11 Feb 2014

MONTRÉAL, February 11, 2014 – Raymond Chabot Grant Thornton is proud to release its post-budget tax bulletin again this year with the objective of providing the public with abridged, easily understandable and relevant information about the main tax measures that will apply to individuals and businesses in the coming year.

“The dual objective to this document prepared by a team of tax specialists during the lock-up is to promote the prompt dissemination of the tax changes announced and prepare a concise reference for taxpayers to help them avoid unpleasant surprises,” stated Jean Gauthier, Partner and National Tax Leader.

To view the post-budget tax bulletin, go to: www.rcgt.com/en/2014-federal-budget.

Staying the course towards a balanced budget

The Economic Action Plan 2014 tabled today does not include any new taxes on families and businesses. It would appear that any reductions in individual tax burdens are being postponed. Balancing the budget next year will generally rely on freezing departments’ operating expenses. The Harper government projects that the deficit will decline in 2014–2015, to generate a surplus of $6.4 billion in 2015-2016.

“We’ll have to wait until next year to see the ‘real’ budget, given the projected budget surplus and election context,” stated Tax Partner, Luc Lacombe. “Some of today’s measures will foster employment and support growth, such as the Canada First Research Excellence Fund and additional investments in the Canada Accelerator and Incubator Program to help entrepreneurs create new companies and realize the potential of their ideas through intensive mentoring,” Lacombe went on to say.

Tax equity and business transfers: the continuity of our businesses depends on the resolution of this issue

For the past three years, Raymond Chabot Grant Thornton has been applying pressure on the federal government and the Finance Minister to make the business transfer process more equitable from a tax perspective.

“Given the pivotal role entrepreneurs play in our economic development, there is every reason to be concerned that the tax inequity regarding family businesses has not been resolved. Raymond Chabot Grant Thornton believes that if we are to prevent relocations, keep dynamic Canadian family business under the control of Canadians and help them achieve their full potential, tax legislation must be amended so that the capital gain on an intergenerational business transfer is no longer considered a dividend,” stated Emilio B. Imbriglio, President and CEO.

“Unfortunately, it is always less beneficial for a Canadian business owner to sell the family business to a son or daughter than to a stranger,” added Jean Gauthier. “In fact, at this time, the seller loses the benefit of the $800,000 capital gain deduction benefit, which is not the case when the business is sold to a third party,” Gauthier explained.

The report Business Transfers: Problems and Suggested Solutions may be viewed at: http://www.rcgt.com/en/news/business-transfers-report/

About Raymond Chabot Grant Thornton

Founded in 1948, today Raymond Chabot Grant Thornton is a leader in the fields of assurance, tax, consulting services, and business recovery & reorganization. Its strength is based on a team of almost 2,400 people, including some 230 partners in more than 100 offices in Quebec, eastern Ontario and New Brunswick. For the past 30 years, Raymond Chabot Grant Thornton has been a member of Grant Thornton International Ltd, providing clients with the expertise of the member and correspondent firms in more than 100 countries.

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Source: Francis Letendre
Senior Consultant – Public Relations
Raymond Chabot Grant Thornton
Tel.: 514-390-4201