The Victoria Tax Law Group at Cook Roberts LLP provides tax planning advice in respect of a wide variety of business matters. We often work with accountants, financial planners and other lawyers to help existing businesses minimize taxes while ensuring compliance with relevant provincial legislation and the applicable rules in the Income Tax Act.
Clients who are introduced to us by other professionals find that we add value to their businesses by creating tax-efficient business structures or by restructuring existing businesses to make them more tax effective. Our clients appreciate that we are a quick telephone resource for the business and tax questions that frequently crop up in day to day operations.
The lawyers in the Tax Law Group know that at different stages of a business, different concerns will be relevant. A younger client in the start-up or growth phase of a business who requires most of the profit earned by a business to support a family may find there are considerable savings to be had by incorporating the business and splitting income with a spouse. As the business becomes more profitable, the client may find that adding a holding company to the corporate structure allows the client to save for retirement at preferential tax rates and preserving eligibility for the capital gains exemption. When the client nears retirement, the client may wish to again reorganize the business in order to implement a succession plan or minimize the amount of tax that will eventually become due on death.
New Businesses
Starting a business is exciting and, at times, overwhelming. The Tax Law Group assists start-ups by ensuring that they have the best business structure in place and by taking care to ensure that the business complies with the relevant corporate legislation and all other federal and provincial laws that apply in the circumstances.
Existing Businesses
All businesses face the need to comply with and plan for income tax, GST and provincial tax rules. The lawyers in the Tax Law Group assist in minimizing the tax burdens imposed on their clients’ businesses. The lawyers tailor their plans to the particular circumstances of the businesses and the people who run them. This includes offering a variety of share structures, drafting indemnification agreements for directors and creating shareholders agreements.
The lawyers in the Tax Law Group know that at different stages of a business, different concerns will be relevant. A younger client in the start-up or growth phase of a business who requires most of the profit earned by a business to support a family may find there are considerable savings to be had by incorporating the business and splitting income with a spouse. As the business becomes more profitable, the client may find that adding a holding company to the corporate structure allows the client to save for retirement at preferential tax rates and preserving eligibility for the capital gains exemption. When the client nears retirement, the client may wish to again reorganize the business in order to implement a succession plan or minimize the amount of tax that will eventually become due on death.
Particular Corporate Services
The Tax Law Group assists its clients by planning and implementing tax planning strategies that include the following:
- Incorporating businesses to achieve tax savings;
- Transferring assets into corporations and partnerships in a tax efficient manner;
- Introducing new shareholders without triggering income tax;
- Creating corporate structures that achieve tax savings through income splitting;
- Structuring corporations with a goal of maintaining eligibility for the capital gains exemption and maximizing the amount of the exemption that can be claimed;
- Reorganizing businesses to implement succession plans;
- Issuing shares to key employees through stock option plans;
- Implementing estate freeze transactions in order to minimize the amount of tax that will become payable as a result of a shareholder’s death;
- Drafting shareholder agreements to set out the rules by which multiple shareholders will operate a business together; and
- Acting as the registered and records office for private corporations and ensuring that the annual corporate filings are completed.
Buying and Selling Businesses
Tax must also be carefully considered on the purchase or sale of a business. The lawyers in the Tax Law Group are experienced corporate lawyers who have assisted several clients who are buying or selling a business. With our tax expertise, we can offer advice on the advantages of asset transactions, share transactions or hybrid transactions. We are skilled in identifying and resolving compliance issues related to provincial and federal regulations and the income tax, GST and provincial tax questions that arise when a business is transferred.
Cross Border Transactions
Fluctuations in the value of the Canadian dollar provide opportunities for Canadians to invest in foreign jurisdictions and for non-residents to invest in Canada. Our team of tax lawyers has established business relationships with accounting and legal professionals in other jurisdictions. Non-resident investors into Canada can be assured that our tax lawyers will create the appropriate corporate or partnership structure in Canada to ensure compliance with Canadian laws and also minimizing the effects of possible double taxation of income in Canada and the foreign jurisdiction.
For Canadians investing in foreign jurisdictions our tax lawyers will confer with specialists in that jurisdiction and ensure that the business venture in the foreign jurisdiction complies with Canadian tax law and treaty obligations.
After the creation of a cross-border structure our team of tax lawyers will continue to provide representation for Canadian legal matter and more particularly for the tax issues that arise in businesses that have a significant non-resident component. In particular, we can provide advice on residency of employees, transfer pricing and capitalization of Canadian businesses by non-residents.