A new taxation year for Canadian income tax purposes is deemed to have started when a change in control of a corporation takes place. If your corporation is about to undergo a change in control it will shorten the carry-forward period of your unused losses and cause their expiry. It may be possible to devise a mutually beneficial tax plan with the purchaser by billing before the sale for services to be rendered after the change in control in order to generate income to absorb the unused losses before they expire.
Disclaimer:
"This article provides information of a general nature only. It is only current at the posting date. It is not updated and it may no longer be current. It does not provide legal advice nor can it or should it be relied upon. All tax situations are specific to their facts and will differ from the situations in the articles. If you have specific legal questions you should consult a lawyer."
