Navigating the Income Tax Act during corporate restructuring is a complex process that requires a tax specialist with experience in corporate reorganization.
At PDC Business & Tax, we work with a variety of companies including small businesses experiencing growth that makes incorporation mandatory. We also work with corporations experiencing growth or undertaking a business opportunity that makes existing corporate structures unsuitable.
Common types of corporate reorganizations that may occur include, but are not limited to, the following:
- Transferring assets from a sole proprietorship or partnership to a corporation on a tax deferred basis
- Transferring corporate assets from one corporation to another
- Incorporating a holding company to take advantage of benefits such as tax-free dividends, creditor protection, and income splitting with family members
- Contemplating the future sale of a business to the next generation or a third party
- Assessing corporate losses
- Crystallizing the capital gains exemption
- Ensuring a corporation qualifies as a small business corporation for capital gains exemption purposes
- Preparing for the departure of one or more shareholders