Bob Gauvreau breaks down corporate restructuring: a tax-sensitive process mixing fair-market-value transactions with tax-deferred rollovers under the Income Tax Act. Common reasons include excess cash, preparing to sell, bringing in family, or succession planning. Work with tax professionals.
Let's talk about what a corporate restructuring process looks like. Now what I want to talk about is the fact that it is not a simple process. If we start restructuring our corporation there's likely going to be some transactions that happen at fair market value and likely some in depth tax strategies need to come into play to avoid any tax implications. It has to be done with tax professionals who can essentially roll assets from one company to another on a tax deferred basis. Sometimes it's using specific sections of the Income Tax act. But these sorts of corporate restructures are very sophisticated. So if you've got a business situation, if there's too much cash in there, if you're looking to sell and it's not owned by you as an individual, if you've got other family members that you want to introduce to the company, if you're looking at doing a succession plan, this is some of the opportunities where you want to look at a corporate restructure and.
What Is Proactive Issue Flagging, And Why It Catches Cash Problems Before They Become Crises?
