Update on Bill C-208 and filing requirements

The Canada Revenue Agency (CRA) recently posted an update on the filing requirements for individuals who are applying the tax changes in Bill C-208 for intergenerational transfers. As the CRA points out, under the enacted legislation, the individual who transfers the shares must provide the CRA with:

• a valuation report that is an independent assessment of the fair market value of the transferred shares, and
• an affidavit signed by the individual and a commissioner of oaths or notary public, attesting to the disposal of the shares.

On the update page, the CRA provides a sample affidavit and lays out the conditions to be met for a valuation report so that it would be acceptable to the CRA. The CRA also describes how to file the documentation (for returns that are filed electronically, the taxpayer is required to keep the documentation in their records in case the return is selected for review).