02 Nov 2011

On October 17, 2011, this group of experts released its report to the public entitled: Innovation Canada: A Call to Action. The objective of the Jenkins panel is to promote the innovation of local businesses, without generally impacting the government of Canada’s research and development (R&D) funding. The group of experts, therefore, made recommendations on the effectiveness of Federal R&D funding programs.

Among the six recommendations to promote business innovation, only one would have specific impacts on scientific research and experimental development (SR&ED) tax credits being claimed by SMEs: Simplify the tax credit incentive used to support small- and medium-sized enterprises.

Three of the suggested measures to achieve this recommendation would have a direct impact on the administration of the SR&ED program:

 Measures  Current Situation  Impacts of Proposed Recommendations
 1. Improve the Preclaim Project Review Service (PCPR) A preliminary review does not guarantee that a project will be eligible for the SR&ED credit once completed. Results in entities receiving prior approval as to their eligibility for the tax credit.
 2. Simplify the base on which the credits are calculated Credits are calculated on the costs of internal and external labour, the material consumed and on equipment used 50% and more on SR&ED.Complex calculations and eligibility that is difficult to estimate and predict Calculate the credits only on the costs related to internal and external labour and gross-up the rate. Simplified calculations and savings for the government. These savings will be redeployed to finance direct support measures for SMEs.
 3. Introduce incentives that encourage SME growth The refundable portion of the credit is paid out, even if the enterprise does not generate taxable income. The refundable portion should be decreased so that a portion of the savings is redeployed to increase the enterprise’s profitability.For those entities in the pre-start-up phase, the refundable tax credit on labour-related costs would be guaranteed for a specific number of years.

 

In conclusion, if the government accepts the key conclusions of the Jenkins report, the program will maintain its status as a cornerstone of R&D financing in Canada and be available to enterprises of all sizes and in every sector. In this case, the program’s eligibility and spirit will remain intact.

To consult the Expert Panel Review report on R&D, go to:
http://rd-review.ca/eic/site/033.nsf/eng/home

 

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12 Oct 2011

On October 3, Raymond Chabot Grant Thornton’s Rouyn-Noranda office moved to a new location. The larger and more functional environment will enable better service to clients. The team’s Assurance professionals will be pleased to welcome you in this new location.

The new address is 50 Dallaire Avenue in Rouyn-Noranda.

The telephone and fax numbers are the same.

Remember that the Raymond Chabot Inc. team is staying at the same address, i.e., 147 Mercier Avenue in Rouyn-Noranda.

We wish them the best at their new location!

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06 Oct 2011

Raymond Chabot Grant Thornton is releasing the results of a survey on optimism among business executives. The findings gleaned from the Grant Thornton International Business Report (IBR) indicate that Canada is doing well economically on the international stage. Canadian business executives are optimistic about hiring, GDP growth, and business profitability forecasts, as well as revenue and investment outlooks in infrastructures and machinery.

If Canada is 6th in the world behind the Philippines, Georgia, the United Arab Emirates, Mexico and Chile, it leads all Western nations, and is far head of the pack of European countries and the United States. This enviable position is primarily due to the robustness of the Canadian financial system and the strength of Loonie, which is spurring infrastructures and machinery investments.

That said, the global trend is quite downbeat, as the optimism level of business executives plummeted during the last quarter from 31% to a low of only 3%. This trend stands in very sharp contrast to the optimistic sentiment of Canadian business executives, which is still at 60%. Ominously, this uncertainty has also spread to key emerging markets, with both China and India seeing net optimism decline by 29 percentage points. The optimism of business owners in western markets has taken a hit as well: optimism nosedived from 42% to -2% in the U.S. and from 34% to 0% in the EU.

These figures are the worst since 2009, when we were in the midst of the global recession. The worrying thing is that negative sentiment about the wider economy is now damaging business growth prospects.

Businesses are telling us they feel they have no control over how things are going to turn out. There’s a perception that attempts to create stability and stimulate growth just haven’t worked. An economic outlook that appeared to be improving just three months ago has been replaced with one of total uncertainty. Moreover, rising shortages of demand were reported not just in Europe and North America but also in the BRIC, South East Asian and Asia-Pacific economies. Incidentally, two years ago the same survey indicated that the emerging markets would underpin the global recovery. But now they are also suffering a crisis of confidence.

This finding seems to refer in particular to the current economic uncertainty and financial instability prevailing internationally, and especially in Europe. Agreeing on a package of measures to restore both investor stability and confidence is arguably the single biggest challenge facing policymakers.

Click the following link to view the Grant Thornton International Business Report (IBR): http://www.grantthorntonibos.com/index.asp.

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26 Sep 2011

September is upon us and Raymond Chabot Grant Thornton has begun its university recruiting activities.

The university recruiting of future chartered accountants is a priority for RCGT. By joining our ranks, we are convinced that future chartered accountants will be able to discover their passions, find the right balance, explore their hidden talents and much more!

This year, we invite future CAs to discover what successes await them! When future CAs and juniors browse the rcgt.com Web site and its section on university recruiting, they will realize that they can count on our Firm to develop their potential and ensure their success!