SimpsonWigle Law LLP Tax News

Sometimes we receive instructions for incorporation that include a request to create shares with a fixed redemption amount and a right to receive unlimited dividends. We generally advise against creating such shares, especially if they are to be used in a freeze, because we are concerned that the fair market value of such a share will not be equal to its redemption amount, especially if the share will be held by a controlling shareholder. (more…)

The CRA continues to talk tough on donation tax shelter schemes. And why shouldn’t it? Its boast that “In 2008, Canadian courts have continued to confirm the CRA’s position with respect to these schemes” is accurate. What I find disturbing is the claim that the CRA has denied $2.5 billion worth of donations. That’s a lot of tax on which to pay interest. That’s a lot of tax to collect years after the fact.

“Did you know… That you should notify the Canada Revenue Agency (CRA) when directors of your corporation change?” (more…)