The Section 85 Rollover

Section 85 Rollover Overview Section 85 of the Income Tax Act (ITA) is an important tax planning tool that allows corporations to defer taxation in certain transactions that are often seen in incorporations and corporate reorganizations. Simply put, a section 85 rollover allows a taxpayer to transfer eligible property on a tax-deferred basis to a […]

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The Butterfly Transaction

Why do we call it a Butterfly? A butterfly transaction is a way to divide up assets in a corporation, or a set of corporations, in a tax-efficient manner under the Income Tax Act. These kinds of transactions typically involve rollovers under section 85 of the Income Tax Act which allows a taxpayer to transfer […]

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Do you need a shareholder agreement?

What is a shareholder agreement? When two or more individuals start or own a corporation together, there are many risks and unforeseen situations that can occur. Therefore, it is common for corporations to have some sort of document which outlines the relationship between the owners (also known as shareholders), governs what happens in various situations, […]

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