Corporate Minute Book Reviews

The corporate minute book houses some important documents that often have significant income tax effects.  Lawyers who prepare the minute book documents, often, do not understand the income tax repercussions – Resulting in undue risk in the event of an audit by Canada Revenue Agency.

Chartered Accountants and lawyers must work together to ensure corporate minute books are legally appropriate and can withstand potential audits by tax authorities.

The corporate minute book is often overlooked by most corporations and their accountants and often lacking various documents to protect corporations and their shareholders.

For example, as part of tax planning a bonus may be declared to a shareholder.  The minute book must contain a document to ensure this bonus is legally declared. The instructions for preparing such a document would be prepared by us and forwarded to the lawyers for preparing the appropriate documents to house in the corporate minute book.  In the absence of such documents, such a bonus may be denied by the Canada Revenue Agency, potentially causing significant income tax costs that could have otherwise been avoided.

In short, we will ensure the corporate minute book is audit proof so that in the event of a tax audit it can withstand the scrutiny of the Canada Revenue Agency.  We then provide  instructions to your lawyer on changes to make to the minute book to implement our recommendations.

Please contact us to discuss your particular needs.