A Simple Way To Reduce Your Corporate Tax Bill
Posted On: 25/03/26 - 0

Are you one of the many Alberta entrepreneurs that want to know a simple way to reduce your corporate tax bill? Overlooking tax deductions by simply mismanaging company purchases can lead to overpaying and losing more of your hard earned income unnecessarily. Let’s face it, it takes a lot of work, focus and energy to grow and maintain a business. There are times that we simply do not have enough time to make informed decisions. The result is we rush through something like a purchase just to move on to the next thing to do in that work day. We often miss out on tax deductions because we are in too much of a hurry.

Keep All Of Your Corporate Receipts

Keeping all receipts and other proof of purchase goes a long way to reduce the amount of tax you pay at year end. This could include union dues, using your home office or vehicle for work. You can deduct expenses like charitable donations, office supplies and office maintenance to name just a few.

What Is A Valid Receipt?

The proof of purchase should show the sellers name, date of purchase along with a description of what the purchase is. The total of the purchase should also be clear.

What If You Lose A Receipt?

A receipt in the event of an audit is preferred, however you can use your bank or credit card statements to back up your claim.

Tracking Receipts

There are so many different apps today to make this job a simple task. Something as straight forward as a digital app like Dext. This app will help you to store and organize your paper. Take a pic with your phone and upload to a file for secure storage for that tax year.

Personal Versus Business

Separate your personal purchases from business purchases to keep things clean and easy.

What About G.S.T. Filings?

G.S.T. paid on business purchases is recovered through tax credits. Without those receipts, here is another way of losing money.

How Long Should You Keep Your Receipt Records?

In the event of a CRA audit, it is reccommended to keep your records for a mimimum of 6 years.

If you are a business owner and looking for a new corporate accountant, give Padgett a call. We do all that we can to ensure you are using all of your tax deductions and tax credits. If you are looking to reduce your corporate tax bill, we can help.

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Edmonton, Alberta.
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780.482.7297