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.
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.
One of the most prevalent tax trends in recent years has centered on the concept of transparency. The need for transparency and the desire to enhance transparency is something that has been informing the changes being made by governments in Canada—as well as internationally—in an attempt to reduce tax evasion.
Enhancing transparency has often meant increasing taxpayer reporting requirements, with the most recent change being the increased trust reporting requirements originally announced in the 2018 federal budget.
Legislation surrounding these changes was recently released and taxpayers should be aware as those who are party to a trust may face a larger administrative burden with respect to that trust going forward.
What are the changes?
Generally, under the previous system, a trust would only have to file a T3 trust return in the case that it received income or made distributions to beneficiaries in the year.
This requirement is now being expanded to require that certain express trusts (described below) file a T3 return annually. Furthermore, certain parties to the trust will now be required to provide personal identification information such as their name, address, date of birth, tax identification number (such as social insurance number or business number) and jurisdiction of residence as part of the annual T3 trust return process.
The parties required to provide this information are
- settlors and
- persons who have the ability to exert control over trustee decisions regarding the appointment of income or capital of the trust (such as protectors).
These requirements will apply to express trusts resident in Canada. The term express trust refers to trusts that have been created deliberately. The term therefore includes many of the most commonly used types of trusts, such as discretionary family trusts, testamentary trusts, and living trusts.
While these new rules will apply to a wide range of trusts, a number of exclusions are available for trusts that:
- Are mutual fund trusts, segregated funds, and master trusts
- Are governed by registered plans such as RRSPs and RRIFs
- Are graduated rate estates and qualified disability trusts
- Qualify as non-profit organizations or registered charities
- Have been in existence for less than three months at the end of the year
- Hold assets with a total fair market value not exceeding $50,000 throughout the year
To meet this exclusion, the trust may only hold assets that are cash, certain debt obligations, public traded shares or debt, shares of mutual fund corporations and an interest in a related segregated fund. This means that trusts holding shares of a private corporation, even with nominal value, will not apply
- Are required under the relevant rules of professional conduct or the laws of Canada or a province (such as lawyers’ trust accounts)
This change will increase the filing requirements for many trusts—specifically those with limited activity that would not have been required to file an annual return in the past. While this is a largely administrative burden, it is likely that the costs associated with administering the trust will increase in line with the increased administrative requirements.
It is therefore important for all parties to a trust to be aware of these changes, as the proposed penalties associated with these new disclosure requirements could be steep.
Should the required disclosures not be made by the trust’s T3 return filing deadline, a penalty that is equal to the greater of $100 and $25 multiplied by the number of days that the return is past due (to a maximum of $2,500) will be imposed.
Additional penalties will be incurred where the information is withheld knowingly, gross negligence has occurred or there is a failure to comply with a demand made by the CRA. Such penalties will be equal to the greater of $2,500 and five percent of the highest fair market value of the assets of the trust at that time.
These updated reporting requirements will come into effect for taxation years ending after December 30, 2021; meaning that a trust with a December 31 calendar year end will be required to meet these new requirements for its 2021 tax year.
While this leaves a reasonable amount of time for taxpayers to organize their affairs accordingly, when considered in combination with the new private corporation rules around income splitting, now is a great time to revisit the structure of your trust to assess whether it is set up in the most tax effective way. Your Grant Thornton tax advisor can assist you in this process.