Please see the first and the second part in our previous posts.
Business Administration Reasons
- a corporate bank account is opened by the shareholders with the corporation being the beneficial owner of the funds;
- a corporation is on title of an individual’s real estate, vehicle or other asset, and vice-versa;
- assets registered to one corporation but beneficially owned by a related corporation;
- use of a nominee corporation for real estate development purposes;
- a partner of a partnership holding a bank account or asset for the benefit of all the other partners of a partnership;
- a joint venture arrangement where the operator holds legal title to development property as an agent for the benefit of other participants;
- a cost-sharing arrangement where a person holds a business bank account, or other assets, to facilitate the arrangement while having no, or only partial, beneficial interest in these shared assets;
Industry-specific Issues
- a property management company holding operational bank accounts in trust for their clients, or individuals managing properties for other corporations holding bank accounts for those other corporations; and
- a lawyer’s specific trust account (while a lawyer’s general trust account is largely carved out of the filing requirements, a specific trust account is not).
CRA has not commented on several of the examples; it is uncertain how they will interpret and enforce the law.
Find out about the steps in our next posts.
*The preceding information is for educational purposes only. As it is impossible to include all situations, circumstances and exceptions, a further review should be done by a qualified professional. No individual or organization involved in either the preparation or distribution of this text accepts any contractual, tortious, or any other form of liability for its contents.
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