I am an owner manager and own a CCPC situated in Ontario in Canada. I wish to transfer shares to other family members. Can I just issue the shares outright?
TaxConnections Members... Answer This Question Want To be One of Our Tax Experts? Register Here
Tax Professional Answers
Larry Stolberg, CPA, CA
No. You need to properly structure the authorized share capital of the CCPC and issue the shares in a manner not to confer benefits to you. Basically, you are looking at an estate freeze to accomplish your objective. You also need to consider a shareholders agreement and modifications to your Will. Ensure you have dual Wills to eliminate probate on your CCPC shares.Leave a Comment 390 weeks ago