Buchanan Barry LLP - Chartered Accountants

Interest Points - September 2017

Tax Measures

Proposed CRA Tax Measures

On July 18, 2017, federal Finance Minister Bill Morneau announced significant measures aimed at shareholders of private Canadian corporations. There are changes to be effective on the announcement date, others January 1, 2018 and some after that. The proposed measures are not yet law, but we reasonably expect them to be made law – in one form or another – once Parliament comes to session in the fall.

The measures fall into three main categories:

  • Measures to frustrate the use of private corporations to “sprinkle” income among family members and access multiple capital gain exemptions
  • Measures to frustrate the use of private corporations to hold investments
  • Measures to frustrate the conversion of dividend income from private corporations into capital gains

If you believe these measures could affect your business, please contact your Buchanan Barry LLP partner for more information on this topic.

Tax audit

Goods and Service Tax Audits

Since 2014, the CRA announced it has shifted from a generalized combined audit approach for income tax and GST to a more specialized approach for small businesses. In fact the CRA no longer performs combined audits for GST and income tax on small businesses. GST specialists now have separate audits for GST.

As a result of the new initiative, the number of GST audits of small businesses has increased significantly. The CRA selects businesses for audit based on both risk assessment and random file selection.

CRA audits disrupt your business operations and create stress for business owners and their staff. By allowing Buchanan Barry LLP to control the communication and audit process we can help your business carry on with minimal disruption. We’ll ensure the audit is offsite and that any correspondence with CRA is directly with us, only for GST and for the audit period of question.

Contact your Buchanan Barry LLP partner for more information or for assistance with GST audits.

Family financial planning

Estate Planning

It’s not only wealthy people who need estate planning. Everyone could benefit from some degree of estate planning. An estate plan ensures your assets will be distributed in accordance with your wishes.

There are also many other benefits of estate planning:

  • Minimizing expenses and taxes upon death
  • Ensuring you have adequate disability and life insurance
  • Opportunities to update your will, plan for a power of attorney or personal directive

If you don’t have an estate plan in place please contact your Buchanan Barry LLP partner for more information.

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Board of Directors

Responsibilities & Risks of the Board of Directors

Understanding your risk and responsibilities as a director should be your first step before accepting such an appointment. Directors of Canadian Corporations are required to fulfill two principal duties – a fiduciary duty and a duty of care. Failure to comply with either duty can subject the director to personal liability.

Liabilities of directors may include a statutory liability for unpaid employee wages, source deductions, and GST, for example.

Please contact your Buchanan Barry LLP partner for more discussion if you are considering joining a board of directors.

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Tax Letter

Tax Letter

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