed [0:39:16]
What sets this episode apart is Faisel’s ethical and compassionate approach to tax advice, influenced by a poignant story from his time at the Canada Revenue Agency. Join us for an engaging discussion that transcends conventional tax guidance, offering practical strategies tailored to Canadian business owners, CEOs, and entrepreneurs.
KEY POINTS FROM THIS EPISODE:
Things you need to know about Canadian tax law and the Canada Revenue Agency (CRA).
Getting a good accountant and other tips to avoid run-ins with the CRA.
How entrepreneurs can prepare for succession planning and selling their business.
What Faisel means by a purified CCP (Canadian-Controlled Private Corporation).
Ways to ensure your company is eligible for lifetime capital gains exemption (LCGE).
Tax technicalities you can get caught up in and how to avoid them.
Practical advice for navigating a CRA audit and how best to work with your tax advisor.
A poignant story of an audit that made Faisel decide to leave the CRA.
Family trusts, LCGEs, and other options for personal tax planning.
Faisel’s response to the saying, the rich just get richer and don’t pay any tax.
Incorporation versus sole proprietorship and which works better for your business.
Recommended resources and personal development opportunities.
Faisel’s thoughts on the applications of AI in the world of tax.
Final words of tax wisdom for business owners, CEOs, and entrepreneurs.
LINKS MENTIONED IN TODAY'S EPISODE:
Please note that the information contained in this interview is not financial advice but for entertainment purposes. I am not a financial advisor and make no warranties or representations concerning the accuracy or suitability of the information contained in this interview. I recommend that any and all investment decisions be made with the advice of accredited investment advisors.