22 Feb 2017

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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Source:

Francis Letendre
Senior Consultant – Public Relations
Raymond Chabot Grant Thornton
Tel.: 514-390-4201
letendre.francis@rcgt.com

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21 Feb 2017

The Saturday, February 18, 2017 editions of the Journal de Montréal and Journal de Québec provided much financial and tax information, in particular with the publication of a special insert on RRSPs. Raymond Chabot Grant Thornton Tax Partner, Sylvain Moreau, a columnist for both newspapers, published two articles in the same edition of these papers.

A picture of all the collaborators of the Argent section “Dans vos poches” column, including Sylvain, also appears in this edition (pages 14 & 15).

 

Read the article on RRSPs: “Cotisation REER: que faire avec votre remboursement d’impôt?” and the one on wealth which is also available on the website of the Journal de Montréal: Patrimoine: cinq trucs fiscaux pour en améliorer la valeur.

 

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15 Feb 2017

Over-indebtedness is hitting hard for Quebeckers aged 55 and over and, in many cases, unfortunately, leads to bankruptcy. Éric Lebel, Partner and Trustee discuss this troubling phenomenon recently in various media to raise awareness about this worrisome trend.

Stunning 131% increase

In the past ten years, there has been a 131% increase in the number of people aged 65 and older who have gone into bankruptcy in Quebec! The most recent Equifax quarterly report reveals a similar situation: since 2011, debt levels for the 55 to 65 age group are up by 28.7% and for the 66 years and older group, they are up by 47.5%

Leaving behind debts

This means that more and more people are inheriting nothing but debts. The number of individuals who have refused an inheritance, generally for that reason, increased from 1,384 in 1994 to 4,472 in 2016.

For more information, read the following articles (in French):

 

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15 Feb 2017

Our firm has been assisting businesses attain success for close to 70 years. We understand their situation and, more important, what they need to achieve their full potential for growth. The purpose of the proposed measures is, therefore, to enhance the performance and competitiveness of our businesses.
– Emilio B. Imbriglio, President and CEO

MONTRÉAL, February 15, 2017 – As part of the pre-budget process, Raymond Chabot Grant Thornton is publishing the budget recommendations it recently submitted to the Canadian and Quebec Finance Ministers designed to allow wealth-creating businesses to better prosper in an increasingly competitive economic environment.

“Ensuring that entities benefit from the best business strategies possible is our constant motivation, which is why we are once again submitting a number of budget proposals. While some have already been put forth, they remain very relevant. Raymond Chabot Grant Thornton takes the success of dynamic local businesses to heart. Their success leads the success of society at large,” stated President and CEO, Emilio B. Imbriglio.

The firm’s proposed measures centre on the four main components it feels are key to our businesses’ competitiveness and productivity: tax incentives, entrepreneurship, innovation and business immigration.

1. Tax incentives

 Among others, on the tax front, the firm is asking the governments to:

  • Abolish corporate income tax on the first $500,000 of an SME’s taxable income, provided that the savings be invested in productivity, employment and innovation in a manner that avoids abuse. Investments could be subject to accelerated CCA, possibly grossed up in the year, or to a tax credit;
  • Commit, in the next budget, to amending tax legislation to make business transfers between family members more equitable, from a tax perspective, for all businesses in all sectors.

2. Entrepreneurship

The firm proposes the following measures for entrepreneurship:

  • Governments should set up a fund to support businesses that call upon professionals to help them implement a formal and complete succession plan;
  • The Quebec government should provide a tax credit for entrepreneurs who take courses or professional development to improve their efficiency and effectiveness in carrying out their numerous duties;
  • The Quebec government should implement various measures to encourage Quebec businesses to become publicly listed.

3. Innovation

For this third strategic priority, Raymond Chabot Grant Thornton is suggesting that, for example:

  • Governments create an innovation tax credit to help SMEs increase their technology investments and continue to grow;
  • The Quebec government abolish the qualifying expenditure threshold for scientific research and experimental development (SR&ED). Failing this, SMEs should be exempted from the threshold or be able to carry forward their expenditures to subsequent years;
  • The federal government improve the performance of the SR&ED tax credit program by eliminating the taxable income or capital restrictions provided businesses reinvest the resulting benefit in SR&ED activities and by abolishing the discrimination in application.

4. Business immigration

In the case of this strategic cornerstone, the firm recommends that:

  • The Quebec government increase its quotas (or abolish the quota system) in the Immigrant Investor Program;
  • The Quebec government work in partnership with industry players (in particular Investissement Québec and financial intermediaries) to agree on appropriate measures to boost the retention and economic impact of investment immigration;
  • The federal government reintroduce its Immigrant Investor Program and give the provinces more latitude for the Immigrant Entrepreneur Program.

Family taxation in Canada: Upcoming Analysis

“We are taking advantage of the pre-budget process to announce that our firm is currently working on an analysis of family taxation in Canada to be released in the coming months. Canadian income tax is marking its 100th anniversary in 2017 and is still based on an archaic definition of the Canadian family in many instances. The analysis to be submitted will be prepared by specialists Brigitte Alepin, Manon Deslandes and Luc Lacombe and is intended to contribute to updating the tax system and highlight 100 years of income tax in Canada,” added Imbriglio.

Additional initiatives are proposed in the memoranda submitted to the two Finance Ministers. For more information on the measures proposed to the Quebec government, read the letter to Minister Carlos Leitão, at www.rcgt.com/qcbudget-consultation-2017-2018 (in French). The recommendations to federal Finance Minister, Bill Morneau, may be viewed here: www.rcgt.com/federalbudget-consultation-2017 (in French).

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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Source:

Francis Letendre
Senior Consultant – Public Relations
Raymond Chabot Grant Thornton
Tel.: 514-390-4201
letendre.francis@rcgt.com