Individuals or corporations leaving Canada are subject to what is usually referred to as a departure tax. For individuals emigrating from Canada there is a deemed disposition of most assets, resulting in tax on the capital gain realized as a result of the deemed disposition. The provisions for corporations are complex but they attempt to mimic capital gains that would occur if the corporation were sold, taking into account accumulated PUC (paid up capital), debts/obligations and any prior emigration or branch tax paid by the corporation on a previous emigration that occurred prior to 1996.
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This document is not intended to create an attorney-client relationship. You should not act or rely on any information in this document
without first seeking legal advice. This material is intended for general information purposes only and does not constitute legal advice. If you
have any specific questions on any legal matter, you should consult a professional legal services provider.