Posts by Nicholas dePencier Wright
A Primer on Canadian Limited Partnerships
The Limited Partnerships Act (Ontario) is a piece of legislation that allows for the creation of limited partnerships with the characteristics of a general partnership but without joint and several liability for certain ‘limited’ partners.
Read MoreExempt Market Offerings in Ontario
Under what circumstances can companies issue exempt offerings in Ontario?
Read MoreHow to Set Up an Exempt Market Dealer
Wondering how to set up an exempt market dealer in Canada? Read on.
Read MoreGetting to Know Exempt Market Dealers (EMDs)
What is an exempt market dealer, and when do you need one?
Read MoreOntario Offering Memorandum Exemption a Win-Win
One of the most significant regulatory developments of the past few years regards changes to offering memorandum exceptions, and every Canadian business owner and investor should be aware of how these new rules work. In 2016, a set of new amendments from provincial securities regulators came into force. They introduced an offering memorandum prospectus…
Read MoreEstate Freezes
Estate freezes are used by family business owners to facilitate the transfer of a business from one generation to the next while taking advantage of available tax deductions and incentives. They are generally structured to minimize capital gains tax and probate fees and to take advantage of dividend sprinkling to income split among family members,…
Read MoreS.85 Tax Exempt Transfer to a Corp
Section 85 of the Income Tax Act is a commonly used provision that permits the tax exempt transfer of property to a corporation. This paper provides an overview of the application of the section covering key topics including the general rules of section 85, eligible property, consideration or “boot,” anti-abuse rules, requisite filings and other…
Read MoreNAFTA Domestic Tax as Trade Subsidy
This paper argues that North American Free Trade Agreement (NAFTA) renegotiation and amendment should be used to define and restrict domestic tax provisions improperly used as indirect trade subsidies or tariffs. In doing so the Canadian foreign affiliate rules and the proposed US border adjustment tax are examined.
Read MoreCanada-Barbados Tax Treaty
This paper explains how to use the Canada-Barbados Tax Treaty to avoid Canadian tax on international business income.
Read MoreUS Real Estate Tax Issues
This paper provides an overview of relevant tax considerations when a Canadian resident is purchasing US real estate and discusses different ways to structure a purchase to minimize tax exposure.
Read MoreUsing a Family Trust in Business
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…
Read MoreBusiness Sale Tax Considerations
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…
Read MoreShare Sale or Corporate Redemption?
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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