Does CRA Require a CBV for a Business Valuation?
August 15, 2026
If you need a business valuation for tax purposes in Canada, you may have heard that the Canada Revenue Agency requires it to be completed by a Chartered Business Valuator (CBV).
That statement is too broad.
A CBV is a respected valuation professional and may be the right choice for many assignments. However, CRA’s published guidance does not establish a blanket rule that every Canadian tax-related business valuation must be completed by a CBV.
In CRA guidance related to independent fair market value assessments under the Bill C-208 framework, the agency states that valuations meeting CBV Institute standards will meet its expectations, but also expressly states that you are not required to hire a Chartered Business Valuator.
So what actually matters?
What CRA Looks for in a Business Valuation
Rather than focusing solely on the designation after a valuator’s name, CRA’s published guidance emphasizes three important areas.
Independence
The valuator should be objective and free from financial interests or relationships that could influence the conclusion.
A valuation should determine a supportable value based on the evidence, not produce a number designed to achieve a particular outcome.
Relevant Experience
The professional should have sufficient valuation knowledge and experience for the size and complexity of the business.
Industry knowledge matters too.
Valuing a pharmacy, healthcare practice, construction company, professional services firm, or multi-location business can require an understanding of industry-specific risks and value drivers in addition to general valuation expertise.
A Defensible Report
CRA is not simply looking for a number.
A credible valuation should explain what was valued, the valuation date, the information reviewed, the methodology used, material assumptions, financial adjustments, and how the final conclusion was reached.
The appropriate depth of the report will depend on its intended purpose and the complexity and risk of the assignment.
Does the Valuator’s Designation Matter?
Yes, but it is only part of the picture.
Professional valuation designations can demonstrate specialized education, experience, ethical obligations, professional standards, and continuing education.
A designation, however, does not make every professional suitable for every assignment.
The better question is
Is this professional qualified for this particular valuation, and can the resulting report withstand scrutiny?
That applies whether the professional holds a CBV, CVA, or another applicable valuation credential.
Can a CVA Prepare a Valuation for CRA?
Potentially, yes.
CRA’s published Bill C-208 guidance focuses on independence, sufficient valuation and industry knowledge, relevant experience, and the quality of the resulting report rather than making the CBV designation universally mandatory.
That does not mean every CVA or every CBV is automatically qualified for every assignment.
Competence is specific to the engagement.
Before hiring a valuator, consider asking
- What professional valuation standards will be followed?
- What experience does the valuator have with businesses like mine?
- Is the proposed report appropriate for its intended purpose?
- How will significant assumptions and adjustments be supported?
- Could the valuation be explained and defended if reviewed?
These questions often tell you more than the designation alone.
When Might a CBV Still Be Required?
There are situations where a CBV may be specifically required or strongly recommended.
The requirement could come from legislation, a lender, court, regulator, shareholder agreement, purchase agreement, estate plan, or instructions from legal or tax counsel.
A CBV may also be recommended for a particularly complex, high-value, disputed, or audit-sensitive matter.
That is why valuation requirements should be confirmed before the engagement begins.
Saying a CBV is appropriate or required for a particular assignment is very different from saying CRA requires a CBV for every business valuation.
The Bottom Line
CRA does not publish a blanket requirement that every Canadian tax-related business valuation must be completed by a CBV.
What its guidance emphasizes is the quality and credibility of the valuation.
The professional should be independent, appropriately qualified, experienced with the assignment, and capable of producing a valuation supported by sound methodology and evidence.
A CBV may be the right professional. A CVA or another appropriately qualified valuation professional may also be suitable depending on the circumstances.
At EVCOR, professionals holding both the Chartered Business Valuator (CBV) and Certified Valuation Analyst (CVA) designations are available to meet different valuation requirements.
Our goal is not simply to provide business owners with a number. It is to help them understand what their business is worth, what is driving that value, and how that information can support decisions around tax planning, succession, financing, growth, or an eventual sale.
Need a business valuation or unsure which type of valuation is appropriate?
Connect with EVCOR for a confidential conversation.
