Small Business

Total 55 Posts

Estate Applied to Have Filings Made by Taxpayer Lacking Mental Capacity Set Aside

• • 0 Comments

In Ntakos Estate v. The Queen, 2018 TCC 224, a family business was owned by the deceased taxpayer, Anna (after her husband passed away in 1995) with two brothers-in-law through a holding corporation. Anna’s mental and physical health declined from 1995 until her death in 2004. She was diagnosed in 2002 with cancer, and apparently lacked mental capacity after that date. In 2003, the accountant for the family business got….

Estate Applied to Have Filings Made by Taxpayer Lacking Mental Capacity Set Aside Continue Reading »

Canada Revenue Agency, Capacity Law, Estate Administration, Family Conflict, Investments, Property, Small Business, Spouse, Tax Issues, Testamentary Capacity, Uncategorized

Capital Gains Exemption Purification before a Share Sale: Be Careful about Timing

• • 0 Comments

Assume a family trust (“Trust”) which has a December year end owns 100% of an operating company (“opco”). A separate corporation (“holdco”), owned by the founders of opco, is a corporate beneficiary of the Trust. Opco is up for sale. Opco has excess funds which may affect the Trust’s and its beneficiaries’ ability to claim the capital gains exemption. A common technique to purify opco for capital gains exemption purposes….

Capital Gains Exemption Purification before a Share Sale: Be Careful about Timing Continue Reading »

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

Source of Income and the TOSI Rules: Clarification?

• • 0 Comments

Since the Tax on Split Income (“TOSI”) legislation was released, there has been considerable consternation amongst professionals as to how the rules apply. Even the most sophisticated readers of the legislation agree that it contains provisions that are both ambiguous and somewhat complicated. Somewhat out of exasperation, many deal with the TOSI rules on the assumption that all income amounts received by shareholders, beneficiaries, and partners are subject to TOSI,….

Source of Income and the TOSI Rules: Clarification? Continue Reading »

Canada Revenue Agency, Estate Planning, In the News, Investments, Property, Real Estate, Small Business, Tax Issues, Trusts

Fair Market Value Used to Test the Meaning of All or Substantially All of the Assets Used in an Active Business

• • 0 Comments

Under The Income Tax Act (“ITA”), if a taxpayer disposes of property that is all or substantially all of the assets used in an active business for consideration that includes shares of a corporation, the shares are deemed to be capital property. The disposal is considered to be a capital gain and may be eligible for the lifetime capital gains exemption for qualifying companies. This is a very important piece….

Fair Market Value Used to Test the Meaning of All or Substantially All of the Assets Used in an Active Business Continue Reading »

Business Succession Planning, Canada Revenue Agency, Estate Planning, In the News, Investments, Property, Small Business, Tax Issues, Uncategorized

Business Succession Planning and the Next Generation

• • 0 Comments

All business owners face the task of trying to determine what to do with their businesses when they retire or in the event of a sudden death: sell to the next generation, sell to a 3rd party or sell the assets and wind-up the business. According to the Canadian Federation of Business, only about half of business owners have a succession plan. Not having a plan can create a lot….

Business Succession Planning and the Next Generation Continue Reading »

Business Succession Planning, Estate Planning, In the News, Small Business, Succession Planning

Limitation Periods – Not Available to Everyone

• • 0 Comments

One of the first steps following the death of a loved one is to go through their paperwork. You never know what you will find – handwritten wills, love letters, bank statements, or written agreements confirming that the deceased is owed money. If the estate is owed funds, it is up to the estate trustee to collect. That may mean jumping into ongoing litigation to protect the estate’s interest in….

Limitation Periods – Not Available to Everyone Continue Reading »

Estate Litigation, Small Business
Scroll to Top