Income Tax - Consequences to Avoid
CPD Hours: 7 |
Note: The Live Virtual course is presented in collaboration with CPA Western Provinces. The content is applicable to all participants. If you have questions regarding this course, please contact pdregistration@cpaalberta.ca.
Overview:
You will learn to recognize common transactions that can unintentionally trigger adverse Canadian income tax results and how to spot the precursors that lead to those outcomes. You will practice preventing, managing, and mitigating these issues by understanding the underlying rules and applying practical planning strategies.
Course Content:
In this course, you will gain knowledge about the following topics:
- Small business deduction impediments: specified corporate income, association (including family trusts), taxable capital, specified investment business Adjusted Aggregate Investment Income interactions.
- Inter‑corporate dividends and subsection 55(2): asset removals before share sales, division of assets among siblings, prevention techniques, and related tax exposures.
- Individuals selling shares to non‑arm’s‑length corporations: section 84.1 considerations, intergenerational business transfers, and selected administrative positions.
- Family income splitting: dividends paid to family shareholders and TOSI, and corporate attribution (s.74.4) implications.
- Stop‑loss rules frequently encountered: affiliated‑person stop-loss rules, dividend stop‑loss, ABIL‑related rules (incl. ss.50(1) and debt‑forgiveness interactions), and effects of an acquisition of control on losses.
- Other consequences to avoid: GRIP and CDA calculations/timing, multi‑jurisdictional taxpayer issues, principal residence exemption pitfalls, non‑resident services in Canada, and bare trust reporting.
Learning Objectives:
Upon completing this course, you should be able to:
- Identify triggering conditions in common transactions that can produce unfavourable tax consequences.
- Explain the significance of the applicable income tax rules and assess the degree of exposure.
- Evaluate potential impacts and develop prevention, management, or mitigation strategies.
- Apply a structured approach to recognizing warning signs and documenting responses.
Who Will Benefit:
- Practitioners who encounter income tax consequences in their work but are not tax specialists.
- Public practice and industry professionals seeking practical tools to anticipate and mitigate adverse tax outcomes.
More Information
| Competency | Taxation |
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