MONTRÉAL, October 26, 2017 – Raymond Chabot Grant Thornton, Quebec’s top accounting firm, believes it’s important to enhance the efficiency and fairness of our tax system for all taxpayers and applauds the government’s decision not to adopt a number of the measures in the July 18, 2017 legislative proposals. The government will, therefore, be able to properly analyze the many comments received during the consultation that ended October 2nd, and, it is hoped, will introduce measures to foster the growth of SMEs.
The firm also believes that the reduced tax rate for small and medium businesses confirmed in Minister Morneau’s economic update are a better choice for boosting the growth and competitiveness of businesses than the July 2017 proposed measures. Raymond Chabot Grant Thornton is pleased with the various changes to lighten middle class individuals’ tax burden.
Raymond Chabot Grant Thornton, a business partner for Quebec and Canadian enterprises for over 70 years, works daily to provide them with the means to fulfil their ambitions in order to unlock their full potential. Emilio B. Imbriglio, President and CEO, said: “We know what the needs and challenges of entrepreneurs are, and we recognize that recent changes to the proposed tax measures are positive, but they don’t fully allow businesses to perform at the height of their ambitions, especially in regard to intergenerational business transfers, a key issue for our firm.”
Business transfer taxation still unfair
Even if the federal government decided not to act on the proposals, in particular, those concerning the conversion of income into capital gains and the Lifetime Capital Gains Exemption, tax unfairness still exists for intergenerational business transfers. For several years, the firm has been making representations before the Quebec and Canadian governments to make business transfers to a family member fairer for all businesses in all economic sectors. Imbriglio adds, “We have succeeded in convincing the Quebec government to act on this, but the issue is still there on the federal side. We think this is entirely unacceptable, especially when the Finance Minister of Canada’s objective is greater tax fairness.”
Lower taxes welcome
Luc Lacombe, Tax Partner, stated: “The fact that they held their electoral promise to lower the SME tax rate to 9% as of 2019 is great news for our economic drivers. Without undermining the contribution of our workers, an economy without entrepreneurs is not a healthy one. Our tax system needs to acknowledge the risks our entrepreneurs assume. If other tax reforms are to be proposed in the near future, it’s important for the government to take this reality into consideration and do more to promote our entrepreneurs’ investments and innovation.”
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 2,300 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.
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Senior Consultant – Public Relations
Raymond Chabot Grant Thornton