21 Apr 2015

OTTAWA, April 21, 2015 – In keeping with its tradition, Raymond Chabot Grant Thornton releases its post-budget tax summary for individuals and business managers. Prepared by a team of firm experts during the lock-up, this document highlights the main tax measures announced by the federal government. This easy-to-consult summary may be downloaded at www.rcgt.com/en/2015-federal-budget.

A budget that paves the way for growth…

Having achieved a balanced budget, the federal government now has more maneuverability to stimulate wealth creation. Raymond Chabot Grant Thornton welcomes the fact that there are no income or commodity tax increases in today’s Economic Action Plan. In fact, there is even a tax decrease. “Be they individuals or businesses, taxpayers have had enough of digging into their pockets. This budget provides a bit of breathing room, particularly for small businesses, the economic motors that are key to our prosperity,” stated President and CEO, Emilio B. Imbriglio.

The firm would like to draw attention to certain measures that support economic growth. For example “the reduction of the small business tax rate to 9% is a positive measure, as is the 10-year investment incentive for manufacturing businesses,” explained Tax Partner, Luc Lacombe. Going forward, manufacturers will be entitled to an accelerated CCA rate of 50%, declining balance, for machinery and equipment purchased after 2015 and before 2016.

Also of note, is the government’s decision to continue providing $5.35 billion per year on average for provincial, territorial and municipal infrastructure under the New Building Canada Plan Force. This measure serves the dual purpose of creating jobs and modernizing the country’s infrastructure. Additionally, it is creating a new Public Transit Fund of $750 million over two years, starting in 2017–18, and $1 billion per year ongoing thereafter.

… but still does not support business transfer tax equity

On the other hand, Raymond Chabot Grant Thornton continues to call for tax equity on intergenerational business transfers for entrepreneurial success in Canada. “In a context where creating a business is by far the most popular option for young Canadians wanting to get into business, the firm considers it is essential to encourage the purchase of existing businesses. It’s crucial that intergenerational business transfers become more equitable from a tax perspective,” Imbriglio added.

Raymond Chabot Grant Thornton has been asking the Canadian government and its Finance Ministers to introduce legislation in this respect since 2010. In its March 26, 2015 budget, the Quebec government announced that, as of 2017, owners of primary or manufacturing sector businesses will benefit from a capital gains exemption in Quebec on the sale of their business to a business owned by their children. The firm would like this tax equity to be extended to businesses in all industry segments in Québec and for the federal government to follow suit quickly so that the tax equity will have a true impact in Canada.

To quote Jean Gauthier, Partner and National Tax Director, “Unfortunately, from a tax perspective, it’s unfavourable for business owners to sell their business to their children rather than to a stranger. For the seller, this results in the loss of the benefit of the capital gains deduction in excess of $800,000, whereas this does not apply in a transaction with a third party,” Gauthier concluded.

The report titled Business Transfers: Problems and Suggested Solutions is available at the following address: www.rcgt.com/business-transfers.

About Raymond Chabot Grant Thornton

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

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Francis Letendre
Senior Consultant – Public Relations
Raymond Chabot Grant Thornton
Tel.: 514-390-4201
[email protected]

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20 Apr 2015

On Thursday, April 9, 2015, as he continued his regional tour, Emilio B. Imbriglio – President and CEO of Raymond Chabot Grant Thornton – gave a talk to some 100 business people in the Eastern Townships at the Orford Arts Centre (see also the article published in Le Reflet du Lac, in French only).

Photo Credit : Antoine Petrecca

Photo Credit : Antoine Petrecca

His talk on Quebec’s growth was met with interest from leaders and managers gathered for the event, including the Mayor of the City of Magog, Vicki May Hamm, representatives from top companies in the region, the Dean of Université de Sherbrooke’s Faculty of Business Administration, François Coderre, the Vice-President of Raymond Chabot Grant Thornton’s Eastern Townships region, Réal Létourneau, as well as the Partner in Charge of the Magog office, Jean Gaouette.

Chambre de commerce et de l'industrie de Magog-Orford

Entrepreneurship, education, employment and the sustainable development of our resources are the pillars upon which Quebec’s growth should rest,” declared Emilio.

Without claiming to have THE solution for promoting wealth creation, Emilio rather suggested three key ideas with specific measures based in fact to give Quebec the means to unlock its potential. Here are a few of these measures:

1. Encourage entrepreneurship through tax incentives

  • To encourage further investment by our wealth creators, it would be relevant to examine the idea of completely eliminating taxes for SMEs in Quebec.
  • The recent Quebec budget has to a large extent satisfied the requests repeatedly made since 2010 by Raymond Chabot Grant Thornton to make transferring businesses from one generation to the next fair from a tax point of view. As of 2017, business owners will benefit from a capital gains exemption in Quebec when selling their primary or manufacturing sector company to a corporation owned by their children (or to a non-arm’s length party). This is a major step towards equity. “We must go even further for this measure to have a real impact. This tax equity should extend to businesses in all of Quebec’s economic sectors, and the federal government should act quickly as well,” stated Emilio.

2. Take advantage of export opportunities

  • Take advantage of the soon-to-be official free trade agreement with Europe to develop new markets. Canada will be the only country in the world with free access, baring a few exceptions, to the two largest markets on the planet. Including North American consumers, Quebec has a potential market of over 900 million people!

3. Train and attract talent more effectively

  • Start teaching basic concepts at the high school level about credit, public debt, the cost of public services, and the importance of creating a budget.
  • Improve the process for selecting and integrating immigrants by creating other agreements, such as the France-Quebec agreement, to recognize the qualifications of professionals from other regions.

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17 Apr 2015

Cocktail d'inauguration du bureau d'Alma (Raymond Chabot Grant Thornton)

This March 26, Raymond Chabot Grant Thornton inaugurated its new premises in Alma. Clients, business partners and political representatives, as well as partners and employees from the Saguenay–Lac-Saint-Jean region gathered for cocktails to mark this event and the firm’s growth.

Leadership and excellence

Last fall, Raymond Chabot Grant Thornton acquired Harvey Doré Bergeron and its ten-person team. The new offices, still located at 535 Rue Collard Ouest, were renovated, modernized and enlarged to allow the firm to pursue its growth, while offering its clients and employees an environment that reflects its leadership and its concern for excellence.

During this evening, over 70 people were able to engage in discussions with our professionals and distinguished guests, while discovering Raymond Chabot Grant Thornton’s new premises. Marc Asselin, Mayor of Alma, Éric Dufour, Regional Vice-President, and the Partner in Charge of the office, Éric Bernier, took this opportunity to speak to the gathering. They were able to thank their clients, employees and business relations for their confidence and mention the importance the firm attaches to supporting dynamic local organizations.

The Alma Partners, Gratien Martel (left) and Éric Bernier (right), and Éric Dufour, Partner and Regional Vice-President, obviously were on hand to receive the many guests at this unifying festive event!

The entire team of the Alma office welcomes you to their new premises!

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16 Apr 2015

Jean-Daniel Brisson, Lead Senior Director, Management Consulting, was solicited by Les Affaires to comment on the achievements of the Board of Directors of Yellow Pages Limited. According to Jean-Daniel Brisson, the Group, which has experienced major financial difficulties in the past few years, is back on track to growth, particularly due to the wise decisions of its Board of Directors. Mr. Brisson noted several best governance practices, particularly:

Taking a hands-on approach in a crisis: “In addition to maintaining a healthy distance so that it can see both the forest and the trees, the Board must take a hands-on approach in a crisis. In the final analysis, it is the Board that is “accountable” and that has decision-making power,” he explains.

Providing perspective: “At least 80% of the time should be dedicated to thinking about the risks and opportunities, as well as the competitive advantages and the long-term strategy, while ensuring measurable objectives and regular tracking,” Jean-Daniel Brisson adds.

To learn more, read the article Sortir plus fort d’une crise financière (Emerging stronger from a financial crisis) in Les Affaires