The Client:

Jim Mullins is a 45-year-old pharmacy owner in Toronto. He is married to his wife, Charlotte, who works the front shop, and they have three children Ben (13), Nick (10) and Frankie (5), but they are also planning on having another child in the near future.

He is the sole shareholder of his pharmacy which generates $3.4 million in revenue, and his profits are $353,900 per year. Jim has no plans for retirement as work has got in the way and he is steadily paying off his mortgage but would like to pay it off sooner than his current arrangement. Jim has accumulated savings over the past few years and has aspirations to buy another pharmacy in the future when his kids go off to college.

After receiving no advice from his accountant for years, he has reached out to Pharma Tax to determine whether he can save more on his taxes each year. 


  • Jim is the sole shareholder of his pharmacy, he will pay more in taxes than necessary when he sells the pharmacy at some point in the future
  • He is not splitting income with family members, their family is paying more in taxes every year than they should
  • Jim has excess cash sitting idle in his business bank account, he doesn’t know what to do with it
  • He wants to start or buy a pharmacy in 4 years when his oldest son starts going to University, he wants to start planning for that and how to fund his tuition


  • Jim and Charlotte’s financial plan is broken down into eight different sections: Cash flow management, Tax planning, Estate planning, Investment planning, Retirement planning, Insurance planning, Education planning and Debt management. 
  • Introduce a family trust as a shareholder to pay less tax when he sells the pharmacy in the future. Excess cash will be paid yearly to this family trust where he can distribute $50,000 per year tax-free to his children to help with maintenance and tuition costs
  • Split income with Charlotte, increasing cash flow by $12,435 per year and saving $7,814 in taxes per year
  • By splitting their income, Jim and Charlotte now have more money allocated to their personal needs. They can slash the time to pay off the mortgage to 9 years instead of 19 save over $37,994 in interest. They can now also contribute to the local church, put more money into improving the community and start saving for another pharmacy.
  • With a simple mileage app installed on their phones, Jim and Charlotte save $6,676 each year in additional tax deductions on car mileage for them and their employees
  • Set up a pension plan for Jim and Charlotte next year which they can use to retire. The pharmacy will pay for his pension plan. This will save an estimated $5,500 in corporate tax savings and personal tax deferral of $20,250.


After implementing all of the tax strategies, Jim will save $22,209 in taxes & interest every year. In 10 years, $222,090 will stay in his pocket instead of being wasted on taxes. 

Jim will also obtain a one-time tax savings of $879,712 when he sells his pharmacies, implements insurance strategies, and at death.

Do you want results like this? Pharma Tax is a team of accountants and financial advisors who specialize in pharmacies. You could save $3,780 to $30,410+ in taxes this year and every year going forward. Sign up for your FREE tax assessment today at pharmatax.ca/start


Ricardo Ardiles
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