Federal Budget 2023 - Part III: Amendments To Generational Share Transfer Provisions

Canada's latest federal budget was released on March 28, 2023 (the "Budget"). The McLennan Ross tax team is publishing a 3-part series to highlight conditions of the budget most likely to impact our clients. These consist of:

1. A summary of measures of interest to private corporations, which can be found here;
2. Employee Ownership Trusts, found here; and
3. This article addressing further changes to section 84.1 (following up on Bill C-208 which deals with transfers of shares to the next generation).

In Part III, we take a deeper dive into the new changes to section 84.1 of the Income Tax Act (the "Act"), which address the government's concerns with Bill C-208, which was initially passed on June 29, 2021.