Bill C-208 - Intergenerational Transfer of Family Businesses
On July 22, 2021, Jay Goodis, Kim Moody, and Armando Iannuzzi provided a session discussing Bill C-208 and how this new bill impacts the intergenerational transfers of family businesses.
On June 29th, Bill C-208 received Royal Assent. The Bill enables intergenerational transfers of certain property to occur with the benefit of the transferor claiming the capital gains deduction. The new legislation has brought excitement to the business community as it allows the intergenerational transfer of certain family businesses to receive the same tax treatment as businesses sold to a third party. However, the legislation was followed by an unconventional update by the Department of Finance on June 30th. This has created confusion and challenging businesses and their advisers of whether or not to proceed with transactions.
What is included in Bill C-208?
Recap of anti-avoidance rules in 84.1
Which corporations are impacted?
Conditions to facilitate intergenerational transfers
How the new legislation impacts siblings
How can the legislation be abused?
What opportunities are available to intergeneration businesses?
Should family businesses wait before implementing transactions?
Is the law current on June 29, 2021 or Jan 1, 2022?
Summary of the July 20th Finance Committee session
Armando Iannuzzi, BComm, CPA, CA
Notifications of key changes surrounding Bill C-208
Access to course materials such as webinar slides and other relevant articles
Individuals that complete the quiz will receive a 1-hour PD certificate