Medical Accountant for Doctors in London, Ontario

Can an Ontario doctor use a holding company to own their medical corporation?

No. CPSO does not permit a holding company to own shares in an Ontario medicine professional corporation. This is an ownership restriction on the medical corporation; it is not a blanket ban on a physician owning a separate company. Review any proposed structure with your accountant and lawyer before transferring shares or funds.

Source: CPSO: holding companies and incorporation

Who can own shares in an Ontario medicine professional corporation?

Voting shares are restricted to CPSO physician members. Non-voting shares may be held by physicians or eligible family members under Ontario Regulation 665/05. A narrow trustee exception applies for minor children. Share eligibility and the tax treatment of dividends are separate tests; do not assume every relative or trust qualifies.

Source: Ontario Regulation 665/05: physician corporations

Can I pay dividends to my spouse to reduce our family tax?

Not automatically. Being an eligible shareholder does not make a dividend tax-efficient. Tax on split income (TOSI) can apply at the highest marginal rate unless an exclusion is met. The excluded-shares exception is unavailable for professional corporations. Other exclusions depend on the facts, so review the recipient’s work, age and circumstances before declaring dividends.

Source: CRA: TOSI and excluded shares

When should a doctor consider incorporating in Ontario?

Start with the surplus you can retain after practice costs, household spending, debt payments and tax reserves. If you withdraw most earnings, extra corporate administration may outweigh the benefit of deferring personal tax. We can compare your cash needs, annual compliance costs and proposed remuneration before you decide. There is no universal billing threshold.

Does my medicine professional corporation need a CPSO certificate?

Yes. An incorporated Ontario medical practice needs a CPSO Certificate of Authorization to operate, and the certificate must be renewed annually. Incorporating the company alone is not enough. Keep the renewal date alongside your tax, payroll and corporate-record deadlines.

Source: CPSO: certificates and annual renewal

Should an incorporated doctor take salary or dividends?

Compare total corporate and personal tax, cash-flow needs, retirement plans and the administration involved. The right mix depends on your own circumstances and can change between years. We can model the options alongside your year-end results rather than selecting one method solely because its headline tax rate looks lower.

Can corporate investments reduce my small business deduction?

Yes. Under the federal passive-income rules, adjusted aggregate investment income of the corporation and associated corporations above $50,000 can reduce the following year’s federal small business limit. The standard $500,000 limit is reduced by $5 per excess dollar and reaches zero at $150,000, before other adjustments. Review the actual income calculation, not just portfolio value.

Source: CRA: passive investment income and the business limit

Are all services billed by a doctor exempt from GST/HST?

No. Qualifying health care services provided by medical practitioners can be exempt, but the practitioner’s licence alone does not exempt every invoice. The purpose and nature of the service matter; non-qualifying reports and purely cosmetic services may be taxable. Review each revenue stream and any registration obligations rather than treating all non-OHIP billings the same.

Source: CRA: medical-practitioner exemption and qualifying health care supplies

When is a medical corporation’s T2 return due, and when is the tax payable?

The T2 return is generally due six months after the corporation’s tax year-end. The balance is usually payable earlier: two months after year-end, or three months for qualifying corporations. Instalments may also be required. Waiting until the filing deadline to calculate the balance can create interest costs.

Source: CRA: T2 filing deadline

Payment timing: CRA balance-due rules.

What bookkeeping records should a physician keep organised?

Keep OHIP and other payer statements, private billing summaries, bank and credit-card statements, receipts, clinic overhead agreements, payroll records and shareholder transactions. Reconcile billings to deposits and track amounts still receivable. For locum or multi-clinic work, separate each income source. Share financial records through the agreed secure channel; patient charts are not needed for the introductory call.

Can you help a locum doctor or a physician moving from residency into practice?

Yes. We can discuss employment versus practice income, multiple billing sources, record keeping, tax reserves and whether incorporation is appropriate. Bring your work arrangements and expected expenses. The first step is understanding how you will earn and receive income, not assuming every doctor needs the same corporate setup.

Can you help me switch accountants, and what will it cost?

Yes. We start with your last filed returns, current books, upcoming deadlines and outstanding work. Fees depend on the services, structure and condition of your records. We confirm scope, fees and responsibilities before the engagement begins. The introductory call is complimentary and can take place virtually or through our London office by appointment.