In
June 2016 we sent out an alert regarding the changes in the
Income Tax Act which stated that the tax advantages of a common
corporate structure used by professionals, using two professional
corporations, will be eliminated for fiscal years starting after
March 22, 2016. As a result, we recommended that professionals
using this structure consider amalgamating their professional
corporations. It is now to time look into starting this
process.
To amalgamate two professional corporations for the new year,
prior authorization will need to be obtained from your regulating
body and documents will need to be filed before January 1, 2017.
While January may seem very far away now, given we anticipate many
professionals will be seeking to amalgamate their professional
corporations given the new tax rules, we recommend you start the
process as soon as possible to ensure there is enough time to
prepare all the necessary documents and obtain all the necessary
approvals.
