Purifications
Keep Your Corporation Ready and Eligible
Purification is a crucial step in preparing a business for sale, succession, or to access the Lifetime Capital Gains Exemption (LCGE). It ensures that the corporation meets the necessary “small business corporation” criteria under the Income Tax Act by removing passive or non-qualifying assets from the balance sheet. We help business owners identify, plan, and execute corporate purifications with clarity and precision. Whether you’re preparing for a future transaction or restructuring for tax efficiency, we guide you through the process while maintaining compliance and protecting shareholder value.
Our Purification Services Include:
Eligibility Assessments
We evaluate your corporation’s current LCGE eligibility based on its asset mix, business activities, and share structure.
Asset Reclassification & Removal
We help identify non-active assets—such as excess cash, investments, or real estate—and develop strategies to efficiently remove or reposition them.
Intercorporate Transfers & Holdco Structuring
We guide the movement of surplus or non-qualifying assets to holding companies or related entities as part of your broader reorganization.
Timing Strategies
We work with you to plan the purification of anticipated transactions or reorganizations, ensuring eligibility windows are met.
CRA Documentation Support
We prepare the supporting documentation to demonstrate compliance with LCGE criteria in the event of a future audit or sale.
Why Clients Choose HW Partners for Purifications
- Integrated planning with reorganizations and succession
- Clear, strategic guidance to protect long-term value
- Trusted by private business owners and professional advisors
Meet the Team Behind Our Purification Services
We help owner-managers move forward with clarity, whether passing the torch to family, employees, or outside buyers.
Missing the LCGE because of a technicality is avoidable. Purification lets you unlock the benefit you’ve earned—without surprises.
~ Nancy Nicks, Partner
Let’s Make Sure You’re LCGE-Ready
If you’re planning for a future transaction or transition, let’s talk purification strategy.