06 Apr 2015

In an article in the Montreal Gazette, Dimitrios Georgoulas, Senior Manager, Taxation, comments on the changes in the 2014 income tax returns in relation to the provincial and federal government reforms.

To find out more, see the article New twists in 2014 tax returns (brace yourself)

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30 Mar 2015

Sylvain Moreau, Taxation Partner, collaborated on a second article in Protégez-vous, “Impôts 2014 : conseils pour tirer le remboursement maximal” (2014 income taxes: tips for maximizing your refund). The article, written by journalist Annick Poitras, was published on March 18. Mr. Moreau points out that preparing an income tax return isn’t so simple. He reviews the main expenses you can deduct and shared his pro tips to optimize your refund. “Due to the complexity of our tax system, many people forget to claim certain credits,” the tax specialist mentions.

This second collaboration with Protégez-vous was another opportunity for Mr. Moreau to share his pro tips, as the journalist mentions, to help taxpayers maximize their income tax refund.

To learn more, see the article.

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27 Mar 2015

QUÉBEC CITY, March 26, 2015 – Raymond Chabot Grant Thornton is pleased to release its post-budget tax bulletin for individuals and business owners. The bulletin was prepared by a team of firm experts who were at the lock-up and provides an overview of the main tax measures announced by the Quebec government. Download the summarized and easy-to-consult information at http://www.rcgt.com/en/2015-2016qcbudget/.

Stimulating the Economy: A Good Start

The budget balancing initiatives announced put Quebec in a better position to grow and prosper. Moreover, the budget presented contains several noteworthy measures to foster economic growth. As stated by Luc Lacombe, Tax Partner, “The announcement to gradually lower the general corporate tax rate will be a major lever to boost the economy.” In this regard, the general corporate income tax rate will be cut by 0.1 percentage point per year as of January 2017 until January 1, 2020, dropping from 11.9% to 11.5%.

“For SMEs in the primary sector, who will benefit from the same 4% tax rate as those in the manufacturing sector as of January 1, 2017, this is also an economically beneficial measure, just like the one for SMEs in the services sector, whose Health Services Fund contribution rate will gradually reduce as of January 1, 2017,” added Jean-François Thuot, Tax Partner. This last measure represents annual tax gains of approximately $194M for these SMEs.

However, part of the tax reduction is financed by SMEs in the service and construction sectors with no more than three employees. Those SMEs will see an increase in the tax rate from 8% to 11.8%, as of January 1, 2017.

More Stringent Measures Necessary

Small Business Tax
Raymond Chabot Grant Thornton invites the government to do more to give our wealth creators the means to achieve their ambitions. “As we indicated in our pre-budget consultations, we advocate abolishing the business tax for SMEs with net taxable earnings under $500,000, provided they invest the amounts saved in production, employment and innovation,” stated Emilio B. Imbriglio, President and CEO. According to the firm, Quebec should abolish income tax for small businesses, as Manitoba did in 2010. “This option would stimulate our economy even more, while giving a breath of fresh air to our economic drivers: SMEs,” added Imbriglio.

With respect to tax credits, the firm commends the government’s decision to enhance or expand certain credits, such as those related to Quebec film and television production and the integration of information technologies in manufacturing SMEs. However, the firm would have liked the government to go further by implementing a tax credit for innovation.

Currently, the tax credit for scientific research and experimental development (SR&ED) is only offered to research and development companies. The firm believes that tax credits are easier to implement than direct aid schemes, which are overly arbitrary and unpredictable. The Quebec government should support tax credits, as the firm indicated in its letter sent to Quebec Finance Minister Carlos Leitão on February 24, 2015.

Business Succession and Transfers
As for succession, Raymond Chabot Grant Thornton supports the government’s announcement to strengthen mentoring services for business successors by financing the Réseau M 2.0 project of the Fondation de l’entrepreneurship and extend to all regions the business transfer services offered by the Centre de transfert d’entreprises du Québec.

Consequently, the firm believes that it’s necessary to create a fund to support businesses so that they may call on external professionals to support them in their transfer process and in developing a succession plan. “Ensuring the sustainability of our wealth creators is necessary for our economic success. Efficient succession planning takes from two to eight years and unfortunately, only 9% of business owners have a formal written plan. It’s essential that they receive the support they need, especially when a third of them will be retiring over the coming years,” stated Éric Dufour, Vice-President of the Saguenay – Lac-Saint-Jean region and National Business Transfer Leader.

Tax Equity and Business Transfers: Excellent News

Raymond Chabot Grant Thornton is very pleased that the Quebec government has taken note of its requests. Since 2010, the firm has been encouraging the Quebec and federal governments to take action with respect to tax equity for business transfers. “As of 2017, business owners will benefit from a capital gains exemption in Quebec when selling their primary or manufacturing sector company to a corporation owned by their children (or to a non-arm’s length party). This is a major step towards equity,” noted Jean Gauthier, Partner and National Tax Manager at the firm.

Now, Raymond Chabot Grant Thornton would like this tax equity to extend to businesses in all of Quebec’s economic sectors, and for the federal government to act quickly as well.

About Raymond Chabot Grant Thornton
Founded in 1948, Raymond Chabot Grant Thornton has become a leader in the fields of assurance, tax, consulting services, and business recovery & reorganization. Its strength is based on a team of over 2,400 people, including some 230 partners in more than 100 offices in Quebec, eastern Ontario and New Brunswick. For over 30 years, Raymond Chabot Grant Thornton has been a member of Grant Thornton International Ltd, providing clients with the expertise of member and correspondent firms in more than 100 countries.

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Francis Letendre
Senior Consultant – Public Relations
Raymond Chabot Grant Thornton
Tel.: 514-390-4201
[email protected]

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25 Mar 2015

We’re proud to announce that Raymond Chabot Grant Thornton is one of the six members of private group, Adrenalys, representing a unique initiative to help organizations make the transition from small to medium enterprise. Twenty-five SMEs will be selected following a call for candidates taking place from March 25 to April 24, 2015 at www.adrenalys.ca.

“Raymond Chabot Grant Thornton is proud to join forces with Adrenalys. Giving dynamic companies the means to achieve their ambitions is what our Firm and its 2,400 talented professionals have been doing every day for over 65 years. We wholeheartedly share Adrenalys’ goal of helping those who create wealth unlock their full growth potential. We are enthusiastic to take part in this initiative that aims to favour economic growth through the development of Quebec SMEs”, stated Emilio B. Imbriglio, President and CEO of Raymond Chabot Grant Thornton.

Adrenalys at a glance

Adrenalys is a private, multidisciplinary group that is committed to supporting the CEOs of 25 high-growth SMEs through the innovative delivery of 360° professional services, at no cost. Its mission is to offer original assistance to SMEs faced with growth-related challenges and facilitate their transition from small- to medium-sized enterprise.

With Adrenalys, SMEs will receive the concerted guidance of a team of experts dedicated to their growth and facilitate their transition to the next level and, consequently, solidify the foundation for sustainable economic development in Quebec.

High-level partners

To carry out this mission and properly guide the 25 SMEs to be selected, Adrenalys will be leveraging the combined strengths of the following entities:

  • National Bank;
  • Fonds de solidarité FTQ;
  • Fasken Martineau;
  • Proaction;
  • Ascendis;
  • And, of course, Raymond Chabot Grant Thornton.

Each entity’s contribution consists in providing pro bono or low-priced services to the selected businesses. For our part, we will be offering each CEO of the 25 SMEs selected a bank of 30 hours of training and consultation (free of charge) with our partners and senior managers in consulting, international tax, executive recruitment, financing, due diligence, etc.

Who can apply and how to go about it

Between March 25 and April 24, 2015, SMEs that satisfy the following conditions can apply through the Adrenalys website (www.adrenalys.ca)

  1. The business must have been in operation for the last five years;
  2. Its sales must be higher than $10M;
  3. Sales must also have an annual growth of at least 10% in the last three years (full fiscal years);
  4. The business must be a private or listed entity;
  5. At least 51% of the business’s shares must be owned by Quebec-based interests.
  6. The businesses that will make up the first group of the 25 most promising Quebec SMEs will be selected by a Comité des sages, composed exclusively of renowned business women leading successful Québec SMEs. .

Does your SME meet the above criteria? If so, don’t wait to sign up and take advantage of this exceptional offer to foster the growth of your business!