Non essential business under CB
I’m running a small trading business representing overseas supplier, since incorporation 21 years ago , it has grown steadily and we have been paying corporate tax every year without fail until last year when we chalked up our first losses. Losses continued into the first quarter of this year , even with the current subsidies from our government it didn’t help. Over the years my staff were getting increments in salary since our business has been steadily growing at 10- 13% , but from last year because of the trade war , the business declined and we had to freeze increments for the staff. My monthly expenses hover around $28,000 a month and we are losing at a rate of $18-20,000 a month this year. I’m a director of the company and do not qualify for SEP subsidies . I am now contemplating a salary cut for all , if it’s 20-30% , it will still register a smaller loss because there are other expenses to shoulder. Since we are now on CB , it is now quite impossible to push up sales as the whole world is also suffering from this pandemic . If we take a salary cut will the owners of the company be penalised ? We are at wits end and hopefully , we can get some advice from forum members. If possible we wish to ride the difficult times and continue with this business instead of shutting down since we are already more than 21 years . Thank you for your inputs.
I’m running a small trading business representing overseas supplier, since incorporation 21 years ago , it has grown steadily and we have been paying corporate tax every year without fail until last year when we chalked up our first losses. Losses continued into the first quarter of this year , even with the current subsidies from our government it didn’t help. Over the years my staff were getting increments in salary since our business has been steadily growing at 10- 13% , but from last year because of the trade war , the business declined and we had to freeze increments for the staff. My monthly expenses hover around $28,000 a month and we are losing at a rate of $18-20,000 a month this year. I’m a director of the company and do not qualify for SEP subsidies . I am now contemplating a salary cut for all , if it’s 20-30% , it will still register a smaller loss because there are other expenses to shoulder. Since we are now on CB , it is now quite impossible to push up sales as the whole world is also suffering from this pandemic . If we take a salary cut will the owners of the company be penalised ? We are at wits end and hopefully , we can get some advice from forum members. If possible we wish to ride the difficult times and continue with this business instead of shutting down since we are already more than 21 years . Thank you for your inputs.
