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Why keeping your top talent should be your top priority

Fri, 17 May 2013 00:00:00 GMT

Star performers are essential for growing your company – but did you know they also serve a valuable role when it comes to succession planning? A loyal and talented employee workforce will provide peace of mind for new owners and ease the transition as you exit from your business.

US Companies Operating in Canada, Canadian Tax Authorities are Looking for You

Tue, 30 Apr 2013 00:00:00 GMT

Is your company sending people to Canada? If so, you may have a tax exposure you didn't know about. There are 3 major areas that you need to be concerned about.

Delivering Excellent Customer Value

Wed, 24 Apr 2013 00:00:00 GMT

Manufacturers need to improve business performance to stay competitive. Having a clearly defined process allows you to determine the business improvement efforts that will make the most impact.

Harnessing the Unbridled Growth of Emerging Markets

Wed, 10 Apr 2013 00:00:00 GMT

An evolving world requires a shifted approach. Successful companies need to adapt to changes, react to the transformation, shift their business models, and consider the impact of emerging markets in the pace of their growth.

Ways to increase your business productivity

Mon, 08 Apr 2013 00:00:00 GMT

If you want to increase your productivity by 30% and optimize the performance of your business now, then MNP's Consulting Specialist, Bruce Marsh has two practical ways to save you time and boost the returns to your business.

Is Warren Buffet Crazy?

Thu, 04 Apr 2013 00:00:00 GMT

Why do buyers pay more than the current stock price when purchasing a publicly traded company? In this article, we examine the rationale for the takeover premium and discuss how it relates to the minority discount, identify some real life examples of both, and then question how the impacts can be managed in a privately held company.

Federal Budget Announcement: What the Credit Union Community Needs to Know

Mon, 25 Mar 2013 00:00:00 GMT

There are substantial measures within the Federal Budget that immediately impact Credit Union tax rates & EFT reporting to Canada Revenue Agency.

Future Tax Predictions for 2013

Tue, 19 Mar 2013 00:00:00 GMT

It might be a bit soon to speculate on the tax related content of the 2013 Federal budget, but because I enjoy trivial pursuits I am going to give my thoughts to the future direction of tax rates in Canada.

Oil Patch Contractors - Be Wary of the PSB Trap

Thu, 14 Mar 2013 00:00:00 GMT

It's more common for independent contractors to use a corporate structure to work in the oil patch due to Oil & Gas companies wanting to pass on some of the risks related to their operations to the independent contractor.

Own a Company? Leaving Canada? Beware

Wed, 13 Mar 2013 00:00:00 GMT

If you own shares of a private company, and you’re thinking of leaving Canada, there’s a new trap you need to be aware of.

Combining Aid and Trade for a Stronger Food and Beverage Sector

Thu, 28 Feb 2013 00:00:00 GMT

Canada’s foreign aid policy is shifting. The Canadian International Development Agency plans to increase collaborations with Canadian corporations, taking a more active role in sustainable development. This could mean new opportunities for those living in poverty and for Canada’s food and beverage sector.

US tax deadlines - Don't forget the obscure ones

Mon, 25 Feb 2013 00:00:00 GMT

Because we're entering tax season, I wanted to remind you of all the different times for personal tax filings.

The new nature of AgriStability

Thu, 21 Feb 2013 00:00:00 GMT

AgriStability changes require a shift in producers’ thinking

B.C. Builders put on Notice

Thu, 21 Feb 2013 00:00:00 GMT

The transitional rules for real property and the elimination of HST mean new requirements and the threat of real penalties.

Amendments to the Proceeds of Crime (Money Laundering) & Terrorist Financing Regulations

Thu, 14 Feb 2013 00:00:00 GMT

The final amendments to the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations (PCMLTFR) were issued on February 13, 2013, following the published draft amendments to the PCMLTFR on October 13, 2012.

Resilient Dynamism

Tue, 12 Feb 2013 00:00:00 GMT

I recently attended the debrief session held at the Toronto Board of Trade following the second annual World Economic Forum (WEF). “Resilient Dynamism” was the theme of the event which definitely caught my attention.

The 7 deadly sins of farmland ownership

Wed, 06 Feb 2013 00:00:00 GMT

How to make the most of every purchase and avoid buyer’s remorse.

Canadian Manufacturers & Exporters Economic Outlook for 2013

Fri, 25 Jan 2013 00:00:00 GMT

I recently attended the 2013 Economic Outlook presentation by Jayson Myers, President and CEO of the Canadian Manufacturers & Exporters, in Vancouver BC.

What will be the impact of PST on Companies?

Wed, 23 Jan 2013 00:00:00 GMT

As the PST transition deadline approaches, it's time for businesses in B.C. to consider how the change will affect them and what they need to do to prepare for a smooth transition. How does this transition affect you? How will this affect consumers vs. business?

New US Investment Income Tax

Mon, 07 Jan 2013 00:00:00 GMT

Are you a US citizen or green-card holder? While everyone’s been focusing on the “fiscal cliff”, something else has been going on that may actually raise your tax bill.

A New FINTRAC Director and AML Requirement Rationalization

Wed, 19 Dec 2012 00:00:00 GMT

At a recent Senate committee hearing looking into the effectiveness of Canada’s AML efforts, the new Director of Canada’s Anti-Money Laundering (AML) intelligence and compliance enforcement agency, FINTRAC, called for a reduction in the administrative compliance burden placed on financial institutions.

Cattle Deferrals Could Cause You Real Tax Headaches

Tue, 18 Dec 2012 00:00:00 GMT

If you don’t think cattle deferrals are a real tax consideration, think again. Whether you’re selling livestock through an auction or holding off on cashing that cheque, these transactions will have an effect on your taxes and should be factored into your overall strategy.

Do I Need a Holding Company?

Wed, 12 Dec 2012 00:00:00 GMT

This is a question clients who already own (or may be looking to buy) one or more operating companies, often ask their MNP tax professional. There is no clear answer and it really depends on the client’s unique situation and, often, personal preference.

The Cliffhanger from South of the Border

Mon, 10 Dec 2012 00:00:00 GMT

Unless the U.S. Congress reaches a compromise before December 31, the U.S. budget will go off the “fiscal cliff.” What is this “fiscal cliff”? What would it mean for the U.S., for Canada and for Canadians with business or investments in the U.S.? This is a big one and worth paying attention to.

Interest Deductibility Considerations When Converting Your Principal Residence to a Rental Property

Sat, 08 Dec 2012 00:00:00 GMT

Understanding the interest deductibility issues when changing your principal residence to a rental property.

Top 7 Planning Tips for SR&ED Claims

Tue, 04 Dec 2012 00:00:00 GMT

As 2012 approaches its close, it is important to review your SR&ED projects and plan for the effects of these budget changes on your current and future claims. Here are 7 tips to assist with the process.

IRS Issues New ITIN Procedures

Fri, 30 Nov 2012 00:00:00 GMT

Like most revenue authorities around the world, the United States’ Internal Revenue Service tracks people by number, not name. Here's why you may need an ITIN (Individual Tax Identification Number).

Related Party Purchase – Proceed With Caution

Tue, 27 Nov 2012 00:00:00 GMT

When purchasing shares of a private operating company, it can be advantageous to purchase those shares through a holding company. This allows the purchaser to pay for the shares using dollars generated from the business that have not been subject to personal tax.

4 Big Benefits of Using a Project Management Methodology

Thu, 22 Nov 2012 00:00:00 GMT

Taking on a big project can hold the promise of big rewards, but also means taking on big risks. Before starting your next major project, learn how the right project management method can help.

Business Vehicle Purchases and Your Fiscal Year End

Thu, 08 Nov 2012 00:00:00 GMT

No matter if your business is operating through a proprietorship, partnership or corporation, a little planning on the timing of purchasing new vehicles for the business can save you money.

Regulatory & Compliance Considerations impacting the Digital Money Ecosystem

Mon, 05 Nov 2012 00:00:00 GMT

I recently presented at the Mobile Money Canada 2012 conference in September. My presentation quickly surveyed the nature and path of domestic legislative proposals impacting digital money, known enforcement measures in Canada, and the application of US extraterritorial legislation.

Indirect Taxes (GST, HST, PST) – So Many Moving Parts

Mon, 29 Oct 2012 00:00:00 GMT

Indirect tax is one area that gets the least amount of attention in most businesses yet affects every transaction that takes place. There are a lot of moving parts and when a step is missed or an incorrect assumption is made, the results are not what was expected.

Transitioning Back to PST in BC: What you need to know

Fri, 26 Oct 2012 00:00:00 GMT

On April 1, 2013 BC will be making history. BC will move from having a 12% HST to a 5% GST and a 7% PST. BC had a Provincial Sales Tax before July 1, 2010, however this new PST will be different.

Foreign Investment in Canada

Tue, 23 Oct 2012 00:00:00 GMT

A review on some of the issues faced by foreign investors who are looking at integrating their businesses into a Canadian acquisition.

Draft Anti-Money Laundering Regulation Amendments Released for Comment

Fri, 19 Oct 2012 00:00:00 GMT

On October 13, 2012 the Department of Finance released draft regulations to amend Canada’s anti-money obligations. If enacted, those changes would impact reporting entities.

Tax Consequences of Financing the Sale of a Business

Fri, 28 Sep 2012 00:00:00 GMT

A business owner, when contemplating selling the business, must consider several factors, including financing, when determining how to structure a sale. It is very important that the owner have all the necessary information to ensure the most effective and efficient decision is made.

Mortgage Companies and the Trickle-Down Effect of Money Laundering Legislation

Thu, 27 Sep 2012 00:00:00 GMT

The application of AML obligations has not been proposed as part of a recent review of Canada’s AML legislation. So what happens when a regulated bank buys mortgages from a mortgage company that isn’t subject to AML legislation?

Clarifying the Deferring of Cattle Sales through Auction Mart

Wed, 26 Sep 2012 00:00:00 GMT

The rules are not straight forward for livestock sales. There is some confusion in the industry as to whether livestock sales sold through an auction mart can be deferred through post dated cheques or other arrangements.

Proposed Changes to Mobile Payment Legislation

Tue, 18 Sep 2012 00:00:00 GMT

As mobile payment transactions through smart phone applications become commonplace in the consumer sphere, the Canadian government is making moves to enact consumer and merchant protection legislation and provide industry guidance promoting fair practice.

Guaranteeing a Loan

Thu, 13 Sep 2012 00:00:00 GMT

It is common for financial institutions to require personal guarantees from shareholders or even family members of shareholders to secure corporate debt. There are also scenarios where related companies will guarantee the debt of other companies.

Dumping the Landlord & Buying Your Own Business Space

Thu, 06 Sep 2012 00:00:00 GMT

Congratulations! Your business has grown to the point where you no longer want to pay someone else’s mortgage and you have decided to buy your own property. You have a lot of issues to deal with; one of the chief ones being “How should I acquire the property?”

Details on new IRS streamlined relief for Americans in Canada

Sun, 02 Sep 2012 00:00:00 GMT

The IRS has finally seen the dilemma such people face, and provided an easier way in.

Trends and Responses in the Wine Industry

Sat, 01 Sep 2012 00:00:00 GMT

What does the future hold for the wine industry? Participants at MNP’s winery round table, Trends and Responses in the Wine Industry, explored that question.

Supreme Court Overturns 35 Years of Farming Tax Cases

Fri, 31 Aug 2012 00:00:00 GMT

The Supreme Court has established a new set of factors and analysis to determine whether the full amount of losses incurred in a farming operation are deductible.

Tax Issues with Farm Proprietorships

Tue, 28 Aug 2012 00:00:00 GMT

The time and effort to restructure your operations from a proprietorship to a partnership and eventually to a corporation does not require too much effort on the part of the farmer and the benefits always outweigh the costs.

Business Owners: Maximize Your Access to Canada’s Tax Incentives

Tue, 21 Aug 2012 00:00:00 GMT

Small and medium enterprise owners can be the backbone of any economy and this is particularly true for Canada, especially in challenging economic times. There are several highly valuable tax incentives available to businesses - are you taking advantage to the maximum extent possible?

Farming and Capital Gains

Thu, 16 Aug 2012 00:00:00 GMT

The Income Tax Act allows farming businesses to compute income using the cash basis method.

The Taxman Cometh

Tue, 07 Aug 2012 00:00:00 GMT

As Canadians we have a “self reporting” tax system, whereby each taxpayer is expected to report and file their taxable activity in accordance with the Income Tax Act. The Canada Revenue Agency (CRA) exists to ensure that we are reporting properly and reserves the right to audit a taxpayer’s return for accuracy.

Taxes on Death: Shares of Private Companies

Thu, 02 Aug 2012 00:00:00 GMT

We have all heard it before – there are only two certainties in life – death and taxes. While this blog post will not help you with the former, it will help shed light on the tax impact of holding shares of a private company on death.

What is a Pipeline Plan?

Tue, 31 Jul 2012 00:00:00 GMT

When you think about a pipeline, the first image in most Canadians’ minds would be a pipe that is used to transport oil from Alberta to various points east or south of that province (although the west may become an additional direction in the near future, but that’s another story).

Replacement Property Rules

Tue, 17 Jul 2012 00:00:00 GMT

Disposing of a business asset for proceeds in excess of its cost base will have a tax consequence, whether it is recapture of depreciation, or capital gains. Replacement property rules, however, may assist you with deferring capital gains and recapture in certain circumstances.

Capital Gains Exemption: Use It or Lose It

Fri, 13 Jul 2012 00:00:00 GMT

The capital gains exemption represents tax savings of $150,000 to $290,000 depending on the province and the individual’s tax rate. If you own a business, you owe it to yourself to explore the opportunities to take advantage of the capital gains exemption.

At Arm's Length - More Than Just Family

Tue, 10 Jul 2012 00:00:00 GMT

In general, where a transaction between two non-arm’s length parties does not occur at fair value, the disposing party to the transaction is deemed to have disposed of the property for its fair value, regardless if the consideration given up by the acquiring party is above or below the actual fair value.

Investing in Canadian Private Companies Through Your RRSP

Fri, 29 Jun 2012 00:00:00 GMT

Investing in Canadian private companies through your RRSP? Beware of some recent changes.

New IRS Relief for Americans in Canada

Wed, 27 Jun 2012 00:00:00 GMT

For months, the IRS has been promising a new, less costly regime for non-compliant Americans living abroad. Today it announced, at least the skeleton of, a new plan.

Charitable Giving & Taxation 101

Mon, 25 Jun 2012 00:00:00 GMT

Regardless of whether charitable giving occurs during your lifetime or upon death, there are some significant tax issues of which you should be made aware.

Has Anyone at the IRS Been Listening?

Mon, 25 Jun 2012 00:00:00 GMT

The annual reports Nina Olson makes to Congress in her role as the National Taxpayer Advocate make refreshing reading for those of us more accustomed to the technical documents that emanate from the IRS on a more frequent basis.

Proposed EX-PATRIOT Act would harshly tax former U.S. citizens

Thu, 07 Jun 2012 00:00:00 GMT

As regular readers know, alone among advanced nations, the United States taxes citizens on their worldwide incomes, no matter where they live. It also has some pretty strict rules for those who give up citizenship.

All of These Things are Just Like the Others

Wed, 30 May 2012 00:00:00 GMT

Suspicious transaction reporting thresholds, liability for transaction delays, and OSFI New Draft Guideline B-20.

FINTRAC and DICO Drive for Compliance Examinations and Assessments

Thu, 17 May 2012 00:00:00 GMT

Credit unions in Ontario have received two important notices from their regulators about AML compliance this month. Both are indications of increased scrutiny of anti-money laundering compliance efforts, and follow the trend of FINTRAC’s focus shifting from education to enforcement.

2012 Federal Budget is Ripe for Innovation for the Canadian Agri-Food Industry

Mon, 23 Apr 2012 00:00:00 GMT

If you’re doing R&D to provide the same product at a lower cost; improve packaging, environmental sustainability, or web-based customer interaction; establish traceability; or develop functional or anti-allergenic foods, you may be eligible for the SR&ED tax credit.

Offering Anti-Money Laundering Insights to the Senate of Canada

Sun, 15 Apr 2012 00:00:00 GMT

Matthew McGuire, MNP's National Anti-Money Laundering Practice Leader, offers insights to the Senate on anti-money laundering.

Why Tone at the Top and Management Override Don’t Mix

Tue, 03 Apr 2012 00:00:00 GMT

Another lesson in fraud and reputational damage from the SNC-Lavalin investigation.

Nominee Partnership Returns for 2011

Wed, 28 Mar 2012 00:00:00 GMT

Do you hold a partnership interest on behalf of someone else? Last chance to file partnership returns.

March is Fraud Prevention Month - Is Your Organization Doing Enough?

Mon, 12 Mar 2012 00:00:00 GMT

Many organizations in both the private and public sectors operate on the assumption that their employees and business partners are honest and as a result don’t give a lot of thought to fraud until it happens. By then, the damage caused may be extensive not only from a financial standpoint but reputationally as well.

FATF updates International Anti-Money Laundering Standards - What you need to know

Fri, 09 Mar 2012 00:00:00 GMT

Reporting entities are eager to know the impact that international anti-money laundering standard changes might have on their operations. Those international standards are maintained by the Financial Action Task Force (FATF), and they were updated on February 15, 2012 for the first time since 2003.

Surviving an Internal Investigation: What can we learn from the SNC-Lavalin matter?

Tue, 06 Mar 2012 00:00:00 GMT

SNC-Lavalin has maintained it was not involved with the plot and that it had done nothing wrong with respect to its Libyan operations. Just last week, it announced an independent investigation into $35-million worth of improperly documented payments related to construction projects "and certain other contracts" in the last quarter of 2011.

US Citizens in Canada - Status of Penalty Forgiveness

Mon, 05 Mar 2012 00:00:00 GMT

On March 2 at the 36th annual Tax Law Conference, there was some promising news from the IRS Chief Council.

Sharpen Your Interviewing Skills to Build Your Case

Tue, 21 Feb 2012 00:00:00 GMT

In today’s fast-paced, heavy workload environment, it’s more important than ever to be efficient when performing investigations. Too often I’ve heard of investigators spending hours interviewing a subject, only to walk away with limited facts and information.

Passports: The IRS Continues to Tighten the Screws

Tue, 31 Jan 2012 00:00:00 GMT

US law requires that a US citizen show a passport in order to gain entry to the United States. However, it has been very common for US citizens living in Canada to use their Canadian passports when they’ve crossed the border going into the United States. Many don't even have US passports.

Risk or Reward: Serving Money Services Businesses

Thu, 19 Jan 2012 00:00:00 GMT

Recently the Deposit Insurance Corporation of Ontario released an advisory which outlines the procedures they expect credit unions to follow when providing banking services to Money Services Businesses. We'll summarize the risks and rewards of serving MSBs, the procedures DICO’s suggests, and outline the MSB screening and monitoring services.

US Citizens Living in Canada Have Yet Another Opportunity to Come Clean With the IRS

Mon, 09 Jan 2012 00:00:00 GMT

In previous posts, I have reported on the recent flip-flopping of the IRS on the issue of Americans living abroad who haven’t filed US tax returns, but want to come clean.

What Is the Overseas Employment Tax Credit?

Tue, 03 Jan 2012 00:00:00 GMT

If you work overseas for a Canadian company for a period of at least six months, you may be eligible for the Overseas Employment Tax Credit (OETC). This credit provides a significant reduction in federal tax payable for qualifying individuals on your personal income tax return.

Specifics of the OVDI Only Raise More Concerns

Fri, 23 Dec 2011 00:00:00 GMT

After several weeks speculating about the implications of the IRS’ new “incentives” for Americans in Canada filing belated tax returns. The IRS has now confirmed that the Fact Sheet was the guidance the Ambassador had alluded to when he promised further relief.

Salary vs Dividends: Which is Right for You?

Fri, 09 Dec 2011 00:00:00 GMT

When it comes to owner-managed corporations, the salary vs. dividends compensation conundrum is one of the most frequently discussed topics between clients and their accountants. There are clear advantages and disadvantages to both, but choosing which is right for you will depend on a number of personal factors and preferences.

IRS Relief for Americans in Canada Isn't What We Hoped For-- Or What We Were Promised

Fri, 09 Dec 2011 00:00:00 GMT

The IRS keeps coming up with new “incentives” for Americans in Canada who haven’t filed US returns, but want to come clean and file. The US Ambassador to Canada said more relief would be on its way and the IRS followed through promptly. However, the release that was recently issued now raises more questions than it answers.

2011 Corruption Perceptions Index: How did Canada fare?

Fri, 02 Dec 2011 00:00:00 GMT

Transparency International releases the results of its 2011 Corruption Perceptions Index: How did Canada do and why should you care?

Tentative Plans from the IRS to Ease the Burden on American Residents in Canada

Fri, 02 Dec 2011 00:00:00 GMT

Barrie McKenna of the Globe & Mail interviewed the US Ambassador to Canada and myself on December 1, 2011. It appears that the noise made by Canadian practitioners of US tax, as well as Jim Flaherty, our Minister of Finance, has had some effect. The IRS is realizing that it is better to focus its efforts on Americans elsewhere.

Say Uncle, Sam: Yet another tax filing requirement that will affect Americans living in Canada

Tue, 29 Nov 2011 00:00:00 GMT

Many individuals now resident in Canada have been shocked to learn that even though they may not owe any US tax, the IRS can go back many years and assess massive penalties for failing to report information about their income or assets.

MNP: Partners in Your Success

Fri, 25 Nov 2011 00:00:00 GMT

We are pleased to introduce you to the Partners who have joined MNP’s team of senior business advisors in the GTA within the last year.

Income Tax on a PSB: A Halloween trick from the Federal Government?

Wed, 23 Nov 2011 00:00:00 GMT

Due to proposed changes by the Federal Government, the rules regarding a corporation carrying on a PSB (personal service business) just became a lot more expensive, tax-wise.

U.S. Bill For Snowbirds: Tempest in a Teapot?

Wed, 09 Nov 2011 00:00:00 GMT

There has been a recent flurry of articles, blogs and even televised reports in the U.S. concerning a U.S. Senate bill introduced by Sens. Chuck Schumer (D-NY) and Mike Lee (R-Utah). The bill proposes a number of changes to the immigration rules, most of which are intended to streamline and modernize procedures for obtaining visitor visas.

Finding the Right Executor

Thu, 03 Nov 2011 00:00:00 GMT

As complex as the Income Tax Act is, especially in the area of dealing with estates and trusts and the threat of income tax, the executor and/or trustee in most instances will hire an advisor to help them through the myriad of rules and regulations and to minimize their risk.

HST in B.C.: Helping you manage the transition back to PST

Tue, 01 Nov 2011 00:00:00 GMT

The HST was voted out in B.C. Businesses in the province must transition back to collecting and paying PST and GST—a process that will have its own complexities that need to be carefully managed. The good news is that the transition may also benefit you.

Taking Your Cross-Border Management Fees Seriously

Fri, 28 Oct 2011 00:00:00 GMT

A recent US Tax Court decision (Fuhrman, TC Memo 2011-236) – in determining the appropriateness of a mere $100,000 management fee charged to a US taxpayer – held that to prove that a management fee is appropriate, certain conditions must be met. The taxpayer was unsuccessful largely because there was little or no documentation retained.

SR&ED Changes: What Do They Mean for You?

Thu, 27 Oct 2011 00:00:00 GMT

On October 17, 2011, the Jenkins Commission released the long-awaited findings of its review of federal support for R&D in Canada in the report Innovation Canada: A Call to Action.

“We’re getting a divorce” – How to ease some of the (tax) burden

Tue, 25 Oct 2011 00:00:00 GMT

It’s never easy when a client tells you they are splitting from their spouse. Although we can’t reduce the emotional trauma of the process, we can assist with planning for the division of assets in a tax-effective manner to help ease the tax “pain”.

Taking a Balanced Strategic Approach to Management

Wed, 19 Oct 2011 00:00:00 GMT

Taking a balanced approach to ensure you are prepared to overcome obstacles and meet your business goals allows your oilfield services company to contend with the changing landscape.

Canadians Owning U.S. Real Estate and the U.S. Estate Tax

Tue, 18 Oct 2011 00:00:00 GMT

Many Canadians are surprised to learn that their estates may be subject to the U.S. estate tax to the extent that they hold certain property situated or deemed to be situated within the United States. The most common examples of such property are U.S. real estate and securities issued by U.S. corporations.

Have the Government Help Pay For Your Vacation

Fri, 14 Oct 2011 00:00:00 GMT

The majority of families in Canada look forward to a vacation as a time to get away from the everyday routine of work and school and to relax and spend time with the family. In today’s economy, a business that could offer some potential savings to make a family’s vacation more affordable will be seen as being an attractive option.

RRSPs: Much Ado About Nothing?

Sat, 08 Oct 2011 00:00:00 GMT

Maximizing RRSP or IPP contributions has long been considered an obvious investment axiom. However, you have to be wary of the rules of thumb, and in the case of the choice of investing through an RRSP or IPP vs investing corporately there are many variables that can impact on reaching the right decision.

Should You Have Minor Children as Shareholders of Your Family Business?

Tue, 27 Sep 2011 00:00:00 GMT

A question business owners often ask is whether minor children should be shareholders in the family business corporation. Usually, this is a tax motivated question, in that the higher income parents wish to access the lower marginal tax rate of their minor children.

Will Planning

Thu, 22 Sep 2011 00:00:00 GMT

The planning relies on two key facts: First, The Income Tax Act treats a trust as a separate taxpayer and second, the Income Tax Act allows for property to roll over to a spouse on death.

Freehold Mineral Rights: Canadian Resource Property for Income Tax Purposes

Fri, 16 Sep 2011 00:00:00 GMT

A Freehold Mineral Right is Canadian Resource Property for income tax purposes and is not considered capital property; as any gain on the disposition of Canadian Resource Property either on a sale or upon death will be taxed at the 100% inclusion rate.

A Simplified Method of Keeping Track of Car Expenses

Thu, 01 Sep 2011 00:00:00 GMT

Many people today not only use their car for personal use, but also for business purposes. As such, they are entitled to get a deduction for the business portion of their vehicle's expenses.

What is the Alternative Minimum Tax and Why am I Paying it?

Tue, 23 Aug 2011 00:00:00 GMT

The alternative minimum tax is an alternative method to calculate your taxes owing in Canada. This tax is often applicable when you have claimed a preferential tax deduction like the capital gain deduction / capital gain exemption and flow through shares or have preferential tax rates due to credits, such as dividend tax credits.

Farmland and 69(11) of the Income Tax Act

Fri, 12 Aug 2011 00:00:00 GMT

If you are contemplating the sale of your farmland and the expected capital gain will be in excess of your capital gain exemption, it is important to beware of 69(11) of the Income Tax Act in such a transaction or the resulting tax consequences will be an unpleasant surprise.

Changing Your Principal Residence into a Rental Property

Thu, 28 Jul 2011 00:00:00 GMT

It is not uncommon for individuals to relocate for work or studies on a short to mid-term basis. Usually the individual does not want to go through the cost or hassle of selling their residence only to return a short time later. Therefore, they may rent out their house as a way to cover operating costs or create profit during their absence.

The Purification of a Corporation

Tue, 12 Jul 2011 00:00:00 GMT

Successful businesses that operate in a corporate structure can find situations where excess cash/investments can create adverse tax consequences because the shares of a company may not qualify for the capital gains exemption either on the sale of the shares by the individual or on the death of the shareholder.

Gravel Extraction

Mon, 04 Jul 2011 00:00:00 GMT

Lucky you, there is gravel in your farm land worth a lot of money! Lots of money usually means income tax. What are the income tax consequences?

No penalties for late filing? Think again.

Mon, 27 Jun 2011 00:00:00 GMT

Many companies in a loss position are often not concerned about filing their corporate income tax returns on time thinking that there will be no late-filing penalties. Advisors also often tell clients not to worry about filing late when in a loss position.

Selling Owner-Managed Businesses – Tips and Traps

Tue, 21 Jun 2011 00:00:00 GMT

Whether the purchaser is an arm’s length entity, group of key employees or a family member, at some point all owners of successful businesses will consider the sale of their business and the resulting tax consequences.

The Value of Good Hygiene

Wed, 08 Jun 2011 00:00:00 GMT

If you’re a dentist, you’ve told your patients that good hygiene is one of the most important things they can do to maintain the health of their teeth. But has anyone ever told you that developing a good hygiene practice is also one of the easiest and most important things you can do to maintain and improve the value of your dental practice?

Re-Introducing the 2011 Federal Budget

Tue, 07 Jun 2011 00:00:00 GMT

Mr. Flaherty re-introduced the 2011 Federal Budget on Monday, June 6, 2011, restating all of the same measures previously announced in March.

A New Development in the IRS Offshore Voluntary Disclosure Initiative Affects Americans in Canada

Fri, 03 Jun 2011 00:00:00 GMT

Previously, I wrote that US citizens and green-card holders who were delinquent in their US filing responsibilities generally had three choices. The IRS has added a new possibility that is much more attractive for many people.

Does My Land Qualify?

Thu, 19 May 2011 00:00:00 GMT

An individual has $750,000 of capital gain deduction that can be used to offset capital gains realized on certain qualifying property, including land that is qualified farm property. The Income Tax Act has requirements that must be met for farmland to be considered qualified farm property.

Salary vs Dividends: A Brief Overview

Thu, 12 May 2011 00:00:00 GMT

Canadian corporations have different tax rates depending on their size, their income, and the type of income earned. In Canada, we have a general theory that it should not matter how the income is earned, it should be subject to the same amount of tax once it has been received by the shareholder, regardless if it was earned in a company or not.

Incorporating Your Business – Am I Too Late?

Tue, 03 May 2011 00:00:00 GMT

A financial planner contact recently brought a new client to me. The client (“Bob”) was investigating incorporating his business and wanted to understand the benefits. Bob had built his business over the last 8 years and was looking at selling within the next 5 years. He already had potential purchasers asking: “would you consider selling?”

Food for Thought - You Can't Afford NOT to Have a Food Recall Plan

Fri, 29 Apr 2011 00:00:00 GMT

Threats to food safety are among the most serious risks to food and beverage processors today. I have 10 questions food processors should ask themselves in order to determine whether or not their plan is relevant.

Can Your Trust Survive an Audit by the Canada Revenue Agency?

Tue, 19 Apr 2011 00:00:00 GMT

A trust can be a valuable tool for a family to use as part of an estate plan or for income splitting purposes. CRA is aware of these uses and seems to be focusing its audit efforts on the income splitting objectives.

Manitoba Budget Announcement - 2011

Tue, 12 Apr 2011 00:00:00 GMT

Finance Minister Rosann Wowchuk presented Manitoba’s 2011 Provincial Budget on April 12, 2011.

Forget the 'What' When Selling Wine

Wed, 06 Apr 2011 00:00:00 GMT

The vast majority of the market is made of people who won’t buy until someone else buys first. Sales take off when you get the early majority on side, but you can’t get there unless your message resonates with the early adopters. You can capture these people by switching your focus from what to why.

Creative Uses of Life Insurance for Estate Planning

Tue, 05 Apr 2011 00:00:00 GMT

Estate planning is simply not complete without considering life insurance.

A Case Study on HST - Part III: Tangible Personal Property

Fri, 01 Apr 2011 00:00:00 GMT

Continuing on with our case study of Game Company, we will look at further instances of how the Place of Supply Rules regarding Tangible Property come to bear on their day-to-day operation.

Harvest the Benefits of Tax-Incentive Programs for Your Winery

Wed, 30 Mar 2011 00:00:00 GMT

Running a winery is demanding and understanding the business of wine can be a full-time job. But to be successful, you need to tend to your business plan and tax situation as much as your winery. Knowing what tax-incentive programs are out there allows you to make informed business decisions and grow your operation.

Ontario Budget Announcement - 2011

Tue, 29 Mar 2011 00:00:00 GMT

In his Budget today, Ontario’s Finance Minister Mr. Dwight Duncan avoided making any of the “tough choices" necessary to balance the budget earlier than the planned 2018 fiscal year. His 2011 Budget contains no perceptible cuts to programs or expenditures.

Federal Budget brings changes to Corporate Partnerships

Fri, 25 Mar 2011 00:00:00 GMT

For tax purposes, a partnership is not considered a taxpayer, but rather an entity that calculates and allocates its taxable income to its partners. The partners then include this allocation in their taxable income in the year containing the fiscal year end of the partnership.

Saskatchewan Budget Announcement - 2011

Wed, 23 Mar 2011 00:00:00 GMT

Finance Minister Ken Krawetz presented Saskatchewan’s 2011 Provincial Budget on March 23, 2011.

A Case Study on HST - Part II: GST/HST Rates on Supplies

Tue, 22 Mar 2011 00:00:00 GMT

Continuing our discussion of Game Company located in Red Deer, Alberta- the question we will answer is with regards to the tax rate applied to the purchase of supplies.

Federal Budget Announcement - 2011

Tue, 22 Mar 2011 00:00:00 GMT

Federal Minister of Finance James M. Flaherty delivered the Conservative government’s Federal Budget on Tuesday, March 22, 2011.

Quebec Budget Announcement - 2011

Sat, 19 Mar 2011 00:00:00 GMT

Quebec Finance Minister, Raymond Bachand, delivered his second budget speech on Thursday, March 17, 2011.

The Eligible Dependant Credit and Shared Parenting

Fri, 18 Mar 2011 00:00:00 GMT

We'll discuss how a Canadian individual can become eligible to claim the wholly dependent person tax credit.

Motion 601 Has Legs

Wed, 16 Mar 2011 00:00:00 GMT

Motion 601 may finally allow world-class Canadian wine to flow from coast to coast and open the doors to increased revenue for wineries.

A Case Study on HST - Part I: Place of Supply Rules

Thu, 10 Mar 2011 00:00:00 GMT

The Place of Supply rules are necessary to determine the appropriate rate of tax to charge. Under the GST/HST system if you are registered for these taxes, it is the requirement of the person selling the good or supplying the service to charge the correct rate of tax.

The CRA's View on the Activity of Making Wine

Wed, 09 Mar 2011 00:00:00 GMT

There are few “black and white” answers when it comes to Canadian tax law. Most situations require a careful evaluation of the facts combined with knowledge of the Income Tax Act, related resources and case law. The question of whether the activity of making wine constitutes farming is a great example.

Donations of Marketable Securities

Tue, 08 Mar 2011 00:00:00 GMT

Want to support a favorite Canadian registered charity but find yourself short on cash? If you have shares in a public company that have appreciated in value, you could sell the shares and donate the cash to the charity. Donating the shares directly is another way of getting an even greater tax credit.

GST/HST Developments in the Financial Sector

Thu, 03 Mar 2011 00:00:00 GMT

The year 2010 contained significant GST/HST developments that affected the financial services sector. Complex legislation dealing with imported taxable supplies and input tax credits (ITCs) were put into force. It also provides detailed rules for classifying and allocating expenses and purchases for input tax credit purposes.

Change in Corporate Governance Landscape: How to Manage Risk In Your Organization

Wed, 02 Mar 2011 00:00:00 GMT

On April 11 and 12, 2011, Federated Press is organizing a course in Calgary titled “Board Risk Management” and one of the speakers is Maggie Kiel, MNP’s ERM and Internal Audit Practice Leader.

Alberta Budget Announcement - 2011

Thu, 24 Feb 2011 00:00:00 GMT

On Thursday, February 24, 2011, the Alberta Minister of Finance and Enterprise, Lloyd Snelgrove, presented the Province’s 2011 Budget.

Canada’s Anti-Corruption Legislation – after more than 10 years, could increased enforcement be near?

Thu, 24 Feb 2011 00:00:00 GMT

On January 31, 2011, Transparency International Canada issued a press release highlighting the fact that the RCMP’s Sensitive Investigations and International Anti-Corruption Unit currently has 23 active investigations into suspected breaches of the Canadian Foreign Public Officials Acts (CFPOA).

Are You Correctly Applying Fair Value Standards? Purchase Price Allocations and Goodwill Impairment Tests

Fri, 18 Feb 2011 00:00:00 GMT

The transaction market in Canada has declined over the last few years, but the importance of properly recognizing assets acquired in an acquisition has not. Properly accounting for assets acquired in a merger or acquisition can have significant monetary implications.

Using Your Capital Gain Deduction

Thu, 17 Feb 2011 00:00:00 GMT

If you own a Canadian business, you have probably heard something about the capital gain deduction (or capital gain exemption). In my practice, clients are often surprised to learn it is not available to all businesses in all situations.

Maximizing the Northern Residents Deduction

Thu, 17 Feb 2011 00:00:00 GMT

For employers in Northern Canada, there is an opportunity to help employees with the travel component of their Northern Residents Deduction.

Anti-Fraud Issues for Dental Practices

Wed, 16 Feb 2011 00:00:00 GMT

Among professionals, the group most susceptible to fraud is dental practices. We'll go over the reasons why dentists are at risk more than any other professionals group and discuss what dentists can do to protect themselves and their practice.

So You Want to Claim Your Capital Gains Exemption?

Tue, 15 Feb 2011 00:00:00 GMT

The Canadian Income Tax Act (“the Act”) allows vendors of shares of a qualifying small business corporation to claim a deduction from taxable income. This deduction, commonly referred to as the Lifetime Capital Gains Exemption (“LCGE”) is more difficult to access than one might expect.

B.C. Budget Announcement - 2011

Tue, 15 Feb 2011 00:00:00 GMT

On Tuesday, February 15, 2011, the BC Minister of Finance, Colin Hansen, presented the Province’s 2011 Budget. The Budget Speech proclaimed it the “status quo” budget, reaffirming the government’s pledge to fund vital public services while continuing to practice prudent fiscal management.

U.S. 2011 Offshore Voluntary Disclosure Initiative

Fri, 11 Feb 2011 00:00:00 GMT

The IRS has been trying for years to get Americans with money offshore to disclose these accounts and report the income. On February 8, the IRS announced a new voluntary disclosure initiative to get non-compliant persons – U.S. citizens, residents, and green-card holders – into the system and compliant.

Will HST Legislation Changes Impact My Credit Union?

Wed, 09 Feb 2011 00:00:00 GMT

If you are considered as a Selected Listed Financial Institution, you will be required to file a form known as the Special Attribution Method for your upcoming fiscal year end. This form is required to be filed once per year within three months of your fiscal year end, commencing for all fiscal year-ends after July 1, 2010.

Using Charitable Donations in Your Estate Plan

Tue, 08 Feb 2011 00:00:00 GMT

Like many Canadians, you may be considering making a charitable gift as a component of your Estate Plan. Not only is there the philanthropic benefit, but the donation credit can result in beneficial tax results.

Canadians Wintering in the U.S.

Tue, 01 Feb 2011 00:00:00 GMT

From a U.S. income tax perspective, certain rules apply to Canadians wintering in the U.S. Here's what you need to know.

Transitioning the Family Farm

Wed, 26 Jan 2011 00:00:00 GMT

Given the significant increases in land and quota values over the last number of years, it is becoming increasingly difficult to transfer the family farm at fair market value. This tax-deferred rollover can be an invaluable tool in succession planning and benefit future generations.

CRA Coming for Unpaid $138 million

Fri, 21 Jan 2011 00:00:00 GMT

Happy New Year from the Canada Revenue Agency. With a lead-in line like that, you know it can’t be good – and it isn’t.

US Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010

Wed, 19 Jan 2011 00:00:00 GMT

After much speculation, anticipation and the usual political rhetoric, the US Congress finally passed the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. The Act will affect most US taxpayers, including the many Canadian individuals and businesses that are subject to US taxation.

What Public Companies Need to Know About Reporting Requirements

Wed, 12 Jan 2011 00:00:00 GMT

Assuming that you have successfully made it through the IPO process and have raised the capital necessary to achieve your future strategic objectives, the next challenge is to ensure that you have the infrastructure and business processes in place to ensure compliance with financial and non-financial reporting requirements.

Deviations on the Typical Estate Freeze

Tue, 11 Jan 2011 00:00:00 GMT

When the current generation wishes to transfer growth to the next generation to limit the exposure to taxes on death, they will almost always look at using an estate freeze. If the individuals own assets personally that are accruing value, the assets would normally be transferred to a corporation to effect the estate freeze.

Choosing the Right Appraiser – for CAIRP Members and People Who Want Accurate Appraisals

Wed, 29 Dec 2010 00:00:00 GMT

The Canadian Association of Insolvency and Restructuring Professionals (CAIRP) has updated the Standards of Professional Practice, challenging members to ensure they have the right person for the appraisal engagement.

IPP - Terminal Funding

Tue, 28 Dec 2010 00:00:00 GMT

Individual Pension Plans (IPPs) are an excellent vehicle for business owners to save for retirement on a tax effective basis. We're going to focus on one particular benefit of IPPs, referred to as terminal funding. This is a large contribution opportunity which arises when the business owner retires.

Preventing Fraud in Non-Profit Organizations: Part 2 - Understanding your risks

Wed, 22 Dec 2010 00:00:00 GMT

Fraud schemes are limited only by the imagination of the perpetrators and fraudsters are a creative lot who don’t think twice of committing fraud against non-profit organizations – we have seen too many examples of this in the headlines.

Just In Time, Tax-Saving Tips

Mon, 20 Dec 2010 00:00:00 GMT

Not that anyone is looking for more things to do at this time of year, but the end of the calendar year is a pretty important date from an income tax perspective. Retroactive tax planning isn't particularly effective, so be pro-active this year and give some thought to the following ideas

Is a Private Health Services Plan Right for Your Business' Taxation Needs?

Tue, 07 Dec 2010 00:00:00 GMT

Let’s set the scene – you're an entrepreneur; you have a spouse who isn’t working and you are about to have your first child. You currently have no staff, but your business is expanding rapidly and you need to hire some employees and they're going to want medical and dental coverage. What plan is right for your business' taxation needs?

Fair Value Increase on Adoption of New Accounting Standards for Private Enterprises

Wed, 01 Dec 2010 00:00:00 GMT

After choosing whether to adopt IFRS or the newly developed ASPE, our Private Enterprise clients ask us what they need to consider before deciding to “fair value” their property, plant and equipment upon adoption of their new accounting framework. This is what we tell them.

Putting Our People First in the Greater Toronto Area

Wed, 24 Nov 2010 00:00:00 GMT

At MNP, our people are the driving force behind our success and the reason why we have grown to become one of the largest chartered accountancy and business advisory firms in Canada, with an ever growing presence in the GTA.

How Credit Unions can use Innovation as a Tax Advantage

Wed, 17 Nov 2010 00:00:00 GMT

The Canada Revenue Agency currently has a tax credit program in place that may allow a Credit Union to receive a refund for a portion of expenditures made to address off-the-shelf system deficiencies, extensions to the application that are required to meet Credit Union business practices, or architecturally based shortcomings.

The Trend Toward Environmental Accounting

Wed, 10 Nov 2010 00:00:00 GMT

With the recent oil spills, ongoing clean-up efforts, and an overall increase in environmental consciousness, Environmental or “Green” Accounting has come into focus.

Putting Our People First

Fri, 29 Oct 2010 00:00:00 GMT

Meyers Norris Penny LLP (MNP) has been recognized as of one of the Best Employers in Canada for the third consecutive year.

Preventing Fraud in Non-Profit Organizations: Part 1 - Tone at the Top

Wed, 27 Oct 2010 00:00:00 GMT

Non-profit organizations have certain specific features which make them particularly susceptible to fraud. So how can non-profits protect themselves? In this series, we will try and help non-profit organizations do just that by providing guidelines on how to safeguard their assets and reputation, starting at the (Tone at the)Top.

Termination Best Practices: Preserving Dignity

Wed, 20 Oct 2010 00:00:00 GMT

Terminating an employee is never an easy task, no matter how many times you have done it. When making the decision to terminate an employee, keep in mind that your primary goal is to maintain the employee’s dignity throughout this difficult process while also balancing the needs of your organization.

Training as a Retention Tool

Mon, 18 Oct 2010 00:00:00 GMT

Retention should be a priority for all businesses. Have you ever stepped back to consider the impact training can have on retention?

Going Public – The Implications to your Human Capital Group

Mon, 04 Oct 2010 00:00:00 GMT

When making the decision to go public there are numerous considerations to keep in mind. Going public could be the best decision you ever made but don’t forget about the people side of your business if you choose to do this!

What Credit Unions Need to Know About the New Canadian Auditing Standards (CAS)

Tue, 28 Sep 2010 00:00:00 GMT

With the adoption of Canadian Auditing Standards (CAS) for credit unions with year ends on or after December 14, 2010, the auditor's report date will be the date that the Board of Directors approve the financial statements. What will this mean for your upcoming audit?

Leveraging Government Agri-Food Policy to Control Health Care Costs

Wed, 22 Sep 2010 00:00:00 GMT

A significant amount of your tax dollars are going to health care. As the population ages, health care costs will increase. At the same time, paying for health care impacts the government’s ability to invest in agriculture and agri-food programs.

Changes to the Auditor's Report Date May Affect Your Audit

Wed, 08 Sep 2010 00:00:00 GMT

Canadian Auditing Standards will be applicable for all Canadian audit engagements for periods ending on or after December 14, 2010. So what does this mean for your company’s audit? There is one change, specifically, that you need to be aware of.

Business Training Designed For You

Tue, 07 Sep 2010 00:00:00 GMT

Building capacity in your community with MNP’s customized training solutions.

Net Tangible Asset Value: Part 3 - The Value of Leverage

Wed, 01 Sep 2010 00:00:00 GMT

This is perhaps the least well understood adjustment, the CBV may look at the difference between the existing and the optimal capital structure of the company as at the Valuation Date. For clarity, a company has two primary sources of capital, debt and equity, and the capital structure is probably best expressed as the debt to equity ratio.

Stars & Sustainers - Why You Need Both In An Organization

Mon, 30 Aug 2010 00:00:00 GMT

Last week I had lunch with a client of mine. And so began the conversation around what is a Star versus a Sustainer... and why you need to have both.

It’s Time to Consider a Food Safety Tax Credit

Wed, 25 Aug 2010 00:00:00 GMT

While Canada has an excellent system of food safety, recent crises and product recalls have given food safety a high public profile -- raising the question of whether government and the food industry are investing sufficient financial and human resources to adequately address complex risks.

Net Tangible Asset Value: Part 2 – Redundant Assets

Wed, 18 Aug 2010 00:00:00 GMT

Once all the corporate assets of the company have been adjusted from their reported net book value to their respective fair market values, the CBV will assess if any of those corporate assets are not required in order to generate the expected future operating cash flow.

IRS Uses US Healthcare to Catch Non-Compliant Canadian Taxpayers – “Universal Coverage” may have new meaning

Wed, 11 Aug 2010 00:00:00 GMT

Who would have thought US healthcare reform would have such a unique and profound effect in Canada? Buried in the details of “The Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act” is a hidden provision that may well change how Canadian Corporations are taxed by the Internal Revenue Service (“IRS”).

Why Hiring An External Auditor Provides Value

Wed, 04 Aug 2010 00:00:00 GMT

Many Canadian organizations self diagnose themselves as low risk for money laundering because they do not handle cash or they are in a small community and know their clients well. However one provincial gaming authority found out the hard way last week that their internal controls and procedures were ineffective.

Net Tangible Asset Value: Part 1 – Fair Market Value

Mon, 26 Jul 2010 00:00:00 GMT

There really are only two types of value in a company, the value of the tangible assets, and the value of the intangible assets. The fair market value of a company is the sum of these two types of assets. While this may seem obvious, the twist is that the value of the intangible assets is often not calculated directly.

Employee Assistance Programs: Enhancing Effectiveness & Accountability

Thu, 15 Jul 2010 00:00:00 GMT

EAPs can play a key role helping employees and their eligible family members address personal issues that, without outside assistance, could have a negative impact on work performance. In today’s workplaces, a growing number of organizations are recognizing the value of offering Employee Assistance Programs (EAPs) for their people.

The 'Great Training Program' Equation

Mon, 05 Jul 2010 00:00:00 GMT

Often times, companies make the mistake of having one of their experts in a field deliver a session on their area of expertise. Great training programs, no matter what the content or format, result from an interwoven involvement of Subject Matter Experts (SME’s) and Instructional Designers.

Is Cash King: The Merits of Taking "Paper" as Consideration for the Sale of Your Business

Tue, 29 Jun 2010 00:00:00 GMT

Is cash really king? The answer is almost always a resounding yes, especially when it comes to selling your business. Taking cash mitigates the risk that you won’t recover full value in the future. But these days 100% cash deals are rare and there are always exceptions to the rules.

Bill 168 & Workplace Violence: Part 5 - Develop & Implement Training Programs

Mon, 28 Jun 2010 00:00:00 GMT

Without training surrounding workplace violence and harassment, employees do not know what to do in the event of an incident or how to prevent violence before it happens. Providing training is another step to compliance with Bill 168.

Bill 168 & Workplace Violence: Part 4 - Creating Policies & Programs

Mon, 21 Jun 2010 00:00:00 GMT

Upon completion of the workplace violence Risk Assessment, the second step towards compliance is the development of policies and programs which address workplace violence and harassment. Well-drafted policies can provide employees information regarding what constitutes harassment or violence and how to report incidents.

Use and Taxation of Discretionary Family Trusts

Wed, 16 Jun 2010 00:00:00 GMT

Unlike a corporation, a trust is not a legal entity, but is a legal relationship. The trust relationship is created by intention. The intention to create a trust is usually evidenced by a document signed by the settlor and the trustees which outlines the obligations and powers of the trustees, as well as the interests of the beneficiaries.

Just What Exactly Is a Technological Obstacle in the SR&ED Program?

Wed, 09 Jun 2010 00:00:00 GMT

From our last post we know that the first thing to figure out is whether or not you have performed a technological advancement. One of the key factors into determining whether or not an advance happened are what obstacles did you have to overcome, or rather what uncertainties did you have when attempting to achieve your technological advancement?

Bill 168 & Workplace Violence: Part 3 - Conducting Your Workplace Violence Risk Assessment

Mon, 07 Jun 2010 00:00:00 GMT

Compliance to Bill 168 begins with a risk assessment. A risk assessment evaluates the risks of workplace violence that may arise from the nature of the workplace, the type of work or the conditions of work. A risk assessment begins with the identification of current risks.

Bill 168 & Workplace Violence: Part 2 - Making Your Organization Compliant

Mon, 31 May 2010 00:00:00 GMT

Organizations may find themselves asking: “What are the consequences if I do not comply with Bill 168?” Non-compliance with Bill 168 will be subject to fines and penalties that currently exist with respect to the Occupational Health and Safety Act.

Imbalanced Business Partners: What Happens When One Owner Isn't Active Anymore?

Tue, 25 May 2010 00:00:00 GMT

Recently I’ve worked with businesses where there has been a significant imbalance in the amount of effort being directed in the business by the owners. In both cases, one partner was committed to continuing to manage and grow the business, whereas the other partner was more committed to golfing. So, what can a partner do to resolve the imbalance?

Bill 168 & Workplace Violence: Part 1 - Protecting Your People and Your Business

Mon, 17 May 2010 00:00:00 GMT

Workplace violence is becoming an ever increasing issue for organizations. It is conservatively estimated that 1 in 6 violent incidents in Canada occur in the workplace and Statistics Canada’s latest report on violence in the workplace shows approximately 356,000 incidents of violence occur in the workforce each year.

Making the Right Outsourcing Decision

Mon, 10 May 2010 00:00:00 GMT

In a world where outsourcing and offshoring promise lower cost options, these decisions may be made in haste and without an understanding of the real savings involved.

Not for Profit Organizations – One Step Closer

Tue, 04 May 2010 00:00:00 GMT

The Accounting Standards Board (AcSB) is another step closer to determining the future for Canadian not-for-profit organizations (NFPOs).

Is your food processing business missing out on significant SR&ED tax refunds?

Thu, 15 Apr 2010 00:00:00 GMT

The Scientific Research & Experimental Development (SR&ED) Tax Credit Program offers over $4 billion per year in funding and is the single largest source of federal government funding for industrial research and development. Your food-processing business may be missing out on significant SR&ED tax refunds.

Managing Business Continuity

Mon, 12 Apr 2010 00:00:00 GMT

Our world has changed. We live and work amid new and emerging threats. As 2 out of 5 companies that experience a crisis do not survive, developing effective strategies to proactively identify and manage threats to your organization could be your best defense in an ever-changing world.

The Transition to International Financial Reporting Standards (IFRS): Let’s Learn From Others

Wed, 31 Mar 2010 00:00:00 GMT

In 2011 (or maybe earlier), many Canadian enterprises are going to be adopting IFRS. If your company or organization is adopting IFRS, you have most likely just begun your transition. You may want to consider some of the issues these areas identified when they transitioned to IFRS, and learn from them.

Ontario Budget Announcement - 2010

Thu, 25 Mar 2010 00:00:00 GMT

Finance Minister Duncan presented a stand pat Ontario Budget March 25, 2010.

Saskatchewan Budget Announcement - 2010

Wed, 24 Mar 2010 00:00:00 GMT

Finance Minister Rod Gantefoer delivered Saskatchewan’s 2010 budget on March 24, 2010.

Manitoba Budget Announcement - 2010

Tue, 23 Mar 2010 00:00:00 GMT

Finance Minister Rosann Wowchuk presented Manitoba’s 2010 Provincial Budget on March 23, 2010.

Transforming Your Business to Better Serve Your Clients

Mon, 22 Mar 2010 00:00:00 GMT

Service organizations, whether in the public, private or non-profit sectors, want the customer experience to be great. Their long-term survival often depends on it!

Income Splitting With Spousal Loans

Thu, 18 Mar 2010 00:00:00 GMT

Spousal loans are a great way to implement income splitting between two spouses, where one spouse is in a higher tax bracket than the other spouse. Generally, spouses are not able to split income to reduce their tax bill unless specifically allowed under the Income Tax Act.

HST & The Place of Supply Rules

Mon, 15 Mar 2010 00:00:00 GMT

Information on an extremely important component of the upcoming HST in BC and Ontario was recently released - The Place of Supply Rules. If you're asking "What rate do I charge?", the rules have changed!

Benefits of Customized Training

Tue, 09 Mar 2010 00:00:00 GMT

Many companies have professional development budgets allocated for their staff, yet often times these budgets are only spent on “cookie-cutter” courses where only a portion of the material is relevant to the staff member.

Federal Budget Announcement - 2010

Thu, 04 Mar 2010 00:00:00 GMT

Federal Minister of Finance James M. Flaherty delivered the Conservative government’s Federal budget on March 4, 2010. Budget 2010 continues to build on last year’s Economic Action Plan with a focus on creating jobs and growth, sustaining the nation’s economic advantages and planning to return to a balanced budget.

Documenting Your Scientific Research & Experimental Development (SR&ED) Claim

Mon, 01 Mar 2010 00:00:00 GMT

The first step in taking advantage of the Canada Revenue Agency’s (CRA’s) SR&ED tax credit incentives is to determine if you are performing qualified SR&ED work. Once you’ve established that, the next step is to produce documentation and evidence to support that eligible work was done and that eligible expenses were incurred.

Family Members as Owners of the Family Business

Tue, 23 Feb 2010 00:00:00 GMT

There are numerous benefits of including family members as owners in the business, and many of these benefits can be linked to income splitting opportunities.

PE GAAP vs IFRS - The Choice is Yours

Tue, 16 Feb 2010 00:00:00 GMT

It’s official! The new generally accepted accounting principles for private enterprises (PE GAAP) have been released. The date you need to mark in your calendar is January 1, 2011, when your private enterprise must choose to adopt either the new PE GAAP or International Financial Reporting Standards (IFRS).

How Much Should You Pay for a Business?

Mon, 08 Feb 2010 00:00:00 GMT

Purchasing a business is a big decision that requires a large investment of your time and money. There are many factors to consider when deciding whether or not to acquire a new business; perhaps one of the most critical factors being the price you pay for the business.

What is a Minority Discount?

Mon, 01 Feb 2010 00:00:00 GMT

In determining the fair market value of an interest in a company, not all classes of shares are created equal, nor are all sizes of shareholdings in that company.

Taking Advantage of the Scientific Research and Experimental Development (SR&ED) Tax Credit

Wed, 27 Jan 2010 00:00:00 GMT

Asking yourself these questions could save you a lot of money. The Scientific Research and Experimental Development (SR&ED) tax credit is a valuable incentive which can provide a refundable tax credit for Canadian businesses. For example, a private company that spends $100,000 on SR&ED can earn a net after tax savings of approximately $47,000.

How to Protect Yourself from Ponzi Schemes

Wed, 13 Jan 2010 00:00:00 GMT

Investment guru Warren Buffet famously said, “When the tide goes out you see who is swimming naked”. Well, the turning economic tide has resulted in a few unpleasant surprises for investors. It seems hardly a month goes by without a news story about another Ponzi scheme defrauding victims of their life savings.

Where the Buffalo Roam and Tax Collectors Play (a.k.a A CFO’s Sales Tax Nightmare)

Mon, 04 Jan 2010 00:00:00 GMT

Imagine the following fact pattern: A small startup software company - keen to monetize the company’s unique software offering - goes South to generate sales. Unfortunately for the company, the recession hits.

IFRS Impact on Certification of Internal Controls

Tue, 22 Dec 2009 00:00:00 GMT

Public issuers will be required to adopt IFRS for financial years commencing on or after January 1, 2011 with 2010 comparative IFRS figures. The transition to IFRS is expected to result in significant changes to the financial reporting process.

So Your Company is Adopting International Financial Reporting Standards (IFRS)? - Part II

Fri, 18 Dec 2009 00:00:00 GMT

In part I of this blog series, I discussed the financial reporting impact of transitioning to IFRS for your company. In part II, I will discuss some additional impacts of converting your company’s financial statements to IFRS.

So Your Company is Adopting International Financial Reporting Standards (IFRS)? - Part I

Wed, 16 Dec 2009 00:00:00 GMT

If you haven’t planned your transition to IFRS - the time to start is now! In part I of this II part series of blogs, I will highlight some of the key things you need to consider for your transition to IFRS, all to help ease the transition and save your company time and money.

Investing in U.S. Real Estate? Have You Thought About U.S. Tax?

Wed, 09 Dec 2009 00:00:00 GMT

In today’s economy, investing in U.S. real estate is an exciting opportunity for Canadians. The U.S. taxation of Canadians holding U.S. real estate is complicated and should be evaluated fully before making the investment. Here are some issues to consider:

New Tax Legislation for Alberta Professionals Becomes Law

Mon, 07 Dec 2009 00:00:00 GMT

Bill 53, also known as the Professional Corporations Statutes Amendment Act, 2009 passed through the Alberta legislature and was given Royal Assent on November 26, 2009.

Important Points About the Transition to HST

Mon, 07 Dec 2009 00:00:00 GMT

Senior officials from the Ministry of Finance recently clarified some important points about the impending transition to HST.

Can U.S. Tax Affect You? FAQ

Fri, 04 Dec 2009 00:00:00 GMT

I am a U.S. citizen or a Green Card holder, how will US tax affect me? - U.S. citizens and Green Card holders are required to file a U.S. tax return every year regardless of where they live.

Management Fees... Easier Said Than Done!

Mon, 30 Nov 2009 00:00:00 GMT

It is not uncommon for business owners to say “just pay a management fee equal to the loss”. This sounds easy enough to do; just write a cheque and make a journal entry. All done. Unfortunately, this rarely is within the scope of the tax laws.

Top 9 Year End Tax Planning Tips for Farmers

Wed, 25 Nov 2009 00:00:00 GMT

By this time most farmers will have their 2009 harvest in the bin. So, the next task is to consider looking at your accounting records to plan for the current year’s tax liability. The following is a list of items farmers should pay close attention to prior to December 31, 2009.

How Will the New HST Affect My Business? - FAQ

Fri, 20 Nov 2009 00:00:00 GMT

Ontario received $4 billion and British Columbia received $1.6 billion in transfer payments from the federal government if they agreed to harmonize their PST’s with the GST. How will this affect your business?

Tips and Traps Regarding Capital Losses

Mon, 16 Nov 2009 00:00:00 GMT

Let’s face it – no one really likes to trigger losses, but the silver lining of triggering a loss is that losses can actually help your tax situation.

SR&ED for Video Game Development

Mon, 09 Nov 2009 00:00:00 GMT

The video game development industry has come a long way since Super Mario Bros. on the first 8-bit Nintendo console. As with the music industry, where artists can record, produce, master and release their works to the public independently.

New Tax Legislation for Alberta Professionals

Tue, 27 Oct 2009 00:00:00 GMT

On October 26, 2009, the Alberta Government announced the Professional Corporations Amendment Act 2009 which focuses on removing the restrictions of share ownership within professional corporations.

Management’s Discussion and Analysis

Mon, 26 Oct 2009 00:00:00 GMT

Many companies feel that the management’s discussion and analysis (MD&A) is an obligation, but we feel that this is an opportunity to showcase your Company. The following are helpful hints to make the most of your MD&A.

The Financial Reporting Framework for Government Business Enterprises

Tue, 13 Oct 2009 00:00:00 GMT

Over the past several years, the Accounting Standards Board (AcSB) and the Public Sector Accounting Board (PSAB) have been deliberating the appropriateness of financial reporting frameworks for all types of Canadian entities.

The Personal Services Business

Mon, 05 Oct 2009 00:00:00 GMT

If you have a small consulting business in Canada, you have probably heard something about personal services businesses (PSB) either from your accountant or in the local coffee shop.

Application of Financial Instruments for Not-for-Profit Organizations

Wed, 30 Sep 2009 00:00:00 GMT

Are NPOs required to apply the current FI standards related to recognition and measurement (i.e., Sections 1530, 1651, 3051, 3251 and 3855)?

Incorporating your Farm Partnership

Mon, 28 Sep 2009 00:00:00 GMT

Many people wonder when it’s the right time to incorporate their farm partnership. The reason to incorporate a farm can be different for each farm family; however one of the primary reasons is often to gain access to the small business deduction available in the corporation.

To XBRL or not to XBRL?

Thu, 24 Sep 2009 00:00:00 GMT

On May 30, 2008, the U.S. Securities and Exchange Commission (SEC) proposed a rule that would require both U.S. and foreign public entities trading on the U.S. exchanges to file their primary financial statements using the eXtensible Business Reporting Language (XBRL) electronic data tagging taxonomy.

Does Project Management Need to be Sexy to Succeed?

Mon, 21 Sep 2009 00:00:00 GMT

For most of us, outside of that elite band of Gantt chart experts, Project Management is one of the last things we’d consider to be “sexy”. Where’s the fame, glamour, money and power in being a Project Manager?

When to Register for PST?

Tue, 15 Sep 2009 00:00:00 GMT

Do you live in one of the PST provinces (B.C., Saskatchewan, Manitoba, Ontario, Quebec or PEI), do you need to register for PST?

The Future of Financial Reporting by Not-for-Profit Organizations

Mon, 14 Sep 2009 00:00:00 GMT

Since becoming effective in 1997, there have been few revisions to the CICA Section 4400 Series of standards for NFPOs. However, this is about to change!

B.C. Budget Update September 1, 2009

Tue, 08 Sep 2009 00:00:00 GMT

A summary of the B.C. budget update released September 1, 2009.

When to Register for GST?

Mon, 31 Aug 2009 00:00:00 GMT

Have you started your own business and are not sure about whether you should register for GST? You are able to voluntarily register for GST if you are carrying on a commercial activity. Either selling taxable goods or providing taxable services.

One Set of Accounting Standards for all Levels of Government

Tue, 25 Aug 2009 00:00:00 GMT

In the past, there was some differentiation in the public sector accounting standards applicable to each level of government, i.e. federal, provincial, territorial and local governments.

Evaluation of Management Assumptions during the Economic Crisis: Impairment of Long-Lived Assets

Tue, 18 Aug 2009 00:00:00 GMT

Under Canadian GAAP, management is required to test long-lived assets for impairment whenever circumstances indicate that their carrying amount may not be recoverable. The decline in the current economic environment, including reduced market prices for assets, may result in such a circumstance.

The Individual Pension Plan - Part II

Mon, 10 Aug 2009 00:00:00 GMT

The IPP has many practical applications to reward key personnel and shareholder-managers.

GST and Employee Benefits, Allowances and Reimbursements

Mon, 10 Aug 2009 00:00:00 GMT

Are you an employer who pays benefits to your employees? Do you know how to account for the GST on those benefits?

The Individual Pension Plan - Part I

Tue, 04 Aug 2009 00:00:00 GMT

Whenever I sit down with a client to discuss their business structures, a major concern that always pops up is post-retirement cash flow. Quite often our discussions will lead to the topic of individual pension plans.

Navigating a Crisis - Part IV

Wed, 29 Jul 2009 00:00:00 GMT

In an economic downturn, businesses must ensure their customers remain their number one priority.

Navigating a Crisis - Part III

Mon, 20 Jul 2009 00:00:00 GMT

Faced with the current economic pressures, many firms are reacting by jumping to conclusions to protect profits.

Paying GST on Investment Management Fees

Mon, 13 Jul 2009 00:00:00 GMT

A recent decision rendered by the Federal Court of Appeal (the “Court”) may impact the GST required to be collected, and that has been paid, on investment management fees.

Navigating a Crisis - Part II

Mon, 06 Jul 2009 00:00:00 GMT

Before a disaster occurs, Enterprise Risk Management (ERM) can help to plan the recovery of internal functions, customer interfaces, company reputation, and brand by aligning the strategic, operational, and tactical plans.

Navigating a Crisis - Part I

Mon, 29 Jun 2009 00:00:00 GMT

Crisis management solutions to help you prepare for economic emergencies. Nobody likes surprises. Experience has shown, that based on a number of recent disruptive events many organizations do not have adequate resiliency programs in place, which may leave them exposed and unable to adapt quickly to changing economic circumstances.

Private Enterprise Standards – The Call Has Been Answered

Mon, 22 Jun 2009 00:00:00 GMT

For years, there has been a cry for simplified financial reporting standards by the millions of private entities in Canada, their auditors and stakeholders. In 2002, the Accounting Standards Board (AcSB) approved the existing Differential Reporting model to address the concerns of private enterprises.

If the worst hits, is your company prepared?

Tue, 16 Jun 2009 00:00:00 GMT

Business Continuity Planning (BCP) is a field of work involving pre-planning for business disruptions and disaster-related events. A company undertakes the BCP process to mitigate the possible risks to their business if an unplanned interruption occurs.

The New Canadian Auditing Standards

Thu, 11 Jun 2009 00:00:00 GMT

Generally speaking, the Auditing and Assurance Standards Board (AASB) has agreed with the proposed change to the International Standards on Auditing (ISA) and will adopt them as the new Canadian Auditing Standards (CAS).

The Small Business Deduction

Thu, 11 Jun 2009 00:00:00 GMT

The 2009 Federal Budget increased the Small Business Deduction to $500,000 from $400,000, and many provinces have also raised their small business deduction limit to $500,000.

Non Residents Purchasing Real Estate in Canada - Part II

Thu, 04 Jun 2009 00:00:00 GMT

Do you own a vacation property that you have in a rental pool but also use personally? Did you register for GST so that you would not have to pay the GST when you purchased the rental property?

Non Residents Purchasing Real Estate in Canada - Part I

Tue, 02 Jun 2009 00:00:00 GMT

What are the GST implications if you are a non resident and purchase a rental property in Canada? Are you a non resident thinking of investing in Real Estate in Canada? There are various tax implications to owning real estate in Canada.

State Collection Efforts – Is a Soft Approach Preferred?

Thu, 07 May 2009 00:00:00 GMT

A recession can bring out the best and worst in everyone. The U.S. State governments are no exception. In the face of declining revenues, states frequently begin to more aggressively pursue opportunities to collect additional revenues.

Surviving the Economic Crisis

Thu, 30 Apr 2009 00:00:00 GMT

Throughout the past few years, the credit crunch in the U.S. has continued to be the topic of many conversations. Living in Canada, I will often be asked what exactly the “credit crunch” is because Canada hasn’t been affected to the same extent as the U.S.

Four Steps to Combating Fraud

Tue, 28 Apr 2009 00:00:00 GMT

Having disaster insurance and an evacuation plan in case of fire is standard in today’s workplace. But how many of us have a plan for dealing with a threat that can be just as devastating - corporate fraud?

IFRS Guidance for the Oil and Gas Industry

Tue, 28 Apr 2009 00:00:00 GMT

The conversion to IFRS will have a significant impact on Canadian oil and gas production companies. With the adoption of IFRS, oil and gas companies will be expected, for the most part, to abandon or significantly change their current accounting policies.

Fallout or Consequences: The IRS makes its case for increased enforcement

Mon, 27 Apr 2009 00:00:00 GMT

The Commissioner of the Internal Revenue Service (IRS), Douglas Shulman recently stated his beliefs on the state of the economy and tax compliance.

The Mystery of Teamwork

Mon, 27 Apr 2009 00:00:00 GMT

A number of years ago I got involved in a client engagement to assist in turning around the performance of a small team which provided service delivery to the public. The team had dismal performance statistics compared to all of its peer group and improvement was urgently required.

Are You Fully Leveraging AS5 to Improve Your CEO/CFO Certification Process?

Mon, 27 Apr 2009 00:00:00 GMT

The Public Company Accounting Oversight Board (“PCAOB”) released Audit Standard 5 (“AS5”) in 2007 in response to exorbitant audit fees and compliance costs being incurred by public reporting issuers in the United States, related to meeting SOX 404 requirements.

What is a Project Anyway?

Fri, 24 Apr 2009 00:00:00 GMT

Let's do an experiment. I'd like you to answer this question: what is a project? I'm not asking in the sense of "Do you know the official and correct definition of the word?" I'm asking what you think of when you use the word project.