Surplus Stripping - 2021
With federal
budget deficits in the billions of dollars because of the unprecedented various
Covid-19 economic stimulus spending initiatives, significant increases in tax
rates is now not an “if” but a “when”?
Surplus
stripping techniques are methods where corporate surplus is removed tax
efficiently from a corporation at (currently) lower taxed capital gains rates
as opposed to (currently) higher taxed personal dividend rates. This
opportunity will likely disappear in the very near future. An overview of the
case law, CRA rulings and practical examples of surplus stripping shall be
discussed in this course. As well the most up-to-date Bill C-208 (or
another incarnation) and its ramifications on intergenerational
transfers/surplus stripping will also be discussed.
Instructor
Manu Kakkar CPA, CA, TEP, MTAX
Manu has over 20 years of experience in taxation in both domestic and international, personal and corporate taxation as well as litigation support. He runs his own independent tax practice with offices in Montreal and Toronto, serving a diverse client base which includes manufacturing, retail and distribution, construction, farming, real estate, athletes and artists, across Canada and the US. His firm acts as a counsel to over 100 professional firms in Canada and USA specializing in domestic and international reorganizations and transactions. Manu is known as one of the leading experts in Section 55 of the Act and butterfly reorganizations.