EMPLOYEE PROFIT SHARING PLAN TRUST

EMPLOYER DEDUCTION

Any amounts paid by the business to the trustee of the EPSP trust during a taxation year or within 120 days thereafter are deductible in computing the income of the company.

EMPLOYEE INCLUSION

There is no requirement that all employees must be included or that employees must be treated equally under the EPSP trust. The decision to share profits and the selection of the employees with whom they are shared are entirely discretionary. For this reason, the EPSP trust is an ideal tool for income splitting between spouses and with older children.

Allocated profits qualify as earned income for RRSP contributions and the RRSP carry-forward rules.

SOURCE DEDUCTIONS

Amounts paid by a company to an EPSP trust are not subject to source deductions. Therefore, these amounts do not form the basis for withholding tax, unemployment insurance or Canada pension plan.

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