Investment Holding Companies Practice
Holding companies (HoldCos) play a pivotal role in Canadian corporate wealth accumulation, liability ring-fencing, and tax minimization. However, navigating recent Canadian tax reforms—including passive investment income grind rules, anti-stripping rules, and TOSI legislation—demands proactive professional guidance.
Our Investment Holding practice advises business owners, investors, and family enterprises on structuring and managing holding vehicles for maximum capital growth and asset protection.
Sector Capabilities
Passive Income & Small Business Deduction (SBD) Management
Structuring corporate investments to mitigate the $50,000 passive income threshold grind on the active business income limit, preserving the 12.2% Canadian-Controlled Private Corporation (CCPC) tax rate.
Inter-Corporate Dividends & Asset Protection
Facilitating tax-free inter-corporate dividend transfers from active operating companies (OpCos) to holding companies to protect retained earnings from operating liabilities.
OpCo Purification & LCGE Optimization
Ensuring operating companies meet the 90% and 50% active asset tests to preserve the Lifetime Capital Gains Exemption on future corporate sales or equity transitions.