Canada Archives

Section 85 of the Income Tax Act (Canada) (“ITA”) offers a valuable tax-planning tool for business owners, allowing them to transfer assets to a corporation without triggering immediate taxable gains.

Incorporating a not-for-profit organization and obtaining charitable status in Canada is a multi-step process that allows organizations to operate legally, access public funding, and gain tax benefits. Whether you are starting a community initiative, a social service organization, or a cultural project, understanding the legal requirements and the process for incorporation and obtaining charitable status is crucial.

This article examines the differences between soliciting and non-soliciting not-for-profit corporations under the Canada Not-for-Profit Corporations Act, and their practical implications.

This article explores the rules surrounding political activities by charities, the historical context, and recent changes that have expanded the space for charities to engage in advocacy.

This article explores the framework and challenges surrounding grants to non-qualified donees, recent changes in the law, and best practices for charities navigating this complex area.

When hiring workers, businesses in Canada often face the question of whether to classify an individual as an employee or an independent contractor. The distinction between these two types of workers is important for both legal and financial reasons, as it affects issues such as tax obligations, employment benefits, and legal responsibilities.

With increasing globalization, many Canadians are considering moving abroad not only for career and lifestyle opportunities but also for tax-related benefits. While changing residency can yield tax advantages, the process is complex, with significant tax implications and administrative requirements.

When entering into a business transaction, one of the critical decisions that both buyers and sellers must make is whether to structure the deal as an asset purchase or a share purchase. In Canada, these two types of transactions have distinct legal, financial, and tax implications, which can significantly impact both parties involved.

A shareholders’ agreement is a vital legal document that can help prevent disputes, clarify the rights and obligations of shareholders, and provide mechanisms for resolving conflicts. This post will discuss the importance of a shareholders’ agreement, the key provisions typically included, and how it helps protect the interests of all shareholders.

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.

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.

Mortgage Investment Corporations (MICs) have become a popular investment vehicle in Ontario and across Canada. They offer a unique way to invest in real estate-backed mortgages while providing investors with a regular income stream and tax advantages. Whether you’re an investor, a lawyer, or a financial professional, understanding the steps and regulations involved in forming a MIC is essential.