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Valuation, Financing, Transaction, Merger, Acquisition, Divestiture, Fairness Opinion, Corporate Finance, Financial Advisor

Income Tax Purposes


Clients come to us for income tax planning purposes to support their Fair Market Value elections for shares and assets in the following types of transactions:


  • Estate Freezes - Typically used to execute a family succession plan. The following summarizing a typical structure for such a transaction:

    • Existing Shareholders (parents) exchange their common shares for newly created preferred shares whose redemption value will be based on the Fair Market Value of their existing common shares.  This effectively "freezes" the value of Existing Shareholders ownership interest in the event of a sale of the business and or the death of an Existing Shareholder.

    • New Shareholders (children involved in the business) subscribe to a new class of common shares.  This effectively enables the growth in the value of the business to accrue to the New Shareholders.


  • Death of a Shareholder - The Income Tax Act (ITA) provides for a "deemed disposition" of all assets (including ownership interests in businesses) based on their "Fair Market Value" at the time of death.


  • Cross Border Tax Reorganizations -  Such transactions are highly likely to be subject to being audited of either the Canada Revenue Agency (CRA) and/or the foreign income tax department of the country affected by the reorganization.


  • Trust Anniversary Date - The Income Tax Act (ITA) provides for a deemed disposition of all assets (including ownership interests in businesses) of a trust every 21 years (anniversary date) based on their Fair Market Value at the anniversary date. 


Click here for a PDF Version of our firm's experience for Income Tax purposes.


Contact us on a confidential no obligation basis to discuss your situation and how we may be able to assist you.

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