ARTICLE · 06 MAY 2024

New Rules Will Make It Easier To Transfer Family Businesses

Lavery

Explore more from Lavery

The 2023 Federal Budget (the "Budget"), tabled on March 28, 2023, proposes amendments to certain provisions of the Income Tax Act (ITA)...

CanadaTax

Audrey Gibeault

The 2023 Federal Budget (the "Budget"), tabled on March 28, 2023, proposes amendments to certain provisions of the Income Tax Act (ITA) that would make "genuine" intergenerational business transfers no longer subject to the anti-avoidance rules of section 84.1 and allow the transferor to benefit from their capital gains exemption.

To do so, the Budget establishes new general conditions that the parties must meet, as well as specific conditions that apply to "immediate" transfers, or those made over a period of no more than 36 months, and "gradual" transfers, or those that take five to ten years to complete.

The general conditions that the parties must meet when disposing of a company may be summarized as follows:

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Related Articles

Keeping The Farm In The (Extended) Family: Budget 2026 And The Expansion Of The Farm Property Rollover Rules

Le Point Sur Le Régime Fiscal Du Secteur Des Mines Au Canada

Blake, Cassels & Graydon LLP

Mesures Fiscales Sélectionnées Dans Le Budget Fédéral De 2026 – Canada

Fasken (French)

Federal Budget 2026: Key Measures For Charities And Non-Profit Organizations

When Accountants’ Communications Stay Privileged: Lessons From Alaris Equity Partners Inc. v. The King

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Tax
- Capital Gains Tax
- Income Tax

Related Comparative Guides

Comparative Guide

Tax

Comparative Guide

Tax Disputes

See more popular content from

Tax

The GST/HST New Housing Rebate In 2026: A Complete Guide To Eligibility, Ontario's Enhanced Rebate, And How To Avoid Case Law Traps

If you have signed, or are about to sign, an agreement to buy a newly built home in Ontario, the HST you recover could be anything from nothing to $130,000. The difference usually comes down to a signing date, a price threshold, or whose name is on the purchase agreement, and not to whether you are buying your first home.

Rotfleisch & Samulovitch P.C.

CRA Requirement For Information And Compliance Orders: Why A New Appeals Court Decision Means You Can’t Stall Audits In Canada

If the CRA has served you or your accounting firm with a CRA requirement for information, and you are wondering whether you can refuse it, delay it, or fight it later, the Federal Court of Appeal has now answered that question.

Rotfleisch & Samulovitch P.C.

Cryptocurrency Held Through A Bare Trustee: Tax Treatment And The 2026 Reporting Obligations

If you hold cryptocurrency, NFTs or other blockchain assets in someone else’s wallet, or hold assets in your own wallet for someone else, the arrangement is very likely a bare trust. Until recently, that carried almost no compliance consequence. It now carries three reporting obligations to track: the T3 filing for 2026, the T1135, and the proposed Crypto-Asset Reporting Framework from 2027.

Rotfleisch & Samulovitch P.C.

Canada’s Productivity Mega Deduction: 100% First-year Expensing For A Wide Range Of Capital Assets Is Now On The Table

On September 15, 2026 (“Announcement Day”), the Department of Finance released draft legislative proposals to implement the “Productivity Mega Deduction,” permanent 100% first-year (“immediate”) expensing for a wide range of new or used depreciable property and for Canadian development expenses (“CDE”)...

Productivity Mega Deduction: Key Tax Measures Announced At The Canada Investment Summit

Canada has introduced a permanent Productivity Mega Deduction allowing immediate expensing of up to 100% of eligible capital property costs and Canadian development expenses acquired after September 15, 2026. This measure aims to boost business investment and strengthen Canada's tax competitiveness by expanding immediate expensing eligibility from 15% to approximately two-thirds of capital investments, while reducing the country's marginal effective tax rate to 6.4%.

McCarthy Tétrault

Canadian Prime Minister Announces ‘Productivity Mega Deduction’

Canada's new Productivity Mega Deduction permanently provides immediate expensing for a wide range of depreciable property and Canadian development expenses, dramatically expanding the scope beyond the previously announced Productivity Super Deduction. The measure aims to reduce Canada's marginal effective tax rate on new business investment to 6.4%, positioning it as the lowest among major economies and less than half the U.S. rate.

Osler, Hoskin & Harcourt LLP

How To Appeal The Toronto Vacant Home (VHT) Tax: Here’s What One Landlord Did To Fight VHT Assessment

Since 2022, the City of Toronto has imposed an annual Vacant Home Tax (VHT) on residential units left unoccupied for more than six months of the year. For most owners the tax is an afterthought: file the annual declaration, confirm the unit was lived in, and move on. But when the City’s administrative process breaks down, an owner can find themselves fighting a five-figure tax bill over a unit they insist was never vacant at all.

Rotfleisch & Samulovitch P.C.

CRA Releases Updated CRS Guidance: CRS 2.0 And Other Matters

On July 2, 2026, the Canada Revenue Agency (CRA) published its updated Guidance on the Common Reporting Standard (Updated CRS Guidance).

Borden Ladner Gervais LLP

Québec Sales Tax (QST) On Insurance Premiums: Increase From 9% To 9.975% Effective January 2027

The Québec government enacted Bill 99 on October 28, 2025 (Chapter 27), confirming an increase in the QST rate applicable to insurance premiums.

Dentons Canada LLP

When Is GST/HST Payable On Vehicle Sales? Guidance From A Canadian Tax Lawyer

When a specified motor vehicle is acquired through a private sale (for instance, from an individual who is not registered for GST/HST purposes), the transaction is generally not subject to GST/HST.

Rotfleisch & Samulovitch P.C.