Strategic Accounting and Tax Guidance as Your Career Evolves
As your career progresses, your financial picture becomes more complex. From practice structure and compensation planning to tax optimization and long-term planning, the decisions you make have a direct impact on both your current income and future financial position. We work with practicing physicians to help you make informed decisions, implement the right strategies, and stay focused on your practice.
A message from Jonathan Tucker CPA, CA, LPA
Managing Director, Tucker Professional Corporation
How We Support Practicing Healthcare Professionals
Our approach goes beyond compliance to big picture planning. We provide proactive, thoughtful support designed to help you manage complexity, reduce tax exposure, and align your financial decisions with your long-term goals.
Our services include:
- Personal and corporate tax planning
- Developing and implementing tax-efficient strategies
- Evaluating and optimizing your practice structure (e.g., sole proprietorship, professional corporation, trust structures)
- Compensation and remuneration planning
- Strategic advisory to support evolving financial needs
We focus on helping you make informed decisions and ensuring the right strategies are put in place and implemented effectively.
Common Questions From Physicians
As your career progresses, new financial considerations emerge. Here are some of the questions we hear most often.
Key Questions
There’s no hard and fast rules. To suggest otherwise would be like prescribing the same medication to every patient—without regard to the individual in front of you. The right answer depends on your specific circumstances.
A few questions can help frame the discussion:
- Are you planning to move to another jurisdiction soon?
Changes in province—or country—can affect how a corporation is taxed and administered. Timing matters. If this is your scenario, maybe postpone a decision on incorporation until after a move to another jurisdiction. - How much are you earning, and how much do you need to live on?
Incorporation can be effective when there’s surplus income that can be retained and invested within the corporation. - What will you need cash for over the next 3–5 years?
A corporate structure can provide access to cash in a variety of tax-efficient ways not available to sole proprietors—but this requires planning in advance of those needs. - Are you a U.S. citizen?
This adds complexity, but incorporation can still be a viable option with the right cross-border structuring. - Do you own shares in another CCPC?
Owning multiple corporations can create association issues, requiring the sharing of tax benefits such as the small business deduction across all associated entities.
Incorporation can be a powerful tool—particularly when aligned with your broader financial picture and future plans.
It depends on your specific circumstances.
The CRA has indicated—based on an example involving a self-employed anesthesiologist—that travel between home and the hospital may be considered business travel where the home is the true base of operations. This would generally require that administrative and management work is carried on from home and that there is no office or dedicated space available at the hospital or clinic.
Where those conditions are not met, such travel is more likely to be viewed as personal commuting.
Given the number of factors involved, this is ultimately a question of fact and should be reviewed in light of your particular situation.
In most cases, it’s not an either/or decision.
An RRSP is generally the better place for interest and dividend income—offering an upfront deduction and tax-deferred growth, with no annual tax drag.
A professional corporation, on the other hand, doesn’t typically provide a long-term tax advantage for this type of income. The refundable tax system is designed so that, once funds are paid out, you end up in roughly the same position as earning the income personally—aside from a possible deferral benefit.
Where a corporation can be more advantageous is with capital gains, as a portion may be paid out tax-free through the capital dividend account—something not available in an RRSP.
That said, the right approach depends on your broader tax picture, including how and when funds are withdrawn. It’s worth reviewing this carefully upfront before deciding where to invest your money.
Often, yes.
While a professional corporation is excellent for deferring tax on active income, investment income inside the corporation is treated differently. Interest and dividends are taxed at a high rate upfront, with some recovery later through the RDTOH mechanism—so the deferral benefit is limited.
An RRSP, on the other hand, allows those same types of income to grow without annual tax, which can be more efficient over time.
That said, a corporation can work quite well for capital gains (e.g., stocks or real estate), where the tax treatment is more favourable.
In practice, many professionals benefit from using both. The right mix depends on your situation, so it’s worth reviewing this with a tax advisor who focuses on health care professionals.
Changing accountants is not simply administrative. As a director, you remain responsible for your corporation’s records and filings, and the CRA expects you to be able to support them.
At a minimum, ensure your new accountant receives:
- T2 (corporate) and T1 (personal) returns
- T4, T4A, T5 slips and summaries
- GST/HST and payroll filings
- Notices of Assessment/Reassessment
- Any ongoing CRA audits or Notices of Objection
- The general ledger and accounting file (often overlooked, but critical)
Also confirm your new accountant is set up as an authorized representative with CRA.
From a practical standpoint:
- Ensure all filings are current
- Understand instalment requirements
- Confirm there are no unresolved CRA issues
- Provide your new accountant with contact information of the predecessor as details will need to be transferred and explanations obtained
Ensure your new accountant pays particular attention to continuity of key tax accounts—GRIP/LRIP, RDTOH, and CDA balances—as these affect how funds can be paid out of your corporation.
This is not a small decision. Gaps in information can create delays or exposure if prior filings are not reviewed.
A transition is best handled with guidance from a tax professional experienced with physicians to ensure nothing important is missed and matters transition quickly and smoothly.
Medical director fees earned by physicians at long-term care facilities are generally considered a taxable supply for GST/HST purposes, as these services are typically administrative or management in nature and not exempt health care services rendered directly to individual patients. However, physicians may not be required to register for or charge GST/HST if they qualify as small suppliers under the Excise Tax Act. Small supplier status generally applies if a physician’s total worldwide taxable revenues (including those of associates) do not exceed $30,000 in a single calendar quarter or in the last four consecutive calendar quarters. If a physician qualifies as a small supplier, GST/HST registration and collection may not be required.
The applicable tax rate depends on where the services are provided:
- HST applies in Ontario, Nova Scotia, New Brunswick, Newfoundland and Labrador, and Prince Edward Island.
- GST applies in Alberta, British Columbia, Manitoba, Saskatchewan, Northwest Territories, Nunavut, and Yukon.
- In Quebec, both GST and QST generally apply.
Physicians should also consider whether they qualify as small suppliers, as this may affect their GST/HST obligations.
Under the GST place of supply rules, the applicable GST/HST rate for services such as hospital “on-call” fees or consulting fees for expert opinion reports is generally determined by the address of the recipient that is obtained in the ordinary course of business and not the address of the GST/HST registrant. If the recipient’s address is in the Northwest Territories, the supply is considered to be made in the Northwest Territories. As the Northwest Territories is not a participating province for HST purposes, only the 5% GST applies to the supply, not HST. It is important for physicians to retain documentation of the recipient’s address to support the application of the correct GST rate.
Donating publicly traded securities (e.g., stocks, mutual funds) directly to a registered charity is typically more tax-efficient than donating cash.
Why this works:
- No capital gains tax: Accrued gains are not taxed when securities are donated in-kind.
- Full donation receipt: You receive a receipt for the fair market value (FMV) at the time of donation.
- Tax relief:
- Individuals claim a non-refundable tax credit
- Corporations claim a deduction against income
- Funds extracted through CDA for non-taxable portion
Practical steps:
- Transfer securities directly (do not sell first)
- Confirm they are publicly listed before disposition
- Obtain proper donation receipt
The GST/HST exemption for health care services generally applies only to services provided directly to individual patients as part of their health care. Administrative or management services, such as those performed by a medical director, are generally considered to be a taxable supply according to the Excise Tax Act. However, if a physician qualifies as a small supplier, they may not be required to register for or collect GST/HST on these fees.
The applicable tax rate depends on where the services are provided:
- HST applies in Ontario, Nova Scotia, New Brunswick, Newfoundland and Labrador, and Prince Edward Island.
- GST applies in Alberta, British Columbia, Manitoba, Saskatchewan, Northwest Territories, Nunavut, and Yukon.
- In Quebec, both GST and QST generally apply.
Physicians should also consider whether they qualify as small suppliers, as this may affect their GST/HST obligations.
Donating publicly traded securities (e.g., stocks, mutual funds) directly to a registered charity is typically more tax-efficient than donating cash.
Why this works:
- No capital gains tax: Accrued gains are not taxed when securities are donated in-kind.
- Full donation receipt: You receive a receipt for the fair market value (FMV) at the time of donation.
- Tax relief:
- Individuals claim a non-refundable tax credit
- Corporations claim a deduction against income
- Funds extracted through CDA for non-taxable portion
Practical steps:
- Transfer securities directly (do not sell first)
- Confirm they are publicly listed before disposition
- Obtain proper donation receipt
In most cases, HOCC fees are subject to GST/HST, but the answer depends on what the payment is truly for.
Where a physician is paid simply to be available, that is to stand ready and be called upon if needed, the CRA views this as a supply of the right to access the physician’s services. This is considered a supply of intangible personal property and is generally taxable, even if the physician is never called in during the on-call period.
By contrast, when a physician is actually called in and provides medical care, whether consultative, diagnostic, or treatment-related, the payment for those services is typically exempt from GST/HST, provided the services are not cosmetic in nature.
There is also an important exception to be aware of. If the on-call payments are made under a provincial health care plan designed to provide insured services to the public, the CRA may consider those payments to be exempt as well. However, this is a question of fact and depends on how the arrangement is structured.
Finally, where a physician is acting as an employee of the hospital, GST/HST does not apply to those payments at all.
In practical terms, physicians should assume that most HOCC “availability” payments are taxable unless a clear exemption applies, and ensure their GST/HST registration and filings reflect this distinction.
Personal health and dental expenses are not deductible as business expenses. However, they can often be addressed more efficiently through a Private Health Services Plan (PHSP).
For sole proprietors, PHSP premiums may be deductible, subject to limits and proper structuring. For professional corporations, the corporation can pay PHSP premiums, claim a deduction, and provide a non-taxable benefit to the physician.
Care is required—particularly where the physician is the sole employee—to ensure the plan qualifies and is not simply reimbursing personal expenses.
Absent a PHSP, expenses may still be claimed personally through the medical expense tax credit, although this is typically less tax-effective.
Medical director fees earned by physicians at long-term care facilities are generally considered a taxable supply for GST/HST purposes, as these services are typically administrative or management in nature and not exempt health care services rendered directly to individual patients. However, physicians may not be required to register for or charge GST/HST if they qualify as small suppliers under the Excise Tax Act. Small supplier status generally applies if a physician’s total worldwide taxable revenues (including those of associates) do not exceed $30,000 in a single calendar quarter or in the last four consecutive calendar quarters. If a physician qualifies as a small supplier, GST/HST registration and collection may not be required.
The GST/HST exemption for health care services generally applies only to services provided directly to individual patients as part of their health care. Administrative or management services, such as those performed by a medical director, are generally considered to be a taxable supply according to the Excise Tax Act. However, if a physician qualifies as a small supplier, they may not be required to register for or collect GST/HST on these fees.
Personal health and dental expenses are not deductible as business expenses. However, they can often be addressed more efficiently through a Private Health Services Plan (PHSP).
For sole proprietors, PHSP premiums may be deductible, subject to limits and proper structuring. For professional corporations, the corporation can pay PHSP premiums, claim a deduction, and provide a non-taxable benefit to the physician.
Care is required—particularly where the physician is the sole employee—to ensure the plan qualifies and is not simply reimbursing personal expenses.
Absent a PHSP, expenses may still be claimed personally through the medical expense tax credit, although this is typically less tax-effective.
What to Expect When You Get Started
A structured, thoughtful approach to understanding your situation and identifying opportunities to strengthen your overall financial position.
STEP 1
Assess And Optimize Your Structure
As your income grows and your responsibilities expand, so does complexity. In a focused 1 hour consultation, we review your current structure – income, compensation strategy, and tax exposure to identify opportunities for optimization.
STEP 2
Implement Strategic Tax Planning
We outline and explain strategies around remuneration, corporate investments, and cash flow management. You’ll understand the propsed strategies so you can make informed decisions with confidence.
STEP 3
Strengthen and Protect Your Practice
Whether you’re buying a home, investing in real estate, or planning your next move in your practice, we help you make decisions that support your broader financial goals – and stay aligned as things evolve.
STEP 4
Prepare for Long-Term Wealth and Transition
Whether retirement is years away or closer than it feels, proactive planning means ensuring your wills are in place and implementing strategies to minimize tax, preserve wealth, and support your long-term goals.
Why Tucker Professional Corporation
As your career advances, so do the complexities and opportunities that come with growing your wealth. With the right approach, you can take control of your finances, make the right decisions, and ensure your structure works for you. We work with health professionals who want clarity, understanding, and support as their careers evolve. If that sounds like you, we’d be glad to have a conversation.
What Our Clients Are Saying
Getting expert advice now can save you money, ensure you’re taking every deduction, and set you up for future success. Many of our clients who started with us early can vouch for the difference it makes.
Jonathan has been instrumental in helping manage my corporation. I appreciate his timely help, his dedication to educating me on accounting and his flexibility.
Chief Medical Officer, Aleafia Health | Medical Director, FieldTrip Health
Going with the big firms, you can get lost in the shuffle. But Jonathan is proactive about what needs to be done, responsive, thorough and does a solid job. Between Jonathan and his network of professional advisors, he has ample resources to address every question I’ve brought to him, big and small. He’s helped me manage HST for my practice, assisted with managing finances for my rental property, and he has even proactively advised my 2 children on establishing their career finances. I have no hesitation in referring colleagues to Jonathan.
MD, FRCPC, CCPE
It’s always my pleasure to refer colleagues to Jonathan because I’ve been so consistently delighted with the service he and his office offers. It’s nice to be able to pass on the strongest recommendation!
Anesthesiologist, SickKids
