Corporate Tax - Shutting Down the Corporation
Overview:
Whether for performance reasons, planning reasons, or just because of the evolution of the life cycle of a corporation (or its shareholders), CPAs are often required to assist in the “shutting down” of a corporation. This may occur via dissolution, amalgamation, or wind-up. This course discusses the key tax considerations to address in each of these scenarios.
This course will focus on the many tax issues that arise, from a compliance and planning perspective, when shutting down a corporation. It will focus exclusively on private companies. Common traps and planning opportunities that arise when shutting down corporations will also be discussed.
Although there will be coverage of the issues associated with the winding-up of smaller “mom and pop” type corporations that are ceasing operations, this only represents a small portion of the course coverage. The remainder of the seminar coverage will be more applicable to corporations within larger corporate groups. As an intermediate-level course, there will not be any coverage of specific issues related to T2 preparation.
Course Content:
This course provides a survey of issues relating to closing corporations, including:
- Taxable wind-ups
- Tax-deferred wind-ups
- Tax-deferred amalgamations
- Issues impacting shareholders of corporations being shut down
- Issues relating to winding-up dividends
- Tax issues relating to the disposition of shares and debts
- Debt forgiveness issues that arise on winding up
- Losses
- Clearance certificates, liability for tax debts, tax refunds, assessing a dissolved corporation
- PUC and ACB issues (corporate and shareholder)
Learning Objectives:
By the end of this seminar, you will be able to:
- Describe the different ways in which a corporation can be “shut down”
- Describe the key tax issues associated with the taxable windup of a corporation
- Describe the key tax issues associated with the tax-deferred windup of a corporation
- Describe the key tax issues associated with the amalgamation of two or more corporations
- Describe the key tax issues for the shareholders of corporations that are being “shut down”
Who Will Benefit:
Professionals who are involved in winding up/dissolving corporations or who advise clients that are involved in winding up/dissolving corporations. Particular focus will be placed on private companies.