Raymond Chabot Grant Thornton submits budget recommendations to the federal and Quebec governments
Our unique perspective from both an industry and regional standpoint allows us to understand the realities of businesses, determine their needs and provide expert advice to meet their expectations. Once again this year, our firm is proud to submit budget proposals to further stimulate the growth of Quebec and Canadian businesses.
– Emilio B. Imbriglio, President and CEO
Montréal, February 7, 2019 – Stimulating wealth creation and providing our businesses with the means to achieve their ambitions are the driving forces behind the budget recommendations Raymond Chabot Grant Thornton has released today. These recommendations are based on four strategic priorities to enhance the performance of our businesses: equitable tax incentives, entrepreneurial succession, innovation and immigration.
“Our businesses have to respond to an increasingly competitive economic environment. It’s important not only to create additional leeway for them to invest and help generate wealth, but also to alleviate their tax burden,” stated firm President and CEO Emilio B. Imbriglio.
For more than 70 years, Raymond Chabot Grant Thornton’s mission has been to offer the best advice possible to help local businesses achieve their full potential for growth; their expertise combined with their knowledge of Quebec and Canadian businesses’ needs, positions the firm well to provide expert advice to ensure their success.
The following is an overview of the main recommendations based on the four key priorities that need to be considered to foster business competitiveness and productivity.
1. Equitable tax incentives
Among others, on the tax front, the firm is asking the governments to:
- Announce their intention to reflect on and revise family taxation and, more broadly, that the federal government, in collaboration with the provinces, establish a review process for the tax system, that would be led by independent experts and would lead to a major taxation overhaul for the country;
- Abolish corporate income tax on the first $500,000 of an SME’s taxable income, provided that the savings be invested in productivity, employment and innovation in a manner that avoids any possible abuse.
2. Entrepreneurial succession
The firm proposes the following measures for succession:
- Governments should set up a fund to support businesses so that they can call upon professionals to help them implement a formal, complete succession plan;
- The federal government should allow RRSPs to be used for funding entrepreneurs’ certified succession plans and for business investments;
- The Quebec government should introduce financial aid intended specifically for entrepreneurial start-ups, growth and succession in organizations in the finance sector and especially investment fund management firms.
Raymond Chabot Grant Thornton is suggesting that, for example:
- Governments create an innovation tax credit to help SMEs increase their technology investments and continue to grow;
- The Quebec government abolish the qualifying expenditure threshold for scientific research and experimental development (SR&ED). Failing this, SMEs should be exempted from the threshold or be able to carry forward their expenditures to subsequent years in order to qualify for funding;
- The federal government improve the performance of the SR&ED tax credit program by eliminating the taxable income or capital restrictions, provided businesses reinvest the resulting benefit in SR&ED activities, and by abolishing the discrimination in application.
For this fourth strategic priority, the firm recommends that:
- The Quebec government use a portion of the funds generated by the Immigrant Investor Program (not government subsidized) to cover some of the international recruitment costs incurred by businesses;
- The Quebec government expand the list of occupations not requiring a Labour Market Impact Assessment. Occupations could even be defined by each of Quebec’s administrative regions instead of for the province as a whole to better identify needs;
- The federal government consider reintroducing an innovative business immigration program whose funds would be used in a more targeted manner than was the case with the previous program.
The prebudget proposals forwarded to the federal and Quebec government and a summary of the recommendations may be viewed on Raymond Chabot Grant Thornton’s website at the following addresses:
- Brief submitted to the Quebec Finance Minister (in French):
- Brief submitted to the Minister of Finance of Canada (in French):
About Raymond Chabot Grant Thornton
Founded in 1948, Raymond Chabot Grant Thornton has become a Canadian leader in the areas of assurance, tax, advisory services and business recovery and reorganization, with more than 2,500 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 4,400 professionals and close to 170 offices across Canada to help Canadian organizations achieve their full potential for growth. Grant Thornton International Ltd and its member and correspondent firms provide clients with the expertise of over 50,000 professionals across more than 135 countries.
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Raymond Chabot Grant Thornton
07 Feb 2019 | Written by :