The taxation of professionals is a highly complex matter. Governed by the internal rules of the various professional associations and subject to the legislative amendments of the different levels of government, it evolves with the parties in power and political pressures, but is also impacted by the economic situation and societal issues. Over the past decade, many changes have been made to the tax rules, so professionals holding a private corporation have had to review some of their corporate practices.
It is in this context that, as a client of the Financial, you were recently invited to participate in our information session tour: What is the future of my corporation? On July 18, 2017, federal Finance Minister Bill Morneau’s announcement of proposed changes to the tax practices of private corporations raised many concerns among professionals.
To reassure them and explain to them in concrete terms the significance of this announcement, we had to react quickly and put in place ways of reaching them. We did so, and the response from professionals exceeded our expectations: in just a few weeks, more than 1,000 professionals registered for our 13 information sessions across the province, as well as our two webinars.
How to cope with the changes?
The announcement of changes to the tax measures affecting private corporations raised many questions: “Is that the end of my incorporation plans? What should I do with my existing corporation? Can the government backtrack?”
Our specialists wanted to answer these questions with a thorough analysis of the situation and a perspective of the issues, but above all by suggesting options to consider and actions to take in the foreseeable future. Their clear explanations were tailored to the reality of Quebec professionals, since it is they who will have to make at times difficult choices in the years to come. This support is essential for them, so that they can make well-informed decisions to ensure their and their family’s well-being.
Proximity and trust
An issue like tax measures concerning corporations, which affects a large percentage of our clients, deserves our full attention. The proximity that we develop with our clients and our understanding of their professional and personal challenges have always been a key part of our relationship with them and continue to be at the heart of our interactions.
Thanks to regular contact with our shareholders – ties that in some cases were forged close to four decades ago –, we have become familiar with their professional reality and the decisions their members face at different stages of their life. Whether it’s starting a practice, mid-career options or retirement planning, their valuable collaboration has pointed up the importance of developing an acute sensitivity to their concerns, as well as a financial guidance offer that is tailored to the particularities of each profession. It has enabled us to identify the urgent needs of their members and to develop actions to respond to them. For example, in light of the changes announced by Minister Morneau, our tax specialists prepared possible solution scenarios for incorporated professionals to consider and assess.
How can we help you, guide you and protect you, at each stage of your life or your personal situation?
We are keeping a close eye on all developments in this regard and we are ready to react quickly to the announcements that will be undoubtedly be made in the coming weeks and months. With their analyses, our tax specialists will be able to assess the impact of government decisions and guide you accordingly. Present at your side, and with access to the firm’s comprehensive expertise, your advisor will be able to provide you with customized financial guidance, responding to the impact of the new rules with targeted actions according to your career stage and your personal situation.
We are and will remain on top of this matter, as we are determined to do for all issues that directly or indirectly affect your wealth. At all times and in all circumstances, you can count on our assistance. Your and your loved ones well-being is our sole priority and we are committed to protecting it.
Contact one of our advisors today to discover the added value of our customized services.
François Lavoie, B.A.A., B.A., Adm.A., F. Pl.
Senior Vice-President, Wealth Management