Canada Revenue Agency

Total 281 Posts

The Chronicles of an Estate Plan: The Settlor, the Kids and the Cottage

• • 0 Comments

Alter-ego and joint-spousal[1] trusts are inter-vivos trusts commonly used in estate plans to hold legal title of assets for the benefit of the individual and/or their spouse, prior to death, accomplishing some of the following benefits: avoiding probate, providing privacy, expediency of inheritance distribution, and minimization of legal challenge on estate assets. Tax deferred transfer The transfer of assets to these trusts are accomplished on a tax-deferred basis by relying….

The Chronicles of an Estate Plan: The Settlor, the Kids and the Cottage Continue Reading »

Canada Revenue Agency, Cottage, Estate Planning, Tax Issues, Trusts

INSURANCE TRACKING SHARES

• • 0 Comments

If a taxpayer owns shares of a corporation and passes away, he or she is deemed to have disposed of their shareholding at fair market value (“FMV”) unless a tax-free rollover is applied (e.g., rollover to a surviving spouse). The disposition of shares may cause a tax liability. In the circumstance where this shareholding was in the form of a significant shareholding in a privately held corporation, there may be….

INSURANCE TRACKING SHARES Continue Reading »

Business Succession Planning, Canada Revenue Agency, Estate Planning, Insurance, Investments, Property, Small Business, Succession Planning, Tax Issues, Trusts, Uncategorized

CRA issues favourable ruling on post-mortem pipelines

• • 0 Comments

The Canada Revenue Agency (CRA) has been asked on numerous occasions to weigh in on whether specific post-mortem planning implemented by taxpayers to avoid double taxation would result in a deemed dividend. In a recent ruling, the CRA concluded that it would not apply either specific tax rules or the General Anti Avoidance Rule (GAAR) to the proposed transactions. When an individual dies holding shares of a private corporation with….

CRA issues favourable ruling on post-mortem pipelines Continue Reading »

Canada Revenue Agency, Estate Planning, Small Business, Succession Planning, Tax Issues, Wills

Applying for a trust account number?

• • 1 Comment

The Canada Revenue Agency (CRA) was recently asked to provide an update regarding the new online application process for a trust account number. In my capacity as an advisor, I ask clients to make tax payments if an only if there is an account number assigned to the taxpayer responsible for the payment. While individuals and corporations are assigned tax identifications numbers, trusts are not. Since February 2021, the CRA….

Applying for a trust account number? Continue Reading »

Canada Revenue Agency, Executors, Tax Issues, Trusts

Charitable remainder trusts: what are they and when are they useful?

• • 1 Comment

A charitable remainder trust (CRT), although not widely used in Canada, can be a useful charitable giving tool that generates an immediate tax credit for the donor. In an inter vivos context, an individual establishes an alter ego trust and transfers property to the trust on a tax-deferred basis. The trust holds the property for the benefit of the individual during the individual’s lifetime, entitling the individual to the trust’s income but….

Charitable remainder trusts: what are they and when are they useful? Continue Reading »

Canada Revenue Agency, Charitable Giving, Estate Donations, Estate Planning, Tax Issues, Wills

Tax planning in uncertain times

• • 0 Comments

Tax planning can be very complicated with an Income Tax Act (“Act”) consisting of over 1.1 million words. This is a far cry from the original 4,000 words of the Act’s predecessor, Income War Tax Act[1], which was originally enacted as a temporary measure in 1917. The more than 3,000 pages contained in the Act is the legislation that governs our Canadian income tax system that is supplemented by precedent….

Tax planning in uncertain times Continue Reading »

Canada Revenue Agency, Estate Planning, Practice Management, Tax Issues
Scroll to Top