BUSINESS TRUST

EMPLOYEE PROFIT SHARING PLAN TRUST

We would also recommend that the taxpayer consider two other documents to help facilitate this program. Those documents would include an employment contract between the taxpayer and business trust and an employee profit-sharing plan adopted by the business trust to allocate profits to the employee. The use of these two documents allows the individual to earn income that qualifies for RRSP contributions without having to worry about payroll taxes such as CPP and EI. A spouse could also be part of this employment concept.

The idea here is to split income among the family members without having to worry about personal service business rules and the rules under section 120.4. Also, the taxpayer can still have the possibility of contributing to his RRSP through the use of the employment contract and the employee's profit-sharing plan trust.

For more information on our corporation and our products, please contact:
R. Paul Jacobson, Q.C. Director
The Fiscal Planning Corporation
Suite 2600, 144 - 4th Avenue S.W., Calgary, Alberta, Canada T2P 3N4
Telephone: (403) 210-0278
email: jake@fiscalplanning.com