March 27, 2024
The new GAAR is already getting warmer
More good news from the CRA on the new GAAR. Common tax and estate planning transactions that were not GAAR-able before are not going to be GAAR-able now.
March 13, 2024
Post-mortem pipelines under the new GAAR are OK
The CRA has confirmed that it does not see post-mortem pipeline planning as a misuse or abuse under the new GAAR and will continue to issue favourable rulings. Life insurance in conjunction with post-mortem pipeline…
February 28, 2024
Avoiding the 21-year rule? – Be notified
Certain tax planning to avoid the 21-year rule must be reported to the CRA and in their view, subject to GAAR. Consider using life insurance to solve for problems this planning is meant to address.
January 31, 2024
Holdco and Sisterco owners of life insurance with Opco as beneficiary results in shareholder and indirect benefits
In the case of Gestion M.-A. Roy Inc. et al, the Federal Court of Appeal affirmed the reasoning of the Tax Court to include the amount of premiums paid by Opco in respect of policies…
January 17, 2024
Imperfect conduit – Transfer of a life insurance policy as a dividend-in-kind via a trust
Trusts are not perfect conduits. Dividends received in-kind by a connected corporation that is a beneficiary of a trust maintain their character as inter-corporate dividends but on the disposition of the property itself, differences in…
December 14, 2023
Tax Legislation tabled – Some highlights
Bill C-59 implementing many measures from the 2023 Federal Budget is in progress. Here are our comments on some of the highlights.
November 15, 2023
What does life insurance have to do with proposed intergenerational business transfers? – Lots
The business succession tsunami (See: Succession Tsunami: Preparing for a decade of small business transitions in Canada (cfib-fcei.ca) expected in the next decade in Canada should not come as a surprise. Demographic factors, growth in…
November 2, 2023
A new GAAR – Pretty chilly right now
On August 4, 2023, the Department of Finance released revised draft legislation (“the proposals”) that would amend the general anti-avoidance rule (GAAR) in the Income Tax Act (the Act). Given the very short comment period…
