Tax Planning for Ontario Land Transfer Tax Reduction for First time Homebuyers
New rules as of December 10, 2016 have a significant effect on the assets of a corporation that has been dissolved. Corporations are usually dissolved due to failure to file tax returns. Once a corporation has been dissolved all assets become the property of the Ontario government. Under the old rules a dissolved corporation could apply within 20 years to be revived, and it would then re-acquire the assets that escheated to the crown. Under the new rules there is only a 3 year window in which a corporation can be revived and regain its assets. While there is still a 20 year window for revival, the assets will no longer be returned except in the first 3 years. There is a further 7 year period during which the corporation can apply for a return of the assets. It is very important that dissolved corporations apply as soon as possible for revival.
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."
