In August,Martina decided to seek preferable tax status for her business income.She negotiated the novation of all contractual obligations acquired since November with each of her sole proprietorship's customers.Novation will allow those obligations to rest with her new corporate entity.In order to realize the tax benefit retroactively,which of the following did Martina require?

Question

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To retroactively seek preferable tax status, Martina would need a shelf company with an incorporation date pre-dating the earliest of her contracts. This would allow the contracts to be novated to the new corporate entity, while still recognizing the original effective date. A novation ruling from Canada Revenue Agency would not be necessary for this process. A numbered company that was active on the date of the earliest contract would not have the necessary pre-dated incorporation status. A novation ruling for the transfer of earnings would also not be necessary as the earnings would follow the obligations that were novated.

In August,Martina Decided to Seek Preferable Tax Status for Her