The Playbook for Balancing Taxes, Retained Earnings, and Passive Income in Canada

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Are you a Canadian business owner sitting on retained earnings but unsure how to invest them without losing half to taxes?

You’ve worked hard to build a profitable corporation, but the moment you try to grow wealth inside it, the tax system feels like a trap. Between passive income rules, dividend categories, and the dreaded 50% tax on investment earnings, it’s no wonder many entrepreneurs hesitate. The truth is, the system isn’t broken—it’s just designed to be complex. And without the right strategy, you could miss out on powerful opportunities to grow and protect your wealth.

In this episode, you’ll discover:

• Why the refundable dividend tax on hand (RDTOH) account can be your secret weapon against the 50% passive income tax rate.
• How structuring corporate-owned investments—like real estate or insurance—can create long-term tax efficiency and flexibility.
• Practical steps to balance retained earnings, leverage, and wealth transfer strategies so your money compounds instead of stalls.

Press play now to learn how to turn retained earnings into a tax-smart wealth engine for you and your family.

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Canadian Wealth Secrets Show Notes Page:

Consider reaching out to Kyle

• …taking a salary with a goal of stuffing RRSPs;
• …investing inside your corporation without a passive income tax minimization strategy;
• …letting a large sum of liquid assets sit in low interest earning savings accounts;
• …investing corporate dollars into GICs, dividend stocks/funds, or other investments attracting corporate passive income taxes at greater than 50%; or,
• …wondering whether your current corporate wealth management strategy is optimal for your specific situation.

Canadian business owners face unique challenges when it comes to passive income, Canadian taxation, and retained earnings, but with the right corporate structure optimization and tax planning, wealth can grow more efficiently. Whether through real estate investing in Canada, RRSP optimization, or leveraging RDTOH for smarter dividend strategies, entrepreneurs can design a Canadian wealth plan that balances today’s needs with tomorrow’s goals. From salary vs dividends Canada decisions to integrating insurance policies for protection and estate plannin

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Canadian Wealth Secrets is an informative podcast that digs into the intricacies of building a robust portfolio, maximizing dividend returns, the nuances of real estate investment, and the complexities of business finance, while offering expert advice on wealth management, navigating capital gains tax, and understanding the role of financial institutions in personal finance.