Service Package

Section 85 Joint Tax Election

For Investors

The successful completion of a Section 85 Election requires accurate preparation of the election forms. You must then complete a sequence of key steps within specified time deadlines. Canadian Tax Elections offers you a unique service package for the preparation and delivery of your Section 85 Election forms.

Everything You Need

Canadian Tax Elections prepares the required tax election documentation, and provides step-by-step instructions for you to pursue the necessary approvals from both the acquiring company and the Canada Revenue Agency (CRA) from only $795*.

Please Contact Us to request your Elections Forms Preparation Package**.

The Election Forms Preparation Package includes the following:

  • Review and confirmation that a Section 85 Election prepared by Canadian Tax Elections is beneficial for you
  • Timely and accurate preparation of your Section 85 Election based on information provided by you (collected information), later confirmed in your Engagement Letter
  • Secure and signature required delivery of all documentation including your Engagement Letter and your Section 85 Election package to your address for your continued action.
  • Written step-by-step instructions you will follow to obtain joint approval from the acquiring company and then CRA approval of your Section 85 Election,
  • A summary of tax benefits of your Section 85 Election, including details of:
  1. the current year taxes avoided in the year of the transaction and deferred to the future
  2. steps to report the take-over transaction on your tax return for the year of the take-over
  3. the adjusted cost base of your acquiring company shares after the Section 85 Election is approved
  4. These three key pieces of information can be shared with your trusted investment professional and accountant, as appropriate
Joint Accounts

For target company shares held in joint accounts, a full set of Section 85 Election documentation has to be prepared for each of the account holders on the joint account. The reason for this is that the CRA requires each taxpayer to provide a complete set of documentation for the election. Special pricing is available for joint accounts from Canadian Tax Elections. A reduction of $100 is available for the second of the joint holders on the joint account from the stated cost for preparing the Section 85 Election.

Target Company Shares in Multiple Taxable Accounts

Even if you hold target company shares in more than one taxable account, you will only require one Section 85 Election to take advantage of the tax deferral available. The quantity and adjusted costs base (ACB) of all target company shares that you own would have to be determined to provide a total number of shares owned and a single ACB for that quantity of shares. If any shares are owned in joint accounts, this would mean only including your portion of the jointly owned shares along with any shares fully owned that are in your name only.

Your Engagement Letter

Prior to preparation of your Section 85 Election, an Engagement Letter will be prepared and provided to you. This Engagement Letter outlines the exact nature of our relationship and the services that will be provided to you. Your Engagement Letter will be sent by secure and signature-required delivery to the address you provide. All the information provided by you that is necessary to complete the Section 85 Election will be contained in the Engagement Letter.

By signing and returning the Engagement Letter you are confirming that the amounts and details noted in the letter are correct (including any of your updates) based on your personal information and circumstances for the purposes of preparing your Section 85 Election and that you agree to the terms included.

Once your signed Engagement Letter is received we will prepare your Section 85 Election based on the information contained in the Engagement Letter, allowing you to avoid current year taxes on the take-over transaction and defer these into the future.

For Accountants and Other Tax Advisors

Canadian Tax Elections is pleased to work with accountants and other tax advisors to provide Section 85 Election services to your clients. As it is a professional requirement for Canadian Tax Elections to have an understanding and knowledge of the client and their tax situation, a relationship must be established with the client for whom the Section 85 Election is prepared. For this reason we will only be able to accept completed Engagement Letters signed by the actual owner of the shares involved in the take-over transaction for which the Section 85 Election is prepared.

Canadian Tax Elections will not initiate any discussions with clients, solicit, or promote any other tax or accounting services provided details of the relationship between the accountant / tax advisor and client is provided by the commencement of provision of Section 85 Election services.

But if a client inquires or approaches PAISLEY PIKE, CPA directly for more information about who they are dealing with for the preparation of their Section 85 Election, we will respond by providing them with the information requested or with a standard information package. For more information please inquire at information@canadiantaxelections.com.

*Plus HST, GST and/or PST as required.
** All charges for professional services are final once the required work as outlined in your signed engagement letter is completed.

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