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.
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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.
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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.
Companies with a December 31 taxation year-end still have time to review their books and records to determine whether a year-end transfer pricing adjustment needs to be made.
Since the release of the Organization for Economic Cooperation and Development’s Base Erosion and Profit Shifting (OECD’s BEPS) Action 13 Report in 2015, tax authorities in more than 70 countries have implemented changes to transfer pricing compliance processes and procedures. Multinational enterprises (MNEs) today find themselves in a new landscape characterized by increased scrutiny.
Canada is no exception to this trend. When a Canadian MNE engages in cross-border intercompany transactions, Section 247 of the Income Tax Act requires that the intercompany prices used adhere to the arm’s length standard. It can be difficult even for well-intentioned MNEs to maintain arm’s length transfer pricing throughout the year. If non-arm’s length transfer pricing is reflected on the tax returns, the MNE may be subject to additional income taxes, penalties and interest.
To mitigate the risk of Canada Revenue Agency (CRA) scrutiny, a MNE should evaluate its intercompany transactions before the books close for the year, and document that process appropriately. If, pursuant to that evaluation, transfer prices are found to have materially strayed from the arm’s length principle, booking a “year-end true-up” or “adjustment” is recommended. The CRA recognizes that such adjustments may be necessary and in fact encourages them.
In our experience, common situations that prompt self-initiated year-end adjustments include circumstances where:
- service charges for head-office/corporate support rendered on behalf of subsidiaries have not been made (e.g. management and administrative services);
- service charges include only a recovery of compensation-related costs, but do not include a recovery of office/overheads, as the law requires;
- charges have not been booked for direct expenses incurred by one entity on behalf of another (e.g. a shared umbrella insurance policy, or ERP system license);
- charges for goods and services are calculated based on budgeted costs, rather than actual costs; and
- profit mark-ups used in the pricing of goods or services are based on old benchmarks and have not been updated for the year, as the law requires.
Grant Thornton’s Transfer Pricing Group also regularly encounters questions from privately-held and publicly-listed multinationals connected to the issue of year-end transfer pricing adjustments. Frequent questions and areas of concern include:
- Does cash need to be paid to settle a year-end adjustment?
- Does there need to be a clause in the intercompany agreement allowing year-end adjustments?
- Can a year-end adjustment cover multiple taxation years?
- How do withholding and indirect tax impact year-end adjustments?
- How do year-end adjustments affect customs/duty positions?
- What is the best way to document year-end adjustments and how will they be scrutinized by the CRA?
- How will the year-end adjustment be viewed from the perspective of the counterparty’s tax authority?
Our transfer pricing team is ready to help you navigate through relevant considerations regarding transfer pricing year-end adjustments, assess their impact and formulate a practical approach.