Category Archives: Corporations

Transfers of insurance

Posted on September 1, 2009 by John Loukidelis

I’ve seen a number of transactions lately where the owner of a life insurance policy proposes to transfer it to a corporation controlled by the owner. The benefits of corporate-owned insurance are well-known, of course, but such a transfer could … Continue reading →

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Contradiction

Posted on August 2, 2009 by John Loukidelis

In January I reported that the Tax Court had held that the penalty provided by subsection 163(2.1) of the Income Tax Act did not apply if the corporation filing the return did not have taxable income (see Goar, Allison & … Continue reading →

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Revival, for the third time

Posted on July 18, 2009 by John Loukidelis

I have posted here and here on the effect of the dissolution of a corporation and its subsequent revival on the liability of a director for source deductions and the like. The CRA has now weighed in with a technical … Continue reading →

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New Federal NPO Legislation

Posted on June 30, 2009 by John Loukidelis

The feds have been talking about modernizing their not-for-profit statute for quite some time now, and they finally did it last week. Bill C-4 received Royal Assent as S.C. 2009, c. 23—the Canada Not-for-profit Corporations Act—on June 23, 2009. You … Continue reading →

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Reorgs

Posted on April 26, 2009 by John Loukidelis

Despite the many technical pitfalls in the reorganization provisions of the Income Tax Act, cases involving those provisions do not often come before the Tax Court. Husky Oil Limited v. The Queen, 2009 TCC 118, is one such case that … Continue reading →

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Capital dividends and 160

Posted on April 26, 2009 by John Loukidelis

The Tax Court, in Neumann v. The Queen, 2009 TCC 81, has decided that a capital dividend is a transfer of property for the purposes of section 160, just like an ordinary dividend.

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Capital Dividends Again

Posted on April 15, 2009 by John Loukidelis

The following article appeared in the latest edition of the Hamilton Law Association Law Journal.

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The Exemption

Posted on March 4, 2009 by John Loukidelis

I delivered a paper on the capital gains exemption at the Ontario Bar Association yesterday in Toronto at a conference for estates and trusts lawyers.

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CDA

Posted on February 3, 2009 by John Loukidelis

The capital dividend account of a corporation (“CDA”) is defined in subsection 89(1) of the Income Tax Act (Canada), and the definition requires that the balance of the account be calculated using something like the following formula: A + B … Continue reading →

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Dividend Caps

Posted on December 17, 2008 by John Loukidelis

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 … Continue reading →

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