An SR&ED tax specialist helps entrepreneurs deal with research and development tax credit programs.

Pascal Perreault is a Partner and SR&ED Tax Specialist with Raymond Chabot Grant Thornton. He provides some insight into his work.

What is scientific research and experimental development (SR&ED) tax?

It’s a specialization related to the Scientific Research and Experimental Development tax credit program. This is one of the main tax incentive programs that my team works with. We deal with tax credit applications for our corporate clients, most of whom are in the aerospace, IT and life sciences sectors.

How have you progressed within Raymond Chabot Grant Thornton?

I gained experience in accounting services firms as a tax professional and then I co-created an SR&ED business. It was acquired by Raymond Chabot Grant Thornton in 2015. I joined the group and became one of the Partners. It is a major asset to be surrounded by complementary expertise. It allows us to support our clients in other areas of business and provide more complete service.

What is your usual day like?

I handle the management and prospecting functions. In this regard, my work is different from that of the rest of the team. I also approach organizations such as Montréal International and Investissement Québec to attract foreign investors to Quebec or the greater Montréal area. This is an important part of my activities.

In addition, as SR&ED tax specialists, we deal with the presidents of small and medium-sized companies or with the technical and financial departments of large ones. We make sure that research and development projects are properly documented throughout the year so they meet the requirements of the tax authorities that our team contacts on a regular basis.

Can you give us an example of a typical assignment?

When a new client comes on board, in collaboration with the engineers on our team, we conduct an analysis of the potential to claim tax credits for their projects.

First, we gather information from the engineers who have gained in-depth knowledge of the technologies used, and then prepare the tax credit claim. Project tracking systems are established and allow us to respond to the tax authorities in the event of an audit.

The tax specialists also work with corporate financial managers to collect other essential information for the preparation of the tax forms.

What is most motivating in your work?

I truly enjoy serving our clients and I feel that our work makes a real difference, especially for SMEs. For example, when I help an entrepreneur start a business by obtaining a $100,000 tax credit that allows the client to develop a product, the impact is noticeable and measurable.

Is there a professional accomplishment that you are particularly proud of?

Recently, we went to court to represent a client in a dispute with Revenu Québec and won. It’s motivating to win cases, especially when they become precedents.

But it’s rare that cases go to court, because we have cordial and collaborative relationships with the SR&ED tax authorities. We are well versed in the laws and, in our work, while there is obviously a tax compliance component, there is also a desire to help the taxpayer.

What qualities do you need to do SR&ED work well?

You need discipline and communication skills because, in our specialty, we are in regular contact with the tax authorities. You have to be able to convince them of the validity of what you are saying. That’s what we do every day.

At Raymond Chabot Grant Thornton, we have managed to build a solid reputation with Revenue Canada. They know that we have sound arguments to support a claim, even if we sometimes disagree on an interpretation.

We are also called upon to participate in various panels, such as that of the Association de planification financière et fiscale du Québec. This allows us to maintain a high level of credibility with our peers and, above all, with the people from the revenue agencies, with whom we discuss our clients’ projects.

What is the work climate like in your team?

The work has to be delivered on specific dates, so it’s up to each person to see how they organize their work, according to the schedule that suits them. Working in a team is an important value and I am surrounded by competent people who interact a lot in an atmosphere that I strive to keep enjoyable and positive.

What advice do you have for a tax specialist who might want to work in SR&ED?

Working in general tax before gave me a solid foundation and allowed me to develop the right reflexes, so I think you should do that before specializing.

Navigating the complexities of Canadian tax law can be challenging. The support of a competent and attentive expert can make all the difference.

Experts derive satisfaction from accompanying individuals and companies to optimize their tax situation or from providing support during the oftentimes complex process of purchasing or selling a company.

Sylvain Gilbert, Tax Specialist and Partner with Raymond Chabot Grant Thornton, explains his work.

What is your tax specialty?

I have in-depth expertise in Canadian tax. In many cases, I work to optimize a client’s corporate structure so that it is tax efficient, scalable and allows shareholders to take full advantage of tax laws by reducing their overall tax burden.

Many assignments involve developing strategies to help a business’s shareholders effectively plan their succession, or addressing a request for support and advice in the sale or purchase of a business.

I often represent clients in situations where they have received tax assessments from the Québec and Canadian governments. I analyze the client’s file in order to understand and clarify a situation that may be stressful to them. I identify favourable arguments for the client’s defense and negotiate with the government authorities to reach a settlement agreement.

On occasion, I collaborate with tax litigation lawyers to prepare the defense for a client whose case will go to court.

Can you give us an example of a typical assignment?

We often work with clients who want to sell a business, or who have received a purchase offer, and want to structure the organization to optimize their income. We try to minimize the tax liability in the context of a sale of shares or assets.

We also analyze financial and legal documents, prepare any calculations needed and produce the forms prescribed by tax laws. The objective is to help the client conclude a transaction that is advantageous from both a tax and a financial perspective.

Can you give us an example of an unusual situation?

In a complex case, it took us three years to defend our client with the tax authorities and we ended up winning almost every aspect of the case. One of the company’s shareholders, who was over 60 years old, confessed that he felt a great weight has been lifted from his shoulders. Going bankrupt at his age and starting his career again was unimaginable to him. The outcome of the transaction was a total relief for him, to the point where he gave me a long, very emotional hug.

Were you expecting to work in such an emotional environment?

No! We often have to reassure our clients because they are under stress. In complicated situations, when large sums of money are at stake, the lengthy negotiation and verification process with the governments can make clients quite edgy. In the end, a whole retirement plan, for example, can be at stake. I’d say that our role is as much psychological as it is technical. We must continually build our clients’ confidence and offer our support.

Also, negotiating a transaction can take place at any time of the day or evening, including weekends. It’s demanding, but it’s also motivating. You can spend sleepless nights dealing with a case and managing people’s emotions.

But I’m really on my game and I’m comfortable with the pressure.

What was your career path?

My father was a business owner and he used to invite me to meetings with this tax advisor, someone he thought very highly of. That inspired me.

I’ve always worked at Raymond Chabot Grant Thornton. I even did my internships here during my co-op program at the Université de Sherbrooke. I started in assurance, as an accountant. When I was 24, I went to do a master’s degree in tax.

For the firm, I was a consultant, senior consultant, manager, and I became a partner in 2009. I rose through the ranks pretty quickly, because I put a lot of time and effort into improving my technical knowledge while getting involved in business development. I did a lot of tax presentations, I taught at the university for about ten years, I gave media interviews to better promote myself. I also took training courses to better communicate. I haven’t finished growing here!

What motivates you?

I want to be able to make a difference for someone, to feel like I’m helping. I understand that I don’t do heart surgery, but even though I work with numbers and laws, it can make a huge difference in someone’s life.

What are your interactions with colleagues like?

I try to make others stand out. There are about 30 tax professionals in the Sherbrooke office and I like it when I can make colleagues shine and allow them to go beyond the limits that they’ve set for themselves.

I always enjoy working in a team. I like to be around people. Even when I go on vacation down south, I go with colleagues. They’re really a part of my family.

What advice would you give to a young candidate?

Show an interest in people, both clients and colleagues. When a client does business with a credible firm, they expect you to be competent, but your interest in the other person is what makes the difference.

You also have to be persistent if you want to be successful in this business. It’s not enough to be smart.

Finally, be aware of current events, invest in your general knowledge. It makes us much more interesting to be around than just dealing with numbers.

Diversity is a reality. Inclusion is a choice and a management responsibility.

That’s why Raymond Chabot Grant Thornton, a Quebec-based firm specializing in assurance, tax, consulting, business recovery and reorganization, is increasingly promoting an inclusive culture in its work environment to recognize all its employees as an important part of a diverse workforce, regardless of gender expression or identity, or sexual orientation.

We spoke with Christine Regimbal and Gautier Péchadre, two members of the LGBTQ community, to see how this is being put into practice at Raymond Chabot Grant Thornton.

In 2019, Raymond Chabot Grant Thornton undertook an important initiative to look at diversity, inclusion and unconscious bias. The exercise resulted in the appointment of Christine Regimbal, a firm partner for 20 years and member of the Partnership Board, as Head of Diversity, Equity and Inclusion. In her role, she promotes diversity and inclusion so that all employees can reach their full potential at Raymond Chabot Grant Thornton.

“We had been discussing this for some time in the Partnership Board. On the one hand, we wanted to move towards greater gender parity among partners and, on the other, to include diversity in its broadest sense and also make room for inclusion in decision-making. This became a standing item that was discussed at each meeting to follow up on the actions to be taken.”

Christine’s first mandate was to set up a cross-disciplinary committee of partners and employees from all regions in Quebec that reflects inclusion and diversity in its ranks (gender, cultural communities, LGBTQ community, people with physical limitations, etc.). “The goal was to set clear, achievable and measurable objectives that would have a positive impact on employees, the future and the firm’s sustainability.”

Christine herself states it in a short YouTube corporate video, where she is seen with her wife on their wedding day. “Over the years, the firm’s mentality, like society’s, has evolved significantly.” The video was part of a “Being Proud Together” series broadcast in 2020-2021 that features employees in the LGBTQ community and its allies.

Gautier Péchadre has been representing RCGT with Pride at Work/Fierté au travail for two years. He is also involved in the GRIS-Montréal campaign committee. He is proud to have been able to raise donations from his colleagues totaling more than $10,000 for the organization.

“Since the firm will be supporting the upcoming 2022-2023 campaign, I’m confident that I’ll be able to exceed that amount next year. I wish there had been an organization like GRIS in my school when I was 12 years old and discovering my sexuality. The work that GRIS does is incredible. Thanks to GRIS, every year, thousands of young people benefit from workshops that demystify sexual and gender diversity. Also, thanks to GRIS, many dozens of young people finally don’t feel so ‘different’ and understand that they can be themselves!”

Until recently, only regular employees with one year of continuous service at the time of going on maternity leave of 15 to 18 weeks were eligible for the Supplementary Parental Insurance Benefit (SPIB). This has changed: the SPIB is now available to all new parents, regardless of who they are. Since June 1, 2022, parents who want to adopt or foster a child, use a surrogate mother or are not biological parents are now included in the SPIB and can take or share a parental leave. Raymond Chabot Grant Thornton offers up to 23 weeks to all employees who become parents, biological or not, regardless of the type of leave they wish to take.

Raymond Chabot Grant Thornton’s SPIB sets it apart from the competition and is a source of pride for both Christine and Gautier.

Gautier says, “I believe that the firm is increasingly embracing the values of diversity, equity and inclusion that are important to employees.” Christine adds, “At Raymond Chabot Grant Thornton, we walk the talk, we’re leading the way. We have enviable working conditions and are among the industry leaders.”