Tax Traps to Remember Joan E. Jung, Partner Minden Gross LLP Michael A. Goldberg, Partner Minden Gross LLP Samantha A. Prasad, Partner Minden Gross
|
|
- Theresa Holland
- 5 years ago
- Views:
Transcription
1 Tax Traps to Remember Joan E. Jung, Partner Minden Gross LLP Michael A. Goldberg, Partner Minden Gross LLP Samantha A. Prasad, Partner Minden Gross LLP Matthew Getzler, Associate Minden Gross LLP Ryan Chua, Associate Minden Gross LLP
2 Agenda Corporate Attribution Rules Section 84.1 Traps Capital Dividend Account Issues Association Rules The Reversionary Trust Rules New Testamentary Trust Traps Subsection 55(2) Traps Non-Resident Trust Traps Pipeline Traps Limitation Periods Estate Freeze Beneficiaries Crossing the Border
3 Corporate Attribution Rules Samantha Prasad
4 Corporate Attribution Rules Conditions Transfer/loan of property to company either directly or indirectly by means of a trust or otherwise One of the main purposes is to reduce income and benefit of a designated person Designated person: spouse, or child, niece, nephew or other non-arm s length person who has not reached the age of 18 in the year Designated person must be a specified shareholder of company (i.e. who owns directly or indirectly 10% of more of the issued shares of any class at any time)
5 Corporate Attribution Rules When can they Apply? Estates freezes both transfers to holding companies & reorganization of the capital of a company Interest-free loan to corporation Derivative transfer back to back transfers/loans
6 Corporate Attribution Rules Exceptions Small Business Corporation status S.74.4 Clause inserted in Trust However, restriction in multiplying capital gains exemption through the Trust Loan at the prescribed rate (Loans for Value)
7 Conditions Loan for Value (subsection 74.5(2)) Loan must bear interest at the prescribed rate in effect at the time the loan was made Interest must be paid on or before January 30 of the following year If interest in respect of any particular year not paid within required time frame, exception from attribution ceases to apply
8 Loans for Value (subsection 74.5(2)) Low prescribed rate since 2009 Ensure interest payment is made by January 30th Put in place proper documentation Can you restructure pre-existing loan to take advantage of current low prescribed rate? Not likely; need to repay loan and enter into new loan agreement CRA Document Nos ;
9 Matthew Getzler Section 84.1 Traps
10 Section 84.1 Most dangerous tax trap around Operates where individual transfers shares of a corporation to a second corporation with whom it does not deal at arms length could otherwise extract surplus to extent of cost base Application of s.84.1 in worst form: immediate deemed dividend Applies where cost base created by LCGE is used to access cash or other corporate-level assets
11 Section 84.1 (cont.) Includes receipt of assets or promissory note In case of p/n, deemed dividend upon issuance of note, not when repaid Non-share consideration upon transfer should be limited to cost base prior to crystallization of LCGE
12 Common transactions that are caught by section 84.1 Crystallization of LCGE by transferring some or all of shares in a corporation to Holdco for promissory note in the amount of the LCGE Crystallization of LCGE on a sale of shares to a nonarm s length person s holding corporation for promissory note in the amount of the LCGE Crystallization of LCGE upon sale of shares to relative for promissory note in the amount of the LCGE, and then relative tries to access corporate-level assets by selling the shares to a Holdco (i.e., for a p/n)
13 Joan Jung Capital Dividend Account Issues
14 Capital Dividend Account Issues Prerequisites of s.83(2), ITA Dividend becomes payable by private corporation to shareholders of any class of shares Corporation elects in respect of the full amount of the dividend In prescribed manner and form To extent of corporation s CDA immediately before the particular time
15 Full amount of the dividend If dividend is being declared by directors, meaning of full amount should be evident Split into two dividend declarations if necessary If deemed dividend from redemption or cancellation of shares, Split into two successive share redemptions Consider s.84(1) deemed dividend by paid-up capital increase for capital dividend
16 CDA a running account s.83(2), ITA depends on balance of CDA immediately before dividend becomes payable Definition of CDA, s.89(1), ITA Cumulative/running computation From beginning of first taxation year after the corporation became a private corporation and after 1971 Cannot be negative but blockages can arise
17 Elements of the CDA computation separate silos s.89(1)(a) s.89(1)(b) s.89(1)(c.2) s.89(1)(d) Taxable capital gain Capital dividends received from another corporation Gains from disposition of ECP Life insurance Less: Less: Allowabl e capital loss Capital dividends that became payable after commencement of period and before the particular time
18 Example: CDA calculation Corporation with December 31 year end Year I Taxable capital gain $ Year II January: capital dividend payable $ March: allowable capital loss $ March: capital dividend received from another corporation $ Question: CDA at end of Year II Answer: $160,000
19 Example: CDA computation separate silos s.89(1)(a) s.89(1)(b) s.89(1)(c.2) s.89(1)(d) Taxable capital gain Yr I $ Capital dividends received from another corporation Yr II (March) Gains from disposition of ECP Life insurance $ Less: Allowable capital loss Yr II (March) $ Less: Capital dividends that became payable after commencement of period and before the particular time Yr II (Jan) $140000
20 Excessive Election Part III tax on excessive election Tax equal to 60% of the excess Shareholders (recipients of excessive dividend) are jointly and severally liable with the corporation
21 Excessive Election cont d Options s.184(3) election to split dividend into capital and taxable If appropriate file Notice of Objection re Part III tax and s.184(3) election Request latter held in abeyance pending objection/appeal CRA document no e5
22 Excessive Election cont d Options Rectification/Rescission Order Order to reduce amount of dividend See Winclare Management Services Ltd., [2009] 5 CTC 278 Order to annul dividend declaration See Felix & Norton International, 2009 QCCS 919
23 Samantha Prasad Association Rules
24 Association Rules Effects of Association Sharing of small business deduction Restriction of other tax benefits such as investment tax credit (SR&ED)
25 Association Rules Estate Freeze Structure with Discretionary Family Trust Each beneficiary deemed to own all of the shares of the Trust Ownership of such shares by minor attributed to parent
26 Association Rules Son Beneficiaries: 25 yr old Son 15 yr old Daughter Family Trust Father Mothe r 100% Common shares Freeze shares 100% Company A Company B Company C Companies A and B are associated as Son owns all of the shares of Company A and is deemed to own all the common shares of Company B Companies B and C are associated as Mother owns all of the shares of Company C and is deemed to own all of the common shares of Company B through her minor daughter Companies A and C are associated by virtue of the fact that Company B is associated with each of them
27 The Reversionary Trust Rules Samantha Prasad
28 Reversionary Trust Rules S.75(2) applies: Where transferor transfers property to a Trust and: Property (or substituted property) may revert back to the transferor; or The transferor may determine who gets the property held in a trust; or The transferor has a veto over the disposition of the property. Sommerer v. The Queen (2011 TCC 212) Person in s. 75(2) does not include FMV vendor S.75(2) only applies to Settlor S.107(4.1) applies: If s. 75(2) ever applied to a Trust
29 Reversionary Trust Rules Impact of s.75(2) & s.107(4.1): Attribution to transferor Destroys rollover out of trust Deemed sale at fair market value instead Particularly important before trust s 21st anniversary Problematic re trusts reaching 21st anniversary in last few years (i.e., established circa 1990)
30 When might Reversionary Trust Rules Apply? Contributor is Beneficiary of the Trust Trust should be irrevocable Contingent beneficiary Does not apply if trust fails Beneficiary Buys/Sells Property from/to the Trust Exception for bona fide loan but not for other transfers Includes purchase or sale - even for FMV
31 When might Reversionary Trust Rules Apply? Beneficiary Defrays the Trust s Expenses Beneficiary funds trust bank account Beneficiary pays expenses directly Accounting firm: no one should put additional money or other assets into the trust, or pay the trust s expenses Consider instead: Pay dividends to defray trust expenses Account for payments as loans to trust Trip Over Reversionary Trust Technicality Default distribution dependent upon provisions of contributor s will Default distribution dependent on other person s will (e.g., spouse) where contributor is the beneficiary
32 When might Reversionary Trust Rules Apply? Contributor Has Veto-type Power Over the Contributed Property Examples: Contributor is trustee and must be part of majority decisions Other trustees resign or pass away CRA Administrative largesse If exercise of veto stems from individual s duty as a trustee Where transferor is one of two trustees or unanimity is required Largesse does not apply: Where trust expressly requires contributor s consent Where contributor is sole trustee Where powers do not stem from duties as trustee
33 S.107(4.1) Other Points When might Reversionary Trust Rules Apply? Rectification of situation so that reversionary trust rules no longer apply not sufficient 107(4.1) continues to apply if contributor leaves Canada Application of 107(4.1) does not depend on actual income being generated from contributed property
34 New Testamentary Trust Traps Matthew Getzler
35 New Testamentary Trust Traps Introduced in 2014 Federal budget Draft legislation released on August 29, 2014 Passed into law on December 16, 2014
36 New Testamentary Trust Traps (cont.) New rules apply to testamentary trusts as of January 1, 2016 No access to graduated rates of tax, subject to limited exceptions No requirement to pay tax instalments Off-calendar year-end
37 Lifetime Interests: The Impact of the New Rules on Spousal Trusts Non-tax reasons for use of spousal trusts in a Will Protect assets for future generations Blended families Control over assets following death
38 Old rules Spousal Trusts : Old Rules vs New Rules On death of surviving spouse, deemed disposition of assets, trust funds tax liability, balance divided in accordance with terms of Will(s) New rules On death of surviving spouse, deemed disposition of assets, tax funded out of estate of second-to-die spouse, balance of trust divided in accordance with terms of Will(s)
39 New rules (cont.) Spousal Trusts : Old Rules vs New Rules Tax liability technically shared between spousal trust and second-to-die spouse s estate If sufficient assets in second-to-die spouse s estate, CRA not required to seek payment from first-to-die spouse s estate
40 Spousal Trusts : Example 1 Husband and wife each have 2 children from a previous marriage Each have estates worth $5m with death taxes of $1m Husband dies first leaving estate in a spousal trust for wife
41 Old Rules Spousal Trusts : Example 1 (cont.) On wife s death, $1m of taxes gets paid by spousal trust in husband s Will $4m residue of his estate divided among his 2 kids, so that they each receive $2m Wife s estate pays her $1m tax liability Remaining $4m of her estate divided between her two kids so that they each receive $2m
42 New Rules Spousal Trusts : Example 1 (cont.) On wife s death, $1m of taxes from the spousal trust created in husband s Will gets paid by wife s estate $5m residue of his estate divided among his 2 kids, so that they each receive $2.5m Wife s estate pays her $1m tax liability Remaining $3m of her estate divided between her two kids so that they each receive $1.5m
43 Spousal Trusts : Example 2 Husband and wife have 2 kids together Husband s estate is valued at $1m with death taxes of $250k; wife s estate is valued at $5m with death taxes of $1m Husband wants to leave a legacy to his two siblings of $50,000 each Wife dies first leaving estate in a spousal trust for husband
44 Old Rules Spousal Trusts : Example 2 (cont.) On husband s death, $1m of taxes gets paid by spousal trust in wife s Will $4m residue of her estate divided among the two kids so that they each receive $2m Husband s estate pays his $250k tax liability Each of his two siblings gets $50,000 Remaining $650k of his estate divided between his two kids so that they each receive $325k
45 New Rules Spousal Trusts : Example 2 (cont.) On husband s death, $1.25m of taxes owing from his estate (i.e., $1m from the spousal trust created in wife s Will and $250k from his estate) CRA would have to go after wife s estate for the $250k shortfall (but not obligated to go after any more) Nothing left after payment of taxes by husband s estate so his siblings legacies can t be funded As a result, children receive $100,000 extra among them
46 Joan Jung Subsection 55(2) Traps
47 Are ordinary intercorporate dividends still tax free? Changes to s.55(2), ITA proposed in the April 21, 2015 Federal Budget Draft legislation released July 31, 2015 Not yet enacted, but to apply to dividends received after April 20, 2015 Has been the subject of considerable commentary and submissions
48 Current Law s.55(2) can recharacterize an intercorporate dividend into: proceeds of disposition of a capital property, where the shares have been disposed of, or a gain on the disposition of a capital property
49 Related Group Intercorporate Dividends Prior to proposed amendments, basis for non-application of s.55(2): Related corporation exemption in s.55(3)(a) might apply be mindful of the five restrictions in paragraphs (i)-(v) therein Safe income Purpose test
50 Related Group Intercorporate Dividends After proposed amendments (i.e., dividends received after April assuming July draft legislation is enacted): Related corporation exemption in s.55(3)(a) will not apply to ordinary dividends, but only may apply to deemed dividends resulting from s.84(2) or (3), ITA Safe income (more restrictive) Purpose test (changes and two new purpose tests)
51 Changes to Purpose test in Proposals One of the purposes is gain reduction purpose (i.e., old test): Change/Clarification(?): purpose of payment or receipt of the dividend, rather than purpose of transaction or series Change/Clarification(?): payment or receipt suggests purpose from perspective of payer or recipient Note: In the case of s.84(3) deemed dividend, substitute result for purpose
52 Proposed new s.55(2.1)(b) New Purpose tests in Proposals One of the purposes of the payment or receipt of the dividend is to effect: Significant reduction in fair market value of any share, or Significant increase in the cost of property of the dividend recipient looked at after the dividend New purpose tests not applicable to s.84(2) or (3) deemed dividend
53 Safe Income Restriction in Proposals If using safe income harbour, proposals will require that safe income reasonably be considered to contribute to the capital gain on the share(s) on which the dividend is received, assuming fair market value disposition of the share Discretionary dividend shares if no inherent gain, no safe income harbour Multiple classes of shares built in safe income allocation issues relevant to reliance on safe income harbour
54 Ordinary Intercorporate Dividends within Corporate Group Assume paid in cash, in kind or promissory note: Can the new purpose tests in proposed s.55(2.1)(b) apply? Conflating purpose with result? Purpose test is subjective See Placer Dome Inc. v. The Queen 96 DTC 6562 (FCA)
55 Ordinary Intercorporate Dividends within Corporate Group (cont d) Use alternative structure to back into s.84(3) deemed dividend? Requires share redemption steps leading to additional costs?
56 Ordinary Intercorporate Dividends within Corporate Group (cont d) s.84(3) deemed dividend is not subject to the new purpose tests in proposed s.55(2.1)(b) but: means relying on the s.55(3)(a) related party provision or safe income mindful of restrictions in s.55(3)(a)(i)-(v), e.g., could issues arise if there is a trust which owns shares of a company within the group with beneficiaries not related to the dividend recipient?
57 Purification Structure Assume common shares held by inter vivos trust whose beneficiaries include a corporation controlled by freezor (excluding the dividend payer) Past planning: surplus cash distributed by way of dividend on common shares to inter vivos trust Trust allocates and pays same to corporate beneficiary Can the new purpose tests in s.55(2.1)(b) apply? Safe income? See CRA document no C6
58 Non-Resident Trust Traps Michael Goldberg
59 The Importance of Residence in Canadian Tax Law Residents of Canada are taxed on their worldwide income The determination of a trust s residency status is very complex
60 Residence of Trusts Under Canadian Law Common-law or factual resident Central management and control Garron* Pure non-resident trusts ( Pure NRTs ) NRTs deemed resident under s.94 ( S.94 NRTs ) Enacted in June 2013, and generally are effective for taxation years after 2006 * Fundy Settlement v. The Queen, 2012 DTC 5063 (SCC)
61 NRT Traps Not so Exotic Loss of the immigrant trust exception has your client made a contribution to a Pure NRT? Offshore granny creates a trust and your client is a beneficiary Cdn client wants to start CDN branch of EU family business that is owned by a Pure NRT of which client is a beneficiary
62 NRT Traps Not so Exotic Canadian client wants to put in place testamentary pour-over trust planning to protect US child from US estate tax and to provide other benefits
63 NRT Tax Traps S.94 NRT Tax Traps The scope of what can be a contribution The rules may continue to apply even after the death of a contributor Election limitations re: Canadian resident contributions Joint and several liability Pure NRT Tax Trap Distributions of appreciated property
64 S.94 NRT Basics S.94 contains extremely broad deeming rules which will apply if there is either: Resident contributor; or Resident beneficiary at the end of the relevant period and will generally make a trust taxable as a resident of Canada during that period* * s.94(3)
65 Subsection 94(1) definitions Contributor Any person who has made a contribution to a trust Whether in existence or not Exceptions: certain exempt persons
66 Subsection 94(1) definitions Contribution Any direct or indirect transfer of property or obligation to make a transfer of property to a trust will be a contribution Property very broad concept per s.248(1) Subject to s.94(2) interpretive rule exclusions and arm s length transfer exclusions S.94(2) interpretive rules may also significantly broaden the net of what will be a contribution
67 Subsection 94(1) definitions S.94(2) interpretive rules A transfer to a trust will be deemed to have occurred if because of a loan or transfer of property by a person to any other person: the FMV of trust property increases; or the liability or potential liability of a trust increases* * s.94(2)(a)
68 Subsection 94(1) definitions S.94(2) interpretive rules Other key deeming rules can result in: the issuance of shares, trust, partnership or other interests*; or the provisions of services** to be transfers Due to complex deeming rules indirect transfers need to be reviewed carefully * s.94(2)(g) ** s.94(2)(f)
69 Subsection 94(1) definitions If a transfer qualifies as an arm s length transfer it will not result in a transfer to a trust and will not cause a contribution Exception can be quite limited particularly in freeze situations Conservatism to be applied in paying returns to the trust must not exceed FMV
70 S.94 NRT Basics S.94 contains extremely broad deeming rules which will apply if there is either: Resident contributor; or Resident beneficiary
71 Resident Contributor If a contributor to a trust is resident in Canada at a particular time then trust will have a resident contributor and trust will be a S.94 NRT Loss of the immigrant trust exception Very limited grandfathering
72 NRT Traps Not so Exotic Offshore granny creates a Pure NRT and your client is a beneficiary Client provides free management services Client wants to start Canadian sub of EU family business that is owned by a Pure NRT of which client is a beneficiary Client takes an arm s length salary Loans funds to sub w/o interest
73 Resident Contributor Due to how broad the contribution concept is an immigrant might not even know that he/she has made a contribution to a Pure NRT
74 Resident Beneficiary A beneficiary of the trust is resident in Canada at a particular time & the trust has a connected contributor Connected contributor Similar to a resident contributor but: additional grandfathering where contributions made at a non-resident time once a person is a connected contributor even their ceasing to exist will not matter
75 Resident Beneficiary A trust could be caught by the S.94 NRT rules if it: has a beneficiary that is resident in Canada even where the trust s connected contributor has ceased to exist initially has no beneficiary resident in Canada but after death of a connected contributor a beneficiary becomes a Canadian resident
76 Becoming/Ceasing to be a S.94 NRT S.94(4) modified version of the: S.128.1(1) immigration rules re: ACB step ups and year-ends, etc. S.128.1(4) emigration rules re: deemed dispositions and year-ends, etc. Timing and application could be problematic
77 NRT Traps Not so Exotic Client wants to put in place testamentary pour-over trust planning Estate is contributor to pour-over trust not deceased* Until estate is wound-up US trust will be caught by the S.94 NRT rules Assumes no beneficiaries resident in Canada Canadian tax consequences could be a nuisance or far worse Treaty relief will likely not apply to S.94 NRTs * Doc # E5 and # C6
78 Resident Portion Election If Pure NRT receives even a nominal contribution caught by the S.94 NRT rules, then all of its income is subject to the S.94 NRT rules unless the trust elects* to be a s.94(1) electing trust Consequence of filing election: Only resident portion subject to the S.94 NRT rules *Under s.94(3)(f)
79 Resident Portion Election Technical requirements Must be able to track resident and nonresident portions Older trusts might not have suitable records Election must be filed by first year filing deadline that the trust is both a S.94 NRT and has a resident portion No right to late-file
80 Joint & Several Liability Paragraph 94(3)(d) Resident beneficiaries and resident contributors are jointly, severally or solidarily liable for S.94 NRT s taxes Limits on amount recoverable* Often will not be applicable *s.94(7) and s.94(8)
81 Pure NRT Tax Trap In Doc # E5, CRA opined that a distribution of appreciated property from a pure NRT generally occurs on a rollover basis* Result: Cdn beneficiaries could pay more tax than expected on a future disposition Solution: if possible, distribute high ACB assets to Cdn beneficiaries Consider triggering gains in the Pure NRT
82 Ryan Chua Pipeline Traps
83 Death of a Taxpayer Estate deemed to acquire property at FMV Shares of Opco have high ACB but low PUC Redemption/repurchase tax consequences to estate: Dividend treatment; and Capital loss on disposition of shares
84 S. 164(6) planning Subsection 164(6) Planning Apply loss to offset capital gains of deceased on death Result of planning depends Does Opco have tax pools (RDTOH, CDA, etc.) Must be completed in the first taxation year of the estate
85 Pipeline Planning Pipeline planning Extract corporate property without dividends or capital losses to estate Simple to implement Transfer Opco shares to Holdco for a note Holdco accesses Opco assets without tax Holdco repays the note to the estate Some tax issues to be aware of Bill C-43 - loss carry-back planning only available to a GRE. Pipeline will be easier to implement.
86 Leaky Pipelines Question 5 - STEP 2011 Round Table (CRA doc C6) S.84(2) may apply to the repayment of the note If s.84(2) is applicable estate will realize a deemed dividend equal to the amount by which Value of property distributed or appropriated exceeds PUC in transferred Opco shares
87 What about Section 84.1? S.84.1 does not trump s.84(2)
88 Does Subsection 84(2) Apply? S.84(2) will be applicable: Where funds or property of a corporation have been distributed or otherwise appropriated in any manner whatever to or for the benefit of the shareholders RMM (97 D.T.C. 302) these are words of the widest import
89 Does Subsection 84(2) Apply? Assuming there has been a corporate distribution or appropriation subject to s.84(2) then s.84(2) will be applicable if it was made:, on the winding-up, discontinuance or reorganization of its business (emphasis added) Is there a business? Timing of distribution/appropriation
90 Does Subsection 84(2) Apply? Favourable CRA Rulings contain the following consistent facts: Opco s business will continue for at least one year Opco will not be amalgamated or wound-up into Holdco for at least one year Opco s assets will not be distributed to the shareholders for at least one year, followed by a progressive distribution of Opco s assets over an additional period of time
91 Does Subsection 84(2) Apply? MacDonald FCA 110 / 2012 TCC 123 TCC s.84(2) did not apply because taxpayer received funds in question in his capacity as creditor rather than shareholder. FCA s.84(2) applies. Substance of transactions is determinative. FCA gave broad interpretation to the words distributed or otherwise appropriated in any manner whatever. Descarries TCC 75 (Informal) distribution requires a gain for the shareholder and a loss for the corporation. The distribution must occur concurrently with the winding up, discontinuance or reorganization S.84(2) did not apply because the corporation still held its assets at the time of the alleged distribution. Caution is suggested
92 Assessment Limitation Period Issues Ryan Chua
93 Assessment Limitation Period Issues Normal reassessment period Corporation other than CCPC or mutual fund trust 4 years after the earlier of date of notice of original assessment for the year and date of original notification that no tax is payable for the year In any other case Same as above, but 3 years
94 s.160, ITA Open ended assessment period at any time Transfer of property to NAL transferee for less than FMV; transferee may be assessed at any time for tax of transferor in respect of year of transfer or preceding taxation years s.159(3), ITA Liability of legal representative distributing property without clearance certificate s.227(10), ITA Liability of resident for Part XIII withholding
95 3 years after the later of Determination in respect of a partnership, s.152(1.4) Day on or before which an information required is required to be filed in respect of the partnership (or would be required but for s.220(2.1)) Day on which the return is filed Minister may determine any income or loss of the partnership for the fiscal period or any other matter in respect of the partnership relevant in determining income or other amount payable by any member of the partnership
96 Capital dividend account Outside the normal reassessment period CRA s position is that CDA is a cumulative calculation until an election is filed under s.83(2), CRA may adjust amount of capital gain which arose outside the normal reassessment period CRA document no
97 Outside the normal reassessment period Refundable Dividend Tax on Hand CRA s position is that it may make a determination of the amount of dividend refund in the particular year as that is within the normal reassessment period for such year May reflect different income from property of prior statute barred year See CRA document no
98 The New St. James Principle New St. James 66 DTC 5241 (Exch. Ct.) Taxpayer applied a loss carryforward from a statute barred year While Minister cannot reassess the statute barred year, Minister can assess the year in which the loss or other tax balance/account is applied and effectively recompute the carried forward tax balance/account
99 Estate Freeze Beneficiaries Crossing the Border Matthew Getzler
100 Estate Freeze Beneficiary Crossing the Border Estate freeze among most common forms of estate planning techniques Basic form of estate freeze Individual exchanges his shares of a corporation or his interest in property held individually for new shares with frozen value at fmv of shares or property transferred Shares carrying rights of future growth issued to next generation, directly or via trust
101 Estate Freeze Beneficiary Crossing the Border (cont.) Reasons for estate freeze Limit death tax Crystallization of LCGE Multiplication of LCGE Utilization of various income-splitting techniques Creditor protection Probate planning Benefits associated with incorporation
102 Estate Freeze Beneficiary Crossing the Border (cont.) Common these days for children to cross border and move to US Issues re rollout of trust property Other issues
103 Rollout of Trust Property Where beneficiary is a non-resident of Canada, trust property cannot be rolled out of trust to beneficiary (i.e., prior to 21st anniversary) Trust property can be rolled out to corporation of which the beneficiary is a shareholder Trust deed must permit corporate beneficiaries
104 Thank you!
105 This webinar is brought to you by Wolters Kluwer and in partnership with [insert partner name]. Joan E. Jung, Michael A. Goldberg, Samantha A. Prasad, Matthew Getzler, Ryan Chua, For more information please contact customer service at Visit for a full list of our webinars.
For 2016 and subsequent taxation years, various post mortem tax planning strategies will only be available to a Graduated Rate Estate ( GRE ).
1 2 For 2016 and subsequent taxation years, various post mortem tax planning strategies will only be available to a Graduated Rate Estate ( GRE ). Therefore it is essential that planning is undertaken
More informationRecent Developments in Corporate Taxation Post-Mortem Tax Planning A Case Study
Recent Developments in Corporate Taxation Post-Mortem Tax Planning A Case Study 2017 Pamela Cross, Borden Ladner Gervais, LLP David Mason, Deloitte June 7, 2017, OTTAWA Agenda - Post Mortem Planning 1.
More informationALTER EGO TRUSTS AND JOINT PARTNER TRUSTS
ALTER EGO TRUSTS AND JOINT PARTNER TRUSTS This issue of the Legal Business Report provides current information to the clients of Alpert Law Firm on estate planning, including alter ego and joint partner
More informationToronto Young Practitioners Group
Family Transactions Biggest issue for young practitioners is communication explaining difficult concepts in meaningful terms. 3 Robin MacKnight Family Transactions Biggest issues in estate planning: Expectations
More informationPersonal Tax Planning
Personal Tax Planning Co-Editors: T.R. Burpee* and P.E. Schusheim** ESTATE FREEZES INVOLVING TRUSTS Charles P. Marquette*** Trusts have a multitude of purposes and, in estate planning, can be used in conjunction
More informationCurrent Issues British Columbia Tax Conference Vancouver, BC
2016 British Columbia Tax Conference Vancouver, BC Current Issues Disclaimer: This material is for educational purposes only and is not intended to be advice on any particular matter. No one should act
More informationTODAY S TRUSTS FOR ESTATE PLANNING
TODAY S TRUSTS FOR ESTATE PLANNING Jana Steele and Mariana Silva* There are a variety of options available to individuals who are interested in using trusts as part of their estate plan. This paper discusses
More informationDealing with Private Company Shares at Death Post-Mortem and Insurance Planning
Dealing with Private Company Shares at Death Post-Mortem and Insurance Planning Introduction This Tax Topic deals with post-mortem tax planning for an individual who owns private company shares. The overall
More informationDeath & Taxes When Life s Two Certainties Collide. Shaun M. Doody
Death & Taxes When Life s Two Certainties Collide Shaun M. Doody 1 2 INTRODUCTION Death and taxes are two certainties that have been with us just about from the beginning of civilization No other tax event
More informationUpdate on the July 18 th Tax Proposals. Nathan Wright, LL.B., MTAX, TEP Founding Principal Ph: (416)
Update on the July 18 th Tax Proposals Nathan Wright, LL.B., MTAX, TEP Founding Principal Ph: (416) 203-8338 E-mail: nwright@spectrumlawyers.ca July 18, 2017 Proposed Changes On July 18, 2017 Finance Minister
More informationUNDERSTANDING TRUSTS CONTENTS. What is a trust?
UNDERSTANDING TRUSTS Trusts are a powerful tool for tax and financial planning. The usefulness of a trust is based on the fact that a trustee can hold property on behalf a single beneficiary, or a group
More informationManaging the Sales of Canadian Businesses A Vendor s Perspective
, Borden Ladner Gervais LLP, Toronto, CPA, CA, TEP, Cadesky Tax, Toronto 67 th Annual Tax Conference 67e Conférence fiscale annuelle 2015 Our Current Tax and Business Environment Low corporate tax rates
More informationSubsection 55(2) is an anti-avoidance rule intended to prevent the inappropriate reduction of a capital gain by way of the payment of a deductible
1 2 Subsection 55(2) is an anti-avoidance rule intended to prevent the inappropriate reduction of a capital gain by way of the payment of a deductible intercorporate dividend. This provision generally
More informationChapter Five Review Questions and Answers
Chapter Five Review Questions and Answers QUESTIONS 1. Consider each of the following trusts. Indicate when the first T3 Return is required to be filed. Briefly explain your answer. The Purple Family Trust
More informationTax implications of a life insurance policy transfer
Tax implications of a life insurance policy transfer Jean Turcotte, Attorney, B.B.A., LL.B., D.Fisc, Fin.Pl., TEP Director, Tax, Wealth and Insurance Planning Group Sun Life Financial March 2017 1 Tax
More informationLifetime Capital Gains Exemption and Converting Income Into Capital Gains
and Converting Income Into Capital Gains Presented by: Josh Harnett September 14, 2017 Table of Contents 1. Lifetime Capital Gains Exemption a) Current Rules b) Perceived Evils c) New Measures i. Age Limits
More informationTrusts An introduction
Trusts An introduction Trusts can be highly effective wealth management vehicles, especially for income splitting, tax and estate planning purposes and wealth protection. A trust is an arrangement whereby
More information10/23/17 THE POTENTIAL IMPACT OF THE JULY 18, 2017 PROPOSED TAX CHANGES. Prepared for: 2017 CPA FORUM NORTH
THE POTENTIAL IMPACT OF THE JULY 18, 2017 PROPOSED TAX CHANGES Prepared for: 2017 CPA FORUM NORTH Jasper October 23, 2017 K. John Fuller, CPA, CA Jason Pisesky Page 2 Page 3 1 OVERVIEW OF PROPOSED AMENDMENTS
More informationRecent Tax Developments Impacting Insurance Planning
Recent Tax Developments Impacting Toronto, LL.B, CLU, TEP Overview Exempt Test Update New Charitable Gifting Legislation Trust Legislation LIA Grandfathering CRA Update Life insurance in spousal trusts
More informationONTARIO COURT OF APPEAL ON JOINT TENANCY (AGAIN)
ONTARIO COURT OF APPEAL ON JOINT TENANCY (AGAIN) June 2015 Mroz v. Mroz, 2015 ONCA 171 Number 245 An aging mother transferred title to the family home ( the Property ) to herself and her daughter, as joint
More informationExplanatory Notes to Legislative Proposals Relating to Income Tax. Published by The Honourable James M. Flaherty, P.C., M.P. Minister of Finance
Explanatory Notes to Legislative Proposals Relating to Income Tax Published by The Honourable James M. Flaherty, P.C., M.P. Minister of Finance November 2006 Explanatory Notes to Legislative Proposals
More informationBusiness Succession Planning 8 th Tax Planning for the Wealthy Family Sept. 20, 2010
Business Succession Planning 8 th Tax Planning for the Wealthy Family Sept. 20, 2010 Miller Thomson LLP James A. Hutchinson 416.597.4381 Rachel L. Blumenfeld 416.596.2105 jhutchinson@millerthomson.com
More informationSweeping Proposed Tax Changes to Private Corporations
Sweeping Proposed Tax Changes to Private Corporations Speakers: Kay Leung, Business & Tax Law Wesley Isaacs, Business & Tax Law Marc Weisman, Business & Tax Law Moderator: Ari Tenenbaum, Business Law August
More informationHow Finance s new proposals will affect tax planning for private companies. 1 August, 2017
How Finance s new proposals will affect tax planning for private companies 1 August, 2017 Today s presenters Gabriel Baron Tax Partner Private Client Services practice EY Ryan Ball Tax Partner Private
More informationINCOME TAX CONSIDERATIONS IN SHAREHOLDERS' AGREEMENTS. Evelyn R. Schusheim, B.A., LL.B., LL.M.
INCOME TAX CONSIDERATIONS IN SHAREHOLDERS' AGREEMENTS Evelyn R. Schusheim, B.A., LL.B., LL.M. 2011 Tax Law for Lawyers Canadian Bar Association May 29- June 3, 2011 Niagara Falls Hilton Niagara Falls,
More information21-YEAR TAX ISSUES AND THE NON-SPECIALIST ADVISOR PART 2 1
July 2018 Number 666 21-YEAR TAX ISSUES AND THE NON-SPECIALIST ADVISOR PART 2 1 Michael Goldberg, partner through a professional corporation at Minden Gross LLP Part 1 of this Series reviewed what the
More informationA plain language review of the proposed tax legislation
A plain language review of the proposed tax legislation (and how it affects your clients) Wednesday October 11, 2017 7:30-9:30am Agenda 2 1 INTRO 5 TAX ON SPLIT INCOME 2 REVIEW OF POLICY CONCERNS 6 CAPITAL
More information21-YEAR TAX ISSUES AND THE NON-SPECIALIST ADVISOR PART 1
June 2018 Number 665 Current Items of Interest... 4 21-YEAR TAX ISSUES AND THE NON-SPECIALIST ADVISOR PART 1 Michael Goldberg, partner through a professional corporation at Minden Gross LLP What To Do
More informationThe Changed Landscape: The Impact of New Tax Rules on Trusts and on Estate Donations September 17, 2015
The Changed Landscape: The Impact of New Tax Rules on Trusts and on Estate Donations September 17, 2015 Richard Niedermayer, TEP Stewart McKelvey Halifax John Roy, FCPA, FCA Grant Thornton LLP Halifax
More informationRECENT DEVELOPMENTS IN ESTATE PLANNING: THE ALBERTA ADVANTAGE WHEN USING TRUSTS INTRODUCTION
RECENT DEVELOPMENTS IN ESTATE PLANNING: THE ALBERTA ADVANTAGE WHEN USING TRUSTS Martin J. Rochwerg* INTRODUCTION Canadian federal income tax is levied at progressive rates. As income increases, so does
More informationEstate Planning and the Use of Trusts CONTENTS Page Estate Planning Fundamentals 1
- 1 - Estate Planning and the Use of Trusts CONTENTS Page Estate Planning Fundamentals 1 1. Income-Splitting 2 2. Deferral of Tax 2 3. Use of Tax Deductions, Exemptions and Credits 4 Inter-Vivos Estate
More informationThe essence of 104(13.4), as adopted, is two fold it deems the life interest trust to have a year end at the end of the day of death of the life
The essence of 104(13.4), as adopted, is two fold it deems the life interest trust to have a year end at the end of the day of death of the life interest beneficiary and it deems the capital gain arising
More informationPrincipal Residence Rules An Update
Principal Residence Rules An Update Presented by: Josh Harnett December 7, 2016 Table of Contents 1. One Plus Rule 2. Trusts 3. Subsection 107(4.1) 4. Compliance Rules 2 One Plus Rule Current Rule Individual
More informationCorporate Tax Planning With Insurance (Dealing with Double Tax on Private Company Shares at Death)
Corporate Tax Planning With Insurance (Dealing with Double Tax on Private Company Shares at Death) Richard Facia, Director Of Advanced Marketing A partner you can trust. 1 Post Mortem Estate Planning The
More informationCONTENTS VOLUME II VOLUME I. Detailed contents of Volume II, Chapters 11 to 21 follows. The textbook is published in two Volumes:
xi CONTENTS The textbook is published in two Volumes: Volume I = Chapters 1 to 10 Volume II = Chapters 11 to 21 Chapter VOLUME I Chapter VOLUME II 1 Introduction To Federal Taxation In Canada 11 Taxable
More informationA PRIMER ON WILL AND ESTATE PLANNING
A PRIMER ON WILL AND ESTATE PLANNING 2001 Stephen L. Sweeney. All Rights Reserved Introduction Basic Will planning often done by young couples early in their careers and before they have accumulated significant
More informationTrusts - Just the Basics
Trusts - Just the Basics Introduction The use of a trust can be important for both tax and non-tax reasons. A trust may be implemented for complex planning or to simply ensure that funds are directed in
More informationTAX NOTES INTERNATIONAL NON-RESIDENT TRUST UPDATE. by Stuart F. Bollefer and Jack Bernstein. Aird & Berlis LLP
TAX NOTES INTERNATIONAL NON-RESIDENT TRUST UPDATE by Stuart F. Bollefer and Jack Bernstein Aird & Berlis LLP On October 11, 2002, the Department of Finance released the third iteration of the Non- Resident
More informationIncome Tax Changes Related to Estate Planning
, CPA, CA, TEP, KPMG, Halifax, LL.B., TEP, McInnes Cooper, Halifax Halifax 2 Introduction Changes are Coming! 1. Taxation of testamentary trusts flat top-rate taxation (loss of graduated rates) Exceptions
More informationRecent Developments in Corporate Taxation. Greg Bell, KPMG Chris Jerome, EY 7 June Ottawa
Recent Developments in Corporate Taxation Greg Bell, KPMG Chris Jerome, EY 7 June 2017 - Ottawa 2017 Agenda Budget overview Business income tax measures Personal income tax measures 2016 CTF Annual Conference
More information2015 STEP Canada / CRA ROUND TABLE FINAL CONSOLIDATED Q & As. STEP Canada 17th National Conference June 18-19, Toronto
2015 STEP Canada / CRA ROUND TABLE FINAL CONSOLIDATED Q & As STEP Canada 17th National Conference June 18-19, 2015 - Toronto Unless otherwise stated, all statutory references in this document are to the
More informationRecreational Residence Trust Package
Recreational Residence Trust Package Fees: $6,000 Documents: 1. Recreational Residence Trust, with related documents, as required: If registered in the Land Title Office: Form A Transfer Property Transfer
More informationINCOME ATTRIBUTION RULES AND GIFTING - PLANNING CONSIDERATIONS
INCOME ATTRIBUTION RULES AND GIFTING - PLANNING CONSIDERATIONS This issue of the Legal Business Report provides current information to the clients of Alpert Law Firm on estate planning, including the income
More informationTAX LETTER. January 2016
TAX LETTER January 2016 DRAFT LEGISLATION FOR 2016 TAX CHANGES FINANCE PROPOSES CHANGES TO RULES GOVERNING SPOUSAL AND SIMILAR TRUSTS TAX-FREE TRANSFERS OF PROPERTY TO YOUR CORPORATION CAPITAL DIVIDENDS
More informationOctober 2017 Tax Newsletter
FRUITMAN KATES LLP CHARTERED PROFESSIONAL ACCOUNTANTS 1055 EGLINTON AVENUE WEST TORONTO, ONTARIO M6C 2C9 TEL: 416.920.3434 FAX: 416.920.7799 www.fruitman.ca Email: info@fruitman.ca October 2017 Tax Newsletter
More informationThis bulletin cancels and replaces Interpretation Bulletin IT-66R5 dated July 22, Current revisions are designated by vertical lines.
Subject: INCOME TAX ACT Capital Dividends NO: IT-66R6 DATE: May 31, 1991 REFERENCE: Section 184, subsections 83(2) to (2.4), 89(1.1) and (1.2), paragraphs 89(1)(b) and (b.1) (also section 14, subsection
More informationDIVIDEND REGIME FAIZAL VALLI, CA 1
POST-MORTEM AND SHAREHOLDER AGREEMENT CONSIDERATIONS IN LIGHT OF THE ELIGIBLE Introduction DIVIDEND REGIME FAIZAL VALLI, CA 1 The purpose of this paper is to demonstrate the complexities of allocating
More informationTax Notes May Some More Missives
Tax Notes May Some More Missives By: David Louis, J.D., C.A., Tax Partner Minden Gross LLP, a member of MERITAS Law Firms Worldwide. As years go by, I see more and more of what looked like stock estate
More informationIssues that Arise in the Context of the Sale of a Business
Issues that Arise in the Context of the Sale of a Business Calgary Young Practitioners Group Canadian Tax Foundation Kim G C Moody CA,TEP Moodys LLP Tax Advisors December 7, 2005 Agenda BREAKING NEWS!!
More informationCURRENT ISSUES A SELECTION OF LEGISLATIVE AND ADMINISTRATIVE DEVELOPMENTS OF INTEREST TO THE OWNER-MANAGER
CURRENT ISSUES A SELECTION OF LEGISLATIVE AND ADMINISTRATIVE DEVELOPMENTS OF INTEREST TO THE OWNER-MANAGER Joan E. Jung Minden Gross LLP jjung@mindengross.com (416) 369-4306 INTRODUCTION... 2 LEGISLATIVE
More informationAUTISM AND ESTATE PLANNING
AUTISM AND ESTATE PLANNING Part II Planning for the Parents of an Autistic Child Tuesday, November 23, 2010 Richard Niedermayer Topics Introduction Powers of Attorney for Property Personal Directives Guardianship
More informationINDEX. pro-rating, 11
INDEX A grandfathered policies, 11, 12, 13 21-year deemed disposition rule, keyperson insurance strategy and, 301 302 205, 207, 208 Crummey trust and, 325 pro-rating, 11 Accounting for life insurance,
More informationSECTION 85 TRANSFERS - INCOME TAX CONSIDERATIONS
SECTION 85 TRANSFERS - INCOME TAX CONSIDERATIONS This issue of the Legal Business Report provides current information to the clients of Alpert Law Firm on various types of corporate reorganisations. Due
More informationThe Taxation of Non-Resident Trusts in Canada
Presented by: Richter Tax Services Updated for 2014 Federal Budget Proposals The Taxation of Non-Resident Trusts in Canada Part I Background to NRT Rules Introduction What is a trust? - An agreement between
More informationSUCCESSION PLANNING AND THE FAMILY FARM
SUCCESSION PLANNING AND THE FAMILY FARM SPONSORED BY: SCOTIA PRIVATE CLIENT GROUP SCOTIABANK, WINKLER Presented by: Larry H. Frostiak, FCA, CFP, TEP Thursday, April 7, 2011 Succession Planning and The
More informationThe RBC Dominion Securities
The RBC Dominion Securities Family Trust A guide for clients Professional Wealth Management Since 1901 Table of contents Is an RBC Dominion Securities Family Trust right for you? 2 What is a trust? 2 Inter-vivos
More informationINDEX. Segregated funds, Structured pre-1990 contracts, settlements deferred annuities, accrual taxation rules,
INDEX 21-year deemed disposition rule, 328 329 Crummey trust and, 353 A Accounting for life insurance, 224 226 Accounting standards, 71 72 Accrual reporting annuities, 431 433 keyperson insurance strategy
More informationReference Guide TESTAMENTARY TRUSTS
Reference Guide TESTAMENTARY TRUSTS While most people have heard about trusts, many do not really know what they are or what benefits they offer and often incorrectly believe that trusts are only for wealthy
More informationThe proposal documents contained 137 pages of material and potentially represent a change in tax policy towards private companies.
2017 Issue No. 33 31 July 2017 Tax Alert Canada Private company insights: federal tax reform EY Tax Alerts cover significant tax news, developments and changes in legislation that affect Canadian businesses.
More informationTHE EFFECTIVE USE OF TRUSTS IN CONNECTION WITH INCOME SPLITTING (PART II OF IV)
April 2015 Number 243 An Assignment is Not a Disclaimer.. 3 OSC Grants Rectification to Preserve CCPC Status... 4 THE EFFECTIVE USE OF TRUSTS IN CONNECTION WITH INCOME SPLITTING (PART II OF IV) Michael
More informationA discussion of corporate-owned life insurance
A discussion of corporate-owned life insurance Persons who seek their livelihood in business are often motivated by a need to place their fate in their own hands. Of course, the desire to make money for
More informationTaxation of Investment Holding Companies (IHC s)
Chartered Professional Accountants Associated Worldwide with CPA Associates International, Inc. Taxation of Investment Holding Companies (IHC s) July 21, 2016 Jeff McRae, CPA, CA Jessica Zeng, Mtax jeff@rmtcpa.ca;
More informationEstates & Trusts The New G.R.E. Regime
Estates & Trusts The New G.R.E. Regime Monday October 5, 2015 Larry Frostiak, Frostiak & Leslie & Daniel Watts, Aikins Contents 1. New Tax Rules 2. New vs Old A Comparative Summary 3. A checklist of planning
More informationCCH Estate Planner Federal Budget Targets Planning Involving Minors
CCH Estate Planner Federal Budget Targets Planning Involving Minors By: Michael Goldberg, Tax Partner Minden Gross LLP, a member of MERITAS Law Firms Worldwide. The capital gains exemption for shares of
More informationSTEP ISRAEL 20TH ANNUAL CONFERENCE DAN TEL AVIV HOTEL JUNE 19-20, 2018
STEP ISRAEL 20TH ANNUAL CONFERENCE DAN TEL AVIV HOTEL JUNE 19-20, 2018 CANADIAN TAX UPDATE June 10, 2018 Stephen S. Ruby Partner MULTILATERAL CONVENTION On May 28, 2018, Canada tabled a Notice of Ways
More informationThe Intergenerational Wealth Transfer of Life Insurance Policies (Cascading Policies)
The Intergenerational Wealth Transfer of Life Insurance Policies (Cascading Policies) This document will review the tax issues associated with Cascading Policies. This is the terminology used to describe
More informationChanges to the Taxation of Estate and Testamentary Trusts
Changes to the Taxation of Estate and Testamentary Trusts Testamentary Trust Testamentary Trust 2013 Federal Budget The Government is also concerned with potential growth in the tax motivated use of testamentary
More informationCONTENTS CHAPTER 1. CHAPTER 1, continued CHAPTER 2. Introduction To Federal Taxation In Canada. Income Or Loss From An Office Or Employment.
xvii CONTENTS CHAPTER 1 Introduction To Federal Taxation In Canada The Canadian Tax System.......... 1 Alternative Tax Bases.......... 1 Taxable Entities In Canada........ 2 Federal Taxation And The Provinces....
More informationAgenda. Graduated Rate Estates Qualified Disability Trusts Subsection 104(13.4) Estate Donations Subsection 104(13.3)
Kim G C Moody FCA, TEP Darryl R Antel LLB Moodys Gartner Tax Law LLP December 16, 2014 Agenda Graduated Rate Estates Qualified Disability Trusts Subsection 104(13.4) Estate Donations Subsection 104(13.3)
More informationNON-ARM S LENGTH TRANSFERS OF PROPERTY
TABLE OF CONTENTS Dedication... Preface... Table of Cases... Table of Statutory References... iii v xiii xxxiii 1 INTRODUCTION... 1 1.1 General... 1 1.2 Arrangements... 2 2 NON-ARM S LENGTH TRANSFERS OF
More informationTHE ANNOTATED Alter Ego Trust and Discretionary Trust The Annotated Discretionary Trust 2017
TAB 2 THE ANNOTATED Alter Ego Trust and Discretionary Trust 2017 The Annotated Discretionary Trust 2017 (Updated from 2015) M. Elena Hoffstein, Fasken Martineau DuMoulin LLP February 24, 2017 The Annotated
More informationPrivate Company Income Splitting
Private Company Income Splitting Presented by: William Bernstein September 14, 2017 Topics to Review 1. Background to proposed changes 2. Current rules for income splitting with CCPC 3. Proposed changes
More informationCRA Response. Proposed Legislation
Unless otherwise stated, all statutory references in this document are to the Income Tax Act, R.S.C. 1985, c. 1 (5th Suppl.) (the "Act"), as amended to the date hereof. QUESTION #1 POST WIND-UP FILING
More informationTaxpayer Migration. COLIN CAMPBELL 2011 TAX LAW FOR LAWYERS May 31, 2011
Taxpayer Migration COLIN CAMPBELL 2011 TAX LAW FOR LAWYERS May 31, 2011 EMIGRATION Objective of Rules Tax gains that have accrued while resident in Canada Deemed disposition and reacquisition of property
More informationThe Capital Dividend Account. January 2017 Jean Turcotte, B.B.A., LL.B., D.Fisc, Fin.Pl., TEP Director, Tax, Wealth and Insurance Planning Group
The Capital Dividend Account January 2017 Jean Turcotte, B.B.A., LL.B., D.Fisc, Fin.Pl., TEP Director, Tax, Wealth and Insurance Planning Group Capital Dividend Account Why the Capital Dividend Account
More informationTAX PLANNING RULES FOR PRIVATE CORPORATIONS. November 23, 2017
TAX PLANNING RULES FOR PRIVATE CORPORATIONS November 23, 2017 Presenter Mark McGinnis CPA, CA Tax Partner University of Waterloo Bachelor of Mathematics 2 CORPORATE TAXES - HISTORICAL BACKGROUND INTEGERATION
More informationTESTAMENTARY TRUSTS WHAT IS A TRUST?
TESTAMENTARY TRUSTS REFERENCE GUIDE While most people have heard about trusts, many do not really know what they are or what benefits they offer and often incorrectly believe that trusts are only for wealthy
More informationUS Citizens as Shareholders of Canadian Companies Impact on Reorganizations and Other Canadian Tax Consequences
68 th Annual Tax Conference (2016) Calgary, AB INTERNATIONAL TAXATION Disclaimer: This material is for educational purposes only and is not intended to be advice on any particular matter. No one should
More information2016 STEP CANADA CRA ROUNDTABLE
June 10, 2016 Michael Cadesky, FCPA, FCA, TEP Kim Moody, FCPA, FCA, TEP Marina Panourgias, CPA, CA, TEP Phil Kohnen, CPA, CMA, TEP Paul LeBreux, LL.M., TEP Society of Trust and Estate Practitioners (Canada)
More informationRollover of RRSPs and RRIFs to a Trust for Spouses and Disabled Financially Dependent Children
February 2, 2005 Catherine Cloutier Chief, Deferred Income Plans Tax Policy Branch Finance Canada 140 O'Connor Street Ottawa ON K1A 0G5 Dear Ms. Cloutier: Re: Rollover of RRSPs and RRIFs to a Trust for
More informationRevised Explanatory Notes Relating to Income Tax
Revised Explanatory Notes Relating to Income Tax Published by The Honourable Paul Martin, P.C., M.P. Minister of Finance June 2000 Revised Explanatory Notes Relating to Income Tax Published by The Honourable
More informationPARSONS & CUMMINGS LIMITED
PARSONS & CUMMINGS LIMITED MANAGEMENT CONSULTANTS 245 Yorkland Blvd., Suite 100 Willowdale, Ontario M2J 4W9 Tel: (416) 490-8810 Fax: (416) 490-8275 Internet: www.parsons.on.ca TAX LETTER October 2012 MAKING
More informationTrusts An Introduction
Trusts can be highly effective wealth management vehicles, especially for income splitting, tax and estate planning purposes and wealth protection. A trust is an arrangement whereby a settlor transfers
More informationBill 59. An Act to amend the Taxation Act, the Act respecting the Québec sales tax and various legislative provisions.
FIRST SESSION FORTIETH LEGISLATURE Bill 59 An Act to amend the Taxation Act, the Act respecting the Québec sales tax and various legislative provisions Introduction Introduced by Mr. Nicolas Marceau Minister
More informationREFERENCE GUIDE Testamentary Trusts
REFERENCE GUIDE Testamentary Trusts Although this material has been compiled from sources believed to be reliable, we cannot guarantee its accuracy or completeness. All opinions expressed and data provided
More informationCONTENTS VOLUME II VOLUME I. The detailed contents of both Volume I and II follow. The textbook is published in two Volumes:
CONTENTS The textbook is published in two Volumes: Volume I = Chapters 1 to 10 Volume II = Chapters 11 to 21 Chapter I Chapter II 1 To Federal Taxation In Canada 11 Taxable Income and Tax Payable For Individuals
More informationDeath and Taxes It s Never Too Early To Plan. Franklin H. Famme, CPA, CA
Death and Taxes It s Never Too Early To Plan Franklin H. Famme, CPA, CA Benjamin Franklin Agenda Understanding Estates Taxes Upon Death Probate Income Tax Taxes After Death Understanding Estates Jointly-Held
More informationCanadians with International Assets
Canadians with International Assets Presented by: Lorne Saltman May 17, 2017 Topics to Discuss 1. Introduction: Know Your Client 2. Common law vs. Civil Law Jurisdictions 3. Recognition of Trusts 4. Multiple
More informationWhat do the new July 18, 2017 Canadian Private Corporation Tax Proposals Mean for You?
What do the new July 18, 2017 Canadian Private Corporation Tax Proposals Mean for You? Kim G C Moody FCA, TEP Greg Gartner CA, MBA, LLB, QC Kenneth Keung CA, CPA (CO, USA), TEP, CFP, MTAX, LLB Bert Boulet
More informationCONTENTS VOLUME II VOLUME I. The detailed contents of both Volume I and II follow. The textbook is published in two Volumes:
CONTENTS The textbook is published in two Volumes: Volume I = Chapters 1 to 10 Volume II = Chapters 11 to 21 Chapter I Chapter II 1 Introduction To Federal Taxation In Canada 11 Taxable Income and Tax
More informationLEGISLATIVE PROPOSALS RELATING TO INCOME TAX AND SALES AND EXCISE TAXES PART 1 INCOME TAX
1 LEGISLATIVE PROPOSALS RELATING TO INCOME TAX AND SALES AND EXCISE TAXES PART 1 INCOME TAX Value of benefits Where standby charge does not apply INCOME TAX ACT 1. (1) Paragraph 6(1)(a) of the Income Tax
More informationCONTENTS VOLUME II VOLUME I. The detailed contents of both Volume I and II follow. The textbook is published in two Volumes:
CONTENTS The textbook is published in two Volumes: Volume I = Chapters 1 to 10 Volume II = Chapters 11 to 21 Chapter I Chapter II 1 Introduction To Federal Taxation In Canada 11 Taxable Income and Tax
More informationGeneration-Skipping Transfer Tax: Planning Considerations for 2018 and Beyond
Generation-Skipping Transfer Tax: Planning Considerations for 2018 and Beyond The Florida Bar Real Property Probate and Trust Law Section 2018 Wills, Trusts & Estates Certification and Practice Review
More informationCurrent Issues Forum: Pipeline Planning; Section 159 Clearance Certificates; Charitable Sector; and Non-Profit Organizations
Current Issues Forum: Pipeline Planning; Section 159 Clearance Certificates; Charitable Sector; and Non-Profit Organizations INTRODUCTION Chris Falk 1 This paper addresses a number of legislative and administrative
More informationSUBJECT: INCOME TAX ACT Property Transfers After Separation, Divorce and Annulment
IT INTERPRETATION BULLETIN SUBJECT: INCOME TAX ACT Property Transfers After Separation, Divorce and Annulment NO.: IT-325R2 DATE: January 7, 1994 REFERENCE: Subsection 73(1) (also sections 13, 20, 74.1
More informationCanada Releases Foreign Affiliate Dumping Amendments
Volume 71, Number 10 September 2, 2013 Canada Releases Foreign Affiliate Dumping Amendments by Steve Suarez Reprinted from Tax Notes Int l, September 2, 2013, p. 864 Reprinted from Tax Notes Int l, September
More informationManaging Your Personal Taxes. A Canadian Perspective
2012 13 Managing Your Personal Taxes A Canadian Perspective Opportunities abound. We can help guide you in the right direction. Foreword 31 August 2012 If there s one thing everyone can agree on, it s
More informationTaxation on the Transfer of Farm Business Assets to Family Members R.W. Gamble
Taxation on the Transfer of Farm Business Assets to Family Members R.W. Gamble ORDER NO. 09-015 AGDEX 827 APRIL 2009 Replaces OMAFRA Factsheet 03-023, Taxation on the Transfer of Farm Business Assets to
More informationEstate and Probate Planning Using Trusts Tax Efficiently
Estate and Probate Planning Using Trusts Tax Efficiently ICANS MARCH 7, 2012 PRESENTED BY: RICHARD NIEDERMAYER. All rights reserved. Not to be copied or used in whole or in part without the express written
More informationWelcome: Proposed Tax Changes for Private Corporations
Welcome: Proposed Tax Changes for Private Corporations WEBINAR: Proposed Tax Changes for Private Corporations September 18, 2017 2:30-4:30 PM EST Registration URL: https://attendee.gotowebinar.com/register/5371598472188728579
More information