DFK Tax Digest – Spring 2021

  • Budget 2021 Business Emergency Support Measures – The first federal budget since 2019 was delivered by the Honorable Chrystia Freeland, Deputy Prime Minister and Minister of Finance on April 19, 2021. The budget included a significant number of proposed program initiatives.  This article will highlight some of the emergency business support measures.
  • The Impact of Biden Tax Proposals on Canadian Residents – Joe Biden has been inaugurated as President of the United States. Now that the new administration is finally in place and the chaos of the campaign and election results are (mostly) a thing of the past, we can start to focus on what tax policy changes President Biden will look to enact.
  • Estate Freezes and Preferred Shares – New rules for ROMRS – Many business owners undertake transactions commonly referred to as “estate freezes”, converting the existing value in their corporations to fixed-value redeemable preferred shares, and allowing new common shares to be issued to other owners, such as spouses, children or other family members, or trusts for such persons.  To the business owner, this simply converts their shares from one form to another.  Recent changes to accounting requirements for these freeze shares – or ROMRS – which will apply for fiscal years ended December 31, 2021, may require a substantial change to the corporate financial statements.