19 Apr 2018

New income splitting rules were introduced by the federal government on January 1, 2018. In an article in Les Affaires, Luc Lacombe, Tax Partner at Raymond Chabot Grant Thornton, explains the impact of those new measures.

Those measures alter several aspects of the current law and impact, particularly, the benefits for incorporated professionals and entrepreneurs.

Luc calculated the tax savings that incorporated professionals could earn if they split their income with a spouse and two children through a corporation. “(…) In total, the tax authorities can only recover 28.8% of the $250,000”, he observed. “This structure generates entirely legal tax savings of $40,000! Up until last year, the only thing to keep in mind was to ensure that the money paid to family members as dividends was not returned to the incorporated professional or entrepreneur.”

Use of this practise exploded in the early 2000s when the government granted tax credits to corporations and gradually increased the tax on high income individuals. The gap also increased when incorporation was permitted in several professions, thereby promoting income splitting strategies. Today, numerous advantages have been withdrawn.

Luc states: “I believe without a doubt that this reform targets incorporated professionals, starting with doctors. Through its reform, the government almost entirely cuts off their access to income splitting (among others).”

To learn more about these new measures, read the article (in French only) published in Les Affaires on March 10, 2018.

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13 Apr 2018
Louis Roy
Partner and president of Catallaxy | CPA, CA | Digital and technology consulting

Louis Roy, Assurance Partner and Blockchain Technology Leader at Catallaxy, a subsidiary of the firm, recently contributed to an article with The Canadian Press to discuss Canadian securities regulators’ growing interest in cryptocurrencies.

As mentioned in the article, Louis Roy is not surprised by the regulators’ attention to cryptocurrencies. He goes on to explain: “With initial coin offerings (ICO), in nine out of ten cases, you’ll see just about anything. We firmly believe in the blockchain. What’s unfortunate with ICOs is the scandals that generate bad press. For both investors and companies that want to proceed with an initial offering, prudence is the way to go.”

The more currencies in circulation, the more we can expect regulators to take an interest. To learn more about cryptocurrencies and their impact on the securities markets, read the Canadian Press article in La Presse or Le Droit (in French only).

19 Apr 2018  |  Written by :

Louis Roy is a partner at Raymond Chabot Grant Thornton. He is your expert in assurance for the...

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12 Apr 2018
Benoit Turcotte
Partner | M. Fisc. | Tax

A successful tax symposium on the U.S. tax reform organized by Raymond Chabot Grant Thornton took place on March 20-21, 2018 at the Fairmont The Queen Elizabeth.

Some 80 participants attended our experts’ conferences. These knowledgeable experts provided food for thought on cross-border strategies and informed participants about U.S. transaction considerations.

In addition to cross-border strategies, topics included the Trump government’s tax initiatives, recent developments in the U.S., international structures and State and Local Taxes (SALT).

Our experts in attendance

Speakers included three Grant Thornton LLP (GT U.S) experts: Paul Beecy and Christopher Martin, Partners, Tax Services and Pete F. Simpson, Practice Leader, International Tax Services. Four Raymond Chabot Grant Thornton partners were also present: Benoit Turcotte and Alexandros Gamaletsos, U.S. Tax Partners and Pierre Bourgeois and Daniel Marion, International TaxPartners.

In conjunction with this conference, Benoit Turcotte, U.S. Tax Specialist, was invited to share his expertise during a seminar organized by the Chamber of Commerce of Metropolitan Montréal titled États-Unis : une vision à long terme pour nos exportateurs. He then presented an update on the U.S. tax reform and its impacts as well as key measures for doing business in the United States and avoiding costly errors.

Please do not hesitate to contact our experts for your international tax need.

From left to right: Pete F. Simpson, GT U.S.; Benoit Turcotte, Raymond Chabot Grant Thornton; Daniel Marion, Raymond Chabot Grant Thornton; Alexandros Gamaletsos, Raymond Chabot Grant Thornton; Paul Beecy, GT U.S.; Pierre Bourgeois, Raymond Chabot Grant Thornton; Christopher Martin, GT U.S.

19 Apr 2018  |  Written by :

Mr. Turcotte is a partner at RCGT. He is your expert in taxation for the Montréal office. Contact...

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11 Apr 2018
Éric Lebel
Partner | CPA, CA, CIRP, LIT | Recovery and reorganization

Éric Lebel, Partner and Licensed Insolvency Trustee, participated in the major Les Affaires Plus supplement on debt in which he shared his expertise and discussed the consequences of insolvency such as bankruptcy in certain specific cases.

Lebel, who sometimes describes himself as a financial doctor, explains: “When [people] finally resign themselves to call us, they’ve reached the end of their rope. They’ve been suffering in silence for months or years, because few people want to discuss their financial issues. (…) At times however, bankruptcy is the only solution.”

Our expert recommends taking the time to find the right professional to avoid any surprise.

To learn more, download the supplement below published in the March 2018 edition of Les Affaires Plus (in French only).

19 Apr 2018  |  Written by :

Éric Lebel is a partner at Raymond Chabot Grant Thornton. He is your expert in recovery and...

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