MONTRÉAL, March 20, 2012 – Raymond Chabot Grant Thornton is proud to publish its post-budget tax bulletin containing a summary of the main tax measures for individuals and enterprises announced by the Quebec Minister of Finance. The document is available here: www.rcgt.com/en/budget-quebec-2012.
Measures to Maintain Growth
The Firm would like to highlight certain budgetary measures that will assist enterprises and foster their competitiveness, specifically the creation of Ressources Québec and a $5M increase in the mining and hydrocarbon envelope.
In light of these measures, “there is no doubt that business is a central component of Mr. Bachand’s third budget, as evidenced by the $1.3 billion in new capital and investments to support business development through such measures as the creation of ESSOR 2.0 and PME 2.0, and investments in the clean technologies sector,” stated Bernard Poulin, Tax Partner.
Furthermore, to support the labour sector, the government has decided to invest $361M over three years to support businesses of all sizes in developing human capital skills, as well as earmarking $60M to upgrade specialized equipment and increase professional development.
“In a context where economic growth appears to be sluggish in the short term, these are decisions that will help Quebec business owners stay on course,” added Bernard Poulin.
Other Awaited Measures
Raymond Chabot Grant Thornton would also like to draw attention to the importance of addressing the issue of tax inequity in business transfers. On December 2, 2010, the Firm sent a copy of its related report entitled, “Business Transfers: Problems and Suggested Solutions” (http://www.rcgt.com/en/news/business-transfers-report/) to the Quebec and federal Ministers of Finance. Since then, the Firm has demonstrated a very clear interest in the matter, specifically in its reactions to last year’s budgets and by raising awareness about the inequity among tax authorities.
“In its Quebec Entrepreneurship Strategy released last fall, the government indicated that it would be reviewing tax issues related to business transfers to family members by 2014, alongside the federal government. We encourage the government to take action as soon as possible,” stated Jean Gauthier, Partner and National Tax Director. He continued by stressing that “the ongoing problem is that owners are at a disadvantage if they want to sell their business to their son or daughter, which is not the case if they were to sell to a perfect stranger.”
Suzanne Landry, University Partner, Tax Professor at HEC Montréal, and the report’s main author, specified that “for intergenerational business transfers, the capital gain is considered a dividend, which results in the seller losing the advantage of the capital gains deduction, representing up to $750,000. Therefore, it’s highly relevant for our governments to solve this matter once and for all to further stimulate family successions and the sustainability of local businesses.”
About Raymond Chabot Grant Thornton
Founded in 1948, Raymond Chabot Grant Thornton is a leader in the fields of assurance, taxation, consulting and recovery and reorganization services. The Firm owes its success to over 2,000 employees, including more than 230 Partners in over 90 offices in Quebec, eastern Ontario and New Brunswick. For the past 30 years, Raymond Chabot Grant Thornton has been a member of Grant Thornton International Ltd providing its clients with the expertise of member and correspondent firms in more than 100 countries.
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