Tag archives: capital gains

Excess cash, excess tax – what’s on your balance sheet?

Canadian federal income tax law provides numerous benefits to companies that engage in an “active business”. Whether a particular endeavour undertaken is an “active business” is, of course, a question of fact and depends on individual circumstances. Some scenarios are clearly those of an “active business”, such as the case of manufacturing and production, retail, … Continue reading

Applicability of the capital gains exemption in M&A

Individuals selling their business often think of using the capital gains exemption to help keep the tax man at bay. Undoubtedly, this tax exemption is a useful tool when an individual is thinking of selling shares in their business, however, there are several conditions that must be satisfied before this exemption applies. The following is … Continue reading

Asset deal versus share deal: what’s right for you?

Generally, there are two basic structures that can be used in the purchase and sale of a business: acquisition of the assets of the business from the operating corporation (an Asset Deal); or acquisition of the shares of the operating corporation from the corporation’s shareholders (a Share Deal). In some cases, commercial considerations will be determinative of … Continue reading
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