Tax Letter
Did you know we offer a free monthly tax letter that can be sent to you electronically?
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Freezing Your Company
The poor economy over the past few years may have resulted in a decreased value for your company. This could be a good opportunity to "freeze" your company at a lower value and bring in new shareholders (adult children, spouse) which would create income splitting and succession plan opportunities.
A Family Trust can also be implemented to allow distributions to adult beneficiaries while control of the company is still maintained. Are your teenage children getting ready for university? You can also offset these costs via a family trust.
Please contact Buchanan Barry LLP for more information on this topic.
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Levels of Assurance
There are three types of reports that can accompany corporate financial statements. Knowing which you require will help you ensure you are meeting the requirements of lenders, potential investors and other users. Buchanan Barry LLP can help you select the most efficient and useful level of assurance for your needs:
- Notice to Reader - Also referred to as a Compilation Engagement. Appropriate when the business owner is the only user of the financial statements along with the Canada Revenue Agency. The company usually has no third party debt or mortgage. We compile the financial statements based on the information provided and provide no assurance as to the fairness of the financial information reported or whether they are in accordance with Canadian Accounting Standards.
- Review Engagement Report - Appropriate when the business is preparing for a sale, obtaining financing or has shareholders not involved in the business. This report provides limited assurance as to the fairness of the financial information reported or whether they are in accordance with Canadian Accounting Standards.
- Audit Engagement Report - Appropriate for companies with complex ownership structure, financing arrangements or regulated industries. This report provides the highest level of assurance as to the fairness of the financial information reported or whether they are in accordance with Canadian Accounting Standards.
Please contact Buchanan Barry LLP for more information on this topic.
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Personnel Needs
Is your company growing or are you too busy to interview and find a new controller? We have assisted a number of companies in the hiring of qualified accounting related positions.
Now that your business is growing and becoming more complex, you may need more time to concentrate on the business activities. Let us help you find an efficient bookkeeper or controller that you can work with, this may also save other accounting and tax compliance costs if your records are in good shape. Having a qualified controller or bookkeeper will allow your company to make good business decisions with accurate and up to date financial information.
Please contact Buchanan Barry LLP for more information on this topic.
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Income Splitting
You may be able to make a loan at the prescribed rate to your lower-income spouse, who then invests the money, allowing your spouse to report the investment returns and pay tax at a lower rate. This is a good strategy as the prescribed rate is currently 1%. The higher income spouse reports the interest on the loan and the lower income spouse claims the deduction. Done incorrectly, this planning can trigger attribution rules.
Please contact Buchanan Barry LLP for more information on this topic.
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