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Joan Jung co-publishes “Surplus Stripping and Intergenerational Transfers of Business” on TaxFind

Oct 21, 2021

CongratulationsImage: Joan E. Jung, Tax Lawyer to Tax lawyer Joan Jung and her co-author Ken Griffin (PwC Canada LLP), whose paper “Surplus Stripping and Intergenerational Transfers of Business” was published by the Canadian Tax Foundation on TaxFind. The paper was originally written for and presented at the 2019 Canadian Tax Foundation Annual Conference.

In the paper, the authors explore the history and purpose of section 84.1 and consider possible statutory approaches to facilitating what may be regarded as a “genuine” transfer rather than a surplus strip. So-called hallmark approaches, including those used by the United States and Quebec, are examined in particular. The authors propose an alternative approach, using the current concepts of “small business corporation” and “affiliated persons” to provide parameters that could exempt certain non-arm’s-length transfers from the section 84.1 rules and still provide a reasonable safeguard against potential abuse. It is available on TaxFind (subscription only). Visit TaxFind here: