Articles
Section 86 of Canada’s Income Tax Act (ITA) provides an effective tax-planning tool for business owners seeking to exchange shares within a corporation without triggering immediate tax consequences. Known as a “section 86 share exchange,” this provision allows taxpayers to swap old shares for new shares in the same corporation.
Read More
Ontario’s Friends, Family, and Close Business Associates (“FFBA”) exemption offers a flexible and practical path for certain issuers to raise capital from individuals within their trusted networks. This exemption allows companies to raise funds from personal connections without going through the costly and complex process of filing a prospectus, making it particularly valuable for startups and small businesses looking to leverage existing relationships for initial financing.
Read More
Estate freezes are a popular tax-planning tool in Canada, particularly among business owners and high-net-worth individuals seeking to preserve family wealth and efficiently transfer assets to the next generation. Through an estate freeze, individuals can lock in the current value of their assets, allowing future growth to accrue to others (typically family members) while deferring or minimizing tax liabilities.
Read More
Going public in Canada can be a strategic step for companies seeking access to capital and increased visibility in the marketplace. For smaller companies using a reverse takeover (RTO) of a Capital Pool Company (CPC) on the TSX Venture Exchange (TSX-V) is an efficient and accessible route to achieve this. This article will walk you through how the process works, the advantages, and the essential steps involved.
Read More