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The Advantages of Surplus Stripping and Disintegration – Section 84(2)

Surplus stripping is back in the news with recent changes to legislation.  This makes it imperative to understand past court decisions on this matter.  Surplus stripping allows a taxpayer to receive funds that that have been earned by a corporation and subjected only to the corporate tax rates, without paying the personal dividend tax rate. …
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Act Now for Intergenerational Transfers – Bill C-208 Amendments to Section 84.1

There is still a window of opportunity for tax savings when transferring a business to a corporation owned by your child or grandchild and being allowed to claim the lifetime capital gains exemption before amendments are proposed to Bill C-208. Bill C-208 is a private member sponsored bill that allows small business owners to claim…
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Suspended Losses for Corporations, Trusts and Partnerships

By Nizam Shajani, CA, MBA November 20, 2020 While losses in your corporation, trust or partnership are undesirable from a conventional perspective, they can be valuable from a taxation standpoint. This is because depending on the type of loss incurred, it may result in lowering your tax obligation or even garnering a refund. However the…
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