Canadian Tax Law

Avoiding Double Taxation on Private Company Shares: Pipeline Planning for Canadian Estates

Avoiding Double Taxation on Private Company Shares: Pipeline Planning for Canadian Estates

Double taxation erodes Canadian estates when private company shares trigger capital gains at death followed by dividend taxes on distributions. This guide explains the problem with real examples and outlines CRA-approved solutions like pipeline plans—transferring shares to a NewCo for promissory note repayment—and expanded loss carryback rules allowing offsets up to three years post-death.

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