Problem

Balancing income needs with long-term financial planning is complex — especially when research and development work is part of the equation. Our client was looking for a way to meet personal cash flow requirements while also maximizing their savings and minimizing taxes. With both a high income and SR&ED eligibility, they needed a solution that aligned compensation with strategic tax planning.

The goal was clear: meet income needs, build RRSP contribution room, reduce corporate taxes, and fully leverage SR&ED credits — all without leaving money on the table.

Solution

We built a personalized 2026 tax strategy focused on a salary-only compensation plan, tailored to support SR&ED optimization and maximize RRSP contribution limits.

Key actions included:

• Aligning salary to meet both personal cash flow needs and future RRSP contribution thresholds.
• Avoiding dividends to preserve SR&ED eligibility and strengthen the overall claim.
• Strategically timing RRSP contributions to increase the SR&ED credit and reduce the corporate tax burden.
• Projecting the corporate tax bill before and after credits to demonstrate impact and clarity.

Results

Thanks to this customized plan, our client saw exceptional results, including:

• $83,070 SR&ED credit for the 2026 tax year
  Corporate tax reduced from $26,230 to $12,261
• Total tax savings of $43,739 from smart RRSP timing
• Effectively $0 in net tax on $480,000 of income through coordinated personal and corporate strategies

By switching to a full-salary strategy and optimizing every eligible credit, the client preserved more of their income and positioned themselves for long-term success.

Whether you’re conducting research, managing a growing practice, or preparing for retirement, our team ensures you get every dollar working in your favour. Through smart structuring, deep industry insight, and asking the right questions, we turn complex tax planning into real-world results.

Ready to maximize your income and minimize your tax bill? Contact us here.