Small Business

Total 53 Posts

CAPITAL DIVIDENDS FROM A TRUST TO NON-RESIDENTS – TAX ISSUES

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Subject to the relevant sections of the Income Tax Act, a Canadian private corporation has a special corporate tax account known as a capital dividend account (“CDA”) which gives shareholders designated capital dividends, tax free. The CDA of a corporation may include the non-taxable portion of the company’s capital gains, proceeds of life insurance policies on death and capital dividends received from other companies. While a capital dividend is normally….

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Canada Revenue Agency, Canadian and US Tax Treaty, Estate Administration, Estate Administration and Probate Applications, Estate Planning, Executors, Investments, Property, Small Business, Tax Issues, Trustee, Trusts, U.S. Citizen, United States

Grandfathered insurance policies

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When the stop-loss rules were enacted, they contained grandfathering provisions that provided relief on dispositions of shares pursuant to “grandfathered agreements” or related to “grandfathered insurance policies.”

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Business Succession Planning, Canada Revenue Agency, Estate Planning, Executors, Insurance, Liability, Small Business, Spouse, Succession Planning, Tax Issues

Private company shares and life insurance

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It is not unusual to see a corporate beneficiary of a life insurance policy collect the insurance on the death of the insured shareholder. Depending on the circumstances, there are creative ways to use the insurance to benefit such persons as the deceased’s estate or other shareholders of the company.

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Business Succession Planning, Estate Administration, Estate Planning, Executors, Insurance, Liability, Small Business, Succession Planning, Tax Issues

TIME FOR A REFREEZE – PART 2

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In my last blog, I wrote about how you might consider refreezing your existing freeze shares if the enterprise has recently declined in value, so that your chosen successors can participate sooner in the future growth of your enterprise and in the meantime your tax liability can be reduced on the disposition of those shares by you or your estate. Today I would like to write about how you might accomplish a refreeze and provide you with a few words of caution.
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Business Succession Planning, Canada Revenue Agency, Estate Administration, Estate Planning, Investments, Small Business, Succession Planning, Tax Issues
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