Intergenerational Business Transfer Bill C-208

Building on our previous article dated May 19, 2021, Bill C-208 passed its third reading in the Senate on June 22, 2021 and has recently received royal assent on June 29, 2021. Overall, this is a positive change for owners of qualified small business corporations and family farm or fishing corporations. That being said, care must be taken before entering into transactions that rely on the strict wording of the amendments taking into account the lack of clarity. Furthermore, there is the potential for the Minister to apply the general anti-avoidance rule if these provisions are used for anything other than bona fide intergenerational transfers. We recommend you contact one of our TDS tax lawyers before proceeding with any transactions that rely on these amendments.