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.
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.
Cross-border personal tax
In an increasingly flexible world, moving across the border may be more viable for Canadians and Americans; however, relocating may also have complex tax implications.
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.
Updates for creditors, limited partners, investors and shareholders.
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.
Eligible manufacturers in Ontario could receive up to $2 million per year on certain purchases of manufacturing and processing property, under the Ontario made manufacturing investment tax credit. This new refundable tax credit, which was announced in Ontario Budget 2023, is intended to encourage Canadian controlled private corporations (CCPCs) to increase their investments in Ontario’s manufacturing sector.
Ontario Bill 85, which includes this tax credit, received Royal Assent on May 18, 2023.
It’s important to note that a corporation must meet several criteria to claim the Ontario made manufacturing investment tax credit and determine whether an expenditure qualifies can be complex. If you need assistance navigating these rules, we can help.
What corporations qualify?
Only qualifying corporations that make eligible expenditures in eligible property qualify for the Ontario made manufacturing investment tax credit. Specifically, the corporation making the eligible purchase must:
- be a CCPC throughout the tax year;
- carry on business through a permanent establishment in Ontario (i.e., a fixed place of business, such as an office, factory, or workshop)
- not be exempt from tax
What expenditures are eligible and when?
Qualifying corporations that purchase eligible manufacturing and processing (M&P) property from third parties are generally eligible for the Ontario made manufacturing investment tax credit, provided they are not “excluded property”. Specifically, the following M&P purchases are generally eligible:
- M&P machinery and equipment under Class 53 (or Class 43 after 2025) for capital cost allowance (CCA) purposes purchased on or after March 23, 2023, and available for use in the taxation year, provided the qualifying corporation is:
- using the property in Ontario primarily in the manufacturing or processing of goods for sale; or
- leasing the property in the ordinary course of carrying on business in Ontario to a lessee who can reasonably be expected to use it primarily for manufacturing or processing of goods for sale or lease.
- M&P buildings (or building additions) under Class 1 for CCA purposes, that are located in Ontario, provided:
- the building is available for use by the qualifying corporation on or after March 23, 2023; and
- a valid election to claim additional CCA on an eligible M&P building has been filed on time with the CRA for the property (under regulation 1101(5b.1) of the federal Income Tax Act).
It’s important to note that for a building (or building addition) to qualify for this federal election, 90% or more of the space (by square footage) must be used for M&P purposes and the property cannot have been used (or acquired for use) by anyone prior to March 19, 2007. In addition, the corporation must file the election by the deadline (six months after the tax year-end) or it will not be accepted by the CRA, as previously noted in a technical interpretation.
What is excluded property?
M&P property wouldn’t qualify for the Ontario made manufacturing investment tax credit if the property is or was one of the following:
- purchased from a non-arm's length party (at the time of the expenditure or when the contract was entered into);
- owned any time previously by a non-arm’s length party;
- held as a leasehold interest at any time previously by the qualifying corporation or an associated corporation;
- claimed previously by the qualifying corporation or an associated corporation under the Ontario made manufacturing investment tax credit rules;
- purchased from a vendor with a right or option to acquire or lease all or part of the property, or the qualifying corporation grants another party a right or option to acquire it;
- Class 2 to 12 property transferred to Class 1 under an election; or
- leased to a lessee exempt from tax under section 149 of the Act (e.g., a registered charity or non-profit organization)
The legislation allows for the Ontario Ministry of Finance to prescribe additional situations where a property would be excluded from this tax credit.
How is the credit calculated?
For a specific taxation year, the Ontario made manufacturing investment tax credit is calculated as 10% of the lesser of:
- total eligible expenditures
- $20 million expenditure limit, which must be shared amongst an associated group and is prorated for short tax years.
Associated groups need to file an agreement designating the amount of the limit allocated to each corporation.
How do qualifying corporations file a claim?
The Ontario government hasn’t yet released a prescribed form to claim the Ontario made manufacturing investment tax credit or to make the agreement to allocate the $20 million between associated corporations, as of the date of this article.
The Ontario government plans to review the Ontario made manufacturing investment tax credit every three years from the date it receives Royal Assent, so it’s unclear whether it’ll be available long-term. Other considerations include:
- This tax credit is taxable under the Act; however, an election may be available to reduce the capital cost of the M&P property instead of including it in income for tax purposes.
- When land and M&P buildings are purchased together, only the cost of eligible buildings qualify so a reasonable allocation of the purchase price would be needed.
- There are measures to prevent the misuse of this credit such as:
- corporations would be deemed to be associated if it’s reasonable to believe that one of the reasons for their separate existence is to access or increase the credit
- amalgamated companies can’t claim expenditures incurred by a predecessor that wasn’t a qualifying corporation when the expenditures were incurred.
This tax credit offers eligible CCPCs a refundable credit up to $2 million per year (shared among an associated group) on certain purchases of M&P property used in Ontario.
Determining whether an expenditure qualifies can be challenging—if you need assistance navigating these rules, contact your local advisor or reach out to 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.
Subscribe to receive relevant and timely information and event invitations.