Canada

Owning and operating a business in Canada  has legal responsibilities and tax compliance. Canada Revenue Agency (CRA) and certain provincial Governments require regular reporting of Canadian sales tax, payroll taxes and income taxes. Each province and territory have their own tax related requirements as well. These regulations are often referred to as government compliance requirements.

KNAV has a comprehensive perspective of tax planning and tax compliance and by working closely with corporations our experts assist the business needs, cash flow impact and probable future business growth.   Our deep technical knowledge and critical thinking on wide range of complex tax matters allows us to deliver what really is important to you.

1. Federal, provincial and local taxes compliance and advisory
2. Scientific research & development credit – planning, advisory & representation
3. CRA audit support
4. Tax accounting advisory
5. Transfer pricing: planning, documentation and representation

The rapidly changing business environment has made organizations strive more for opportunities and challenges thereby reducing the risks. Whatever the business goals whether it is to inculcate value, enhance functionality and sustainability, safeguard against the business risks KNAV can help. Here’s how:

Inculcate Value

• Identify potential business threats and be a strategic partner in mitigating them;
• Develop advanced systems to detect and prevent frauds;
• Achieve greater performance and efficiency;

Revolutionize value

• Transform decision making process;
• Improve process and systems;
• Provide sustainable and satisfactory improvements through technology enhancements;

Protect Value

• Improve compliance and governance procedure

As your business continues to grow and evolve, situations can arise which require that you obtain a reliable valuation of your business.  When searching for a trusted valuation team, it’s important for you to rely on professionals with the appropriate experience and qualifications. Our consulting professionals help determine unbiased price that is appropriate for your situation which includes

• Investor relations and fund raising
• Exit solutions
• Acquisitions and disposal of business
• Litigation purposes
• Strategic planning
• Transaction Support (due dilligence & valuations)
• Financial & Tax compliance valuation

KNAVs experienced and trained staff can help organisations with –

1. Internal Audit & Management Assurance
2. Risk Management

ENTITY REGISTRATION

Canada has simple requirements for entities looking to conduct business; be it a start-up or a foreign entity wanting to establish a business in Canada. Corporations are required to comply with federal or provincial incorporation and registration requirements.

DETERMINING THE TYPE OF VEHICLE

In Canada, business can be structured as:

1. Sole Proprietorship: A sole proprietorship is an   individual person carrying on a business with a view to making profits.
2. Partnership: Two or more persons carrying on a business with a view to making profits may decide to form a partnership, which either may be in the form of general partnership or limited liability partnership.
3. Corporation: A corporation is a business structure that is a separate legal entity from its owners where no personal liability for the debts or obligations of the company is assumed by the owners (shareholders). The types of corporations include private corporations and public corporations.
4. Branch office: A foreign corporation may carry on business in Canada through an unincorporated branch office. A branch office is not a separate legal entity and the foreign corporation will be liable for debts and liabilities of the branch in Canada.
5. Unlimited liability company: A unlimited liability company (“ULC”) is a flow through entity and may be of interest to foreign entities for tax purposes. A ULC can be incorporated in certain provinces of Canada.
6. Joint Ventures: A joint venture is a contractual arrangement between two or more parties to carry on a business without incorporating a separate legal entity. A joint venture is not recognized for tax purposes and each party is liable to taxes.

COMPLIANCE FOR RESIDENT REQUIREMENT

For companies formed under federal laws of Canada or provincial laws, at least twenty-five per cent of the directors of a corporation must be resident of Canada except for the province of British Columbia, New Brunswick and Quebec which do not have a requirement of directors being resident of Canada.

ACCOUNTING RECORDS

In Canada, accounting standards for all entities outside the public sector are issued by the Accounting Standards Board. The AcSB has adopted International Financial Reporting Standards (IFRSs) as the accounting standards to be used by publicly accountable enterprises. Private enterprises and not-for-profit organizations can choose to use separately developed standards for those entities or IFRS. The CPA Canada Public Sector Accounting Handbook is the primary source of GAAP for the public sector.

The Canada Business Corporations Act and provincial corporations and securities legislation generally require companies to prepare financial statements for their shareholders in accordance with GAAP as set out in the CPA Canada Handbook – Accounting. Other legislation applies to financial institutions and certain other types of reporting entity.

KNAV believes in building a deep-rooted relationship with our clients, the process how we get to know the complexities of the business. Our experts genuinely enjoy and are interested in helping identify the comprehensive solutions and assurance, compliance, advisory, valuation procedures and services to overcome challenges and provide top tier experience.