Weekly Tax Tips
Family Trust Audits Highlight Need for Proper Trust Records
Date: 1 Oct 2010
Family trusts are a powerful tool in terms of income splitting and capital gains splitting, including multiplying access to the capital gains exemption. As is often the case, beneficial tax planning vehicles often carry a greater recordkeeping and compliance burden, and family trusts are no different. Most likely due to the popularity of family trusts and the tax benefits they provide, the Canada Revenue Agency implemented an audit project on these trusts. So, the need to keep proper records has and will always be necessary.
For further information, see our recent Tax Factor 2010-03 article titled “Family Trust Audits Highlight Need for Proper Trust Records”.
This tax tip is a publication of BDO Canada LLP on developments in the area of taxation. This material is general in nature and should not be relied upon to replace the requirement for specific professional advice. The information in this tax tip is current as of 1 Oct 2010
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