Glossary: S

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Salary

Salary is regular employment income paid to an employee or owner-manager, deductible to the corporation and creating RRS…

Share Capital

Share capital is the money a corporation raises by issuing shares to its owners, forming part of shareholders' equity on…

Shareholder Agreement

A shareholder agreement is a contract among a corporation's owners setting out how the company is run, how shares can be…

Shareholder Loan

A shareholder loan tracks money moving between an owner and their corporation; borrowing from the company must generally…

Small Business Corporation

A small business corporation is a CCPC that uses all or substantially all of its assets in an active business in Canada,…

Small Business Deduction (SBD)

The small business deduction lowers the federal corporate tax rate to 9% on the first $500,000 of active business income…

Sole Proprietorship

A sole proprietorship is an unincorporated business owned by one person, where the business and owner are the same legal…

Solvency

Solvency is a business's ability to meet all of its long-term financial obligations, indicating whether its assets excee…

Source Deductions

Source deductions are the income tax, CPP and EI amounts an employer withholds from employees' pay and remits to the CRA…

Statement of Cash Flows

The statement of cash flows is one of the three core financial statements, showing how cash moved through a business by …

Statutory Holiday Pay

Statutory holiday pay is the wages employers must pay eligible employees for public holidays, set by provincial employme…

Straight-Line Depreciation

Straight-line depreciation spreads an asset's cost evenly over its useful life, charging the same depreciation expense e…

Superficial Loss

A superficial loss is a capital loss the CRA disallows because you or an affiliated person repurchased the same or ident…

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