What are the cross-border tax implications when those subsidiaries are wound-up? This article will provide an overview of those implications.
A corporation can apply to dissolve when it has no property or liabilities. The exception is a bankrupt corporation.
The capital dividend account CDA is a special corporate tax account which gives shareholders designated capital dividends, tax-free. This account is typically used in Canada, and is not recorded in the corporation's taxable accounting entries or financial statements.
What is a deemed dividend? Even in the absence of an explicit distribution from a corporation to its shareholder, Canada's income-tax law forces the shareholder to recognize dividend income when certain transactions take place.
Closing a corporation without careful planning can generate some unwanted tax consequences. If the business comes to a point when it no longer wants to file tax returns, it must be dissolved or wound up through a formal procedure or run the risk of running into some adverse tax implications.
What the "Archived Content" notice means for interpretation bulletins. Subsection 88 2 also subsections 83 2 , 84 2 , 7.
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