Corporate Tax (Shutting Down The Corporation)

Whether for performance reasons, planning reasons, or just because of the evolution of the life cycle of a corporation (or its shareholders), CPAs are often required to assist in the “shutting down” of a corporation. This may occur via dissolution, amalgamation, or wind-up.  This course discusses the key tax considerations to address in each of these scenarios.

Although there will be coverage of the issues associated with the winding-up of smaller “mom and pop” type corporations that are ceasing operations, this only represents a small portion of the course coverage.  

The remainder of the seminar coverage will be more applicable to corporations within larger corporate groups.  As an intermediate-level course, there will not be any coverage of specific issues related to T2 preparation.

Course Content:

This course provides a survey of issues relating to closing corporations, including: 

• Taxable wind-ups
• Tax-deferred wind-ups
• Tax-deferred amalgamations
• Issues impacting shareholders of corporations being shut down
• Issues relating to winding-up dividends
• Tax issues relating to the disposition of shares and debts
• Debt forgiveness issues that arise on winding up
• Losses
• Clearance certificates, liability for tax debts, tax refunds, assessing a dissolved corporation
• PUC and ACB issues (corporate and shareholder)

Learning Objectives:

By the end of this seminar, you will be able to: 

• Understand the different ways in which a corporation can be “shut down”
• Understand the key tax issues associated with the taxable windup of a corporation
• Understand the key tax issues associated with the tax-deferred windup of a corporation
• Understand the key tax issues associated with the amalgamation of two or more corporations
• Understand the key tax issues for the shareholders of corporations that are being “shut down”