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Archives for Tax

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.

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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.

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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.

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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.

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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.

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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.

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Ontario 2020 Budget – Tax Measures

On November 5, 2020, Ontario Minister of Finance Rod Phillips announced the province’s 2020 Budget.  Highlights of the tax measures in the 2020 Budget are discussed below:

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Tax Update: Real Estate Agents can now Incorporate

On October 1, 2020, the Government of Ontario announced a change under the Trust in Real Estate Services Act, 2020 that will allow real estate agents (“Agents”) to incorporate and be paid through a Personal Real Estate Corporation (“PREC”).  

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