Surplus Stripping
An overview of the case law, CRA rulings and practical examples of surplus stripping shall be discussed in this course.
Presentation
Recording
With federal budget deficits in the billions of dollars because of the unprecedented various Covid-19 economic stimulus spending initiatives, significant increases in tax rates is now not an “if” but a “when”?
Surplus stripping techniques are methods where corporate surplus is removed tax efficiently from a corporation at (currently) lower taxed capital gains rates as opposed to (currently) higher taxed personal dividend rates. This opportunity will likely disappear in the very near future. An overview of the case law, CRA rulings and practical examples of surplus stripping shall be discussed in this course. As well the most up-to-date Bill C-208 (or another incarnation) and its ramifications on intergenerational transfers/surplus stripping will also be discussed.