I have recently spent time with a few clients trying to locate their minute book. When you incorporated your business you paid for the preparation of a minute book. This book contains the list of shareholders, directors and every dividend resolution that has been made. Business owners sometimes forget to officially declare the dividends that they take from their corporation. A small business is less likely to have as many director meetings as a large company or a non profit does. In fact, a business that has one shareholder, and one director often has these meetings in their heads. If there is no dividend resolution in your minute book and you have taken the “dividend” then it is possible that CRA will treat that dividend as a salary. This means you are late with the payment of source deductions and T4’s etc.
Take a minute to let your lawyer know you have declared dividends and bring that minute book up to date before CRA is asking to see it.