Articles

Using a Family Trust in Business

Aug 14, 2016
Blue Bird in Tree

The discretionary family trust is a tool used by some business owners to reduce tax liability and increase flexibility in the family economic unit by facilitating tax-favourable distribution of funds, business succession and estate planning. Using a discretionary family trust to hold shares in a private company can have significant tax and planning benefits. This…

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Business Sale Tax Considerations

Jul 24, 2016
Pink Flower

The purchase and sale of a private incorporated company in Canada raises a variety of important tax considerations. This paper provides an overview and analysis of such considerations and argues that the clear public policy objective of promoting small business in Canada using provisions of the Income Tax Act has been undermined by an unnecessarily…

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Marijuana Businesses in Canada

Jun 15, 2016
Cannabis Plant

On June 24, 2015, prompted by both the federal government’s pledge to legalize possession of marijuana for recreational purposes, and the growing number of marijuana-related businesses in the city, Vancouver became the first city in Canada to create by-laws regulating marijuana-related businesses. Marijuana businesses in Ontario have become more common but are currently unregulated at…

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Share Sale or Corporate Redemption?

Apr 26, 2016
Cherries on Branch

Frequently when restructuring a closely held private corporation shareholders must decide whether to transfer shares from one shareholder to another with a share purchase and sale or to have the corporation redeem (i.e. buy back) the shares from the shareholder, resulting in a reduction in the total number of issued and outstanding shares and increased…

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