Recent Publications

Recent Publications

December 12, 2018 by Denver Nicklas

Breaking down changes to the small business deduction

In Canada, corporations may claim a small business deduction (SBD) on their corporate tax returns, effectively reducing the corporate tax rate on the first $500,000 of taxable income from active business income (ABI). ABI does not include aggregate investment income.

October 31, 2018 by Sarah Netley

Validity of multiple will planning

An Application for a Certificate of Appointment of an Estate Trustee with a Will, or more commonly referred to as probate, is the process whereby the Court certifies that an individual’s will as their valid last will and testament. Additionally, the process also validates the executor’s authority as given under the will.

October 25, 2018 by Craig Hoover

Infographic: New funding opportunities

The Canadian Agricultural Partnership (CAP) launched on April 3, 2018. This five-year federal and provincial initiative is designed to strengthen agriculture, agri-food and other agri-based businesses across Canada. While some provinces are fine-tuning their agreements, CAP in Ontario has been implemented to provide funding in order to boost competitiveness, prosperity and sustainability within the agricultural sector.

October 24, 2018

Re-examine your assumptions with timely advice

As the latest Lawyers Alert makes clear, the legal profession navigates a wide range of issues – including cybersecurity, compensation plans, marketing and demographics – that don’t always come to mind when we think of this complex industry.

September 21, 2018 by Jason Heinmiller

Farm corporations: you don’t need to “go all in”

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.

September 17, 2018 by Tony Alberton

Don’t dive into the shallow end of the TOSI income pool

In recent Tax Alerts we discussed the tax on split income (TOSI), which limits income-splitting techniques involving private corporations by taxing amounts received at the highest marginal tax rate. The rules are complex and, to date, the Canada Revenue Agency (CRA) has provided only limited guidance on their application.

August 30, 2018 by Bill Crowther

Tax-deferred capital distributions from discretionary family trusts

Discretionary family trusts are used extensively for tax, family and succession planning, as they afford enormous flexibility. In most cases, when such trusts are created, beneficiaries do not pay for their interest, and this assumption is made herein. Once a trust is settled, it will exist until all the assets are distributed to the beneficiaries and the trust is wound up. 

July 30, 2018 by Bob Boser

Avoiding and Getting Off of The TOSI Highway

On July 18, 2017 the Federal Finance Minister announced proposals to change the tax rules related to income splitting using private corporations. The original proposals were subsequently withdrawn in October, re-released in December and after further changes the proposed legislation was included in Bill C-74 in March 2018. Bill C-74 received Royal Assent on June 21, 2018 and the new tax on split income (TOSI) rules are now in effect as of the beginning of 2018.

July 11, 2018 by Chris Russell

Business valuations 101 – Redundant assets: to be, or not to be?

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.

June 28, 2018 by Catherine Rau, Scott Dupuis

Managing adjusted aggregate investment income

As outlined in the March Tax Alert, the 2018 Budget includes a measure designed to slow the accumulation of passive investments within active corporations. This measure is based on a calculation that considers both the amount and the type of investment income earned in a corporation. Understanding this calculation will guide an investor in developing a tax-efficient investment strategy going forward.

June 15, 2018 by Peter Hobb

Important issues in family succession of farm operations

When planning for the succession of your farm operation to the next generation, several important issues can arise. Some of the key issues include how the goals and objectives of key stakeholders align with your goals, how you will be spending your time in retirement, ensuring you have adequate financial resources in retirement and how to divide assets among your children, some of whom may not wish to be involved in the farm operation. There are many issues, and they will vary depending on your particular circumstances.