Five things Canadian companies need to know about U.S. tax reform

cURL Error #:Failed to connect to 144.76.34.180 port 8080: Connection refused

Russell W. Crawford is the national service line leader of KPMG’s U.S. corporate tax services practice.

With U.S. tax reform appearing increasingly likely to be enacted, Canadian companies owners are wondering exactly what the impacts are going to be in their U.S. operations. Here’s a glance at where we’re headed.

What will happen in respect to U.S. tax reform in the upcoming few weeks?

The U.S. Congress has formed a joint committee with representatives from the Senate Finance Committee and the House Ways and Means Committee to reconcile the two tax bills. Reports suggest that the committee has reached an agreement on a reconciled bill. We expect details to be published Dec. 15. There’s a push to have the identical bills passed through both chambers next week to be able to present 1 bill to the President by Christmas. In that case, we could expect it to be signed by the President before Dec. 31. read more

No Comments Categories: Small Business

Morneau outlines small-business tax revisions as committee calls for Strategy to be scrapped

The Liberal government is making further concessions to small-business owners even as a Senate study has concluded that Finance Minister Bill Morneau should scrap his controversial tax plan entirely.

As members of Parliament bolted for the exits for a six-week recess, Mr. Morneau stood at the House of Commons foyer to announce his most recent adjustments to tax changes he proposed in July. The most recent adjustments consist of new exemptions for certain family situations, but the minister is sticking with his plan to have the new rules take effect on Jan. 1. read more

No Comments Categories: Small Business

Intelex’s ultimate Assignment: Help stop global warming

The series: We look at decision makers among Canada’s mid-sized companies who took successful action in a competitive global digital economy.

Most businesses today know they need a digital strategy to help them grow, but Mark Jaine remembers when he lugged the strategy for Intelex Technologies Inc. in his car.

.gi-custom-blockquote{margin-bottom:2em;font-family:PrattItalic;padding:0 2em;display:inline-block;border-left:2px solid #999;color:#999} .gi-sidebar{background:#fff;padding:0 .5em .5em;max-width:300px;float:right;margin:0 0 1.5em 1.5em}.gi-sidebar.gi-sidebar--narrow{max-width:200px}.gi-sidebar.gi-sidebar--light{background:#f5f5f5;padding:1em}.gi-sidebar .gi-photo{margin:0;padding:0}.gi-photo-caption{padding:.25rem 0 0;font-size:.8rem;line-height:1.19rem;font-family:GMSans,Helvetica,Arial,sans-serif;color:#525252}.gi-sidebar-title,.gi-photo-caption_title{font-family:PrattHeavy,Georgia,Palatino,'Book Antiqua','Times New Roman',serif;font-size:1rem;line-height:1.2}.gi-photo-caption_description{margin-bottom:1rem;display:block}.gi-photo-caption_credit{display:block;font-size:.625rem;line-height:.9375rem;color:#ABB2B6;text-transform:uppercase}.gi-sidebar img{width:100%;display:block}.gi-sidebar ul{padding:0 0 0 1em}.gi-sidebar p{margin-top:.5em}.gi-sidebar p,.gi-sidebar li{width:100%;font-size:.8125rem;line-height:1.1875rem;font-family:GMSans,Helvetica,Arial,sans-serif;color:#525252}.gi-sidebar li{margin-bottom:.5em}.gi-sidebar a{color:#CE2A23;text-decoration:none;border:none}.gi-series-identity{display:block;float:left;margin:0 0 20px 0;padding:0;width:100%}.gi-series-logo{display:block;float:left;margin:0;padding:0;width:30%}.gi-series-toptext{display:block;float:left;margin:0 0 0 10px;padding:0;width:60%}.gi-series-title,.gi-series-desc{font-family:PrattRegular,Georgia,Palatino,'Book Antiqua','Times New Roman',serif;font-size:15px;line-height:21px;letter-spacing:-.5px}.gi-series-title{font-size:20px;color:#f00}.out-arrow{background-image:url(data:image/svg+xml;base64,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)}.out-arrow,.in-arrow{display:inline-block;width:10px;height:10px}.in-arrow{background-image:url(data:image/svg+xml;base64,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)}.gi-icon{margin-left:5px;margin-right:5px}.gi-cust-in,.gi-cust-out{font-size:14px;line-height:16px;display:block}.gi-cust-in strong,.gi-cust-out strong{font-weight:400;font-family:'PrattHeavy'}.gi-cust-grp{margin-top:15px;margin-bottom:15px}h3.gi-sidebar-title.center{text-align:center;font-size:1.5rem}h3.gi-sidebar-title.center .icon{display:block;float:left;width:80px;height:80px;margin:0 auto;text-align:center}.gi-bignumber{display:block;float:left;width:100%;margin:20px 0 20px 0;padding:0 0 30px 0;border-bottom:1px solid #ccc}.gi-bignumber__value{display:block;float:left;font-family:'PrattHeavy';font-size:3.5rem;text-align:center;width:100%;margin:0 0 10px 0;padding:0}.gi-bignumber__unit{display:block;float:left;font-family:GMSans,Helvetica,Arial,sans-serif;font-size:.9rem;line-height:1.4;margin:0;padding:0;text-align:left}.center,.gi-bignumber__unit.center{text-align:center}@media (max-width:767px){.gi-sidebar{max-width:100%;margin-left:0;float:none;margin-bottom:1.5em}.gi-sidebar.gi-sidebar--narrow{max-width:100%;margin-left:0;float:none;margin-bottom:1.5em}.gi-cust-in,.gi-cust-out{font-size:14px;line-height:16px;display:inline-block}h3.gi-sidebar-title.center{width:60%;margin-left:20%;margin-right:20%;margin-bottom:20px;text-align:center;font-size:1.5rem}.gi-bignumber{width:60%;margin-left:20%;margin-right:20%}} .gi-sidebar.gi-sidebar--fullwidth{display:block;float:left;max-width:100%;margin:0 0 20px 0;padding:0}.gi-sidebar--fullwidth .gi-photo{display:block;width:100% !important;margin:0;padding:0}.gi-sidebar--fullwidth .gi-photo .link-img{display:inline-block;float:left;width:40%;margin:0;padding:0}.gi-sidebar--fullwidth .gi-photo-caption{display:inline-block;float:right;width:55%;margin:0;padding:0}@media (max-width:767px){.gi-sidebar--fullwidth .gi-photo .link-img,.gi-sidebar--fullwidth .gi-photo-caption{display:inline-block;float:left;width:100%;max-width:100%;margin:0 0 10px 0}} .article-enriched-deck a,.article-enriched-body a{font-weight:normal}.article-enriched-deck strong,.article-copy strong{font-weight:normal}.article-enriched-deck em,.article-copy em{font-style:normal}

“Back in 2003, we were about 15 employees selling enterprise software to corporations,” says Mr. Jaine, president and chief executive officer of Toronto-based Intelex. read more

No Comments Categories: Small Business

Report on Small Business newsletter: How Canada’s opioid crisis is turning business owners to advocates

How Canada’s opioid crisis is turning business owners into advocates

Over the past year, Vancouver restaurant owner Brandon Grossutti has kept the anti-overdose drug Naloxone close at hand. Having run the chic Asian/French Pidgin Restaurant in the city’s Downtown Eastside since 2012, Mr. Grossutti is accustomed to ongoing and open drug use in the neighbourhood. But with the spread of the ultra-potent opioid fentanyl, the rate and severity of overdoses in the streets and alleys near his business has gone up significantly. read more

No Comments Categories: Small Business

A Toronto tax revolt pays off for downtown tenants

Back in August, Toronto furniture store owner John Anderson was shocked to learn that his taxes, maintenance and insurance costs were set to jump by $35,000 over the next year. As with a number of other little companies along Yonge Street, the land housing Mr. Anderson’s shop, Morningstar Trading, had seen its assessed value skyrocket, with nearby condominium growth driving up property costs.

During the next several weeks, a self-styled “tax revolt” by Yonge Street companies convinced the Municipal Property Assessment Corp. to reassess 84 possessions across the downtown strip in light of the region’s heritage designation. The $23-million evaluation for the building that houses Morningstar was scaled back to $10-million up from a $5-million evaluation in 2012), and Mr. Anderson now anticipates his costs for taxes, upkeep and insurance to increase by a more manageable $15,000. However, he worries that the reassessment success is only temporary repair. read more

No Comments Categories: Small Business

Toronto council to vote on Researching options for Real Estate tax relief for small business

Back in August, Toronto furniture store owner John Anderson was shocked to learn that his taxes, maintenance and insurance costs were set to jump from $35,000 over the next year. As with a number of other little companies along Yonge Street, the land housing Mr. Anderson’s shop, Morningstar Trading, had seen its assessed value skyrocket, with nearby condominium growth driving up property costs.

During the next several weeks, a self-styled “tax revolt” by Yonge Street companies convinced the Municipal Property Assessment Corp. to reassess 84 possessions across the downtown strip in light of the region’s heritage designation. The $23-million evaluation for the building that houses Morningstar was scaled back to $10-million up from a $5-million evaluation in 2012), and Mr. Anderson now anticipates his costs for taxes, upkeep and insurance to increase by a more manageable $15,000. However, he worries that the reassessment success is only temporary repair. read more

No Comments Categories: Small Business

Proposed tax changes miss the boat on financial security for all

Things have been fairly quiet in the media recently on the topic of the proposed tax changes introduced by the Liberals on July 18. The truth is, however, I am becoming e-mails daily from Canadians concerned about the changes coming.

To recap, Finance Minister Bill Morneau has made it clear that the government intends to proceed with two of the three proposals announced this summer. The modifications will penalize business owners that pay dividends to spouses and kids (that the government has called “income sprinkling”) who haven’t made clear and meaningful contributions to the enterprise. Secondly, the changes will punish business owners who make passive investment income over $50,000 annually in their own businesses. read more

No Comments Categories: Small Business

U.S. tax reform could have repercussions for business owners in Canada

The proposed overhaul of the U.S. tax system is expected to benefit Canadian companies doing business south of the border. The U.S. Senate is set to begin its consideration of the Tax Cuts and Jobs Act this week, after House Republicans passed it earlier this month. However, the legislation could also bring bad news for some business owners — Americans residing in Canada who have Canadian corporations are concerned they might be subject to enormous tax bills.

“Things will get simpler and more appealing for Canadian companies doing business in the U.S. and more complex and costly for U.S. citizens who have Canadian companies,” if the law passes, says Max Reed, a cross-border tax attorney with SKL Tax. read more

No Comments Categories: Small Business

Report on Small Business newsletter: Ontario passes $15 minimum wage

Ontario passes $15 minimum wage

Ontario will move ahead with implementing $15 minimum wage by 2019, and enact other new worker-focused rules even sooner, as lawmakers passed a series of revised employment laws at Queen’s Park Wednesday after years of research and debate.

The labour reforms include requirements that employers pay part-time, casual and temporary employees the same rate as full-time employees for the same job; that employers must pay workers three hours’ wages for shifts cancelled with less than 48 hours notice; and extending personal emergency leave, including two paid days, to all workers. Minimum wage will reach $14 next Jan. 1 before hitting $15 a year later. read more

No Comments Categories: Small Business

Buying online advertisements to boost Christmas sales? It’ll cost you

As your company’s marketing plans start to revolve around the holidays, you might want to add social and digital media to the mix. Surely, the audience is not there. But so, regrettably, are increased costs.

Just about all social media advertising, like Facebook ads or Google ads, operate within an auction system. The more other brands jump in with their own advertisements (since they do during the holidays), the greater everyone’s costs will be. The exact ads you’re getting in the summer for $1 a click may cost you $4 or $5. Or more. read more

No Comments Categories: Small Business