I'm part of a lending club in Canada that has just allowed corporate lending. My marginal tax bracket in Canada is 26%, so I'm trying to figure out if there is an advantage to lending through a numbered provincial company.
For example, any interest made on the Notes will be taxed at 26% personally. Is there a way to structure such a company so the interest is considered capital gains or active income (much lower tax)? The goal is to continually reinvest and not remove money from the company for several years.
(I've done Googling, and have been on the CRA sites, but I'm out of my depth on this one.)