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to having lost its advantage over the U.S. since the President’s corporate tax reform, our small business tax system is outdated, and the corporate tax burden is too high.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.


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 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

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06 Mar 2020

We are pleased to highlight the appointment of Johanne Quessy as Regional Vice-President of the Abitibi-Témiscamingue region, effective March 5, 2020.

A Chartered Professional Accountant (CPA, CA) and tax specialist with our firm since 1994, Johanne Quessy became a Partner in 1998. She also sat on the Partnership Board from 2016 to 2019.

During her career, she has been involved with numerous organizations in her region, such as the Corporation de développement industriel et commercial de Val-d’Or, initially as a director, then Chair.

Johanne is the first woman to take on the role of Regional Vice-President and we are delighted with her appointment. “Our journey is inspiring and I look forward to our future.”

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06 Mar 2020

Boosted by its leadership position and the acquisition of Morin Cadieux SENC in the fall of 2018, our firm announces the expansion of its offices on Bellefeuille Street in Trois-Rivières.

Expanding from 9,000 sq. ft. to 14,500 sq. ft., the premises now allow us to offer our clients and Saint-Joseph Street staff access to a more innovative environment and to consolidate the work teams located in two offices since the acquisition.

Some twenty employees now join the thirty or so partners and employees whose ambition, know-how and professionalism contribute to our clients’ success and our teams’ mobilization.

The completion of this project is a source of collective pride for the employees of our Trois-Rivières office.

Magalie Lebel-Lemire, Partner and Assurance Leader in the region said, “They place their trust in us, inspire us to excel and, through their entrepreneurial spirit, leave their mark on the history and growth of our dynamic region. We share a constant desire to strive for quality, innovation and excellence.”

François Dupuis, Trois-Rivières office Managing Partner added, “The diversity of the services we offer, our organizational structure adapted to local markets and the extent of our presence in the Nicolet and Mauricie community attest to our deep desire to support the region’s entrepreneurs and encourage the attraction and retention of talent. Our new two-storey work environment and access to a wide range of expertise are part of our pursuit of this important objective, as well as our desire to offer some fifty employees a motivating and unifying work environment.”