How to reduce future tax liability


Assignment task: In the phone call, Mark informed Mrs. Partner that Beverages Lid., which is currently a Canadian-Controlled Public Corporation and Qualified Small Business Corporation, is going public at the end of October, 2023. Mark owns shares as do all the senior executives. Mark's shares were acquired 15 years ago. He paid $100 for them.

Mark's shares are now worth $1,900,000. He had counted on using his lifetime capital gains exemption when he sold the shares on retirement to reduce his tax bill and now it won't be available. He is concerned about the tax he is going to have to pay at some point. He would like to know if there is anything he could do currently to reduce his future tax liability.

Mrs. Partner has checked Matthew's information on-line with CRA and has noted that Mark has not used any of his capital gains exemption entitlement but did have an allowable business investment loss of $25,000 in 2009.

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Other Subject: How to reduce future tax liability
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