Tax Planning Lawyers in Manitoba
Whether you are incorporating your first company, expanding an established business, transitioning a family farm, preparing for retirement or negotiating the sale of a business, each stage presents different legal and tax consideration
PKF Lawyers advises business owners, private corporations and farm families across Manitoba on the legal and tax considerations that arise throughout the business lifecycle. We assist with corporate tax planning, corporate reorganizations, business succession, farm succession, estate planning and the legal implementation of complex tax planning strategies that support long-term business and family objectives.
Planning Throughout the Business Lifecycle
As businesses grow, their legal and tax structures often need to change with them. Ownership evolves, capital accumulates, new shareholders become involved and priorities shift from growth toward succession, retirement or sale. As ownership changes, shareholders’ agreements and governance arrangements should also be reviewed to ensure they continue to reflect the expectations of the owners and the needs of the business.
We advise Manitoba business owners and private corporations on corporate reorganizations, ownership structures, shareholders’ agreements, governance and succession planning at each stage of the business lifecycle, from incorporation and growth through transition and eventual sale or succession. Where circumstances have already changed, we assess the existing structure and identify the planning opportunities available.
We Commonly Assist Clients With
Business and Corporate Tax Planning
- Corporate reorganizations and ownership restructurings to facilitate growth, succession, acquisitions and future business transitions
- Holding company and ownership structures and creditor proofing
- Estate freezes and other corporate reorganizations
- Shareholder agreements, governance and ownership planning
- Corporate tax planning for owner-managed businesses and private corporations
- Lifetime Capital Gains Exemption planning in connection with business succession and sale transactions
- Structured transactions to avoid deemed dividend treatment and take advantage of lower capital gains rates
- Interprovincial, cross border, and international tax
Business Transitions
- Business succession and family business succession planning
- Share and asset purchase transactions
- Estate freezes and ownership transitions
- Intergenerational business transfers
- Preparing businesses for sale, acquisition or transition including purification
- Legal structuring and implementation of transactions developed in collaboration with a client’s accountants and tax and life insurance advisors
Farm Tax and Succession Planning
- Farm succession planning
- Intergenerational farm transfers
- Maximizing those able to claim the Capital Gains Exemption through gifting and holding to significantly multiply the Capital Gains Exemption
- Qualified farm property and Lifetime Capital Gains Exemption planning
- Corporate reorganizations and ownership planning for farming operations
- Coordination of farm succession, estate planning and corporate structures
- Using life insurance and other mechanisms to save tax
- Custom farm agreements to qualify for Capital Gains Exemption
Estate Planning
- Wills and estate planning for business owners, farm families, and vacation properties
- Advice on Principal Residence Exemption
- Trust planning as part of broader succession and family wealth planning
- Cottage succession planning including joint spousal trusts
- Tax-conscious business and farm succession planning
- Coordination of corporate and our estate planning structures
- Ensuring the transitioning owners are protected and insuring protection for family maximum tax advantage of gifts to child with option to leave back to parents
Our estate and succession planning practice also benefits from the specialized trust and estate training associated with the Trust and Estate Practitioner (TEP) designation through STEP Canada. This training brings together trust and estate law, taxation, estate administration and succession planning, providing our clients with a higher level of insight where estate planning intersects with private corporations, business succession, farm succession and tax planning.
Farm Tax and Succession Planning in Manitoba
Planning for the transfer of a farming operation often requires legal and tax considerations that do not arise in other privately held businesses. The income tax rules applicable to farmers are highly technical and can depend on facts extending back many years, including how property has been owned, used and transferred over time.
Historical ownership and use of farmland, qualified farm property, the Lifetime Capital Gains Exemption, intergenerational transfer rules, corporate structures, estate planning and the family’s long-term objectives frequently need to be considered together as well as considering family law.
We advise farming families throughout Manitoba on corporate reorganizations, including discontinuing family trusts, income splitting, plans to avoid tax on income split and kiddie tax, intergenerational farm transfers and estate and succession structures designed around both the continued operation of the farm and its transition to the next generation. Where appropriate, we work together with the family’s accountant and other professional advisors so that the legal, tax and estate planning aspects of the succession plan are considered together.
Implementing Tax Planning
Effective tax planning often requires more than identifying a planning opportunity. The proposed structure must also be properly implemented through the necessary corporate, commercial and estate planning documentation and must consider family law and creditor proofing.
Our tax planning work frequently involves implementing corporate reorganizations, estate freezes, ownership restructurings and succession transactions in collaboration with a client’s accountants and other professional advisors.
The planning is carried through into the legal documentation, including share transactions, corporate resolutions and records, shareholder agreements, trusts, wills and purchase and sale documentation.
Working With Your Accountant and Other Advisors
Tax planning frequently requires legal and accounting advice to work together. We regularly collaborate with accountants and other tax advisors to implement corporate reorganizations, succession plans and business transactions.
Our role is to consider the legal structure, identify legal and implementation issues, prepare the necessary corporate, commercial and estate planning documentation, and work with the client’s other professional advisors to ensure the proposed planning can be carried through in practice.
Our Approach
Tax planning frequently sits at the intersection of corporate law, commercial transactions, estate planning and succession planning. We consider those issues together, with a focus on the client’s current structure, objectives and the transactions or transitions ahead.
The result is practical legal planning that can be implemented now while preserving flexibility for the next stage of the business or family enterprise.
Whether you are building a business, considering a corporate reorganization, planning for succession, transitioning a family farm or preparing for a future sale, PKF Lawyers can help you assess the legal and tax considerations and determine the appropriate path forward.
Tax Planning Services Across Manitoba
PKF Lawyers provides tax planning, corporate reorganization, business succession, farm succession and estate planning services to business owners, private corporations and farm families throughout Manitoba.
Our lawyers serve clients in Winnipeg, Morden, Winkler, Carman, the Pembina Valley and communities throughout Manitoba. We work with you and your existing accountants and professional advisors to develop and implement planning appropriate to your business, family and long-term objectives.
Contact PKF Lawyers to discuss your business, corporate tax, farm succession or estate planning needs.