May 2017 – Importance of Business Valuations

Tax planning for privately held corporations is an efficient method to achieve income splitting goals, planning for business succession, estate planning and many other opportunities. The Income Tax Act allows for various accepted strategies to achieve these goals, subject to a number of criteria. A common theme involves the determination of the fair market value of the shares of a privately held corporation. This newsletter outlines the risks and provides insight into the importance of a business valuation in avoiding these tax planning pitfalls.