When can a bad debt expense be claimed on a non-arm’s length debt?
It may not seem intuitive, but there are certain situations where it is possible for a creditor to recoup some of their lost loan from a non-arm’s length debtor in the form of a capital loss or, if the debtor […]
Adboss: The Minister cannot simply assume issues of mixed fact and law
A recent decision of the Federal Court of Appeal has determined that when a matter of mixed fact and law is assumed by the Minister and the taxpayer requests the information the Minister based their assumption on, the Minister must […]
New considerations when seeking to multiply access to the lifetime capital gains exemption
Proactive planning to multiply access to the lifetime capital gains exemption (“LCGE”) for shares of a qualified small business corporation (“QSBC”) or qualified family farm property (“QFFP”) remains of ongoing interest to taxpayers and their family members that may be […]
Intergenerational business transfers: Bill C-208 developments
Prior to 2021, section 84.1 of the Income Tax Act (“Act”) created a real impediment to a tax-efficient succession of a family business from one generation to the next, effectively penalizing a sale to a family member compared to an […]
Changes to the substantive CCPC rules
On August 9, 2022, legislative proposals relating to the Income Tax Act (the “Act”) and other tax legislation were released by the Department of Finance for public feedback (the “August Proposals”). The August Proposals seek to implement certain measures previously […]
Is the interest deductible? – Fundamentals of interest deductibility in Canada
The rules around interest deductibility are becoming more and more complex. As a business grows and expands their operations to new jurisdictions, and adopts a corporate structure designed to take advantage of certain opportunities related to interest deductibility, the business […]
What should I do with my non-CCPC?!?!
Taxpayers who previously engaged in non-CCPC tax planning have a decision to make – and ideally soon. For context, in recent years, a number of Canadian taxpayers implemented planning that involved causing a Canadian-controlled private corporation (“CCPC”) to cease to […]
Release of draft Canadian tax legislation for public consultation
An extensive package of draft legislative proposals was released for public comment by the Department of Finance on February 4, 2022 (the “Proposals”) along with explanatory notes (the “Notes”). The Proposals include some, but not all, of the measures announced […]
