Thought Leadership

At BGD, we understand that information is key to success. Browse through the latest articles published by our thought leaders and industry Partners.

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What is new for this Tax Season

2018 has swiftly arrived and with it, several changes have been brought in by the provincial and federal governments. As a taxpayer, you need to be aware of the recent tax changes in Canada to ensure that you make the appropriate adjustments before April 30 - the deadline to file your return this year. Many important changes and improvements have been observed this tax-filing season. Here are a few things you need to make a note of.

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Effect of Minimum Wage Increase in Ontario on your Business

The general minimum wage in Ontario was increased to $11.60 on October 1, 2017. Speculations in the market about the effect of this recent hike on small businesses and mid-market continue. The concern is justified as for most companies, particularly small businesses, compensation is the most significant business expense.

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Government Announces $50,000 Threshold on Passive Investment Income

In another announcement, Finance Minister Bill Morneau discussed changes to the Government’s small business tax proposal, focusing on the passive investment income policy. According to Morneau, the government will cap passive investment income at $50,000 annually, before higher tax rates apply.

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Small Business Tax Rate to Fall to 9% by 2019

The government announced that the federal small business income tax rate would be decreased. This rate applies to the first $500,000 of qualifying active business income of a Canadian controlled private corporation from 10.

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Government Drops Anti-Surplus Stripping Proposal

Finance Minister Bill Morneau announced on October 19 that the Government is not proceeding with the anti-surplus stripping measure initially proposed as part of the ‘Tax Planning Using Private Corporations’ – the 63-page document released on July 18, 2017, proposing a set of changes to the current tax practices for private corporations in Canada.The proposed Anti-Surplus Stripping rule was initially designed to prevent business owners from converting dividends into capital gains.

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Finance proposes changes to tax planning strategies for Private Corporations

Finance Minister Bill Morneau presented on July 18, 2017 a consultation paper recommending changes to some tax planning strategies currently available to business owners to reduce tax liability for private corporations. This announcement was anticipated in the 2017 Federal Budget released earlier this year, and will have a great impact in all Canadian private companies, including family businesses and professional corporations.

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Why Pay for Due Diligence? What is the Value Proposition?

Performing financial and other types of due diligence prior to an acquisition is often the critical success factor on any completed transaction.

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Zero Based Budgeting

Budgeting & Budgetary Control continues to be one of the most effective ways of putting a Road Map in place and walking an organization down the budget path. A well-drawn Budget compels a thought process that aligns and directs an organization through predictive results, forming the basis for analysis of actual performance vs. budget and reasons for variance.

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Financial Due Diligence: Quality of Earnings

One of the key metrics in understanding whether a transaction has been successful or not is in the measure of the earnings before and after the close of a transaction. Accordingly, understanding the quality of the earnings of a potential target company is key in assessing if the target will generate the desired accretive earnings.

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Reforms coming to Canada's Pension Plan

Federal and Provincial Finance Ministers agreed on Monday, June 21, to support an expansion of the country's Pension Plan. The agreement would increase premiums moderately over a seven-year phase period - starting on January 1, 2019, and allow a higher benefit for pensioners.

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