Association Rules in the Income Tax Act: Scope and Implications - Recorded Webinar
The concept of association is key in triggering a number of special rules mostly geared toward limiting tax benefits otherwise available to members of privately-owned corporate groups. However it is a relationship that can catch practitioners unaware if they are not familiar with all the ways that private corporations (Canadian-Controlled Private Corporations) can be deemed to and be assessed by the CRA as associated.
Join Vitaly Timokhov of TaxChambers LLP for a thorough discussion of the association rules, building up the fundamentals of association through the complex legislative provisions and exceptions. All provisions will be illustrated by the relevant CRA rulings and Tax Court cases. Particular attention will be given to the effect of the association rules on the 2018 Federal Budget and the SBD grind for associated corporations earning investment income. The presentation will also include an anti-avoidance case study based on the recent case law, including the Moules Industries, and prior cases on the multiplication of SBD.
More specifically, this webinar will cover:
- Associated Corporations: Why does it matter?
- What tax attributes of a private corporation/CCPC are affected by, affiliation (small business deduction, SBD grind on passive income, etc.).
- Association through control.
- The concept of control for association rules.
- Control, directly or indirectly, in any manner: the meaning and scope.
- De jure control v. de facto control.
- Deemed control.
- Control by the group.
- Control through the “market value”.
- Options and Rights.
- Association through a Third Corporation and through a trust, including Discretionary Trust.
- Disassociation and multiplication of small business deduction: past and present.
- Election not to be associated: T2SCH28 (Election not to be an associated corporation) and Form T2144.
- Statutory Anti-Avoidance (subsection 256(2.1)) and the GAAR.
- Assessment policies of the CRA re association and known risks.
This webinar will be of most interest to tax practitioners & accountants, practicing independently or in small to medium sized firms, with the focus on tax planning and compliance services for small to mid-sized privately owned enterprises and private clients holding private corporations though trusts and estates.
Professional Development Credits
Wolters Kluwer Canadian professional development programs are designed to meet the continuing education requirements of a variety of professional associations. These requirements do vary by association and region. Please consult your provincial association to ensure this webinar meets the continuing professional development standards for your specific situation.