Category: Business

FEATURE
Preparing for New Tax Challenges in 2025 (Ep.22)

Preparing for New Tax Challenges in 2025 (Ep.22)

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This episode aims to break down key considerations for filing trust returns, focusing on the current legislative uncertainty within the Canadian government. 

Frankie and Sarah revisit the capital gains inclusion rate changes and the political debate surrounding them, with both Conservative leader Pierre Poilievre and Liberal contender Chrystia Freeland vowing to scrap the proposed tax legislation if elected. 

They also discuss the shifts to Bear Trust filings, which have caused confusion due to unclear definitions and changing CRA requirements, and the Alternative Minimum Tax (AMT) and its growing impact on trusts. With recent legislative changes, AMT may apply more broadly, challenging traditional tax planning strategies. As tax rules continue to evolve, they stress the importance of staying informed.

Gain insight with these key points: 

  • Controversy surrounding the capital gains inclusion rate and its potential impact [09:00]
  • Bear trust filing requirements and CRA’s latest decisions [12:16]
  • Implications of the alternative minimum tax for trusts [17:55]
  • CRA’s technical interpretation of professional fee payments by trusts [27:55]

Connect with Frankie Loreto and Sarah Netley: 

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Navigating Tariffs with Sean Grant-Young & Dean Morris (Ep. 21)

Navigating Tariffs with Sean Grant-Young & Dean Morris (Ep. 21)

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What do tariffs mean for your business?

In this episode, Frankie and Sarah delve into the complexities of tariffs with Sean Grant-Young and Dean Morris. Recorded just after President Trump’s temporary reprieve on tariffs for Canada, the discussion centers on the looming threat of tariffs and their potential impacts on Canadian businesses. They talk about strategies for navigating this challenging landscape, emphasizing the importance of being prepared.

Sean and Dean discuss: 

  • The significance of tariffs on Canadian imports [03:08]
  • Immediate and long-term strategies for businesses [10:48]
  • The implications of retaliatory tariffs [20:47]
  • Whether businesses should take a proactive or wait-and-see approach [24:43]

Previous Episodes of Interest:

Connect with Frankie Loreto and Sarah Netley: 

Connect with Sean Grant-Young:

Connect with Dean Morris:

About Sean Grant-Young: 

As National Director of Tax, Sean supports tax experts and their clients across the Baker Tilly Canada network by leading nationwide tax advisory initiatives, informing members of regulatory changes, and driving the development of high‑quality and comprehensive tax practices within an ever‑shifting technology and regulatory landscape.

Sean is committed to the ongoing development of tax professionals at every level of their career, serving as a facilitator and tutor for various CPA Canada In‑Depth Tax courses and leadership development programs.

Prior to his role as National Director of Tax, Sean held multiple executive‑level positions at a publicly traded company. He was also a tax advisor and practice leader for a global professional services firm, where he focused on mergers and acquisitions, high-growth owner‑managed businesses, and ultra-high-net-worth individuals.

About Dean Morris: 

As a Senior Tax Manager of Transfer Pricing, Dean Morris helps clients establish, implement, and protect their transfer pricing policies. With more than 25 years of experience, Dean has addressed challenges in a wide range of industries, including software as a service (SaaS), e‑commerce, fintech, cryptocurrency, and health sciences. Dean’s operational transfer pricing focus is on the design and implementation of policies that balance an optimal mix of having a high ease of use, being supportable to tax authorities, and achieving tax efficiency. Dean graduated with an MBA from McMaster University, worked for eight years in the Big Four environment, and 10 years with a global economic boutique firm. For 10 years he worked as an independent transfer pricing advisor for the cross‑border clients of regional and international accounting and law firms.

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Understanding Employee Ownership Trusts (Ep. 20)

Understanding Employee Ownership Trusts (Ep. 20)

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Could the introduction of Employee Ownership Trusts in Canada transform your business exit strategy?

Frankie and Sarah delve into Canada’s new rules around Employee Ownership Trusts, an intriguing option for business succession introduced in the 2023 federal budget. Their discussion highlights how this new format could revolutionize how businesses handle buy-sell transitions, especially with the anticipated wave of business sales in the coming decade. 

Frankie and Sarah discuss: 

  •  The fundamental structure of Employee Ownership Trusts and their potential role in succession planning
  • Key conditions and hurdles involved in implementing these trusts
  • The advantages of the $10 million capital gains deduction available through these trusts
  • Real-world challenges in adopting this new tax planning tool
  • The complex criteria and risks associated with this deduction

Connect with Frankie Loreto and Sarah Netley: 

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Prorogued Parliament and the Impact on Tax Laws with John Oakey (Ep.19)

Prorogued Parliament and the Impact on Tax Laws with John Oakey (Ep.19)

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Are you ready to explore the complex but crucial world of tax legislation and its implications for your business?

Frankie and Sarah are joined by John Oakey, Vice President of Taxation for CPA Canada, on a deep dive into how the prorogation of Parliament is shaking up tax legislation, with a particular focus on the proposed changes to the treatment of capital gains. 

Frankie and Sarah discuss: 

  • The effects of prorogation on existing and proposed tax bills 
  • The uncertainty surrounding the capital gains changes and how taxpayers can prepare
  • Different options for managing tax liabilities amidst legislative limbo
  • Strategies for dealing with trust and investment taxation during these uncertain times

Connect with Frankie Loreto and Sarah Netley: 

Connect with John Oakey:

About Our Guest: 

As Vice-President of Taxation, John leads CPA Canada’s Tax group, which influences the development of an equitable, effective and efficient tax system in Canada, as well as delivers practical information and fresh perspectives on tax to members and the broader tax community.

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Your Guide to SR&ED Credits With Matt Zarowny and Rob D’Amico (Ep.18)

Your Guide to SR&ED Credits With Matt Zarowny and Rob D’Amico (Ep.18)

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What if your business could tap into a treasure trove of financial incentives? 

Join Frankie and Sarah with two more Baker Tilly professionals, Matt Zarowny, P.Eng, and Rob D’Amico, CPA, CGA, as they dive into the world of Scientific Research and Experimental Development (SR&ED) tax incentives, affectionately known as SR&ED Credits. From basic research to experimental development, discover how various projects across industries can qualify for these credits, transforming potential costs into real opportunities. 

Frankie and Sarah discuss: 

  • What SR&ED is and its eligibility criteria
  • The types of projects that qualify under the SR&ED program
  • Financial incentives and benefits for businesses
  • Ensuring proper documentation and avoiding common pitfalls

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Connect with Matt Zarowny and Rob D’Amico:

About Our Guests: 

Matt Zarowny

A professional engineer with more than 20 years of experience servicing business leaders with industry, consulting, and financial services, Matt has led Scientific Research & Experimental Development (SR&ED) and government R&D incentives practices at several major firms.

He provides leadership and guidance to his clients in the full range of incentive tax services, including opportunity assessments, claim preparation/review, system installation/training, and audit support.

Matt works with a wide range of companies across many industries with a specialization in the automotive, aerospace, pharmaceutical, consumer business, technology, and general manufacturing sectors.

Rob D’Amico

A skilled and dedicated practitioner with more than 20 years of experience dealing with complex tax issues for Canadian corporations,​ Rob has led Scientific Research & Experimental Development (SR&ED) and government R&D incentives practices at several major firms.

He provides leadership and guidance to his clients in the full range of incentive tax services, including opportunity assessments, claim preparation/review, system installation/training, and audit support.

Rob works with a wide range of companies across many industries with a specialization in the information technology, engineering, pharmaceutical, automotive, aerospace, consumer business, and general manufacturing sectors.

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Why You May Need a Family Trust (Ep. 17)

Why You May Need a Family Trust (Ep. 17)

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This episode of From the Source focuses on the usefulness of a family trust in your corporate structure.

Join Frankie and Sarah as they dive into the world of discretionary family trusts, highlighting their advantages and drawbacks within corporate structures. They discuss the key considerations for settling a trust as well as the ongoing management of a trust. Frankie and Sarah highlight the key benefits of a trust including how they are used to reduce your tax burden and they offer practical advice for incorporating trusts into your business. Tune in to understand how you can utilize trusts for optimal tax planning and financial management.

Frankie and Sarah discuss: 

  • What family trusts are, and how they function for a small business owner
  • The potential tax advantages and how they apply
  • The operational benefits of having a discretionary family trust integrated into your business structure
  • Strategic planning for creating and managing trusts amidst evolving business needs

Resources:

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Understanding Corporate Structures for Business Owners (Ep. 16)

Understanding Corporate Structures for Business Owners (Ep. 16)

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Do you want to better understand your corporate structure and whether it is actually achieving your objectives? 

In this episode, Frankie and Sarah dive into the essentials of corporate structures and how your structure should evolve to optimize potential tax savings and operational efficiency. Focusing on the lifecycle of a business entity, they discuss the benefits of incorporating, address the key moments when restructuring becomes crucial, and explain the importance of creditor protection. Learn why business structures evolve over time, the benefits of introducing a holding company, and how to prepare your business for a sale to minimize income taxes. Tune in to understand when and how to adapt your business structure as your business grows.

Frankie and Sarah discuss: 

  • An overview of common corporate structures for new businesses 
  • The benefits of introducing a holding company into the corporate structure
  • The optimal time to set up a holding company
  • Legal and tax advantages of separating operational assets from other investments
  • How to prepare your business for sale and the steps to ensure you minimize income taxes

Resources:

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Navigating HST and Real Estate with Cathie Brogan (Ep. 15)

Navigating HST and Real Estate with Cathie Brogan (Ep. 15)

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Curious about how HST could impact your next property deal? Join this episode of From The Source with Frankie and Sarah as they dive deep into the complexities of HST in real estate with fellow tax specialist, Cathie Brogan.

In this episode, Frankie and Sarah introduce Cathie Brogan, an indirect tax expert with over 35 years of experience, to discuss the often-overlooked HST implications for real estate transactions. From understanding the rules around new builds and substantial renovations to the impact of short-term rentals, Cathie provides practical advice and real-world examples to help you navigate the tax landscape.

Take advantage of these crucial insights to protect your investments.

Frankie, Sarah, and Cathie discuss: 

  • When HST applies to new builds, substantial renovations, and property flips
  • The tax implications of purchasing property for investment purposes
  • How substantial renovations affect HST
  • The registration requirements for short-term rental properties
  • Proving your intentions to CRA to avoid unexpected tax liabilities

Resources:

Connect with Frankie Loreto and Sarah Netley: 

About our Guest: 

Cathie gained her indirect tax expertise while working exclusively in indirect tax for over 35 years with both government and private practice experience. She also provides tax advisory services to resolve disputes with tax authorities both during and after government audits, in-depth analysis, and legislative interpretations of GST, HST, QST, and provincial sales tax issues and is readily available to deal with any complex indirect tax issue.

Cathie received her CGA designation in 1988 and joined the firm in 2010. She has completed the CICA In-Depth GST In-residence and the CICA In-Depth Income Tax Course Part I and Part II.

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Decoding the Federal Budget: What Small Business Owners Can’t Afford to Miss (Ep. 14)

Decoding the Federal Budget: What Small Business Owners Can’t Afford to Miss (Ep. 14)

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Navigating the stormy seas of tax changes following the 2024 federal budget announcement can be confusing. We’re here to tell you what you need to know From the Source.

In this episode, Frankie and Sarah discuss the recent federal budget with Sean Grant-Young, CPA, CA, MBA, National Director, Tax at Baker Tilly Canada. Sean tackles the major updates and what they mean for small business owners, providing you with the essential knowledge to keep your business afloat in these turbulent tax waters.

Frankie, Sarah, and Sean discuss: 

  • Behind the scenes of the federal budget lockup
  • Break down the capital gains inclusion rate change and its impact
  • The Canadian Entrepreneurs Incentive and what it means for business founders
  • The significance of the capital gains exemption increase for small business owners
  • Practical advice for navigating tax planning in the wake of these changes

Resources:

Connect with Frankie Loreto and Sarah Netley: 

Connect with Sean Grant-Young

About Sean Grant-Young: 

As National Director of Tax, Sean supports tax experts and their clients across the Baker Tilly Canada network by leading nationwide tax advisory initiatives, informing members of regulatory changes, and driving the development of high‑quality and comprehensive tax practices within an ever‑shifting technology and regulatory landscape.

Sean is committed to the ongoing development of tax professionals at every level of their career, serving as a facilitator and tutor for various CPA Canada In‑Depth Tax courses and leadership development programs.

Prior to his role as National Director of Tax, Sean held multiple executive‑level positions at a publicly traded company. He was also a tax advisor and practice leader for a global professional services firm, where he focused on mergers and acquisitions, high-growth owner‑managed businesses, and ultra-high-net-worth individuals.

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Navigating Transfer Pricing With Dean Morris (Ep. 13)

Navigating Transfer Pricing With Dean Morris (Ep. 13)

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Today on From The Source, Frankie and Sarah discuss the complexities of transfer pricing with Senior Tax Manager, Dean Morris, MBA, delving into the crucial role of transfer pricing in multinational businesses. They explore the importance of understanding transfer pricing methodologies and their implications for tax planning strategies.

Frankie, Sarah, and Dean discuss: 

  • An overview of the concept of transfer pricing and how it is relevant for businesses with cross-border transactions
  • Identifying transfer pricing risks and potential consequences for multinational businesses 
  • The importance of understanding transfer pricing methodologies and proper documentation 
  • The role of AI and technological tools in streamlining transfer pricing processes

Connect with Frankie Loreto and Sarah Netley: 

Connect with Dean Morris:

About Our Guest: 

As a Senior Tax Manager of Transfer Pricing, Dean Morris helps clients establish, implement, and protect their transfer pricing policies. With more than 25 years of experience, Dean has addressed challenges in a wide range of industries, including software as a service (SaaS), e‑commerce, fintech, cryptocurrency, and health sciences. Dean’s operational transfer pricing focus is on the design and implementation of policies that balance an optimal mix of having a high ease of use, being supportable to tax authorities, and achieving tax efficiency. Dean graduated with an MBA from McMaster University, worked for eight years in the Big Four environment, and 10 years with a global economic boutique firm. For 10 years he worked as an independent transfer pricing advisor for the cross‑border clients of regional and international accounting and law firms.

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