text: I have no problem with holding retained earnings in a company.  But pay should only go to people who work at the company and wives and especially children should not be able to get dividends.  Full stop.  Full disclosure,  I also own one of these companies.  I don't give money to my family to lower taxes and never have.  In this way all of the taxes that are payable are eventually paid,  just like an RRSP.