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How to
Reduce Taxes
and Be Healthy
Within the tax laws of Canada
there are certain professions,
namely doctors, dentists, and
lawyers, and professional real
estate corporations, who have
the power to become incorpo-
rated entities and as such, can
use the benets of a Private
Health Services Plan (PHSP)
to deduct medical, dental vi-
sion expenses for themselves
and their families through the
corporation.
Let’s step back and under-
stand there are only two ways
you can write off medical
dental expenses. One way is
through your personal income
tax, which everybody does.
The other is a Personal Health
Services Plan, which allows
you to deduct 100% of your
health expenses through the
corporation.
The differences is a 100%
deduction for the corporation,
as opposed to a 15% partial
tax credit on your personal
income tax return.
A PHSP is an alternative
to expensive and sometimes
restrictive group benets
plans. It overcomes the limited
3% medical tax credit rule on
your personal income tax and
enables you to pay for your
personal health care costs with
non-taxable dollars.
Business Owners can cre-
ate exible health care plans,
incentives, and bonuses for
their employees, which will
not increase the employees’
personal income tax because
this is a non-taxable benet. In
other words they pay for their
health care needs with non
taxable funds.
The business then deducts
those personal healthcare ex-
penses against their corporate
business income to reduce
their tax bill.
In essence you are increas-
ing your income without in-
creasing your personal income
tax bill while reducing your
corporate tax bill.
The Fine Print
No premiums. It’s not an
Insurance product. Contribu-
tors are recognized as a 100%
business deduction in the year
they were contributed - even
if the money is not spent that
year. Unspent contributions
are carried forward for future
healthcare spending. No hid-
den costs. A xed 10% ad-
ministration fee is charged on
actual claims.
Who Qualies for a PHSP?
Business owners, their de-
pendents and their employees.
There is no age limit or health
questionnaires.
Winex is a CRA approved way
for business owners to fully deduct
100% of their personal healthcare
expenses as a business expense.
We have a number of different
private health plans for Incorporated
Businesses available.
www.winex.ca
By Victor Logan