If you are trying to find financing for an early stage tech company, you’ve got three main options: government grants, equity investment, and/or bank loans. In most cases, companies try to survive off government grants and maybe some equity funding from friends and family for at least the first two years. The criteria are different when trying to get equity investors involved as opposed to a bank. Traditionally, banks want to see at least two years of business history before seriously considering financing. On the other hand, angel investors don’t really care how long you have been in business. They tend to be more concerned about how much traction you’ve been able to achieve with your customers. With that in mind, here’s a closer look at the financing options available.

A major change is underway for the accounting of leases by lessees with the introduction of IFRS 16 - Leases (“IFRS 16”) where many leases that were previously not reported on the balance sheet will now be included. These changes will have a significant impact on the financial position, earnings and EBITDA of entities, especially those that operate in capital intensive industries and use leasing as a method of financing. The new standards take effect for fiscal years beginning on or after January 1, 2019.

Finance Minister Bill Morneau announced on March 22, 2017 that the federal government would simplify the existing caregiver credit, the infirm dependent credit and the family caregiver tax credit by consolidating the three credits into a new Canada Caregiver Credit.

Canada has over 90 bilateral tax treaties and over 20 bilateral Tax Information Exchange Agreements in force, with at least a dozen more treaties or agreements in the negotiation stage. This fact alone highlights the importance such agreements play on the global tax stage. Not surprisingly, Canadian multinationals and Canadian subsidiaries of foreign multinationals have long understood the impact tax treaties may have on how their cross-border intergroup transactions will be taxed.

In today’s ever-changing business environment, digital globalization is aggressively increasing. With the world more connected than ever, it is the dawn of a new era of surging flows of data and information. The growth of the internet and use of digital technology have both transformed and disrupted the world of business. A hyper-connected universe has opened up radical new possibilities, but has also cultivated an increase in cybercrime.

The announcement of the Trump administration’s plan for tax reform has left Canadians concerned regarding the impact of such drastic changes by our neighbour and largest trading partner. Tax reform is one of President Trump’s top priorities, however even with a Republican majority in both the House and the Senate, it is unlikely the proposal will be passed in its current form. At this point, the proposal or tax plan remains just that and the Republicans will likely have some compromising to do in order to obtain the super-majority generally required to formulate agreeable legislation and get it passed. Regardless of the extent of tax reform, there is no question that Canadians will be affected and we should be prepared if and when this occurs. Expanding on our recently published <a href="/en/cbn/publications/taxflash-what-trumps-tax-agenda-mean-for-canadians" target="_blank">Tax Flash</a>, consider these potential tax impacts.

On October 13, 2016, the U.S. Treasury Department and the IRS issued final and temporary regulations under Internal Revenue Code Section 385. These regulations offer some relief to the provisions of the proposed regulations which were issued on April 4, 2016. For details of the proposed regulations, see Collins Barrow - U.S. Tax Alert, <a href="/en/cbn/publications/u.s.-proposes-new-rules-for-related-party-debt" target="_blank"><em>U.S. Proposes New Rules for Related-Party Debt</em></a>.

Is it possible that a foreign corporation that has no physical presence in a state could be required to pay state income taxes resulting from business/sales within that state?  The answer is yes.  This surprises many foreign corporations, who find that additional state income taxes may result by them simply making sales in a particular state.

Canadians with business or personal interests in the United States and American citizens living in Canada may want to take a renewed look at the fast-changing tax environment south of the border. Tax reform was one of the key planks in Donald Trump’s election platform, although it’s unclear how many of these ideas he’ll be able to implement. It would be prudent to consider some possible implications for your business, your family and yourself. Of course, any steps you take depend on your personal circumstances and they should be taken only after consultation with a qualified business professional. But in broad strokes, here are some ideas to consider.

Traditionally, accounting firms have focused on providing assurance and taxation services for their small business clients. Discussions often center on historical results. While these are useful and an important base discussion to have, we also want our clients to be looking forward, actively planning and pursuing their future. This is the bridge that business advisory builds to take clients to the next level.

For medical practitioners, the choice between salary or dividends is usually a conflicted one. The general sense is that the grass is greener on the other side. As tax rates change both federally and provincially, it’s necessary to consider the pros and cons of each option, as well as other aspects of pay, such as retirement savings, in order to make sure the right strategy is implemented. Here is a closer look at some of the key issues involved.