24 Sep 2018

Taxation and Families: Refining the Model – Raymond Chabot Grant Thornton Publishes an Innovative Study in Collaboration with ESG UQAM

Today we are releasing a survey conducted by our firm revealing that in many respects, family taxation does not reflect the reality of today’s families. When families make a decision based on taxes rather than needs, there are resulting distortions that need to be adjusted. The federal and Quebec governments are invited to undertake a complete overhaul of family taxation to reflect the dynamics of today’s families.
Emilio B. Imbriglio, President and CEO

MONTRÉAL, September 24, 2018 – Raymond Chabot Grant Thornton and the UQAM’s École des sciences de la gestion (ESG UQAM) pooled their expertise to analyze family taxation under various themes. In more than 70% of the situations analyzed, the tax rules are not neutral depending on the family’s social profile, the couple’s legal status and the family’s economic class. Canadian families often find themselves in a situation where tax considerations rather than needs determine their choices.

The authors, Luc Lacombe, Tax Services Leader and Partner at Raymond Chabot Grant Thornton, as well as Brigitte Alepin and Manon Deslandes, professors at the Département des sciences comptables in ESG UQAM also presented some considerations to overhaul Canada’s tax system.

According to the authors, the governments of Quebec and Canada need to review family taxation policies sooner rather than later, because these policies undermine our tax system’s equity when it comes to families and, in some cases, hamper family decisions. For example, Canadian tax measures can have a significant impact on a family’s wealth creation decision. In previous years, governments established saving incentive plans such as the TFSA, RRSP, RESP and RDSP, each with different tax rules and incentives.

Luc Lacombe stated: “As a result of these differences, families with limited cash resources are faced with choosing from amongst the alternative savings plans available. If they take into consideration tax rules, their decision-making process may lead them to favour alternatives that are to the detriment of their real savings needs thus limiting their financial flexibility.”

Seven main areas were examined…

The study examines the tax measures applying to families based on seven main areas: the economic well-being of the family, housing, children’s education, retirement savings, other savings, retirement, and death. The authors asked the following question in each case: Are the tax rules neutral, irrespective of the family’s social profile, the couple’s legal status and the family’s economic class? A breach of neutrality was noted in more than 70% of the situations analyzed and all Canadian families should expect to be affected by this breach of neutrality, sooner or later.

… and Families That Own a Business

Considering the difficulties and growing challenges faced by families that own a business, the neutrality of Canada’s tax system was also examined. Specifically, the questions were as follows: Are the tax rules neutral with regard to the transfer of a business? Is the tax system neutral with regard to a person’s decision to go into business? Does the tax system favour certain families that own a business depending on the couple’s legal status? The analysis points to a breach of neutrality in each case.

Seven suggested ideas and approaches for fairer family taxation!

To offset these distortions, the study presents ideas and approaches that could be considered as part of the overhaul of the family tax system. Among others, the authors propose the introduction of a taxation system that is based on family income rather than an individual’s income, the introduction of a tax rate structure that is based on family size, the creation of a Registered General Savings Plan (RGSP), or the possibility of a rollover upon a taxpayer’s death to a trust set up exclusively for a dependent child. Read the executive summary for more details.

In 2017, the Canadian tax system marked its 100th anniversary. While tax policies may have evolved over this period, the study reveals that they have not kept up with how families are changing. The current family taxation system includes numerous breaches of neutrality that impact the decisions made by families in Quebec and Canada. “The purpose of this study is to encourage our Canadian and Quebec politicians to reflect on these major issues and undertake a review of family taxation policies,” concluded Emilio B. Imbriglio, President and CEO of Raymond Chabot Grant Thornton.

To view and download the study, go to www.rcgt.com/taxation-family2018.

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 2,500 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 4,400 professionals and close to 170 offices across Canada to help Canadian organizations achieve their full growth potential both locally and globally. Grant Thornton International Ltd provides clients with the expertise of member and correspondent firms across more than 135 countries and more than 50,000 professionals.

Information:

Colin Danby
Director
NATIONAL
Tel.: 514-843-2355
Cell.: 514-679-1622
[email protected]

Source:

Francis Letendre
Head, Public Relations
Raymond Chabot Grant Thornton
Tel.: 514-390-4201
[email protected]

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21 Sep 2018

Young Sherbrooke artists honoured: Raymond Chabot Grant Thornton and La Grande Virée Artistique showcase local talent

Sherbrooke, September 21, 2018 – Yesterday evening, the Raymond Chabot Grant Thornton Sherbrooke office revealed the winner of the Prix Claude Métras, an annual contest that aims to highlight the artistic talent of local students. A Bromptonville high school student and emerging artist, Zeïne Kachroud, won a $500 bursary for his photograph depicting a visual artist doing a painting.

This year, 45 students from 11 local schools submitted 61 works of art for the Prix Claude Métras, 20 of which were exposed at the Raymond Chabot Grant Thornton Sherbrooke office.

“The arts are an integral part of the vibrancy of every community. It is important for our Firm to showcase the outstanding contribution of local artists to the development of society,” Raymond Chabot Grant Thornton Eastern Townships’ Vice-President, Mr. Guy Fauteux, stated.

For the occasion, the jury also highlighted the talent of two other artists from different age groups and the visitors were invited to vote for their favourite work of art, thus rewarding three young artists with a $100 bursary each: an Honourable Mention – 12-15 years old was awarded to Nicole Valentina Quinones Bernal (Mitchell high school) for her painting (mixed techniques); an Honourable Mention – 16-20 years old was awarded to Charlotte Deragon (Collège Mont Notre-Dame) for her painting (watercolour and inks); and the Visitors’

Favourite Award was presented to Maria Paula Reina Velasquez (Collège Mont Notre-Dame) for her painting (mixed techniques).

“Our collaboration with the business sector is important and allows us to promote artistic creation in unique and non-traditional venues. We are proud to continue our partnership with Raymond Chabot Grant Thornton, a leading organization that strives to showcase art and its artists,” the president of La Grande Virée Artistique de Sherbrooke, Nancy Asselin, added.

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 2,500 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 4,400 professionals and close to 170 offices across Canada to help Canadian organizations achieve their full growth potential both locally and globally. Grant Thornton International Ltd provides clients with the expertise of member and correspondent firms across more than 135 countries and more than 50,000 professionals.

About La Grande Virée Artistique de Sherbrooke
La Grande Virée Artistique was founded in 2002 under the initiative of a group of Sherbrooke artists, renowned on the provincial and national stages. This event is a summer road trip, covering the 6 boroughs of Sherbrooke, and takes place over 10 days at the end of June and the beginning of July. It highlights the local artistic talents, whether in visual arts or crafts. Since its foundation, La Grande Virée Artistique de Sherbrooke has promoted more than one hundred artists in Sherbrooke’s cultural community. It is a significant event offered to art lovers, so they can discover entirely different worlds, learn about various techniques and expertise and have the chance to talk one-on-one with the artists.

Source:

Francis Letendre
Head, Public Relations
Raymond Chabot Grant Thornton
Tel.: 514-390-4201
[email protected]

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20 Sep 2018

You are in a delicate situation where money and family are intertwined? Éric Lebel, Financial Turnaround Advisor and Licensed Insolvency Trustee at Raymond Chabot Grant Thornton, presents his expert advice in Les Affaires.

To find out what options are available to Philippe (fictive name, real person) who is wondering if he should agree to his step-mother’s request that he co-signs so she and his father could pay off their debts, read the article published in Les Affaires on September 11, 2018 (in French).

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19 Sep 2018

For the third year in a row, 2,000 Raymond Chabot Grant Thornton employees and some 50,000 employees from the Grant Thornton global organization mobilized on September 14, 2018 to give back to communities around the world.

As part of the RCGT in the community event, the firm closed its offices in Quebec, Ontario and New Brunswick so that its staff could spend their workday helping 50 community organizations.

More than 150 RCGT volunteers carried out outdoor work at Kawanawa YMCA’s camp.

Emilio B. Imbriglio, Raymond Chabot Grant Thornton President and CEO said: ‘‘Our firm has been committed to ensuring the vitality of our communities for 70 years. Building a vigorous economy in each of these communities is what makes society successful and our community organizations play a pivotal role. We are proud to have joined the Grant Thornton global initiative again this year by carrying out inspiring volunteer activities which reflect our corporate values. I’d like to sincerely thank everyone who participated in making a difference during this memorable event.’’

Supporting local community organizations

RCGT in the community is part of a worldwide initiative of the Grant Thornton International organization to contribute to community development by supporting a local organization’s mission.

To find out more about Raymond Chabot Grant Thornton’s volunteer activities, read our social media posts at #ÉquipeRCGT in Canada and #GTinthecommunity internationally. Click here to see pictures of all regional events.

Media on site

Various media were also on hand to cover the work of Raymond Chabot Grant Thornton’s teams. Reports on the firm’s contribution to make a difference and give back to communities include: a TVA Nouvelles TV report (9 min. 56 sec.) on the initiative of 300 Québec City employees who assisted Cité-Joie. Radio Énergie reported on the clean up of a monstrous landfill site by our Rouyn-Noranda employees. Le Quotidien newspaper posted an article on the Saguenay-Lac-Saint-Jean, Chibougamau and North Shore employees who worked at the Mashteuiatsh First Nations Museum. The Progrès de Coaticook published an article on the local initiative at Coaticook’s hospital and CMATV covered the Montmagny team at Maison d’Hélène.

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, as well as business recovery and reorganization. Its strength is based on a team of over 2,500 professionals, including some 200 partners. Together, Raymond Chabot Grant Thornton and Grant Thornton LLP, another Canadian member firm of Grant Thornton International Ltd, help Canadian organizations unlock their potential for growth with over 4,400 professionals and some 170 offices across Canada. Clients benefit from the expertise of 50,000 professionals through Grant Thornton International Ltd.’s member and correspondent firms in over 135 countries.

Source:
Francis Letendre
Head, Public Affairs
Raymond Chabot Grant Thornton
Cell.: 514-554-1685
[email protected]