Growth Through Merger and Acquisition
As a result of the poor Alberta economy in the past years, the business value of many companies has declined. This creates a great opportunity for companies with excess cash and a view to growing its scale, revenue and market share to do so through mergers with and acquisitions of other businesses.
However, mergers and acquisitions are not simple transactions. Pre-acquisition assistance from Buchanan Barry LLP can ensure the merger or acquisition is most tax effective. And we can help eliminate potential surprises through the due diligence process and financial analysis.
Please contact your Buchanan Barry LLP partner for more information on this topic.
Contact Us
Carbon Tax and Rebates
As of January 1, 2017, all fuels that emit greenhouse gas emissions in Alberta are subject to a carbon levy. This levy is intended to encourage families, businesses and communities to lower their consumption and emissions. The Alberta Government also provides rebates to lower and middle income Albertans to offset the increase of fuel costs.
| Single (with income of $47,500 or less on line 236) |
Couple (with income of $95,000 or less on line 236) |
Couple with 2 children (with income of $95,000 or less on line 236) |
|
| 2017 Full Rebate (July 2016 to June 2017) |
$200 | $300 | $360 |
| 2018 Full Rebate (July 2017 to June 2018) |
$300 | $450 | $540 |
Please contact your Buchanan Barry LLP partner for more information regarding payment frequency and other information on this topic.
Contact Us
Tax Credits for Alberta Businesses
To diversify Alberta’s economy and to create more jobs, the Alberta Investor Tax Credit (AITC) offers a 30% tax credit to investors (both individuals and corporations) who provide capital to Alberta businesses in various sectors such as information technology, clean technology, health technology, interactive digital media and game products, etc. As of January 16, 2017, applications could be submitted. AITC is a first-come, first-serve process with a provincial budget for 2017 of only $28 million.
To encourage manufacturing, processing and tourism infrastructure companies to make more investments in Alberta, the Capital Investment Tax Credit (CITC) offers a 10% non-refundable tax credit of up to $5 million for a corporation’s eligible capital expenditures. The application period for 2017 is open from January 16, 2017 to February 15, 2017, inclusive.
Please contact your Buchanan Barry LLP partner for more information on this topic.
Contact Us
RRSP Over-contributions
Canada Revenue Agency is on the warpath.
RRSP’s are a great way to save for retirement. A deduction is available when you make the contribution and you are not taxed until you withdraw the funds, which is often at a lower tax rate when you are retired.
However, there are contribution limits and if you exceed those limits, there are potential penalties. The Canada Revenue Agency is acting more aggressively in recent years by identifying over-contributors and requiring them to self-assess and file complex and time consuming tax forms to report their over-contributions. The penalties are 1% per month of the cumulative excess contribution and can be quite costly over time.
If you think you have over-contributed to your RRSP, act fast to rectify the situation and minimize the exposure to penalties. Please contact your Buchanan Barry LLP partner for more information on this topic.
Contact Us