BUSINESS TRUST

FERREL

There is a Federal Court of Appeal decision, Ferrel, that specifically deals with the concept of business trusts. The court held that if such trusts are set up properly with appropriate documentation they will not attract attribution rules under section 56(2) of the Income Tax Act; which is very similar to the dividend sprinkling decisions of the past. This court decision, along with the new rules under proposed section 120.4, provide an excellent opportunity for individuals who are independent consultants who wish to split income among their family members.

For more information on our corporation and our products, please contact:
R. Paul Jacobson, Q.C. Director
The Fiscal Planning Corporation
Suite 2600, 144 - 4th Avenue S.W., Calgary, Alberta, Canada T2P 3N4
Telephone: (403) 210-0278
email: jake@fiscalplanning.com