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.
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