My company's income meets the criteria for PSI income. I did not attribute a part of this income to myself and didn't pay it promptly as wages. I submitted a company tax return last year declaring this as taxable income for the company.
I have become aware of these errors and want to correct the company tax return and my personal tax return. I would need to distribute the retained earnings to myself to cover my personal income tax but since I didn't pay this income as wages, I am not sure how I can distribute the cash from the company. If I pay it as wages this year it would be double taxed. I am not sure that I can pay it as a dividend as it would then also be double taxed. Is there a way to distribute PSI income which was not promptly paid as wages from a company to myself (the earner of the PSI)?
Thanks.
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