Financial reporting and accounting advisory services
You trust your external auditor to deliver not only a high-quality, independent audit of your financial statements but to provide a range of support, including assessing material risks, evaluating internal controls and raising awareness around new and amended accounting standards.
Accounting Standards for Private Enterprises
Get the clear financial picture you need with the accounting standards team at Grant Thornton LLP. Our experts have extensive experience with private enterprises of all sizes in all industries, an in-depth knowledge of today’s accounting standards, and are directly involved in the standard-setting process.
International Financial Reporting Standards
Whether you are already using IFRS or considering a transition to this global framework, Grant Thornton LLP’s accounting standards team is here to help.
Accounting Standards for Not-for-Profit Organizations
From small, community organizations to large, national charities, you can count on Grant Thornton LLP’s accounting standards team for in-depth knowledge and trusted advice.
Public Sector Accounting Standards
Working for a public-sector organization comes with a unique set of requirements for accounting and financial reporting. Grant Thornton LLP’s accounting standards team has the practical, public-sector experience and in-depth knowledge you need.
Tax planning and compliance
Whether you are a private or public organization, your goal is to manage the critical aspects of tax compliance, and achieve the most effective results. At Grant Thornton, we focus on delivering relevant advice, and providing an integrated planning approach to help you fulfill compliance obligations.
Research & development, government incentives
Are you developing innovative processes or products, undertaking experimentation or solving technological problems? If so, you may qualify to claim SR&ED tax credits. This Canadian federal government initiative is designed to encourage and support innovation in Canada. Our R&D professionals are a highly-trained, diverse team of practitioners that are engineers, scientists and specialized accountants.
Keeping track of changes and developments in GST/HST, Quebec sales tax and other provincial sales taxes across Canada, can be a full-time job. The consequences for failing to adequately manage your organization’s sales tax obligations can be significant - from assessments, to forgone recoveries and cash flow implications, to customer or reputational risk.
Global mobility services
In today’s competitive and global marketplace, your employee mobility strategy is a critical factor for success. International opportunities are key to attracting top talent and instilling a global mindset across your organization. Your people truly are your most valuable asset, and as your expatriate workforce continues to grow, a seamless global mobility program is essential to achieving your overall business goals.
US corporate tax
The United States has a very complex and regulated tax environment, that may undergo significant changes. Cross-border tax issues could become even more challenging for Canadian businesses looking for growth and prosperity in the biggest economy in the world.
US personal tax
Whether your business is only beginning to sell to US customers, or US customers represent the core of your business, anticipating and dealing knowledgeably with the US tax environment is critical to your bottom line. Our full-service US corporate tax group can help in all tax aspects of doing business in the US. Given high US corporate tax rates, don't be surprised by a US tax liability only to find out that there were planning opportunities available to reduce it.
While there is great opportunity for businesses looking to expand globally, organizations are under increasing tax scrutiny. Regardless of your company’s size and level of international involvement—whether you’re working abroad, investing, buying and selling, borrowing or manufacturing—doing business beyond Canada’s borders comes with its fair share of tax risks.
Transfer pricing is a complex area of corporate taxation that is concerned with the intra-group pricing of goods, services, intangibles, and financial instruments. Transfer pricing has become a critical governance issue for companies, tax authorities and policy makers, and represents a principal risk area for multinationals.
Succession & estate planning
Like many private business owners today, you’ve spent your career building and running your business successfully. Now you’re faced with deciding on a successor—a successor who may or may not want your direct involvement and share your vision.
Tax Reporting & Advisory
The financial and tax reporting obligations of public markets and global tax authorities take significant resources and investment to manage. This requires calculating global tax provision estimates under US GAAP, IFRS, and other frameworks, and reconciling this reporting with tax compliance obligations.
Our transactions group takes a client-centric, integrated approach, focused on helping you make and implement the best financial strategies. We offer meaningful, actionable and holistic advice to allow you to create value, manage risks and seize opportunities. It’s what we do best: help great organizations like yours grow and thrive.
We bring a wide range of services to both individuals and businesses – including shareholders, executives, directors, lenders, creditors and other advisors who are dealing with a corporation experiencing financial challenges.
Market-driven expertise in investigation, dispute resolution and digital forensics
Viruses. Phishing. Malware infections. Malpractice by employees. Espionage. Data ransom and theft. Fraud. Cybercrime is now a leading risk to all businesses.
Running a business is challenging and you need advice you can rely on at anytime you need it. Our team dives deep into your issues, looking holistically at your organization to understand your people, processes, and systems needs at the root of your pain points. The intersection of these three things is critical to develop the solutions you need today.
Builders And Developers
Every real estate project starts with a vision. We help builders and developers solidify that vision, transform it into reality, and create value.
Rental Property Owners And Occupiers
In today’s economic climate, it’s more important than ever to have a strong advisory partner on your side.
Real Estate Service Providers
Your company plays a key role in the success of landlords, investors and owners, but who is doing the same for you?
There’s no business quite like mining. It’s volatile, risky and complex – but the potential pay-off is huge. You’re not afraid of a challenge: the key is finding the right balance between risk and reward. Whether you’re a junior prospector, a senior producer, or somewhere in between, we’ll work with you to explore, discover and extract value at every stage of the mining process.
Oil & gas
The oil and gas industry is facing many complex challenges, beyond the price of oil. These include environmental issues, access to markets, growing competition from alternative energy sources and international markets, and a rapidly changing regulatory landscape, to name but a few.
Did you know that you may save taxes if you donate publicly traded securities directly to a registered charity? This is a smart and tax-effective alternative to donating cash—but how you structure the charitable donations can be as important as the amount given.
The disposition of a share results in a capital gain to the extent of the fair market value of the share at the time of disposition exceeds its original purchase price. A donation of capital property is considered a disposition for tax purposes, which may result in a capital gain.
However, there is an exception to this rule where eligible property is donated to a qualified donee such as a registered charity. Eligible property generally includes securities, such as shares and bonds, that are listed on a designated stock exchange as well as mutual fund units. For such donations, the taxable portion of the gain is reduced from 50 per cent to nil so that the disposition of the security to the charity is fully exempt from capital gains tax.
You must donate the security directly to the charitable organization to receive this favorable tax treatment. You can’t sell the security in the open market and donate the cash. If you do, you will be subject to tax on any resulting capital gain. By donating the shares directly, the charity benefits by receiving the full value of the shares. At the same time, you benefit by paying no tax on the disposition and receiving a charitable donation receipt for the fair market value of the shares at the time of the donation. This can result in a significant tax benefit for anyone with charitable intent.
For 2022, the federal donation tax credit is 15 per cent on the first $200 of donations claimed in the year, and 29 per cent on donations above $200. If your taxable income exceeds the top personal tax bracket ($221,708 in 2022), the federal donation tax credit rate can reach 33 per cent for donations over $200. After factoring in provincial tax savings (except for Québec), donations in excess of $200 will save you anywhere from 44.2 to 54 per cent, depending on your resident province.
The donation tax credit is non-refundable and the amount of eligible donations that can be claimed is limited to 75 per cent of net income (increased to 100 per cent of net income in the year of death or the year preceding death). However, unused donations can be carried forward 5 years. Also, a spouse or common-law partner may be able to claim the donation instead of the individual making the donation, which, depending on the situation, could result in a higher benefit.
An example of the potential tax benefit is illustrated in the table below (assuming the donor is taxed at a top marginal rate of 50 per cent and a donation receives a combined federal and provincial tax credit of 50 per cent):
|Description||Sale of securities and cash donation||Donation of securities|
|Value of shares/donation (A)||$5,000||$5,000|
|Cost base of shares (B)||$1,000||$1,000|
|Capital gain ((A-B) = C)||$4,000||$4,000|
|Capital gain inclusion rate (D)||
|Taxable capital gain ((C X D) = E)||$2,000||$ nil|
|Tax on taxable capital gain (E X 50%)||$1,000||$ nil|
|Donation tax credit (A X 50%)||$2,500||$2,500|
|Net tax savings (tax less donation credit (F))||$1,500||$2,500|
|Net after-tax cost of donation (A- F)||$3,500||$2,500|
In this example, the individual saves $1,000 in tax if the securities are donated directly to a registered charity as opposed to making a cash donation of the same value as the shares.
Donating through a corporation
You may receive more benefit if you donate publicly traded securities or mutual fund units held by your corporation rather than cash where there is an accrued gain. If your corporation donates eligible property, it would generally be entitled to a deduction equal to the fair market value of the securities donated, with the taxable portion of the resulting capital gain being reduced to nil. In addition, the tax-free portion of the capital gain on such donations, which is 100 per cent as opposed to 50 per cent, is added to a private corporation’s capital dividend account (CDA). A larger CDA balance generally allows you to withdraw more funds on a tax-free basis from your corporation, assuming the tax-free portion of the company’s cumulative capital gains exceed the tax-free portion of the company’s cumulative capital losses, and you are a Canadian resident.
The deductible amount of charitable donations is limited to 75 per cent of a corporation’s net income for tax purposes (excluding the donations). For example, if your corporation incurred a loss for tax purposes, any charitable donations would be non-deductible that year, however, any unused donations can be carried forward for up to 5 taxation years.
There are many factors to consider when making a charitable donation, whether as an individual or through your corporation, and the potential tax benefits will vary based on your situation. Before making a sizeable donation—whether in cash or in kind—please contact your local Grant Thornton LLP advisor or contact us here.
The information contained herein is general in nature and is based on proposals that are subject to change. It is not, and should not be construed as, accounting, legal or tax advice or an opinion provided by Grant Thornton LLP to the reader. This material may not be applicable to, or suitable for, specific circumstances or needs and may require consideration of other factors not described herein.