MONTRÉAL, February 22, 2017 – Raymond Chabot Grant Thornton welcomes yesterday’s release of the A Plan to Strengthen the Québec Economy as an Executive-Driven Economy designed to support business leaders in Quebec. Among the measures announced, one in particular, dealing with tax equity for business transfers, addresses one of the firm’s repeated requests to ensure the longevity of our local businesses.
“It was imperative that action be taken to encourage family members to carry on the family business, particularly given the current demographics where more and more entrepreneurs are handing over the reins of their businesses. The decision to broaden business transfer tax equity to all businesses in all sectors is excellent news, particularly in a context where our economic growth depends on dynamic, competitive businesses.” stated President and CEO, Emilio B. Imbriglio.
As Regional Vice-President and National Business Transfer Leader, Éric Dufour, stated, “This is a great day for Quebec entrepreneurship. Ensuring tax equity for owners wishing to transfer their business to family members was overdue. From now on, all Quebec business owners can benefit from this tax equity when transferring a family business. This is a positive measure that keeps our wealth creators’ businesses under local, family ownership.”
The ball is now in the federal government’s court!
“We can only hope that the federal government will follow suit. We’ve been calling for such measures for a long time and will continue to do so, since, federally, the problem has not been addressed. This is an essential measure to boost family business succession, considering that the majority of our businesses are family owned,” stated Tax Partner, Luc Lacombe.
As a reminder, since Raymond Chabot Grant Thornton submitted a report on the business transfer tax equity issue in 2010, our firm has repeatedly made representations to the Quebec and federal governments calling for tax equity in this area.
We invite you to consult the pre-budget notices submitted last week to both Finance Ministers. To read the letter addressed to Quebec Finance Minister, Carlos Leitão, go to www.rcgt.com/consultation-budgetqc-2017-2018, and for the letter addressed to Federal Finance Minister, Bill Morneau, go to www.rcgt.com/consultation-budgetfederal-2017. The issue of tax equity for intergenerational business transfers is discussed in both these documents.
About Raymond Chabot Grant Thornton
Founded in 1948, Raymond Chabot Grant Thornton has become a Canadian leader in the fields of assurance, tax, consulting services, and business recovery & reorganization. Its strength is based on a team of over 2,300 professionals, including some 200 partners. Together, Raymond Chabot Grant Thornton and Grant Thornton LLP, another Canadian member firm of Grant Thornton International Ltd, help dynamic Canadian organizations unlock their potential for growth with over 4,100 professionals and some 140 offices across Canada. Grant Thornton International Ltd provides clients with the expertise of member and correspondent firms in more than 130 countries, with over 42,000 professionals.
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Senior Consultant – Public Relations
Raymond Chabot Grant Thornton