The 2022 Federal Budget
The Deputy Prime Minister and Finance Minister Chrystia Freeland tabled the 2022 Federal Budget on April 7, 2022. This article provides our summary of some of the tax measures proposed in the Budget.
Valuations FAQ – The Beginning
In our previous article “What’s a CBV (Chartered Business Valuator)”, we explored what a CBV does and the types of engagements in which their expertise may be sought. In this article, we will explore the beginning of a valuation engagement, and the common questions that clients often have.
What’s a CBV (Chartered Business Valuator)?
One of the most famous lines from William Shakespeare’s Romeo and Juliet questions the meaningfulness of names, and given definitions, as follows:
“What’s in a name? That which we call a rose by any other name would smell as sweet.”
Probate Fee – What is It and How to Minimize It
In some countries, including the United States, an estate (or inheritance) tax is imposed on an individual’s assets and is calculated at the date of death. There is no inheritance tax in Canada.
Shareholders and Disputes – Through a Valuator’s Eyes
Some of the primary reasons that the services of a business valuator are required involve changes related to shareholders. In some cases, a successful business may add one or more shareholders to strengthen its core operations or reward performance.
Enterprise Value vs. Equity Value
In a prior article
we explained the basics of valuation multiples, and how they are used to calculate the fair market value of a business. In this article, we will explain the differences between enterprise value and equity value, and in particular, how these differences impact privately-owned businesses.
U.S. Vacation Property and The Unsuspecting U.S. Estate Tax
Are you considering purchasing or do you own a U.S. vacation property? Have you considered the potential U.S. estate tax that may be levied on your death? If you haven’t thought about U.S. estate taxes, you are not alone. Many Canadians looking to get into the foreign housing market do not consider the tax efficient ownership structure prior to making the purchase. Unfortunately, this could lead to unexpected taxes and liquidity problems for your estate.
Valuation Multiples – A Primer
What is a multiple?
Have you ever wondered what stock traders mean in the movies when they say “what’s it trading at?” Are you a tad confused when you hear “it’s worth about 4-times EBITDA”? If you are, you are not alone, and the truth is that the answer is not as complicated as one may think.
Post-Mortem Tax Planning: CRA Allowing Quicker Access to Cash with Pipeline
For deceased individuals who owned shares of a private corporation, the so-called “pipeline” transaction is a commonly used post-mortem tax planning strategy designed to minimize taxes on death. While the Canada Revenue Agency (the “CRA”) has, historically, consented to the use of pipeline transactions, it has usually imposed strict timing requirements that restrict the ability of the estate to access corporate funds in the years following death. In a recent tax ruling, the CRA relaxed its position when corporate funds were used to pay taxes of the deceased.
New Trust Reporting Rules Starting 2021
Starting 2021, new trust income tax return filing and information reporting requirements will come into effect for most Canadian trusts. Non-resident trusts that are required to file a T3 trust tax return are also subject to the new rules. The changes were announced in the 2018 federal budget and will be applicable for trust taxation year ending on or after December 31, 2021.