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Canada: Tax planning opportunities under shareholders’ agreement

Canada: Tax planning opportunities

Co-owners who are considering options for a shareholders' agreement may want to consider the tax implications of their choices.


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For example, they may want to consider what will happen to a shareholder's shares on his or her death. In addition, if a company's shares qualify for the lifetime capital gains exemption ($866,912* in 2019), co-owners may want to structure their shareholders' agreement so the party selling the shares can claim the exemption.

*$=Canadian dollar

Read an August 2019 report prepared by the KPMG member firm in Canada that focuses on the tax consequences of shareholders' agreements. 

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