Canada: Corporate Tax

Trusts are powerful tools for preserving wealth and facilitating intergenerational transfer, yet they remain widely misunderstood by families with business or investment assets. This article examines the fundamental nature of trusts, the critical distinction between legal and beneficial ownership, and how proper education and thoughtful design can help families avoid common pitfalls. Michael Goldberg explores why misconceptions about trusts can lead to confusion and conflict, and how to ensure these plannin

Subsection 55(2) of the Income Tax Act (ITA) is the anti-avoidance rule that stops corporations from using tax-free intercorporate dividends to strip out accrued capital gains that aren’t backed by taxed corporate income.

The Government of Canada has proposed a permanent Productivity Mega Deduction that would allow immediate expensing for most depreciable property and Canadian development expenses acquired or incurred on or after September 15, 2026. This significant tax policy change aims to reduce the marginal effective tax rate on business investment from 13% to 6.4%, though certain exclusions and restrictions apply to specific asset categories.