In Foix v. The King, 2023 FCA 38, the Federal Court of Appeal (FCA) ruled that a distribution of funds following a hybrid sale was subject to the application of subsection 84(2) of the Income Tax Act (ITA), affirming the Tax Court of Canada (TCC) ruling, Foix v. The Queen, 2021 TCC 52.
In a new report examining the Canadian HVAC industry in Q4 2021, Baker Tilly Canada Corporate Finance analyzes the industry’s strong performance.
May 4, 2022 by Deepak Upadhyaya
Non-fungible tokens – NFTs – are quickly shifting from a buzzword to business model, according to Deepak Upadhyaya, Digital Technology and Risk practice leader for Baker Tilly Canada. Still, there are key considerations that must be addressed by brands seeking to effectively capitalize on this digital asset.
In its role as a financial advisor, Baker Tilly Canada Corporate Finance (BTCCF) helps small- to mid-size companies execute sell-side, buy-side and valuation engagements.
With the recent Royal Assent of Bill C-208, owners of incorporated small and medium-sized businesses, and their tax advisors, were reminded that proactively monitoring and maintaining qualifying small business corporation (QSBC) share status is essential to make many tax-planning strategies possible. There are many traps that may cause the unintended loss of QSBC share status, and when the time comes to take advantage of available tax planning, it can be too late to correct the problem.
Accountants regularly advise of the tax and accounting benefits available to corporations. But there remain some producers who are reluctant to take the next step and incorporate their farm operations. With some recent harvest reports of higher than average yields, it is time once again to look at the pros and cons of incorporating.
July 11, 2018 by Chris Russell
There are numerous components that go into valuing the assets of an active business. In simplified terms, those components can be characterized as the value of normalized discretionary cash flow plus redundant assets. In this article, we will be discussing two of the more common redundant assets that business owners frequently do not realize exist within their organization.
March 14, 2018 by Martha MacRae, Todd King
From a taxation perspective, the period from July 2017 to February 2018 has been one of the most tumultuous in recent history for Canadian private company owners. For those who also have the privilege of being U.S. citizens or resident aliens, things have gotten downright ludicrous. In a rush to pass into law the most sweeping tax reform in a generation, U.S. lawmakers have stuck U.S. citizens resident in Canada with retroactive, double taxation, the elimination of much of the tax deferral previously available in their companies, a looming April 17th payment deadline and virtually no rules or regulations to guide them through the chaos.
Effective January 1, 2017, the income tax treatment of farm quota and other eligible capital property (ECP) underwent a complete overhaul.
June 20, 2016 by John Bujold
A common question that we often get as farm tax advisors is whether or not farm property can be transferred to the next generation by way of a gift. This topic is becoming more and more important as nearly half of all farmers in Canada are 55 years of age or older and are preparing themselves for succession. Succession planning is the most discussed topic between farmers and their tax advisors. Contributing to this dilemma is that rising land values is creating significant amounts of wealth and making life difficult for the farmers to equalize their estates when there are active and non-active children involved in the farming business. Succession has become much more difficult, and a traditional solution of life insurance and non-farm assets may not be enough to equalize the estate.
June 10, 2016 by Paul Mandel
Are you a minority shareholder in a private firm? Owning and selling shares can be slightly more complex than you realize. From buying or selling shares and handling disputes with majority shareholders, to understanding the true financial value of your shares (hint: it may not be what you think), as well as the tax implications, here is what you need to know.
January 6, 2016 by Peter Hobb
Despite farm groups working hard to advise farm owners of the need to plan for their eventual succession, many farmers appear to be reluctant to plan properly. Though there are many reasons, studies show that the number one reason is that it is “too early” to begin planning. But is it really too early, or is there just an unwillingness to plan for succession?