A tax rollover is the deferral of taxes that would otherwise be payable upon the disposition of assets. The requirements and criteria are set out in the Income Tax Act (Canada). Tax rollovers are often used when an individual starts a business as a sole proprietor and then later incorporates a company to operate that business. If the business has grown in value, the transfer of that business to the corporation may trigger a capital gain and attract capital gains tax. In order to defer the payment of capital gains tax, the business owner may carry transfer assets to the corporation and receive shares in the corporation in return.