Some taxpayers utilize corporate groups, which have been structured to multiply their access to the small business deduction (SBD). The SBD allows a company to pay a lower tax rate on the first $500,000 of income each year. Access to the SBD is sometimes limited as it must be shared by associated corporations and corporate partners. To avoid having to share the SBD, some businesses that naturally work in groups, have structured their affairs in a way that allows more than one $500,000 small business deduction. In reaction to this multiplication strategy, the government introduced legislation in the 2016 federal budget to end the effectiveness of such structures and, in effect, increase tax rates for companies in such groups.
This Technical Bulletin covers the various developments from October 2016 to January 2017. Collins Barrow regularly publishes Technical Bulletin for the general interest of its clients and friends to highlight the continually changing accounting and assurance standards, and the interpretations thereof, in Canada.
The Latest at Collins Barrow
Edmonton, AB – The partners of Collins Barrow Edmonton LLP are pleased to announce that Lily Lo, CPA, CGA, CPA (Illinois, USA), MsAcc (USA), has joined our expanding tax group as senior manager, U.S. Tax.
In recent months, there have been rumblings that the streamlined program — a “friendly” system that helps U.S. taxpayers living abroad get caught up on their filing obligations — is coming to an end. If you are an American citizen or Green Card holder who hasn’t been filing American taxes, now is the ideal time to get caught up, as you may be running out of time to avoid harsh penalties.
For many entrepreneurs, the need to find financing can be like trying to sprint while dragging a weight along the ground. The time and effort spent researching financial sources, preparing pitches, and telling their story holds them back from focusing on the business and making their vision a reality.
As part of their commitment to delivering unparalleled value to clients through specialty service lines, Collins Barrow Toronto is pleased to announce the launch of their Integrated Financial Services ("IFS") offering, led by partner, Michael Allen.
Shareholders and family members of incorporated farming operations have a number of options for receiving compensation from their corporation. These options can range from compensation for services rendered, to a return of equity invested in the corporation or merely income derived from owning shares.
A new demo for Collins Barrow Toronto’s (proprietary) financial modelling and risk management tool, DIVA, has now launched.
Whether you’ve got a personal or corporate tax question – related to financial matters at home or abroad – our experts have got plenty of tips to share with you. Check back often as we’re always releasing new videos!
It’s that time of year again – as an employer, what should you know about taxable benefits and the GST/HST? Did you know the GST/HST impacts not only the calculation of certain employee taxable benefits, but also the calculation of the employer’s net tax for GST/HST reporting purposes?
Red Deer, AB – Collins Barrow Red Deer LLP is proud to announce they will be serving as title sponsor of the 2019 Canada Winter Games Fire and Ice Gala on February 3, 2017. The donations raised at the gala, which is the major fundraising event for the Games, will support the delivery of this national multi-sport event. Tickets to the gala are already sold out.