Articles

CRA Increasing Global Enforcement

Taxform, cc Flickr craigstoronto, modified, https://creativecommons.org/licenses/by/2.0/

We live in a world of rootless capital, where finance flows readily across borders. Many businesses operate internationally with resulting assets held in multiple jurisdictions. These intricate, globe-straddling financial portfolios have been the bane of tax authorities, tasked with monitoring and enforcing tax liabilities on assets held abroad. Blind spots – jurisdictions that the authorities…

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Restrictions on Political Activities for Charities Struck Down

Canadian tax law, cc Flickr Rebecca Siegel, modified, https://creativecommons.org/licenses/by/2.0/

Canadian Charities take note: a fundamental shift has occurred in how the Canada Revenue Agency regulates political activities, one that may significantly change the way that charities engaged in non-partisan political activities structure themselves and operate. Though punctuated by the Trudeau government’s recent decision to drop its appeal against a 2018 court ruling that struck…

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Ontario Offering Memorandum Exemption a Win-Win

Toonie, cc Flickr Carol VanHook, modified, https://creativecommons.org/licenses/by-sa/2.0/

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…

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Estate Freezes

Deer

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,…

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S.85 Tax Exempt Transfer to a Corp

Cherry blossoms

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…

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NAFTA Domestic Tax as Trade Subsidy

Mexican Farmer

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. Download the full paper here: Nick Wright…

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Canada-Barbados Tax Treaty

Barbados Beach

This paper explains how to use the Canada-Barbados Tax Treaty to avoid Canadian tax on international business income. Download the full paper here: Nick Wright Canada Barbados Tax Treaty Controversy & Reform 161228 This article and the contents herein are for informational purposes only and do not constitute legal advice. Readers are advised to seek…

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US Real Estate Tax Issues

Bee

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. Download the full paper here: Nick Wright Tax Considerations when Purchasing American Real Estate 160906 This article and the contents herein are for informational purposes…

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Using a Family Trust in Business

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

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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