BUSI 4005 Lecture 7: lecture 7
28 May 2018
School
Department
Course
Professor
1. CG deferral for individual
a. defer CG on eligible small business when proceed buy other
corporation
b. use less than maximum
c. lesser of
i. individual proceed from old corporation
ii. replace share cost/ individual proceed from old
corporation x individual CG from old corporation
2. acquisition of control
a. limit loss transfer
b. deemed tax year end
c. net CL/ ABIL/ unused charitable donation expire
d. non CL, limited use
i. business carry throughout the year
ii. profit expected
e. accrued/ unrealized loss
f. elect to create CG and recapture
3. butterfly transaction
a. shareholder want to go separate way
b. solution
i. split and spin off
ii. use rollover for tax free transfer
iii. allocate asset → individual
iv. revise reorganization of corporation
reporting
4. due date
a. corp- 2 month after YE
b. CCPC – 3 month
c. Trust – at return date
5. tax return – 6 month after YE
6. tax installment
a. criteria
i. taxable income < 500k
ii. capital employed in CAD < 10 mil
iii. SBD claim
iv. Perfect compliance history
b. monthly payment
i. 1/12 of current year tax
ii. 1/12 of prior year tax
iii. 1& 2nd month, 1/ 12 x 2 year ago tax
iv. rest, 1/10 x Prior year – iii
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