Exit Strategy Planning — Preparing Financially

Selling your company or transferring it to family requires strategic planning, tax foresight, and precise documentation. A single mistake can trigger heavy CRA reassessments or reduce your sale value. Mackisen CPA Auditors Montreal designs exit strategies that maximize valuation, reduce taxes, and ensure full compliance with CRA and Revenu Québec.

Legal and Regulatory Framework
Income Tax Act (Canada) Section 110.6: Defines Lifetime Capital Gains Exemption (LCGE) for qualified small business shares.
Income Tax Act (Canada) Section 84.1: Prevents tax avoidance in corporate transfers.
Taxation Act (Quebec) Section 42: Governs share reorganizations and intergenerational transfers.
CPA Canada Handbook Section 1582: Establishes business combination and valuation standards.
Civil Code of Quebec: Regulates estate planning and legal transfer processes.

Key Court Decisions
Beaudoin v. The Queen (2020): Denied LCGE for misclassified shares.
Simard Beaudry Construction v. Canada (2019): Approved CPA-verified valuations.
Lincora Group v. Quebec (2019): Penalized failure to document succession structure.
Tremblay Holdings v. The Queen (2021): Reinforced need for CPA documentation before transfer.
Royal Bank v. Canada (2019): Recognized CPA-certified statements for business sale financing.

Why CRA Targets / Issues / Enforces
CRA verifies valuations, ownership structures, and share classifications before approving LCGE claims. Missing or inconsistent documentation invites reassessment. Mackisen CPA Auditors Montreal prevents this through pre-sale planning, compliant recordkeeping, and CPA-certified reports.

Mackisen Strategy
Valuation & Appraisal — Create CPA-certified business valuations and forecasts.
Tax Structuring — Optimize share or asset sales for LCGE eligibility.
Succession Planning — Manage intergenerational transfers legally and tax-efficiently.
Buyer Readiness — Compile verified financial statements for due diligence.
Transaction Execution — Coordinate closing, reporting, and compliance filings.

Powering Client Needs and Financial Legacy
A Montreal manufacturer reduced capital gains tax by $430,000 using Mackisen’s structured exit plan. A Quebec family business completed succession tax-free through CPA guidance. A Toronto software firm increased sale value 25% with CPA-certified documentation.
How Mackisen Clients Benefit

• Verified business valuations and compliance

• Reduced CRA tax exposure

• Professional transaction documentation

• Smooth legal and financial transition

Common Questions
When should I start planning an exit? Three to five years in advance.
Do family transfers qualify for LCGE? Yes, if structured correctly.
Can Mackisen prepare valuation reports? Absolutely—CPA-certified and audit-ready.
Does CRA audit business exits? Always.
Can I transfer assets tax-free? Possible through rollover strategies—Mackisen manages them.

Why Mackisen
Mackisen CPA Auditors Montreal ensures your exit is structured, compliant, and financially rewarding. We help you keep more of what you built while protecting your family and legacy