Goodwill Fracking - Revisted

Fracking

Our January 2016 newsletter reviewed the merits of a tax planning strategy called goodwill fracking which allows shareholders of private corporations to convert dividend income into capital gains and potentially save significant taxes in doing so.  The 2016 federal budget brought significant changes to the treatment of the sale of goodwill and the child benefit system, both of which have a direct impact on the merits of goodwill fracking.  This month’s newsletter (available here) revisits the merits of goodwill fracking in light of these changes.

If you think goodwill fracking might be something worth looking into for your company, call our office at 613-235-2000 and ask to speak to Jacob Milosek, or someone on the tax team.