Weekly Tax Tips
Do You Have Documentation for Your Management Fees?
18 Jun 2010
Do you use more than one corporation (or other entities such as trusts or partnerships) for business purposes? Do you use management fees to bill central management expenses to these entities or to bill other entities for services performed? If you do, not only must the fees you charge be reasonable, but it is critical that you can prove the fees are truly management fees with the proper documentation should a Canada Revenue Agency auditor ask for details of the fees charged.
For further information, see our recent Tax Factor 2010-02 article titled “Do You Have Documentation for Your Management Fees?”.
This tax tip is a publication of BDO Canada LLP on developments in the area of taxation. This material is general in nature and should not be relied upon to replace the requirement for specific professional advice. The information in this tax tip is current as of 18 Jun 2010.
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