18 Mar 2020

Content updated on September 2, 2020.

** Unless otherwise indicated, these dates apply for federal and Quebec purposes. Additionally, the payment deadline extensions announced by the federal government apply to provincial income tax administered by the federal government, that is all provinces other than Quebec and Alberta (for corporations). **

In light of the current measures for countering the impacts of COVID-19 (coronavirus), the governments of Québec and Canada has announced the following flexibility measures with respect to filing income tax returns.

GOVERNMENTS OF CANADA, QUEBEC & OTHER PROVINCES

INDIVIDUALS

  • The deadline for filing income tax returns has been extended to June 1, 2020. For individuals in business, the filing deadline remains June 15, 2020. However, no late-filing penalty will be imposed if the return is filed on or before September 1, 2020. For federal purposes, this measure also applies to Form T1135 and all elections, forms and schedules to be filed with the return. No late-filing penalty will be imposed if the return is filed on or before September 30, 2020.
  • For individuals and individuals in business, the deadline to pay balances due regarding the 2019 taxation year is extended to September 30, 2020. This measure also applies to instalment payments due on June 15, 2020 and September 15, 2020. These amounts will not be subject to interest or penalties during this period.

TRUSTS

  • For trusts with a December 31, 2019 year-end, the filing deadline for T3 and TP-646 returns has been extended to May 1, 2020.
  • The filing deadline is extended to June 1, 2020 for trusts whose filing deadline would otherwise have been March 31 or April/May 2020.
  • The filing deadline is extended to September 1, 2020 for trusts whose filing deadline falls within the period from June 1 to August 31, 2020.
  • However, no late-filing penalty will be imposed if the return (including all elections, forms and schedules to be attached) is filed on or before September 30, 2020.
  • The deadline to pay any balances due regarding the 2019 or 2020 tax year returns that became due before September 30, 2020 and the payment of the June 15, and September 15, 2020 instalments is extended to September 30, 2020. These amounts will not be subject to interest or penalties during this period.

CORPORATIONS

  • The corporate tax return filing deadlines have been extended to June 1, 2020 for tax returns that were due after March 18, 2020 (March 16, 2020 in Quebec) and before June 1, 2020.
  • For returns due in June, July and August 2020, the filing deadline is extended to September 1, 2020 (including forms T106, T1135 and other elections, forms and schedules to attached to the federal T2). No late-filing penalty will be imposed if the return is filed and the payments are made on or before September 30, 2020.
  • The payment of instalments and income tax due as of March 18, 2020 (March 17, 2020 in Quebec) has been deferred to September 30, 2020 (August 31, 2020 in Alberta). No interest or penalty will be imposed during this period.
  • In Quebec, the payment extension to September 30, 2020 applies to the income tax, the mining tax, the tax on forestry operations and the annual registration fees for the Quebec enterprise register. However, it does not apply to tax on insurance, the compensation tax for financial institutions, the corporate capital tax or the tax on capital for life insurers.
  • In Quebec, the filing deadline for tax on lodging returns that were to be filed by April 30, 2020 (2020 first quarter return) has been postponed to July 31, 2020. Additionally, payments relating to returns that were to be filed as of March 27, 2020 and no later than June 1, 2020 have been postponed to July 31, 2020.
  • In Quebec, the filing deadline for mining tax returns that were supposed to have been filed from March 17, 2020 to May 31, 2020 is extended to June 1, 2020, while, for returns due in June, July or August 2020, it has been extended to September 1, 2020.
  • Revenu Quebec will accelerate the processing of requests for tax credits intended for businesses and tax refunds.

 

PARTNERSHIPS

  • The filing deadline for partnerships information returns (T5013 and TP-600) is extended from March 31, 2020 to May 1, 2020.

REGISTERED CHARITIES

  • The deadline for filing registered charity information returns (T3010 and TP-985.22) that had to be filed after March 18, 2020 (after March 17, 2020 in Quebec) is extended to December 31, 2020.

NR4 INFORMATION RETURNS

  • For the 2019 year, the filing deadline is postponed to May 1, 2020 However, the deadline for paying Part XIII non-resident tax (i.e. on the 15th day of each month after an amount is paid or credited by a resident of Canada to a non-resident) is unchanged.

ELECTION FORMS AND OTHER ADMINISTRATIVE OBLIGATIONS

  • The deadline for other filing returns, elections, designations and responses to information requests that would normally have to be filed on March 19, 2020 (March 17, 2020 in Quebec) is extended to June 1, 2020 and is extended to September 1, 2020 when the normal filing date would have been June 1 to August 31, 2020.

PAYROLL DEDUCTIONS

  • Payroll deductions and related activities must continue to be done on time (except for the reduction of payments relating to the temporary wage subsidy offered to SMEs in respect of income tax withholdings remittance on the salaries they paid and the HSF contribution credit provided by Quebec).

GST/HST, QST AND CUSTOMS DUTIES

  • There is no filing postponement for GST/HST and QST returns. However, no late-filing penalty will be imposed for GST/HST and QST returns due as of March 27, 2020 and on or before June 1, 2020 (the deadline is changed since May 31, 2020 is a Sunday) if they are filed on or before June 20, 2020.
  • In the case of GST/HST and QST payments have been extended to June 30, 2020 for the time that:
    • Monthly filers have to remit amounts collected for the February, March and April 2020 reporting periods;
    • Quarterly filers have to remit amounts collected for the January 1, 2020 through March 31, 2020 reporting period;
    • Annual filers, whose returns or instalments are due in March, April or May 2020, have to remit amounts collected and owing for their previous fiscal year and instalments in respect of the filer’s current fiscal year.
  • This extension measure is also applicable to custom duty payments.

PROVINCES OTHER THAN QUÉBEC

  • The payment extensions announced at the federal level will apply to provincial income tax in those provinces where the federal government collects tax, i.e. in provinces other than Québec and Alberta.

TAX AUDITS

  • The CRA is resuming its audit work and adapting its practices. Generally it will be prioritizing actions that are beneficial to the taxpayer or where taxpayers have indicated there is an urgency to advancing their audit. It will also focus on higher dollar audits first, audits close to completion, and those with a strategic importance to the government.
  • New methods of taxpayer and registrant interaction will be developed. For example, taxpayers will be able to send information via e-mail. Some key changes will relate to offering additional time and upfront consultation on requests to provide the CRA with information.
  • The CRA will review information requests send before March 16, 2020 and due after that date. According to previously announced measures, taxpayers have until June 1, 2020 to respond to these requests.
  • Revenu Québec is suspending all tax audit and collection activities except when a process is initiated by the taxpayer or in situations where there is a risk of fraud.

TAX COLLECTION ACTIVITIES

  • CRA is suspending collection activities on new debts; collection staff will address pre-existing situations on a case-by-case basis to prevent financial hardship.
  • Revenu Quebec is suspending all collection activities.
  • CRA and Revenu Quebec will offer flexible payment arrangements to taxpayers.
  • At the federal level, a taxpayer that is prevented from making a payment when due, filing a return on time, or otherwise complying with a tax obligation because of circumstances beyond their control, can submit a request to cancel penalties and interest.

OBJECTIONS AND APPEALS

  • At the federal level, any objection related to benefits and credits identified as a critical service will continue as usual. Objections related to other tax matters filed by individuals and businesses are suspended. No collection action will be taken with respect to these accounts during this time period .
  • For federal and Quebec purposes, the deadline for submitting an objection is postponed to June 30, 2002 for all objections that should otherwise have been filed between March 18, 2020 (March 14, 2020) and June 30, 2020.
  • The Tax Court of Canada resumed its activities on July 6, 2020.
  • In Quebec, the time limits for appeals are suspended from March 15, 2020 until the end of the state of health emergency.

TAX PREPARERS

  • Revenu Québec and the CRA have confirmed that they will allow tax preparers to use an electronic signature on Electronic filing authorization forms (TP-1000.TE-V for individuals and CO-1000.TE for corporations in Quebec and Federal Form T183).
  • Revenu Québec will also accept electronic signatures for Form MR-69 until September 1, 2020.

For more information, consult Revenu Québec’s website or Canada Revenue Agency’s website.

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16 Mar 2020

In this time of crisis associated with the rapid spread of COVID-19 (Coronavirus), the impact on organizations is already being felt on several levels.

Immediate measures must be put in place to protect the health of all those around and within the organization. Decisions must be made in anticipation of the coming months, particularly with respect to planning the various possible financial scenarios, implementing technological systems or new business models or managing human resources over the medium and long term.

We offer organizations in all industries leading-edge services in business continuity planning. Our team of experts, with recognized crisis management experience, can guide you through the steps to be taken from a strategic and operational standpoint.

To help you deal with this global threat, our specialists can assist you, among others, in:

  • The current situation with the pandemic;
  • Human resources management, including preventive health and safety measures and availability management;
  • Managing procurement chains;
  • Technology considerations and cybersecurity;
  • Legal considerations and contractual obligations;
  • Third-party relationships (suppliers, customers, etc.);
  • Communication.

Contact us today and ensure your business’s continuity.

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11 Mar 2020

2020-2021 Quebec Budget: Raymond Chabot Grant Thornton Would Have Liked to See More Tax Relief for Businesses

QUÉBEC CITY, March 10, 2020 – Raymond Chabot Grant Thornton expressed its opinion on the Quebec budget tabled today and published its tax bulletin that was drafted today by a team of tax experts present at the lock-up in Québec City.

The firm welcomes François Legault’s government second budget and appreciates the measures aimed at protecting the environment with the $6.2B electrification and climate change framework policy over six years, investing more massively in education with additional funding of $1.5B between now and 2025, and supporting investments, innovations and improved business productivity with more than $1B.

However, Raymond Chabot Grant Thornton would have expected a greater reduction in the corporate tax burden and more convincing support for entrepreneurial succession, two key elements for ensuring the sustainability of Quebec’s economic drivers.

A fair, incentive-based tax system!

For several years now, Raymond Chabot Grant Thornton has been calling for a review of the Quebec and Canadian tax systems. Emilio B. Imbriglio, President and CEO stated: “In addition to having lost its advantage over the U.S. since the President’s corporate tax reform, our small business tax system is outdated, and the corporate tax burden is too high. To give a real boost to our businesses, it would have been better, even necessary, to reduce the general corporate tax rate to keep it at a more attractive level compared to the United States and review corporate and family taxation, which includes several unfair provisions that are not suited to today’s realities.”

Appropriate measures for business growth

The budget contains key announcements for the economy and its businesses that the firm would like to highlight, specifically as it relates to the new tax credit for investment and innovation, the C3i. Tax Partner, Luc Lacombe said: “This $525M tax support over five years is an excellent way to accelerate the purchase of equipment in order to allow businesses to innovate and remain more competitive. In addition, the incentive deduction for the commercialization of innovations (IDCI) is good news for reducing income taxes on products developed and marketed using Quebec corporations’ intellectual property. The synergy capital tax credit is also a significant measure for businesses that want to support innovative enterprises’ growth. This credit is equal to 30% of the investment value up to $750,000. Moreover, funding announced for regional economic development of close to $1B between now and 2025, including $316 million for the tourism sector, is also a strong budget provision to ensure a strong and prosperous Quebec.

Doing more in immigration, a key to Quebec’s success

Despite these announced measures to better integrate immigrants into the labour market, there is still work to be done such as provide foreign workers quickly and effectively. Marc Audet, President of AURAY Sourcing, a subsidiary of Raymond Chabot Grant Thornton stated: “The Quebec government must streamline the administrative aspects for temporary workers by simplifying the conditions and procedures faced by SMEs in recruiting labour. The budget is providing $10M to attract the most qualified foreign talent to Quebec. Employers’ efforts to recruit internationally would require more convincing government assistance.”

Marc Audet added: “The Quebec Immigrant Investor Program needs to be maintained, in a renewed format, because of the positive spin-offs for the Quebec economy, both in terms of the candidates’ profile and their contribution to financing business projects and government programs. We sincerely hope that the program’s suspension will not last too long, allowing Quebec to maintain its leadership with this globally coveted clientele particularly as a result of strategic partnerships developed between various government departments and the private sector.”

Going beyond entrepreneurial intentions and approaches

If Quebec wants more owners, and consequently more businesses, the ownership rate must increase, rather than decrease, as is currently the case. Éric Dufour, Regional Vice-President and National Business Transfer Leader stated: “New entrepreneurs need to move from intent to start-up and therefore need to have a better understanding of all the government support programs available to them. The success of Quebec’s entrepreneurial succession also depends on businesses’ ability to develop a formal, written succession plan and on greater financial support from the government to ensure that leaders are accompanied by professionals. We reiterate that, in order to ensure the effective implementation of succession plans—an essential condition for the success of business transfers—the Quebec government must develop new mechanisms particularly as it relates to the certification of professionals and accreditation of succession plans.”

Imbriglio stated: “The budget contains some sound measures for our economic drivers. However, the tax burden on businesses remains high, and the economic environment could be difficult. In 2021, the Quebec government is forecasting a balanced budget, after the payment to the Generations Fund. Let’s hope that our companies’ perform according to their ambitions and that our public finances remain healthy.”

Please consult Raymond Chabot Grant Thornton’s pre-budget recommendations submitted to the Canada and Quebec Finance Ministers.

About Raymond Chabot Grant Thornton

Raymond Chabot Grant Thornton is a professional services firm dedicated to the success of organizations and their leaders since 1948. The firm’s advisors are committed to helping clients thrive by obtaining a deep understanding of what is important to them, their business and their industry. This knowledge, combined with a team of motivated and talented professionals, helps accelerate growth. A Quebec and Canadian leader in the areas of assurance, tax, advisory services and business recovery and reorganization, Raymond Chabot Grant Thornton relies on a team of more than 2,800 professionals, including approximately 200 partners, working in over 100 offices across the province and in the Ottawa and Edmundston regions.

Together with Grant Thornton LLP, another Canadian firm, and the Grant Thornton global organization, our global footprint spans across more than 140 countries with over 56,000 people who provide real insight, a fresh perspective and agility to keep clients moving ahead.

Source:

Francis Letendre
Head, Public Affairs
Raymond Chabot Grant Thornton
Tel: 514-390-4201
Email: [email protected]

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09 Mar 2020

Dovetail Dental Software successfully concludes a capital raise led by Raymond Chabot Grant Thornton to support market expansion.

The current raise will allow the Company to accelerate sales, scale its operations and further expand its product offerings into other health and wellness verticals.

Founded in 2012, Dovetail is a division of Gaargle Solutions Inc., a North American-based provider of Software-as-a-Service (SaaS) solutions for the Health and Wellness sector. Since inception, the Company has made significant inroads into the dental space with the introduction of Dovetail, one of the world’s first truly 100% mobile, cloud-based dental practice management software.

While the Company continues to grow through its traditional acquisition channels, some of the large distribution deals and strategic partnerships it has secured in the past years have been fuelling its global expansion significantly.

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Dovetail - logo

Dovetail concludes a capital raise to support market expansion

Dovetail empowers dental practices to work faster, smarter and more efficiently with its digital workflows designed by a dental surgeon and enables them to manage every aspect of their practice in one easy-to-use application accessible from any device. The Company has managed to differentiate itself in the competitive landscape with its elegant and fully customizable solution which is seamlessly implemented in dental practices. Patient engagement is at the core of the platform with tools designed to improve patient experience and help grow the practice.

“Raymond Chabot Grant Thornton is proud to support a digital company with an innovative vision for the health and wellness sector”, said Yasser Waly, Partner at Raymond Chabot Grant Thornton

In addition to the capital raise, the Company recently appointed Marie Eve Prevost as CEO and Bernard Prevost as CFO, co-founders of MissFresh, a Canadian-based online subscription meal kit delivery service. Started in 2015, they sold a 70% interest to Metro Inc. in 2017 and fully divested in December 2019 when it was acquired by meal kit competitor, Cook it.

“Dovetail has been successfully helping dentists around the world focus on what they do best while we take care of the rest. With an experienced, results-oriented management team in the digital space and the recent capital raise, we’re poised to accelerate our expansion plans and capitalize on new markets”, said Pietro Di Battista, Founder of Dovetail

Raymond Chabot Grant Thornton acted as the exclusive financial advisor to Gaargle.

To learn more about how Raymond Chabot Grant Thornton can help meet the needs of your business, please contact our Corporate Finance team.

About Raymond Chabot Grant Thornton

Our leading mid-market focused corporate finance advisory team provides sector-specific advice on mergers, acquisitions and divestitures, debt and equity capital markets. We bring deep industry knowledge to each transaction to support our clients’ corporate finance strategies and priorities.

A Quebec and Canadian leader in the areas of assurance, tax, advisory services and business recovery and reorganization, Raymond Chabot Grant Thornton boasts more than 2,800 professionals. Raymond Chabot Grant Thornton is a member company of Grant Thornton International and the Canadian counterpart of Grant Thornton LLP. Our global footprint spans across more than 140 countries with over 56,000 people who provide real insight, a fresh perspective and agility to keep clients moving ahead.

Deal team:

Yasser Waly, Partner
Mark Rossi, Partner