Do I need a valuation for a share transfer?

A practical valuation answer

For CRA and tax-related matters, valuation usually centers on fair market value at the relevant date, supported by defensible assumptions and documentation that can withstand later review. The exact approach depends on the property transferred, the rights attached to it, and the tax context of the transaction.

For this type of engagement, the analysis usually focuses on the transaction being reviewed, the valuation date and tax assumptions, and documentation that supports the conclusion if challenged. That is how the answer moves from a generic opinion to a defensible valuation conclusion that fits the facts.

Core valuation checklist

• Confirm the valuation purpose, date, and standard of value before starting.
• Collect the records that matter most: financial statements, tax returns, ownership documents, contracts, and any relevant legal or tax materials.
• Analyze the transaction being reviewed, the valuation date and tax assumptions, and documentation that supports the conclusion if challenged.
• Document assumptions clearly so the conclusion can be explained to buyers, advisors, counterparties, or the court if needed.