Corporate Services Tyce Carle-Thiesson Chartered Accountants

Because Tyce Carle-Thiesson focuses on issues of particular importance to professionals, we are uniquely positioned to know the needs and concerns that they face.

We are committed to providing our clients with creative financial solutions, professional guidance, exceptional client service, and – above all – integrity.

Amalgamations and Windups

Both amalgamations and windups fundamentally affect a corporation's existence. The end result of each procedure is similar; that is to say that the assets and liabilities of two or more corporations are combined to form a single corporate entity. It must be noted however that the means used to achieve a single corporate entity are very different in legal terms and each may have different tax consequences.

At Tyce Carle-Thiesson, we pay careful attention to the facts at hand so that we can achieve optimal benefits such as:

optimizing loss utilization
maximizing capital cost allowance deductions for the corporate group
minimizing the costs that result from the reorganization

We specialize in assisting our clients in determining and implementing the most appropriate course of action for their circumstances.

We're here to help. Contact Tyce Carle-Thiesson at 1-866-740-0049.

Business Consulting

10 Critical Small Business Errors

1. Marrying an idea and then hanging on to it for too long - change is good, new ideas drive successful entrepreneurs. Don't be afraid to try something new; it may bring success.

2. Misunderstanding customers - know what they want both now and in the future, and learn how to help them even if their needs can't be met today. Businesses must anticipate and meet their customers' changing preferences or risk loosing customers to competitors.

3. No marketing plan - a good marketing plan is effective, efficient and is presented consistently. It can create the exact attention a business needs to showcase its strengths in front of the people and the businesses that need its products/services.

4. Underestimating cash flow requirements - even though the world may beat a path to a better mousetrap, it is also quite likely that it won't get there as quickly as one might expect. A business must know its cash-flow requirements to sustain its business until the world catches up!

5. Not understanding employees - staff need patience, persistence and mentoring. If staff morale and productivity are kept high, profits should see a positive result. Remember, managing staff as well as coaching and mentoring them is one of the toughest challenges for a successful business!

6. Know reality - although many are likely, one must work and pay bills in "reality".

7. No sales plan - without a lot of luck, businesses cannot be successful unless they can realistically project where their sales will come from. Successful businesses have a sales plan allowing them to plan their growth and financial success.

8. Doing it alone - a business owner can't do all the work AND grow the business at the same time. Don't be afraid to hire the right personnel to do the work. A business is only as good as its employees.

9. Find a mentor - business owners need one or more trusted friends and/or advisors that can be used as a sounding board for new ideas. Reviewing the business plan, assessing results and getting objective advice is critical to the success of any business.

10. Giving up - if a business is going to fail, don't hang on, get it over with quickly and learn from the errors. Armed with new knowledge, try again. Remember, many entrepreneurs failed one or more times before success graced them!

Business Financing

For those of our clients who want to see their businesses move forward, the professionals at Tyce Carle-Thiesson provide careful consideration of the options available to meet their financing needs. We provide sound planning and comprehensive advice so that our clients can achieve their goals and long-term needs.

If you are looking for significant experience in financing business ventures, our team can provide that experience.

At Tyce Carle-Thiesson, we work closely with owner-managers and with the entire management team to develop custom financing strategies - because we recognize that each of our clients is unique.

Capital Dividend Elections

Unlike regular taxable dividends, a Canadian controlled private corporate can pay capital dividends TAX-FREE to its shareholders, up to the value available in the company's capital dividend account ("CDA").

Briefly, the capital dividend account includes the company's net taxable capital gains, any capital dividends received and proceeds from life insurance policies but generally speaking, capital dividends usually arise when a company realizes a capital gain from sale of assets such as land. The non-taxable one-half of a capital gain is added to the capital dividend account.

In order for the company pay a tax-free capital dividend, it must file an election with Canada Revenue Agency. It is important to note that the capital dividend account can be wiped out by future capital losses so delaying the payment of a capital dividend could be expensive. It's critical to know the true balance of the CDA.

Because the calculation can be complex, be sure to visit your accountant before paying a capital dividend.

Corporate Reorganizations

In many cases, there can be specific reasons for restructuring an existing corporate group. However prior to doing so, it is crucial that professional advisors review the structure and issues that are unique to the particular circumstances and goals of the transaction.

Some of the tax-related objectives of a corporate reorganization include minimizing or deferring corporate taxes through the utilization of tax losses, achieving a more tax-efficient structure (i.e. for non-residents), and implementing a tax-efficient financing structure. In some circumstances, it may be desirable to request a ruling from the Canada Revenue Agency in advance of the reorganization.

At Tyce Carle-Thiesson, our clients know that they can depend on our resourcefulness and expertise to help design and implement a corporate reorganization so as to achieve the desired outcomes.

Corporate Tax Planning

The professionals at Tyce Carle-Thiesson are committed to meeting the challenges and constantly changing complexities required in individual and corporate tax planning and compliance. Similar to our professionals, our clients are entrepreneurial and expect to see well designed tax plans that are specifically tailored to meet their needs.

You can be certain that we will consider all available strategies before completing your company's corporate tax returns. All tax returns, forms and documents are prepared and reviewed by highly qualified professional accountants who ensure that all income tax laws and filing deadlines are complied with.

We at Tyce Carle-Thiesson are committed to working with our owner-managed clients to ensure that effective tax strategies minimize our clients' corporate tax burdens.

GST Returns

The Canadian Goods and Services Tax (GST) is a multi-level value-added tax introduced in Canada on January 1, 1991, by Prime Minister Brian Mulroney and finance minister Michael Wilson. The GST replaced a hidden 13.5% Manufacturers' Sales Tax (MST) because it hurt the manufacturing sector's ability to export. The introduction of the GST was very controversial.

As of January 1, 2008, the GST currently stands at 5%.

Miscellaneous Tax and Other Filings

In addition to offering professional services so that we minimize our clients combined personal and corporate tax burdens, it is not uncommon that additional filings might be periodically required.

Section 85

For example, when one transfers an existing business to a corporation, the transaction is considered to be a "non-arm's length" transaction; this occurs because the owner of the corporation is also related to the corporation. The Income Tax Act (Canada) considers transactions between related parties to occur at fair market value however, the Income Tax Act permits a transferor to transfer the assets of his/her business to a corporation on a tax-free basis by filing an election under section 85.

SR&ED Credits

Another situation arises where a corporation carries on research activities and wants to claim the resulting tax credits. At Tyce Carle-Thiesson, we review your expenses to determine eligible costs. For those costs that are eligible, the Scientific Research & Experimental Development Program provides benefits are realized through either refundable or non-refundable investment tax credits.

PST Returns

Separate Provincial Sales Taxes (PST) are collected in the provinces of British Columbia, Saskatchewan, Manitoba, Ontario, Quebec, and Prince Edward Island. Goods to which the tax is applied varies by province, as does the rate. Moreover, for those provinces whose provincial sales tax is applied to the combined cost and GST, provincial revenues decline or increase with respective changes in the GST.

Province	rate (%)	combined fed./prov. rate (%)	note
Alberta	0	5	Alberta has no provincial sales tax
British Columbia	7	12	Officially known as the Social Service Tax [1] Reduced from 7.5% Oct 2004 Alcohol is taxed at 10% [2]
Saskatchewan	5	10	Reduced from 7% on 28 October 2006 [3] There is a separate 10% liquor consumption tax
Manitoba	7	12
Ontario	8	13	PST is usually 8%, but is 5% on lodging, 10% on entertainment and alcohol at restaurants, and 12% on alcohol at retail stores [4]
Quebec	7.5	12.875	Provincial rate is nominally 7.5%, but is also applied to the federal 5% GST so effectively 7.875%
Prince Edward Island	10	15.5	Provincial rate is nominally 10%, but is also applied to the federal 5% GST so effectively 10.5%

Purchases & Sales of Real Estate

Owner-managed companies must constantly review, prioritize and act upon many issues in their business environment, which sometimes includes the decision of whether to buy and/or sell real estate.

And given that the real estate industry is constantly changing, you could feel a significant impact on your business regardless of whether you are a real estate developer, a construction company, an investor or a company that owns real estate.

We at Tyce Carle-Thiesson are fully aware of the challenges that face the real estate industry and our clients; although not comprehensive, these issues include access to capital, organizational issues, changing customer needs, and risk management to name a few.

We believe that our clients need experienced advisers to help them create the right solutions and act upon them so as to create value and/or realize improved corporate performance. Our team of professionals has in-depth knowledge and entrepreneurial thinking to respond to the challenges faced when buying or selling real estate.

Succession Planning

Whether you plan to sell your business to an arm's-length party or transfer ownership to the next generation, a succession plan is critical so that you can manage the change and protect the value of your business. Failure to have a succession plan could result in significant consequences including a loss in value of your business and/or increasing family tensions.

To implement an effective transaction plan, we make certain that we understand the goals, needs and objectives of the parties involved. And since our professional services are limited to privately-held companies, we know and understand the issues and business challenges that our clients face.

The professionals at Tyce Carle-Thiesson want to make certain that our clients maximize the value of their assets. Because our professionals are well-acquainted with the issues of business succession, we are uniquely positioned to keep our clients on track to achieving their stated goals.

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