Tax planning for owner-managers and business transitions
Planning for the moments that matter most: selling your business, bringing in the next generation, reorganizing your company or extracting funds tax-efficiently.
Corporate tax planning
Small decisions made early often have the biggest effect. We review your structure and help you plan compensation, holding companies, passive investments and income splitting within the tax on split income (TOSI) rules.
Selling your business: shares or assets?
A sale of shares can allow individual shareholders to claim the lifetime capital gains exemption on qualified small business corporation shares, while buyers often prefer to buy assets. We help you understand the after-tax result of each option, plan the timing and prepare for the purchaser’s due diligence.
- After-tax proceeds analysis: share sale vs. asset sale
- Qualifying for the lifetime capital gains exemption, including “purification” of non-active assets
- Safe income and pre-sale reorganizations
- Section 85 rollovers to defer tax on transfers to a corporation
Estate freezes and succession
An estate freeze locks in the current value of your shares, so future growth can pass to your children or a family trust. This can cap the tax on death and support succession planning. We work alongside your lawyer to design and document the plan.
Working with your other advisors
Transactions of this kind involve legal documents, valuations and sometimes CRA rulings. We coordinate with your lawyer, valuator and financial advisor so the tax plan and the legal steps line up.
Tax Planning & Business Transitions: common questions
What is an estate freeze?
An estate freeze exchanges your common shares for fixed-value preferred shares, so new common shares can be issued to your children or a family trust. Future growth then accrues to them rather than you, which can limit the tax payable on your death.
What is the lifetime capital gains exemption?
It allows an individual to shelter a capital gain on the sale of qualified small business corporation shares, up to a lifetime limit, if conditions such as the holding-period and active-asset tests are met. The limit is indexed, so we confirm the current amount when we plan.
When should I start planning a sale?
Ideally one to two years before a sale, because some planning — such as meeting the 24-month holding-period and asset tests — takes time.
Do you prepare the legal documents?
No. We design the tax plan and work with your lawyer, who prepares the legal documents.
You may also need
Personal Tax
T1 returns for employees, families, students, seniors, newcomers and the self-employed — plus help with CRA letters, reviews and reassessments.
Learn moreCorporate Tax
T2 corporate returns, year-end planning, owner salary vs. dividend decisions, T4/T5 slips and instalment planning.
Learn moreCompiled Financial Statements
Year-end financial statements prepared under CSRS 4200 for corporations, lenders and stakeholders.
Learn moreLet’s talk about what you need.
Book a free, no-obligation 15-minute consultation. Evening and Saturday times available by phone, video or in person.