Life insurance rules have remained relatively intact since 1982, but that’s about to change. Starting January 1, 2017, new income tax legislation will come into effect that will change some taxation aspects of life insurance policies. These modifications will impact taxpayers’ estate planning, and more specifically, cases where life insurance policies are purchased through a corporation.
This technical bulletin covers the various developments from April to June 2016. 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
Red Deer, AB – Collins Barrow Red Deer LLP has opened new doors in Alberta. In addition to a second office in Sylvan Lake, the accounting, tax and advisory firm has moved from 5010-43 Street to a new address.
Designing internal controls for a small business or organization is a difficult task for management and/or the board to undertake. There are some that say it cannot be done because there are too few employees in the organization. We disagree. It can be done with a bit of forethought about the design of the workflow that needs to be accomplished. To begin the process, consideration needs to be given to the four major components of internal controls: control environment, risk assessment, technology and monitoring.
A common question that we often get as farm tax advisors is whether or not farm property can be transferred to the next generation by way of a gift. This topic is becoming more and more important as nearly half of all farmers in Canada are 55 years of age or older and are preparing themselves for succession. Succession planning is the most discussed topic between farmers and their tax advisors. Contributing to this dilemma is that rising land values is creating significant amounts of wealth and making life difficult for the farmers to equalize their estates when there are active and non-active children involved in the farming business. Succession has become much more difficult, and a traditional solution of life insurance and non-farm assets may not be enough to equalize the estate.
Collins Barrow KMD LLP’s Mike Bondy recently delivered a presentation for the Zavitz Seminar Series titled ”Trudeaumania 2 and Trump Dynasty.” Mike shared an overview of the March budget and its effect on tax rates, outlining strategies for minimizing the impact of these changes.
Calgary, AB – To support entrepreneurs in Alberta, ATB Business is joining forces with Collins Barrow Calgary partners Terry Booth and Jeff Lutzak. Throughout the fall, Booth and Lutzak will provide a series of educational presentations to the company’s clients through the ATB Entrepreneur Center. On June 23, the series began with “Determining Your Effective Corporate Structure.”
Courtice, ON - On Wednesday, September 14, Collins Barrow Durham will host Durham Exports (www.durhamexports.com), a conference on building business opportunities and growth through exporting. This is a rare opportunity for business leaders to enjoy a day of intensive networking and learning.
Leamington, ON - After more than 35 years of business in its current location, Collins Barrow Leamington is opening a new office. Having outgrown the 4,100 square feet at 92 Talbot Street East, the firm’s 17 staff members and four partners are upgrading to a 7,000 square foot facility at 203 Talbot Street West, adjacent to Leamington Medical Village
Collingwood, ON – Collins Barrow SGB LLP is proud to announce that Peter Crew has been promoted to Principal. A valued member of the firm since 1999, Peter has an extensive understanding of owner-managed businesses. He provides business advice to those starting new businesses, incorporating or planning for succession.
Preparing a succession plan for your farm is a complex undertaking that requires many types of expertise. It’s imperative that the advisors involved in the process – like an accountant, financial advisor, lawyer, family dynamics advisor and any other required expert – are all collaboratively on the same page, ensuring your plan a success.
Sudbury, ON - Collins Barrow SNT LLP is proud to announce the continued success of its fundraising efforts for Sudbury’s Relay for Life. Determined to continue playing a role in the fight against cancer, their team is once again participating in the event as it unfolds today. Known as A Counting for a Cure, this team is captained by Manager Nicole Henri.