The Latest at Collins Barrow Ottawa

  • Collins Barrow

    The small business deduction

    The small business deduction has been the focus of much attention recently, with perceived abuse of the available deferral provided to corporations. Of particular concern are corporate and partnership structures that work around the existing partnership and association rules to multiply their small business deductions. In response, the 2016 Federal Budget has taken steps to close these gaps in the legislation and limit the use of the small business deduction to its original intention.   

    Collins Barrow

    Law firm succession planning: retaining firm revenue while transitioning knowledge and relationships

    It has been called the “pig in the python” – a graphic image of Canada’s Baby Boom generation that has moved through time and is now nearing retirement. Law firms that manage this outsized demographic wave well can position themselves to maintain their revenue streams, transition knowledge and relationships and preserve partner equity. Firms that do not take action may lose revenue and equity when partners leave for other firms or retire, causing the partner’s client relationships to be lost to the firm.

    Corporate Finance

    Your go-to resource for investment banking, transaction structuring, M&A and capital advice — whether you’re a buyer, seller, lender, private equity investor or focused on growing or restructuring your business — our Corporate Finance professionals are masters of the art of the deal.

  • Collins Barrow

    CPA Canada’s new review engagement standard on historical financial statements

    CPA Canada has issued Canadian Standard on Review Engagements (CSRE) 2400 Engagements to Review Historical Financial Statements. This new standard replaces existing standards for review engagements, including Section 8100 (General Review Standards), Section 8200 (Public Accountant’s Review of Financial Statements), Section 8500 (Reviews of Financial Information Other Than Financial Statements), as well as Assurance and Related Services Guidelines 20 and 47. This will be effective for reviews of financial statements for periods ending on or after December 14, 2017. Early application of CSRE 2400 is not permitted. This publication will address the key changes to review engagements that will impact users of the financial statements, including shareholders, investors, those charged with governance, management and other stakeholders.

    Collins Barrow

    Investment Funds

    The investment funds industry has experienced significant growth in the last 20 years directly contributing to the wellbeing of the Canadian economy. As the leading advisors to the mid-market investment funds sector, we are the right partners to bring greater financial clarity and guidance.
  • Collins Barrow

    Changes in quota rules for corporate farming businesses

    For farmers, the quota system is in place for supply-managed commodities. In Canada, that includes milk, eggs, chicken, turkey and hatching eggs. Essentially, you have to own a license to be able to sell any of those commodities. Under the current rules for corporate businesses (which are still in effect until January 1, 2017), half of the gain is tax-free and the other half is taxed like it’s business income. For the 50% that is taxed, you’d probably pay at a rate of 26.5% under the current rules (all rates in this post are Ontario rates). As of January 21, 2017, you will still pay tax on the same amount of income, but instead of it being considered active business income, it will be considered investment income. In light of these changes, here are a few issues farmers planning to sell quota should keep in mind.