If a shareholder owns multiple companies, these companies may not access small business corporation relief or the turnover tax for micro businesses.

The purpose of this prohibition is to prevent shareholders from dividing a single large business into multiple small businesses so as to artificially obtain undue tax benefits for each of these divided parts. Unfortunately, this exclusion has the unintended effect of denying relief for small business owners who place their businesses in purchased shelf companies.

To remedy this situation, the exclusion against multiple company ownership should not apply in respect of companies that have never been more than a shell.



Jean Barboure (ACIS)
Chartered Secretary and Tax Practitioner
Member no: 3003499
Tax Practitioner no: PR40CFBD7