Valuations for Tax and Succession Planning
Is the founder of the business looking to retire? Prudent transition planning may involve transferring/selling the shares of the business to the next generation in the family. Often, the fair market value of the company shares is required either by tax laws to satisfy CRA requirements or by a bank or insurance company if a loan is required to finance the purchase the shares from the founding shareholder.
To meet the tax saving vehicles available to business owners in these transactions, certain criteria must be met. For example, CRA requires an independent assessment of the fair market value of the shares being sold. Failure to provide that can result in hefty penalties and charges.
The CRA has stated that a report completed as per the Chartered Business Valuators Institute’s standards would meet their requirements for Bill C-208 transfers. As Chartered Business Valuators, we performed hundreds of valuations for this purpose. You can feel confident in our solid appraisals and rest assured that you’re in compliance with your share transfer/sale transaction.
Book a 15-minute consult with us today to chat more.
