Clara Demers
Senior Advisor | Management consulting

Over 90% of Quebec SMEs are family businesses. To successfully transfer the business to the next generation you need to follow a comprehensive, disciplined and well-thought-out process that involves a key human component. Take advantage of our unique, integrated business transfer approach.

02 Oct 2018  |  Written by :

Clara Demers is your expert in management consulting at Raymond Chabot Grant Thornton. Contact her...

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Event promoters, are you familiar with Regulation 105? This federal tax rule applies to contracts with an international artist in Canada.

Cultural events and festivals in Quebec include Canadian and international artists in order to present a diverse and competitive program. From a contractual stand point, signing a Canadian or international artist is essentially the same and involves negotiating the following: fees, equipment, accommodations, transportation, meals, etc. However, there is one difference for an international artist—the event promoter’s tax liability.

International artist’s fee instalments

A contract between an event promoter and an international artist to provide services in Canada for fees is covered by federal tax Regulation 105. Under this Regulation, the payer (event promoter) is required to withhold and remit an instalment equal to 15% of the fees paid to the non-resident (international artist) to the Canada Revenue Agency within a prescribed deadline. Furthermore, if the service is provided in Quebec, an additional amount of 9% must be withheld. To recover some or all of the withholding, the non-resident is required to file an income tax return in Canada.

This Regulation is simple to apply, however, failure to do so could cause problems for the payer, who could be liable for a penalty of 10% of the amounts to be remitted.

Streamlined procedure: prevention is better

Fortunately, the tax rules provide for relief mechanisms (waiver application) and a streamlined procedure for artists. It is to the benefit of any organization, from both an operational and financial perspective, to ensure proactive management of contracts that could be subject to Regulation 105. This simply requires that the application of Regulation 105 be determined at the time of signing a contract with a non-resident, making and remitting any withholding required or filing a waiver application.

Over the long term, failure to comply with Regulation 105 could prove to be expensive and time consuming for an organization’s directors. Whether they are making a voluntary disclosure or undergoing a tax audit, the directors will need to spend considerable time on this matter. Financially, these can be very costly situations. For example, it may be necessary to finance the unremitted payments (such as taxes, penalties or interest), depriving the organization of some of its operating budget.

Don’t hesitate to contact our experts to obtain good advice.

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Is Canada’s tax system fair? Are its tax rules distorted in any way? Do our tax laws respect the principle of neutrality? Under the leadership of Raymond Chabot Grant Thornton, Luc Lacombe, tax partner, and Brigitte Alepin and Manon Deslandes, professors at the Département des sciences comptables in UQAM’s École des sciences de la gestion (ESG UQAM), pooled their expertise to attempt to answer these questions while focussing, in particular, on a number of tax issues that impact families.

The authors sought to determine whether the tax rules are neutral where families are concerned. They concluded that given the many, and substantial, breaches of neutrality in the tax measures applying to families, the question is whether Canadian families are ultimately making decisions based on their needs or based on the tax measures that are available to them. This innovative study of the tax measures applying to Canadian families also presents some thoughts and considerations for overhauling Canada’s tax system.

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Implementing a human resources plan means you’re providing equitable working conditions for your team, both internally and externally.

A basic human resources plan is not just for large organizations. It is possible to develop and adapt tools for your situation, such as an employee handbook, internal rules, a code of conduct, standard work contracts, job descriptions, onboarding and integration tools, a compensation policy and many more. These tools will provide your business with clear rules and avoid several issues.

The tools or skills presented below can be used to support your success:

Performance appraisal

Develop a competitive advantage as an employer with a simple and efficient performance appraisal program. This tool promotes employee engagement and a common understanding of mutual expectations without excessive control.

Most employees want feedback on their performance, particularly those in generation Y. Competencies to be developed in order to advance or take on more responsibilities can be outlined, an approach that also boosts employee retention.

The ability to delegate

Are you always putting out fires? Do you think you know better than anyone how to perform tasks in all departments? Do you suddenly realize that you’ve responded to social media messages, made arrangements to have the truck repaired and prepared the financial statements all on the same day? It’s probably time to start delegating. A clear plan, supported by psychometric tests, will help you identify key individuals, based on skills, who can (finally) take over certain tasks so you can focus on what you do best.

Planning HR needs

Even the most technologically advanced company needs human intervention to deliver the final product. A seamless business strategy on paper still has to pass the live performance test.

Planning your organization’s current and future staffing needs today will help you develop solutions to meet your hiring, promotion, business experience knowledge transfer and succession management objectives.

Efficient communications to manage change

In times of change, a business’s employees are the key to success.

Beyond the technological aspects, if you’re planning an expansion, a change in the organizational structure, new work methods, make sure you focus on employee communication right from the onset.

Be transparent and highlight the advantages and disadvantages of the changes, the upcoming steps and what is expected of each person.

A balanced agenda

Now, more than ever, we are being pulled in all directions. It’s important to learn how to manage priorities, deal with emergencies and control disruptions that interrupt concentration. It is possible to organize tasks, telephone calls, emails, instant messages and discussions around the coffee machine to take advantage of them and not find yourself wondering where half your productive time went during the day.

Raymond Chabot Grant Thornton’s management consulting team can assist you in implementing a clear and efficient communication plan to foster employee engagement in a change situation. Contact our human resource professionals, they can help you unlock your organization’s full potential.