23 Mar 2016

OTTAWA, March 22, 2016 – Raymond Chabot Grant Thornton publishes its budget tax bulletin containing a summary of the main tax measures announced by Finance Minister, Bill Morneau. This document, prepared by a team of tax specialists in the lock-up, provides a broad view of the main tax measures and may be consulted at: www.rcgt.com/en/2016-federal-budget.

A budget that stimulates growth and investments

In a context where Canada’s economy needs support to create employment, attract investors and allow businesses to innovate and be more competitive, this budget is a breath of fresh air.

“Raymond Chabot Grant Thornton salutes the federal government’s initiatives, in particular the considerable increase in infrastructure investments, restoration of labour-sponsored venture capital, financing of research institutions and additional investments in the arts and culture. The introduction of measures that support corporate growth will provide businesses with better means to create wealth and promote entrepreneurial progress, which is key to ensuring the success of future generations,” stated President and CEO, Emilio B. Imbriglio.

According to Tax Partner Luc Lacombe, “Introduction of the Canada Child Benefit, extension of access to employment insurance to new entrants or re-entrants to the work force, restoration of the old age security eligibility age, and investments of $8.4B over five years to improve the socio-economic conditions of Aboriginals and their communities and making transformative changes are promising initiatives for families and their communities.”

“The fact that we can expect deficits in coming budgets is a call to prudence to avoid generating negative impacts on how Canada is evaluated, particularly by credit rating agencies. Given the massive infrastructure investments, considering the life cycle cost in each case should be an integral part of the evaluation process. To maximize the benefits of all strategic projects, it’s essential that their construction budget take account of operating, maintenance, financing and other costs to ensure they are a long-lasting success in Canadian communities,” Imbriglio added.

Further taxation and succession efforts needed

With respect to taxation, Raymond Chabot Grant Thornton believes two important measures should be implemented promptly to reduce the corporate tax burden and improve the current system’s performance. “On the one hand, the corporate tax for SMEs whose annual income is less than $500,000 should be eliminated, provided they invest the resulting savings in upgrading equipment, improving performance, creating jobs or any type of innovation program that improves productivity and methods, and on the other, the system should undergo an in-depth overhaul” stated Jean-François Thuot, Tax Partner and Tax Services Leader.

Moreover, as it has done since 2010, the firm continues to advocate changes to the Income Tax Act. Section 84.1 should be amended to no longer penalize business transfers between family members, for example. “A Canadian business owner should not be at a disadvantage when selling the business to a son or daughter rather than a stranger. In fact, in this type of transaction, the seller loses the capital gains deduction benefit, which could be up to $825,000, which is not the case in a transaction with a third party. We also urge the Canadian and Quebec governments to harmonize their legislation in this respect,” Thuot added.

In the case of entrepreneurial succession, a major issue to ensure the longevity of Canadian businesses, Raymond Chabot Grant Thornton would have liked to see a fund to assist businesses so they can call upon external professionals to support them in their transfer and success plan process. “Managers need to develop an appropriate succession plan that takes account of tax, strategic, human, legal and financial issues to pass the torch to the next generation. Entrepreneurs need to be properly prepared. It’s an essential condition to ensure our wealth creators’ success,” emphasized Éric Dufour, Saguenay – Lac-Saint-Jean regional Vice-President and National Business Transfer Leader.

The measures proposed to the federal government in a letter addressed to Finance Minister Bill Morneau may be viewed at the following address: www.rcgt.com/federalbudget-consultation-2016 (in French).

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 2,500 people, including some 230 partners. Together, Raymond Chabot Grant Thornton and Grant Thornton LLP, another Canadian member firm of Grant Thornton International Ltd, help dynamic Canadian organizations unlock their potential for growth with over 4,300 people and some 140 offices across Canada.  Grant Thornton International Ltd provides clients with the expertise of member and correspondent firms in more than 130 countries, with over 40,000 people.

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

 

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21 Mar 2016

Congratulations to Jeff Auclair-Pilote, Senior Auditor (Saint-Félicien office), who received the CPA Recruit of the Year Award from the CPA du Saguenay-Lac-Saint-Jean group on March 10, 2016.

Youth, leadership and skill

Jeff’s candidacy was notable for several reasons. As someone who cares about the economic growth of his region, he has participated in numerous chamber of commerce social and community activities, chaired the CPA student committee at the Université du Québec à Chicoutimi (UQAC), served as Vice-President of sponsorships for the 2013 and 2014 Commerce Games and founded the UQAC tax clinic, a free tax return assistance clinic. Although he is only 25 years old, Jeff is already recognized as an exceptional leader whose skills and relationship abilities are major assets supporting the development of Raymond Chabot Grant Thornton and the community.

Congratulations to Jeff on this recognition that reflects on the firm and illustrates our professional team’s great expertise!

CPA du Saguenay-Lac-Saint-Jean Regional Group Grants Jeff Auclair-Pilote CPA Recruit of the Year Award

Jeff (middle with trophy) poses with his award and colleagues Jean-François Guimond, Manager, Karen Savard, Senior Auditor, Marc Lévesque, Partner, Frédéric Morin, Manager and Mélissa Tremblay, Manager.

About the CPA Recruit of the Year Award

The CPA Order’s CPA Recruit of the Year Award is intended to recognize the determination, dynamism and contribution of new members who have demonstrated leadership or successfully met various challenges in the professional world and in the community. The CPA Recruit of the Year Award is intended for Order members in public practice, business, government or education.

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18 Mar 2016

QUEBEC CITY, March 17, 2016 – Raymond Chabot Grant Thornton publishes its budget tax bulletin containing a summary of the main tax measures announced by Finance Minister, Carlos Leitão. This document, prepared by a team of tax specialists in the lock-up, provides a broad view of the main tax measures and may be consulted at www.rcgt.com/2016-2017QCBudget.

The firm wishes to highlight a number of budget measures while emphasizing the need to implement new ones to further stimulate the economy.

Yes to the balanced budget…

First, Raymond Chabot Grant Thornton acknowledges the strategic measures to support economic growth. “Education is the cornerstone of societal development and the Firm is pleased to see more extensive government investment in our up-and-coming talent. The $500M increase in student services over the next three years is an effective way to support the success of future generations and tomorrow’s leaders who’ll be heading our economic drivers, our businesses,” stated Emilio B. Imbriglio, President and CEO.

We also cannot deny the contribution of measures to support businesses. “Our businesses have a significant tax burden, SME leaders will be happy to learn that they will benefit from additional payroll tax relief. This reduction will represent a total of $94M starting this year and $385M by 2021, $101.5M more than previously announced. Moreover, the tax reduction for income attributable to marketing a Quebec-developed patent, which drops from 11.8% to 4%, will provide some breathing room for innovative corporations,” added Tax Partner Luc Lacombe.

Yes to stimulating the growth potential of businesses

According to Raymond Chabot Grant Thornton, in this budget, the balance sought between living within our means and stimulating economic growth should have given more weight to the latter option to avoid further hampering the growth potential of Quebec and its wealth creators.

The Firm believes that reducing corporate tax rate is more than a necessity, particularly in light of the difficult economic situation being experienced by many SMEs.

The Firm therefore reiterates its recommendation to eliminate income tax on the first $500,000 of an SME’s income. “If Manitoba could do it for small businesses in 2010, Quebec could also introduce such measures. The resulting savings should be invested in upgrading equipment, improving performance, creating jobs or any type of innovation program that improves productivity and methods. It would be a growth-generating approach to reduce SMEs’ tax burden and provide the means to invest where they need it most,” stated Jean-François Thuot, Tax Partner and Tax Services Leader.

Introduction of an innovation tax credit would have also benefitted entities wishing to introduce innovations and modernize their equipment. As a reminder, the current tax credit for scientific research and experimental development is only available to entities conducting research. Implementation of such a credit would support business growth, as the Firm recently reminded the government.

Succession and business transfers

Raymond Chabot Grant Thornton invites the government to quickly set up a fund to assist businesses so they can call upon external professionals to support them in their transfer and success plan process. “Our businesses need to prosper over the long term. It’s important that business sellers be properly supported to ensure an efficient succession. Succession planning spans many years and, unfortunately, only 9% of business owners have a formal, written plan. Quebec can no longer afford to lose its wealth creators,” emphasized Saguenay-Lac-Saint-Jean region Vice-President and National Business Transfer Leader, Éric Dufour.

“When it comes to intergenerational business transfers, the Quebec and Canadian governments need to act quickly to harmonize their legislation to create a true impact for our wealth creators. In fact, the Québec government needs to go a step further and amend article 517.1 of the Quebec Taxation Act for all businesses in all industry segments. This is essential if business transfers are to be more effective,” added Imbriglio.

The President and CEO concluded saying “The government made a very good decision by implementing the new rules for transferring family businesses in the primary and manufacturing sectors immediately rather than waiting until January 2017. This should now be done for all businesses in all sectors.”

The measures proposed to the Quebec government in a letter addressed to Finance Minister Carlos Leitão may be viewed at the following address: www.rcgt.com/consultation-budgetqc-2016-2017 (French only).

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 2,500 people, including some 230 partners. Together, Raymond Chabot Grant Thornton and Grant Thornton LLP, another Canadian member firm of Grant Thornton International Ltd, help dynamic Canadian organizations unlock their potential for growth with over 4,300 people and some 140 offices across Canada. Grant Thornton International Ltd provides clients with the expertise of member and correspondent firms in more than 130 countries, with over 40,000 people.

– 30 –

Source:

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

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16 Mar 2016

As a contributor for Les Affaires, Taxation Partner Luc Lacombe discusses additional income and the importance of declaring everything.

Read the article.