Association Rules
–
Understand the control and ownership tests that determine when corporations are associated.

Michael Cadesky and Matthew Cho explain how the association rules under section 256 of the Income Tax Act apply to related corporations, trusts, and partnerships. Through practical examples, they illustrate how association affects small business deduction limits, passive income calculations, and corporate tax planning.

Get Access | $150
Watch Preview →  Enter Course → 
On-Demand
On-Demand

2 Hours CPD
2 Hours CPD

2 Hours CPD
Exclusive

Course Overview

Incorrectly identifying when corporations are associated can lead to lost small business deduction, unexpected tax reassessments, and other costly errors. Many owner-managed structures unknowingly meet the association tests under section 256 of the Income Tax Act, particularly when trusts, family ownership, or cross-shareholdings are involved.


This course explains how the rules work in practice and provides clear methods to determine, document, and plan around association. You'll learn how to recognize risk areas and implement structures that maintain compliance and tax efficiency.
Learning Objectives
1
Determine When Corporations Are Associated Under Section 256
2
Apply Deeming Rules for Trusts, Partnerships, and Minors
3
Assess the Tax Impact of Association on Key Corporate Limits
4
Use Planning Strategies to Prevent or Resolve Unintended Association

Seminar Snapshot

Date Recorded
August 26, 2025
Presentation
■ Yes
Slides
■ Yes
Detailed Notes
■ Yes
Technical Corner
■ YES
Teach Test
■ Yes
Resources
■ No
Included in Archive
■ NO

ASSOCIATION RULES

Duration
2 hours + Optional Q&A Recording
CPD CPD Certificate
Category
Owner-Manager Tax
Gain a clear understanding of how association affects corporate tax outcomes and planning opportunities. This program examines the control and ownership tests, deeming provisions, and practical structures that determine when corporations are associated under the Income Tax Act.
After completing this program, you will be confident with:
  • Applying control and ownership tests to determine association under section 256
  • Interpreting deeming rules for trusts, partnerships, and minors that extend control and ownership
  • Evaluating how association affects the small business deduction, SR&ED limits, and passive income calculations
  • Using specified class shares, trust structuring, and elections to resolve or prevent association issues
This course is essential if you are responsible for:
  • Providing corporate tax planning for private corporations and related groups
  • Reviewing small business deduction eligibility or allocations among associated entities
  • Structuring or advising on trusts, estate freezes, or reorganizations involving related corporations

Meet Your Presenters

Michael Cadesky

Michael Cadesky

FCPA, FCA, FTIHK, CTA, TEP (EMERITUS)

Michael Cadesky is the managing partner at Cadesky Tax and a committed contributor to the tax and accounting professions since 1980, earning the title of Fellow from CPA Ontario. He is a past governor of the Canadian Tax Foundation, past chair of STEP Canada and STEP Worldwide, and past chair of the CPA Canada Tax Committee for Small and Medium-Sized Enterprises. Michael is also the co-author of 11 books on tax subjects and the author or co-author of numerous papers and articles on Canadian and international taxation.

Matthew Cho

Matthew Cho

CPA, CA, TEP

For years, Matthew has been guiding domestic and overseas clients through the ever-treacherous waters of the Canadian tax ocean. From individuals and high-net-worth families to foreign corporations, Matthew provides practical, no-fluff solutions to fulfill the needs of his clients. A firm believer in balance, Matthew does not merely provide for a tax solution, he provides a solution that works for his clients.
Frequently Asked Questions
Once you complete your purchase, you will create your account if you haven't already. You can access the course anytime through our platform. All Cadesky Tax Seminars programs come with one-year access.
Yes. This course is eligible for verifiable CPD hours for Canadian CPAs. A downloadable Certificate of Completion will be available once you complete all required modules.
Our programs are designed for CPAs and tax professionals who want to deepen their technical expertise. While no prerequisites are required, a working knowledge of Canadian tax will help you get the most out of the material.
On-demand courses include the full video presentation, downloadable slides, and additional resources mentioned in the Seminar Snapshot (Technical Corner, teach test, checklists).
Yes. You will have unlimited access to the course materials within the 1-year access period, so you can revisit the content anytime to refresh your knowledge.

Trusted by CPAs and Tax Professionals across Canada

This is a first time for me as well. Your firm was recommended to by one of my friends. Great source of information.

Thank you Mike, Hugh and team! I enjoyed the practical and realistic solutions to various tax issues.

Thank you ALL for such high quality courses and answering the questions in detail! So glad I found you guys!

Thank you very much for the seminars. They are very informative and helpful.

Thank you for the wonderful presentation, materials, and handling of queries as always.

This is my first time taking the Cadesky Tax Seminars. I am learning a lot and watching archived courses too. You have done a great job. Thank you so much!

I really enjoy your seminar series. Your presentations are extremely thorough and you explain complex tax issues very clearly.

The presentations are relevant. The material is easy to follow. Worked examples are excellent. It is a great value.

CPD for CPAs in Canada
Support
All Courses FAQ Gold Standard
Tax Learning Paths
Individual Tax Owner-Manager Tax Estate Planning International Tax Tax Practice Special Topics
Featured Tax Training
2025 Tax Seminar Series Form T1134 Reporting Canada-U.S. Cross-Border Tax Association Rules Foreign Tax Credit
Free Verifiable CPD
Year-End Tax Planning Canada-U.S. Tariffs
Tax Resources
Newsletter