MP Group's Blog
Disclaimer: This site discusses accounting, tax, and business matters, but please do not consider this advice. You should consult a professional for your advisory requirements.
Tax advisors and partners of Decentral - a Toronto based innovation hub for decentralized technologies. www.decentral.ca MP Group is a boutique accounting and advisory firm that focuses on value added accounting, tax and consulting services executed by senior professionals. Our partners have a expertise with blockchain tax advisory, ICO structures, and business consulting.
Hedge Fund emerging in the cryptocurrency market
If you have been following CNBC and the media you have likely heard that cryptocurrency hedge funds that are hitting the street.
If you have been following CNBC or BNN this past year, you will notice there are a lot of discussions around Bitcoin, Cryptocurrencies, and blockchain technology. MP Group has been working in this sector since the beginning as Bitcoin Accountants. It is amazing to see the growth in the block-chain community in Toronto in the past 3 years. We recall a time when Bitcoin was trading at $300 not too long ago and recently the price has jumped to $9,500 CAD.
Tracking the performance of your business especially in the growth, and maturing stages of your company is very critical for long term success. Many times management is focused on the front office of the business and they should be. However, tracking the performance of each component of the business can drive results faster. There is an old saying that 80 percent of your results come from 20 percent of your efforts. The 80/20 rule holds true for business and this is why tracking the financials and key performance indicators should be done on a monthly basis.
We enter a time in Canada, where many established business owners face a pressing question. Should we be passing on the family business to the next generation? At first this may sound like a rhetorical question, most definitely yes, let’s keep the business in the family. However when considering the next generation or the “millennials” , finding the right fit is just as important if not more than all the hard work you put into the business from day one 20 years ago.
Coming up with a succession plan is critical, this may include several outcomes, many of which do not include passing down the business to a family member. There are many factors to consider when the next generation is to take over and run a successful business. Some of the indicators whether a family member is a good candidate to “carry the torch” include:
What will 2017 have in store for real estate in Toronto?
I think we are due for correction, but this is just my opinion however no one really knows. We are advising to be prudent when purchasing real estate as with any investment.
Canadian players make up approximately 50% of the players in the NHL. The NHL has only 7 Canadian teams and 23 US teams. The major considerations for tax purposes are residency and citizenship. A Canadian citizen that is also deemed a resident of the United States, would likely face a tax liability in both countries. For professional athletes, this can get even more complicated. Players must pay tax based on where they play games, which is both in Canada and the US for all the big 4 sporting leagues. This is then broken down even further to pay tax on the state level based on games played. This is a very long and involved process that is complicated even for tax professionals. Athletes should ensure that they find a qualified professional that has experience with international tax matters to prepare their returns.
Our Firm would like to share some insight on the current status of the Toronto Technology Sector. We will review the FinTech Space, Types of Companies, Finance professionals/developers, allocators, TechTo, and How MP Group assisting.
Real estate has been hot in the GTA for many years. Investors have been looking at Real Estate as a lucrative investment to include in their portfolio. The average investor makes the first time investment personally or through a corporation and acquiring property for rental purposes.
When rental properties are held personally, the rent is reported right away on the investors personal tax return. Also, if rental property is held in a corporation, the passive income is taxed at the highest tax rate in Canada. However, there are some strategies and businesses that can be started alongside your real estate investment to help reduce some of the taxes on passive income.
Claiming a home office can be very beneficial for tax purposes. This was recently displayed in the Ben Affleck movie “the Accountant”. In the movie Ben Affleck helps a local farmer reduce his tax liability through the claiming of home office expenses. Despite “The Accountant” being a very entertaining movie it also has some very important tax tips that can help you save money!
refers to digital currency in which encryption techniques are used to regulate
the generation of units of currency and verify the transfer of funds, operating
independently from a central bank. This means that there is no central bank
backing the currency.
As we all know the price of real estate in Toronto and Vancouver has been increasing at an alarming rate over the past few years. This has been the result of many factors, two of which being extremely low interest rates and high levels of foreign investment.
Operational efficiencies and keeping profit margins high is always top of mind for business owners. For start up companies, keeping profit margins higher is of greater importance. There are some interesting options available for entrepreneurs and start up businesses to consider for keeping overhead costs low. Office space is a common overhead expense, but there are great ways to keep this cost low.
When preparing financial statements for your business using a third party Chartered Accountant firm you want to determine the following: 1) What type of financials do you require? , 2) Who are the users of the financial statements? and 3) What other consulting or advisory services can you service provider offer in conjunction with your financial statements and reports?
As Torontonians, it is pretty common that most of us know at least one individual who is a US Citizen. It is very common for US Citizens to move to Canada for business or employment purposes. Most of the time US Citizens are not aware of the taxation system in Canada and it can become overwhelming. As such, we want to go over some of the requirements and filings needed for a US Citizen living and working in Canada.
Technology companies are striving in the GTA. From King West Toronto to Milton, there are new technology businesses that grow so rapidly so quick. It takes one idea and talented qualified entrepreneurs to see an idea through to becoming the next big App that everyone is talking about. As Technology accountants we see first hand on the issues that tech companies face from the accounting, finance and tax standpoint.
Doctors and Dentists are a few professionals that can benefit from strategies that can lead to lower taxes. As busy professionals, most of the time Doctors and Dentist put their taxes and accounting matters in the back-burner; therefore, it is important that they have the right Toronto Chartered Accountants by their side and take care of those matters. Below are some of the ways that Doctors and Dentist can benefit from tax savings.
Professional Sports is a multi-billion dollar industry. Hockey, Baseball, Basketball, etc., has a huge following in North America and millions of fans follow their favourite sports teams religiously. With a global sports industry, there are many athletes playing in different countries playing for organization such as the Cleveland Cavaliers, Pittsburgh Pirates, Chicago Cubs, etc. Interestingly enough, tax matters impact the athletes playing for these professional organizations and we want to highlight some useful information for our Canadian athletes in particular. So, let’s explore some key concepts pertaining to taxes in Canada and the USA.
What is a Personal Pension Plan?
It is a Canadian tax-savings solution for business owners and incorporated professionals looking for a better way of saving for their retirement. As compared to an RRSP, the pension solution allows up to 60% greater tax-deferred compounding until the individual retires.
Toronto Technology Sector
There is a huge shift in North America with the modern Entrepreneur. When starting a business venture it used to involve opening up a brick a mortar operation in a large city and delivering a tangible product or service to your target market. Improving on old business models and creating new options for customers was the key to gaining market share and then finding ways to cut costs and pass this savings onto your customers. If you did this you would have a sustainable competitive advantage and kill your competition.
In today’s busy environment and constant hustle to grow your business and increase profits, it is more important than ever to pay attention to your own personal fitness and health. Everyone is extremely busy these days, and often people tend to put their fitness and health on the back-burner to ensure that they achieve their business goals. However, it is crucial to spend some time for yourself to focus on your mental and physical well being.
Work with a Progressive Accounting & Advisory Firm!
Tax Savings with new strategies
An Experience You Will Appreciate
The current private business marketplace in Toronto
In the past 10 years we have experienced an incredible growth in the private business sector in Toronto. From manufactures, consumer business, agriculture, construction, real estate or Technology...Toronto is the business hub in Canada and always will be as it has recently passed Chicago as the 4th largest city in North America. With maturing companies in the GTA it is a buyers market, and with investors ( both domestic and foreign) looking to purchase existing cash flowing sustainable businesses, learning to take advantage and plan for succession/exist strategies is critical.
When it comes to real estate in Toronto, a lot of investors have accrued unrealized gains as their property values have increased rapidly in the past few years. We have seen some investors in the GTA realize up to 100%-200% returns on their investment which is amazing.
We get this question all the time, which is a better option to contribute to your RRSP or TFSA? The answer depends a few factors. Understanding the elements of both accounts and the benefits of each is a good starting point. Before I go into the details of each account, it is important to first understand what you are investing in, this is more important than taking advantage of tax savings.
Understand what you are investing in before contributing
With a global economy and ability to connect easily with individuals and businesses, business activities can easily commence abroad. Carrying on business activities and transacting abroad has different tax implications depending on the business facts or situation. Below is some information and concepts that you should be aware of if you are carrying on business activities outside of Canada.
Toronto has become a popular designation spot to shoot some of the latest films and television shows. We all know that the TV show "Suits" have been shot in the financial district of Toronto's downtown core, but here is a list of some of the other top movies that were shot in Toronto that you may find interesting:
Why Should Directors and Producers care about Toronto?
Tax Credits & Low Canadian Dollar.
We all know the main benefit of a life insurance benefit plan is to provide for your family in the event that you pass away. We wanted to explain the benefits from a tax perspective when purchasing life insurance within a corporation vs. personally.
1) The Growth of your insurance plan is tax free
2) Protecting Assets
3) Benefits paid are tax free
We wanted to walk you through the process of obtaining audited financial statements, some of the benefits, and the costs entitled.
The process is involved and generally has 3 phases:
2) Field work
3) Draft financials, approval and issuance of audit report.
With the mergers between the 3 accounting bodies, CGA, CMA, and CA under one body, CPA, it is important you understand what value a CPA, CA professional can provide to your business. The CA designation and the new CPA program requires rigorous training and work experience. The partners at MP Group have received their CA designations prior to the mergers and have met the requirement of having 36 months of public accounting experience. We will go over the benefits that your CPA, CA professional can provide to your business.
We are going to walk you through how the big four accounting firms operate and the alternatives available for small or mid size private businesses. Using a boutique firm, especially one whose partners are Ex-Big Four has many benefits.
Alternatives to the big four accounting firms
With real estate in Toronto sizzling, many are finding lucrative business opportunities. Whether it’s developing homes from scratch, developing commercial real estate, renovating and flipping homes, Toronto has seen development like never before. With our experience, we have determined our top 5 strategies to ensuring you have a successful real estate business.
Buying vs. Renting
At the end of the day the decision to rent or buy is a financial one. You need to asses the answers to these 3 key questions:
1) Do you have enough for a down payment?
2) Does your career involve a lot a of travel at the moment and maybe a future re-location?
3) Affording the monthly payments vs. how much debt you are taking on?
Why should a Technology business in Toronto care about SR&ED (Scientific Research & Experimental Development) Tax Credits?
Toronto based Technology companies that are involved in research & development can qualify for the tax credit program and will have access to a cash refund up for 35% on qualifying expenses. For companies in the growth phase this refund on business activities can very significant and support the growth of the venture. The Canadian government has set a mandate to invest in companies that are creating new technologies, and performing scientific research to become leaders in the world of innovation. Waterloo, ON used to be called the "Silicon Valley" of the North and companies like RIM ( Research and motion) were founded in the area. For more information on the tech hub, please see the link here titled Start up city.
MP Group is a Toronto based accounting firm with expertise in accounting and tax matters that entrepreneurs and private businesses face. We have gone through common accounting matters and summarize top 10 accounting tips for your business.
Why should a Technology business in Toronto care about SR&ED (Scientific Research & Experimental Development) Tax Credits?
Toronto based Technology companies that are involved in research & development can qualify for the tax credit program and will have access to a cash refund up for 35% on qualifying expenses. For companies in the growth phase this refund on business activities can very significant and support the growth of the venture. The Canadian government has set a mandate to invest in companies that are creating new technologies, and performing scientific research to become leaders in the world of innovation. Waterloo, ON used to be called the "Silicon Valley" of the North, however this has been turning into Toronto with organizations such as the MaRS Discovery District.
MP Group has an experienced tax compliance group that provides large accounting firm style value at a boutique level for your business. Preparing tax returns and filing on time is a necessary evil for all businesses. And ensuring to keep the compliance costs low is something most business owners consider; however, that should not be the only factor when ensuring to have your tax returns filed. Having smart, experienced professionals on your side will help you keep the tax liability down and take a proactive approach for the next year. Here are some tips that can be implemented to keep the tax fees lower.
Holding Company Benefits
We get asked all the time what the benefits are from utilizing a holding company? There are two key benefits:
1) Creditor proofing or protecting the assets in the operating company, and
2) Income splitting with family members to reduce your overall family taxes payable.
As a Toronto based firm working with private enterprises and entrepreneurs, we have compiled the Top 10 tax tips that majority of you will find useful. At MP Group, we see the benefits of these tips being utilized by our clients and lead to significant tax savings.
MP Group is a boutique accounting and advisory firm based in Toronto. A firm founded by entrepreneurs now serving entrepreneurs and private businesses. The firm was founded by two Chartered Accountants who met over at PricewaterhouseCoopers. Here is the firm’s story.
Don't make this mistake when transferring the family business
When it comes to passing down the family business to your children, the number one mistake is to transfer the business at a nominal value such as $1. If you proceed with this approach there will be major take implications as this will trigger a capital gain via a non-arm's length transaction ( i.e. the business will be deemed to be sold at fair market value). The solution to transfer your business to the next generation without triggering any tax implications is to use an estate freeze, we outline the benefits and process below.
Are you thinking of purchasing U.S. real estate or currently own some U.S. property as a Canadian resident? You will want to know some of the tax implications before making the investment or before selling your property should you want to realize your profits.
Capital gains, US Tax Filings or 1040 NR, Withholding Taxes, Canadian Tax Compliance & How to Avoid Double Taxation
We understand that the process of a divorce or separation is generally an emotional and stressful time in your life. However, there are some important tax planning considerations when going through this difficult process.
-Splitting Family Assets
-RRSPs: Make sure you do NOT cash out to make equalization payments
-Principle Residence on Family Real Estate
-Child Care Dependent Tax Credit
We wanted to walk you through how to structure your business for tax purposes for a company that is looking to expand and also employ tax planning strategies as a family business. We will discuss the benefits of a corporation, the holding company strategy, and also creditor proofing your operating business.
What do you need from your accountants? MP Group can answer that. We are a passionate about helping our clients and developing an ongoing business relationship. Getting the job done or the task at hand efficiently and effectively is just one aspect of what your accountant should do. Understanding your business, identifying potential problems, and being pleasant to work with are other important factors. If your advisors don’t truly care about you or your business and consider you as just another “file” for them to work on, how can they see the big picture and provide a valuable service.
Some the most intriguing topic on the minds of Toronto business owners of private companies is on ways to minimize their tax liability and operate their business in a tax efficient manner. Generally accounting and tax matters are not the priorities of the business owners; however, being proactive and being in touch with your tax accountant and professional can help you save on taxes and eliminate issues when its tax compliance/filing time.
We wanted to walk you through the current real estate market in Toronto, how many businesses have made their profits and some of the accounting & tax implications.
Current Toronto Real Estate Market Update, How Businesses and Owners have made their profits, Accounting & Tax Implications
Top 3 Considerations when buying a business:
Before you close the deal with a purchase of an existing business there are 3 considerations that must be addressed. We are going to walk you through the business valuation process, tax considerations, and some important strategies to factor into your decision making process.
Business Valuation, Tax Considerations, and Decision making process.
The goal of every business owner or shareholders is to maximize the owners’ wealth via increase profits and generating more sales. The management team really needs to monitor the business activities and goals to ensure that they direct the business in the right direction in order to grow. But how can the owners assess how the business is performing? It is critical for any business to assess the financial “health” of the business and identify issues and solutions for continued growth.
In response to the improving macroeconomic conditions, low interest rates and abundance of cash amongst large cap companies, 2015 was the largest year ever for U.S mergers and acquisitions. With deals such as the $108B acquisition of SABMiller by AB , the $50B acquisition of BG Group by Shell, and the $61B acquisition of Time Warner Cable by Charter Communications; 2015 has set a groundbreaking $4.7 trillion sum for global deals in M&A.
Finding a good restaurant for taking out your clients is not a problem at all in Toronto. There are many restaurants and lounges that are great to entertain your clients and show that you care about them. And, meals and entertainment is a common expenditure incurred by most businesses as a means to entertain clients, sales prospects, and treat your staff.
With the Open Championship on it's way this week, the favorites for this year's title include Dustin Johnson, Jason Day, Adam Scott, Jordan Speith, Rory Mcllroy, and Sergio Garcia.
The bitcoin space is relatively new for the accounting and tax sector, however, as per the CRA, bitcoin is treated as a bartered good when two parties agree to exchange goods or services for bitcoin.
Whether you or your business is looking to acquire an asset/business or sell one, there are many factors to consider. Valuation of the asset is critical and you will want to do your due diligence to ensure you are paying or receiving a fair price for the asset in question.
Valuation, Strategy, Tax Implications
Toronto Technology Hub
If you work in the downtown Toronto Core, you are aware of the Technology Hubs particularly all in and around King West. For example there is a plan for 460 King West to become the newest innovation hub. See the link below for an article on the revitalization plans.
Toronto Technology Accountants
It's great to hear success stories of new tech startup companies obtaining seed capital to develop and bring their new software to market.
If You Want Your Business to Change, You Need to Make Changes in Your Business.
Business today is always changing, and with new technology this change happens rapidly. Whether your business is a start up, or a long standing family business the need to continuously improve your business operations, sales and marketing strategy, IT systems, and culture/ mission is critical. If you focus on delivering the best product or service your business can offer then your customers will value and appreciate you. However, if your business doesn't change and remains in the past, the business model and service then becomes outdated and over time the business will loose it's competitive edge.
Growing your business takes a lot of work and passion. For most passionate business owners, a lot of times the work they put into their business does not actually feel like work. It is enjoyable! What can be more satisfying than seeing your business evolve from the start up stages to a cash cow! During times like this, we see that our clients harbour thoughts of taking their business to the next level and expand their business outside of Canada.
Starting a new business is an exciting time, whether you're in a new industry or have came across a niche product or service which can open up a ton of opportunity. There are several considerations when starting a new business. After this article we hope that you will be more prepared to proceed with your new business venture.
HST is a part of doing business. You need to charge HST to your customers for the goods and services you offer if you are registered and have sales of $30K. As such you need to remit the 13% you collect on your sales to the Receiver General of Canada. As such, this can be a huge cash outflow either monthly, quarterly, or annually based on the levels of sales your business generates. Obviously, you can reduce this amount you remit based on the HST you pay on your purchases of goods and services for carrying out your business activities, but this just helps relieve some of the amount you need to remit. Therefore, managing your cash flow and tracking you HST is important.
There are few questions to ask when looking for a lawyer for your business, see below for some that are helpful:
1) Has the lawyer offered a consultation to get an understanding of your business and your legal council requirements? This goes a long way to establishing a positive professional relationship and shows that they are looking to understand your business before providing legal advice.
Imagine how excited you were when you purchased your first home! It is a huge accomplishment and also one of your largest investment you make. We have come across many clients that run into issues when they sell their home. Therefore, it is best to think about all the potential consequences of something you would think be simple as selling your home like many other individuals.
Golf has been associated with business for as long as I can remember. There is a reason why the PGA tour secures large corporate sponsors every week for their tournaments. It's a great way to get your brand out and be associated with a sport that represents integrity, character, and etiquette.
When it comes to performing a valuation for a business or another asset their are many ways to approach process. There is no right way to value a business, however there are some guidelines that provide a good starting point to determine the value of a company/asset. This would be similar for other asset classes and you can use the same approach.
Normalized Earnings, Multiple, Fair Value.
So your business has grown really fast in the past 2-3 years and the company has increased it's sales by 200%. That's amazing results for any business. But over time the operational processes have become more complex to service the higher sales volume. As a result margins have decreased and are becoming to be thin. As stress settles in for the owners, and their equity partners, they begin to fear that the business they have built in the past 10 years is now struggling to manage cash flow.
You have a great concept and you have done all the ground work to create a great business opportunity. It must feel great to accomplish so much thus far! This obviously requires a lot of capital to get the business off the ground and start generating revenues. Once a viable business is created, raising initial capital or funding may be required to further expand and grow the business. At this point, it would be time to pick up the phone and make some calls to the right investors.
So you personally or your business have been selected for and audit? How to proceed in order to ensure the process goes as smooth as possible and to minimize any taxes owing as a result of the audit.
Firstly, when CRA selects a business or individual for an assessment they make note of a few items below:
As we see with out clients, many owner operators transact with their businesses and themselves for instances such as loaning funds to the company, paying for company expenses personally, withdrawing funds from the company, etc. A lot of times, our clients are not aware that there may be some implications of these transactions from an accounting and tax perspective.
If you incur professional membership dues as a requirement for your place of employment, then these dues are deductible for tax purposes.
The low Canadian dollar attracts many foreign investors and businesses to Canada, primarily from South of our border; the U.S.A. With a current exchange rate of $1.40CAD to $1USD, film production has become more lucrative in Canada with production companies in the US having the ability to keep their costs low. Not only the dollar exchange impact, most provinces provide generous incentive tax credits to promote film production in the Province.
If you follow the capital markets, you know that the S&P 500 short interest hit a 3 year high today.
Here are a few questions you will want to ask when hiring an accountant for your business or personal matters:
1) Does the Accountant have the expertise necessary to handle your business and personal matters? Not all Accountants are held equal. Even though the branding of accountants in Canada have merged under the uniform brand of the CPA designation, there are three tries/ types of accounting professionals as follows:
Towards the end of 2014 the price of oil starting to drop rapidly, this is due to the large bubble that has developed over the past 10 years in oil. Today the price of is around $33 a barrel, this is all due to the large glut of oil produced over the years by Saudi Arabia.
The Accounting Firm of the new generation is going back to traditional values.
When we started MP Group we believed there was a great opportunity to serve the needs of entrepreneurs and private enterprise. In the evolving world and information age of today, business owner's need access to professional services on demand and quickly. Our firm focuses on these two principles access to information and on demand support.
Personal Tax Update – Travel Expenses
Most owner and operators of their own business are not aware of some of the expenses that they should be tracking. One common expense that most of our owner/operator clients forget to keep track of is their use of their personal motor vehicle for business purposes.
When you have incorporated your business, and you use your personal vehicle that’s not under the business’s name, you should be reimbursed for using your vehicle for business. Similar to employees that complete their expense reimbursement reports for their company that they work for, an active shareholder can also be reimbursed for their expenses incurred on behalf of their corporation.
An audit is required for all condominium corporations with one exemption. Condominiums with
less than 25 units can be exempt from the audit requirement provided all owners consent in
writing each year.
If the financial statements include supplementary schedules that are unaudited, they should be
clearly marked as such.
The right fit
When it comes to mergers and acquisitions we understand the process, and at the end of the day we know that having the right fit is the most important factor. Working towards the common goal of integrating business operations is critical with mergers and acquisitions.
We can talk about all the details such as: financial viability, company valuations and multiples, management retention, strategy, employee turnover and the list goes on. But if you don't have both parties involved working on a common goal and focus on company integration of operations, culture, and overall mission the deal won't work. This is why the current research shows that 50% of all mergers and acquisitions fail.
Toronto Accounting Firm
MP Group is a Toronto based Accounting & Advisory firm serving clients across Canada and the U.S. Our firm's partners come from the big four, and they have experience serving a large variety of clients and in many different industries. They are now focusing on helping Private Enterprises and Entrepreneurs find their way.
We come across clients that require a review or an audit either for their banking requirements, want to support additional funding for not-for-profit organizations, or the owner wants to ensure that management is maintaining accurate records. An audit or a review provides some different levels of assurance over the financial statements since the work involved varies between an audit and a review. When you engage an accounting firm to conduct an audit or a review, be aware of what the process entails.
Salary or Dividend for the Owner
Are you considering taking funds out of the company? As an owner, your company is a separate legal entity from you. There are generally three ways in which you can withdraw money from the company.
In the instance you may have loaned funds to the company either by paying for expenses on behalf of the company or providing an initial loan to the company during the start up stage, as a shareholder, you can withdraw money from the company as a settlement of the loan. This would be a transaction in account of capital (i.e. loan repayment); therefore, a shareholder will not be taxed on this repayment.
With a global based economy, many companies conduct business in various countries to gain market share and grow. There are certain tax ramifications in the manner in which foreign companies carry business in Canada.
When it comes to your investments, ideally you want to utilize a tax efficient strategy, however this should not be your immediate focus. Priority number one is protecting your capital, and second is to grow it, taxes is generally the last consideration . With all the "buzz" around the TFSA limits increasing to $10,000 for 2015, and now decreasing with a new government in place, there has been a lot of discussion over the limits and what they should be.
When you comes to corporate year end planning their are a lot of important considerations. We know that each company is in a different industry and has specific mandates, therefore corporate year end planning needs to be customized.
If you own and operate a medical or dentistry practice in Ontario once of the benefits to being in business is the ability to implement a Professional Corporation structure. Please read further to learn more about the tax benefits.
Are you a business owner that is looking to sell their business in the near future? Have you considered all the tax implications on whether to sell the assets of the company vs. the shares?
MP Group is full service accounting & advisory firm that focuses on Private Enterprises & Entrepreneurs. We offer a wide range of services which in consulting & our CFO 2 GO. See below for more details on the service offerings and their benefits:
At MP Group we specialize in Tax Compliance. We can prepare your corporate and personal tax returns and review prior years to ensure we capture potential tax planning opportunities. We have the resources and provide the industry specific knowledge for our clients which ensures they receive custom tailored tax solutions.
SR&ED & OTHER INCENTIVE CLAIMS
If you are a Canadian Controlled Private Corporation of "CCPC" than you qualify to claim the small business deduction on active business income earned in Canada only. Active business includes all business but excludes the following:
1) Businesses generating income from property and have less than 6 employees.
2) Personal Service businesses.
Individuals in the following cases or income earning types that would benefit the most from our tax compliance and planning services would include the following:
-Foreign Income, and resident in Canada for tax purposes
-Significant Investment Income
-Looking to transfer your current business to a corporation
-Selected for review or audit by CRA
-Looking for tax planning opportunities
-Would like to assess the tax implications of a certain investment class, or portfolio on whole.
Buying or Selling Condo….and HST
When you purchase a new home, one is overcome with joy and excitement. The last thing on the mind of the future home owner is HST.
The benefits of tax free rollover.
Is your company growing too fast? Many times we see that our clients outgrow their basic corporate structure. In the initial stages, most start up companies incorporate their business to protect themselves personally from legal liability and own shares directly of their business.
When you comes to personal tax planning, most of the steps to help minimize your tax bill at the end of the year must be completed before the year closes out.
Most owner and operators of their own business are not aware of some of the expenses that they should be tracking. One common expense that most of our owner/operator clients forget to keep track of is their use of their personal motor vehicle for business purposes.
We are excited about the newly anticipated film "Tiger", a great story about an American boxer who was banned from fighting in the ring based on his religious beliefs. The writers of this great boxing tale are from Toronto, Canada one of the greatest cities known for being multicultural and embracing inclusion and diversity. Their goal when writing the script was to educate it's viewers on some of the pressing discriminatory issues faced today.
Successful corporations or businesses are manifestations of the owners and entrepreneurs behind them. Without the sound vision, drive, work ethic, and goals of the entrepreneur, most businesses would not succeed. However, what fuels this drive and vision generally begins at a personal level with the entrepreneur and their mindset. Without the positive, ambitious, and motivated mindset, it would be difficult to drive any business up off the ground.
Traditionally when you sell your home, assuming this is your principal residence, when you elect this on your income tax return in the year of the sale there will be no taxes on the capital gain.
As a business experiences rapid growth their internal controls and operational processes must be assessed to ensure that they sustain and support this growth. Company's cannot afford to get by without taking a 360 look at the business from the ground up. With growth comes more sales, more volume, bigger contracts, and more complex operational issues. As your business is making that transition you will want the internal controls and operational process foundation to ensure that the business can operate on it's own without significant issues arising on a day to day basis.
Reviewing financial information periodically helps assess company performance and identify areas of improvement. Reviewing historical numbers and results consistently can help decision makers turn things around, remain proactive and identify problems sooner rather than later. Having good accounting records and being able to access financial statements will help management review key performance indicators and measure the company’s performance with the company’s objectives.
Financial Statement requirements for financing
Creditors such as banks will want 3rd party company financial statements
The process of issuing 3rd party financial statements is generally required for financing. Banks will look for financial statements provided by a public accounting firm as they will want to see professional statements to facility the lending approval process.
MP Group is a progressive accounting & advisory firm that is focused on value add professional services. We focus on the experience for our clients. From the initial contact and consultation, we ensure that you have the information necessary to help make your business better.
your corporate tax return can be an administrative hassle when its tax season. It is always a good idea to avoid interest
and late filing penalties as proper management of your company. Here are a few tips to consider when filing
your corporate tax return:
In today’s information and technology age, we see that the way business is conducted has changed substantially over the past two decades. The use of technology to communicate has increased through the use of email, text messaging and other forms of e-based communication. This has made communicating much more easier, and has changed the way companies conduct business. The top form of communication today is done through text messaging, using cell phones, and then email. That is why, at MP Group, we value the importance of increasing partner face-time with our clients and open communication.
Today’s entrepreneurs are working in environment that is very different than 5-10 years ago. Developing new products or services leveraging technology for improving business functions and personal day to day activities is the trend.
With technology advancing by the year, companies are constantly looking for new ways to improve old methods of doing business. It’s all about simplifying things, and making them better!
Personal Tax Compliance
Client's ask us all the time, how can we prepare ( and survive) the upcoming tax season? So we put together a comprehensive guide of information required to help you this tax season. We outlined some of the important steps to ensure you have all your information in order for income, deductions and tax credits, and foreign property.
A corporation is a separate legal entity. This means a corporation is considered another "person" taxable under the income tax act. As such, the way you transact with a corporation in which you are the owner/shareholder may have tax consequences on your personal side without you even knowing. That is why it is important that you are aware of the potential impact of transferring funds in and out of your company may have on you. In our experience, we have seen many instances where shareholders/owners withdraw funds and don’t structure transactions appropriately that lead to negative tax consequences.
Growing your bottom line can be hard sometimes, that's why we put together 5 key areas of focus to help increase profits.
1) Identify wasteful expenses and do it fast.
2) Make sure your marketing and sales team have monthly targets.
3) Management sets the tone.
Requirements for Financial Statements
- Corporate tax filing purposes
-Stakeholders or investors requiring an audit or review of the company's financial statements.
-Banks requiring financial statements by an accounting firm as part of their decision making process to approve a business loan.
Having Financial statements for your business is important to analyze the numbers and see how certain aspects of your business are performing.
Are you feeling stressed that you haven’t filed tax returns for many years & have taxes owing, excluded foreign income or investment income, and haven’t reported foreign assets? If you owe taxes and haven’t filed a tax return, you would be charged late filing penalties and interest on the taxes owing. Also, if you haven’t reported foreign properties over $100K, penalties could be significant if not filed on time. These penalties can add up over time and can be quite stressful to have these issues linger and lose piece of mind.
Corporate tax compliance involves the process of making tax adjustments to the financial statements and reporting the figures in the appropriate schedules in order to calculate the corporation's tax payable for the year. Once this is determined you can apply any tax instalments made in the year, any loss carry forwards, and then arrive at you taxes payable for the fiscal year.
For businesses that have expenditures qualifying as scientific research or experimental development, they will have the ability to claim these as an investment tax credit and may receive a substantial refund once assessed by the Canada Revenue Agency.
When it comes to investing a lot of people get confused and think that it is difficult to manage a basic portfolio. Most of the time we see capital being handed over to an investment advisor blindly and having them ask a few questions to screen what types of investments are best. This is not the best approach when investing since it doesn't provide you with a understanding of what you are actually invested in.
As a business owner, filing taxes may be the least exciting aspect of running your business. However, sometimes understanding the basics of the process and having a skilled professional by your side helps you get through the filings. There are various dues dates that impact your business which are important to keep track of to avoid late filing penalties and interest. This post will highlight some of the key points to track and stay on top of for your corporate taxes.
When it comes planning your wedding day this can be a very stressful time, especially if you live in Toronto. We have seen wedding's in the GTA that can cost upwards of $150,000 which include everything from top notch food, 1000 guests, entertainment, lavish flowers, decor, ice sculptures, and a 2 month honeymoon to exotic designation.
You have a great idea, product, or service and you want to start a business so that you can get your product out to the masses. You start doing your research, get connected with the right individuals, and come up with a plan to start your new venture. You know what, that makes you an entrepreneur!
Tax Season is here...File early this year and NOT right before the Deadline (which is May 2nd in 2016)
It's tax season again for 2015 filing, and if you have received all of your tax slips and forms it is always better to file sooner than later to avoid waiting close to the deadline. The more proactive you are at gathering your information, the easier it is for a tax professional to assess which additional expenses can be deducted.
Are you an employee? Confused about whether you can deduct expenses? As an employee you are generally restricted from deducting a lot of expenses which a business owner could claim that is for business purposes. However, if you are a sales professional or a real estate agent that works on commissions basis, you may be able to minimize your taxes by claiming some expenses that helped you generate those commissions.
With current tuition cost levels, it is great that students or parents can claim the Tuition and Textbook tax credits to reduce taxes payable in a given year. Tuition costs can be a very high for some students and also for parents supporting their children through post-secondary education. The Canadian government understands this, therefore, have also allowed for the textbook tax credit in addition to tuition amounts.
If you are self-employee you have more flexibility on the deductions available for home office expenses. Just like any other valid business expense incurred to generate income you can deduct home office expenses for tax purposes. There are two requirements in order to qualify for the home office deduction: