2018-2019 Quebec Budget: Raymond Chabot Grant Thornton Publishes its Tax Bulletin and Comments
QUÉBEC CITY, March 27, 2018 – Raymond Chabot Grant Thornton published its tax bulletin on measures unveiled by the Quebec Finance Minister and is taking this opportunity to applaud certain measures and highlight a number of issues it believes to be of importance to further increase Quebec’s competitiveness. The tax summary was prepared by a team of experts in the budget lock-up.
Finance Minister Carlos Leitão’s fifth budget may be proposing significant measures to support the growth of Quebec businesses, but the numerous measures announced will be plunging Quebec back into a deficit for the next two years.
Anticipated tax relief for SMEs welcomed
Raymond Chabot Grant Thornton commends the income tax reduction for SMEs in the services and construction sectors and the payroll tax reduction, among others. Tax partner, Luc Lacombe, stated: “These direct $2.2B savings over five years are important for our economic drivers. SMEs should be focusing on ways to innovate and stand out, here and on the foreign marketplace, as well as on their growth and Quebec’s prosperity, not worrying about the enormous tax burden placed upon them. The measures announced today address this concern.”
In reference to the announced tax cut for SMEs in the services and construction industries, President and CEO, Emilio B. Imbriglio, said: “This was something that had to be done; businesses need a boost to innovate and continue prospering. The Finance Minister could have gone further by following our recommendation to eliminate the tax on the first $500,000 of taxable income for all SMEs in order to fuel their growth. Eliminating this tax would be subject to SME’s savings being applied to productivity, employment and innovation, in a manner that avoids abuses.”
Supporting business transfers: a strategic issue
Raymond Chabot Grant Thornton applauds the 2017-2022 Government Action Plan on Entrepreneurship released March 23rd. Stimulating entrepreneurship and fostering business transfers are important priorities for a strong Quebec. Regional Vice-President and National Business Transfer Leader, Eric Dufour, added: “In order for business transfers to be more efficient and sound, it would have been better if the budget had removed the government’s current restrictions that hinder family succession. Business owners are subject to very restrictive conditions designed to avoid abuses, for example, requiring a total, rather than a partial transfer of the business, thereby precluding any interest by the owner after the sale.”
Business immigration in support of innovation
In the prebudget consultations, Raymond Chabot Grant Thornton recommended that the Quebec government gradually increase the number of immigrant investor files and increase the regulatory investment required of immigrant investors from $800,000 to $900,000.
Marc Audet, President and CEO of Auray Capital Canada, a subsidiary of Raymond Chabot Grant Thornton, stated: “Our objective with this innovative proposal is for the $100,000 difference to be considered as a direct, non-refundable contribution by the investor to a Quebec development fund, similar to the fund to finance innovative manufacturers. At no added cost to Quebec taxpayers, this recommendation would serve to generate over $1B in additional income over the next five years, provided the quotas and accepted files are increased. Demand for the Quebec immigrant investor program is strong. This formula would increase Quebeckers’ financial means, while fostering the retention of immigrant investors, which remains a major issue.”
Managing public debt and plunging Quebec back into a deficit
In its prebudget recommendations submitted to the government last February, the firm emphasized the importance of the government respecting its debt reduction objectives, particularly in the context of rising interest rates. Imbriglio concluded: “We are very pleased to see that the Generations Fund will be used to partially pay down Quebec’s debt over the next five years. The government’s development must not be detrimental to future generations. Stringent debt management is crucial. However, it would have been better to maintain fiscal restraint rather than plunging Quebec into a deficit for the next two years, as provided in the current scenario.”
Consult the prebudget recommendations submitted to the Quebec Finance Minister by Raymond Chabot Grant Thornton.
About Raymond Chabot Grant Thornton
Founded in 1948, Raymond Chabot Grant Thornton has become a Canadian leader in the areas of assurance, tax, consulting services and business recovery and reorganization, with more than 2,300 professionals, including approximately 200 partners. Together, Raymond Chabot Grant Thornton and Grant Thornton LLP, another Canadian member firm of Grant Thornton International Ltd, comprise more than 4,200 professionals and close to 140 offices across Canada to help Canadian organizations achieve their full growth potential both locally and globally. Grant Thornton International Ltd’s member and correspondent firms provide clients with the expertise of some 47,000 professionals in more than 130 countries.
Source:
Francis Letendre
Senior Advisor – Public Relations
Raymond Chabot Grant Thornton
Tel.: 514-390-4201
[email protected]
28 Mar 2018 | Written by :
Marc Audet is the President & CEO of AURAY Capital International and expert in Residency and...
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Congratulations to Marc Lévesque, who received the Regroupement des CPA du Saguenay-Lac-Saint-Jean Emeritus Award on March 1, 2018 before his peers.
Marc obtained his CPA designation in 1991. The success he reaped from creating his own firm in Saint-Félicien is proof of his professional dynamism and innate business acumen.
In 2001, he joined Raymond Chabot Grant Thornton as the partner in charge of the Haut-Lac-Saint-Jean office, then the Chibougamau office in 2008. His knowledge of the region’s economy, bold vision of the objectives to attain, and ability to efficiently engage resources have contributed to the firm’s growth and the development of long-lasting relationships of trust with a diverse clientele over a large territory.
Concurrently with his successful career, Marc volunteers in the regional tourism development. He is a member and Board President of the Zoo de Saint-Félicien; Marc is also one of the founding members of the Corporation de la Véloroute des Bleuets. As Chair of the tourism committee, he has participated in the implementation of a project on the former site of the Grands Jardins de Normandin and is currently president of the Centre local de développement Domaine-du-Roy.
Marc supports young people in his community, especially as a founding member of the Décroche l’avenir day, and as board member of the local soccer club and the Club de ski Avalanche. He also trains young entrepreneurs.
Marc Lévesque, CPA Emeritus, promotes his profession by making his outstanding know-how, leadership and human values available to his clients and fellow citizens of the Saguenay–Lac-Saint-Jean region.
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Congratulations to Guy Fauteux, Partner and Vice-President of the Eastern Townships’ region, and Gilles Henley, Partner and National Director of Professional Standards, on having obtained the prestigious title of FCPA from the Ordre des comptables professionnels agréés du Québec. Our firm now boasts no fewer than 20 FCPAs.
Guy Fauteux stated: “This recognition is the result of work I’ve always been passionate about. Since the very start of my career, I’ve always been motivated by the success of my clients and colleagues. Being an accountant means being engaged in our communities and showcasing the profession through our involvement. I plan on being a proud ambassador of the profession for many years to come.”
Gilles Henley said: “I’m very pleased to receive this distinction, but I won’t stop here. Passing on my knowledge and advising colleagues are what I thrive on. I will continue to tactfully and diligently share my expertise with the practitioners I support. I’m also very proud of my involvement to advance our profession. Over the years, in my work with CPA Canada and the Ordre des CPA, I have had the opportunity to work on major issues with a wide variety of colleagues. It’s very rewarding.”
Emilio B. Imbriglio, President and CEO of Raymond Chabot Grant Thornton, added: “I extend my warmest congratulations to Guy and Gilles on receiving this well-deserved honour. They have made a remarkable contribution to the profession and the firm. We are privileged to have such high calibre colleagues to advise our clients and professionals. Thank you for promoting our profession and contributing your outstanding talent to our mutual success.”
Passion, commitment and integrity
The title of Fellow of the Order, designated by the initials FCPA, formally recognizes those members who have rendered outstanding service to the profession, or whose achievements in their careers or in the community have earned them distinction and brought honour to the profession.
Our colleagues will be officially honoured at the Soirée des Fellows which is usually held in May. For more information on the Ordre des comptables professionnels agréés du Québec and the accounting profession, go to www.cpaquebec.ca.
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Senior Manager – Assurance
Sainte-Marie Office
CLEARR Value: AGILITY
“Our clients know we’re there to support them as they progress. The diversity of our clients’ requests is what drives me.”
At the end of high school, Chantal Gravel’s first intention was to study music at Cégep de Sainte-Foy. “I’d been playing piano since I was very young. I was very nervous at the admissions test and had disappointing results. I had done well in school, so in the end, I chose pure and applied sciences. I then did a Bachelor of Commerce at Université de Sherbrooke, because I liked the work-study coop program, with on-site experience.”
Chantal mentions she greatly admired her parents, both entrepreneurs in Sainte-Marie, in Beauce. “My father took over my grandfather’s wholesale workwear business. He developed and grew the company. My mother studied part-time for seven years to obtain a degree in gemology, while raising my two brothers and me. She studied at the same time as we did. She owned a jewellery store and wanted to perfect her knowledge to better advise her clients. My parents worked hard and with their lifestyle as an example, it seemed normal for me to have a demanding professional life while raising a family.”
Chantal’s parents introduced her to the realities of entrepreneurial life at a young age, but they also passed on their optimistic view of life. “For example, with my father, nothing is ever so bad. His gift to me was developing my confidence in people, in life. I never stay unhappy for a long time, even when something difficult happens.”
Chantal has been with RCGT for 21 years, at the Sainte-Marie office and explains the characteristics of a small regional office. “We don’t specialize, because our clients count on us to address a vast array of needs. We forge close relationships with SME owners. We carry out recurring assurance engagement, such as audits, but our involvement extends much further. Our clients know we’re there to support them as they progress. The diversity of our clients’ requests is what drives me.”
What do her team and clients say about her most often? “That I listen. I find that very gratifying, because I think that’s an important quality to nurture, at work and in our personal lives.”
Developing flexibility and open-mindedness
Chantal has boundless energy that she attributes to her healthy lifestyle. “Eating healthily and exercising are very important to me. I play ringette once a week, and depending on the season, I train a few times a week in the gym or I jog or swim. I’ve always been active. Since I have to be very organized as the mother of three children, I plan my activities in my schedule.”
In December 2016, a friend of Chantal’s suggested they sign up together for the Cap Fémina Aventure. “It’s an off-road rally in the Moroccan desert in teams of two, in a jeep or an ATV. There is also a charitable component to this 10-day adventure. Last year, it consisted in painting a school in El Fida, with the local population.”
“I had to move out of my comfort zone to raise funds! Soliciting funds is intimidating. My colleagues and my employer help me, and we were able to raise close to $22,000.”
She goes on to say, “During the rally, there were numerous opportunities for me to let go. I’m the type of person who likes to be in control, but in this context, that’s just not possible! When my teammate and I disagreed about something, we absolutely had to be flexible. We finished 13th out of 72 teams, and are very proud of our results.”
“You don’t always realize how deep-rooted certain habits can become. By agreeing to push myself beyond my limits, I discovered inner resources I never knew I had. And now, I can apply them every day,” Chantal adds.
