Setting up a company: aspects of shareholder financing.
Selling a going concern to a company: general tax issues.
Asset for share transactions: explains the general tax rules that will apply in the absence of the corporate rules, including sect
ion 40CA; and then the application and effect of the section 42 rollover relief.
Outlines some of the the general tax aspects when setting up a company and when selling a going concern to a company as well as an overview of the corporate rules set out in Part III of the Income Tax Act.
Other issues to consider, in this case the deductibility of interest on a loan raised to fund the acquisition of shares, and the circumstances in which section 24O might apply.
Looks at other considerations, in this case, the tax adjustments that must be made under section 24BA when there is a value mismatch.
Further explores the effects of applying section 42, considering what happens when the assets are sold for a combination of shares and cash, as well as the clawback provisions in section 42.
This video explains the effect of applying the section 42 Roll-over relief, with an illustrative example.
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