In the world of tax, even straightforward and seemingly benign situations can trigger unintended adverse income tax repercussions. This course will equip participants with the skills to identify, prevent, and manage such outcomes.

Negative consequences represent an unfortunate part of life. While many professionals can proactively anticipate results, some consequences occur unexpectedly. In the world of tax, even straightforward and seemingly benign situations can trigger adverse income tax repercussions. Accordingly, this course will equip you with the skills to identify, prevent, and manage such outcomes.

In order to deliver the course in a realistic manner, the course introduces topics by starting with common transactions or events before presenting the unfortunate tax result. Subsequently, the course explains the income tax rules and reasons behind the negative result ensuing from each particular situation. You will receive suggestions to manage and mitigate such a problem as well as tips for recognizing relevant precursors and triggers. Finally, the course provides you with notes that elaborate on detailed background information for each situation.

Topics Include:

• Investments in a corporation.
• Intercorporate dividends and exposure to taxation as a capital gain.
• Individuals selling shares to non-arm’s length corporations.
• Family income splitting.
• Select obstacles to claiming the small business deduction.
• Stop-loss rules.
• Scenarios involving unfortunate income tax results.

NOTE: This course description has been revised and reflects updates for 2024. If you have any questions, please contact pdevents@cpaontario.ca.

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By the end of this course, participants will be able to:

• Identify triggering conditions of income tax rules which might apply in common transactions.
• Recognize the significance of the applicable income tax rules.
• Assess the degree of exposure to adverse consequences; and evaluate the potential impact.
• Strategize to prevent, manage or mitigate unintended income tax outcomes.