Author Segal LLP

Senior Tax Specialist

Segal LLP is a rapidly growing mid-size accounting, tax and business advisory firm headquartered in midtown Toronto. Segal is committed to growth by investing in our team, providing continuous learning and a positive, supportive work environment all with a focus on providing clients best in class client service.

As a member of our Tax Team, you will advise our clients on corporate and personal tax planning, deferral strategies, financing structures, employee compensation, owner-managed remuneration or a range of other complex tax issues. You will have the opportunity to resolve client issues directly with the client, the CRA and other government or regulatory agencies.

Responsibilities

  • Work with partners and the tax team on client engagements and deliverables, and practice development initiatives.
  • Support Partners, Principals and Managers in all aspects of personal and corporate tax initiatives
  • Prepare notices of objection for corporate and personal clients and negotiate the same with the Appeals Division.
  • Prepare/review complex tax returns (T1, T2, and T3 returns) and tax elections as required.
  • Mentor, train, and delegate work to junior team members in the Tax team.
  • Research tax issues
  • Prepare calculations to support tax analysis

Qualifications

  • CPA designation; ideally enrolment in, the CICA In-Depth or M. Tax.
  • Bachelor’s Degree (or equivalent experience) from an accredited institution in Accounting, Business Administration, or related field.
  • Ability to prepare effective research and planning memos independently and as part of a team.
  • Several years of tax experience, working with owner-managed clients.
  • Excellent understanding of basic tax concepts and files.
  • Strong interpersonal and relationship building skills.
  • Team player with a positive ‘can do’ approach.
  • Creative problem-solving ability.
  • Excellent verbal and written communication skills
  • Working proficiency in Microsoft Suite including Word, Excel, PowerPoint, is essential.
  • Be organized and able to meet multiple project deadlines while being detail oriented.
  • Strong commitment to professional client service excellence

To submit your resume for this position, please contact us by email here.

Family Transfers of Small Businesses, Family Farms and Fishing Corporations

Bill C-208 is a recent private members bill that tries to facilitate intergenerational transfers of a business between family members in a more tax friendly manner. In the past, a parent could not claim the capital gains exemption when they sold shares of a small business corporation to a corporation owned by their children or grandchildren.  However, that same parent could sell shares of their small business corporation to an arms-length corporation and claim the capital gains exemption.  These anti-avoidance rules can be found in section 84.1 of the Income Tax Act (“the Act”).

Even though Bill C-208 recently received royal assent, the current minority government is concerned that it has created unintended tax avoidance loopholes. In a surprise announcement on June 30, 2021, the Department of Finance (“Finance”) stated that it will introduce new legislation to clarify these amendments will not apply until January 1, 2022.  This put Bill C-208 in a state of “tax limbo” in that it is law, but the Department of Finance has communicated that it wants to change how this law is applied.

On July 19, 2021, Finance backtracked on its previous announcement by indicating that it will accept Bill C-208 as the current law since it was passed by Parliament and received Royal Assent. Finance has stated that “the federal government is committed to facilitating genuine intergenerational share transfers, while preventing tax avoidance that undermines the equity of Canada’s tax system.” Clearly, the current government does not like how Bill C-208 is drafted and they intend on making amendments which would take effect as of the later of either November 1, 2021 or the date of publication of the final draft legislation.

In the July 19, 2021 announcement, Finance identified “surplus stripping” (i.e., converting dividends to capital gains) as one loophole that Bill C-208 may inadvertently permit. It also provided a list of the following issues the amendments to Bill C-208 would address:

  • The requirement to transfer legal and factual control of the corporation carrying on the business from the parent to their child or grandchild;
  • The level of ownership in the corporation carrying on the business that the parent can maintain for a reasonable time after the transfer;
  • The requirements and timeline for the parent to transition their involvement in the business to the next generation; and
  • The level of involvement of the child or grandchild in the business after the transfer.

The July 19, 2021 announcement is welcome news for Canada’s small business community. It has eliminated the uncertainty that previously existed from Finance’s earlier comments. It has also provided us with more insight into the federal government’s concerns for tax avoidance. Taxpayers now have a small window of opportunity to complete intergenerational share transfers using the existing rules in Bill C-208. Since Finance has publicly stated their concerns with the legislation it is recommended that genuine transactions take place over the next several months.

In order to qualify for the capital gains exemption, shares of a private company must be qualified small business corporation (“QSBC shares”). Upon the sale of QSBC shares, an individual can claim their lifetime capital gains exemption (“LCGE”) which is currently $892,218 (indexed each year) and $1 million for family farm or fishing corporation shares.  The old rules in section 84.1 of the Act re-classified the proceeds from the purchase of shares by a related corporation to be a dividend instead of proceeds.  Therefore, the related vendor was unable to claim the capital gains exemption.  The new legislation has been introduced to limit the application of 84.1 of the Act and also allow for certain reorganizations between siblings.

Reorganization Amendments

Under current paragraph 55(5)(e) of the Act siblings are deemed not to be related for the purposes of certain reorganizations. This means that where siblings want to take their holdings in a  shared company into two separate companies, they were limited by the rules of subsection 55(2) of the Act. This provision is an anti-avoidance rules intended to prevent the conversion of an amount that would normally be a taxable capital gain into a tax-free intercorporate dividend.  The amendment in Bill C-208 states that siblings are no longer considered to be “not related” for the purposes of these reorganizations if the shares of the corporation involved are QSBC shares, family farm or fishing corporation shares.  These rules will not allow for the separation of companies with investments or rental assets.

Section 84.1 Amendments

As noted above, 84.1(1) of the Act has a set of rules that converts what would otherwise be a capital gain into a dividend, thereby eliminating the ability to claim the capital gains exemption.  The new rules will apply where the following apply:

1. The exchanged shares are QSBC shares or shares of a family farm or fishing corporation.

2. The purchaser corporation is controlled by one or more children or grandchildren (aged 18 or older) of the vending taxpayer.

3. The purchaser corporation does not dispose of the exchanged shares within 60 months of the purchase.

Where all of these conditions apply, the taxpayer and purchaser corporation will be deemed to be dealing at arms-length so that the negative implications of 84.1 of the Act won’t apply.  The vendor will be able to claim the CGE if eligible.

Where the corporation being sold has taxable capital in excess of $10 million, the ability to claim the capital gains exemption will be reduced until such time as the taxable capital is $15 million or more.  At that point, the vendor will not be able to claim the capital gains exemption.  One of the other limiting factors is that the taxpayer must provide to CRA with an independent assessment of the fair market value of the shares being sold and an affidavit signed by the taxpayer and by a third party attesting to the disposal of the shares.  These rules are in place to ensure that a taxpayer does not transfer shares to a child as a “paper transaction” where in essence  the transfer to the child has not really occurred.  This also ensures that the value of which the transfer occurs is a reasonable one.

Planning Ideas

As noted above, the changes in Bill C-208 only apply where the shares sold are shares of a QSBC.  In order to be a QSBC, the following tests must be met:

1. The shares must have been owned continuously for 24 months or more;

2. The company must be a CCPC;

3. 90% or more of the fair market value of the of the assets must be used in an active business in Canada.

4. Throughout the 24 month period prior to the share sale, more than 50% of the fair market value of the assets must have been used in an active business in Canada

The asset tests are very important to monitor.   If a corporation has accumulated assets, such as cash, investments, loans receivable or rental properties, the shares may not qualify as QSBC shares.  In planning to remove these redundant assets, there still may be tax because of the current provisions of section 55 of the Act.  Having said that, it may be worthwhile to pay some capital gains tax on the removal of certain assets in order to be able to access the capital gains exemption and possibly the multiplication of the capital gains exemption.

Please contact your Segal advisor to discuss the planning required in your situation.

‘Building a Global Future’

Moore Global’s Real Estate & Construction Summit Series ‘Building A Global Future ‘

July 14, 2021 — July 15, 2021
9:00 AM-12:00 PM (EST)

Moore Global is pleased to present the Moore Real Estate and Construction Summit Series, “Building a Global Future”. A collection of thought leadership pieces addressing issues and opportunities within the real estate landscape on a global scale. We hope you join us as we explore these timely topics, including investment flows, tokenization of real estate assets, unleashing crowdfunding potential, and learning from distinguished women within the real estate realm.

This is an exclusive event in the real estate and construction sector, with the purpose of connecting and communicating with businesses beyond boundaries.

Agenda

Below are the scheduled sessions. Please follow the link HERE to register for the sessions you’d like to attend and add to your calendar.

July 14, 2021

Tokenization of Real Estate Assets 9:00 AM-9:30 AM ET

Women in Real Estate and Construction 10:00 AM-10:30 AM ET

Crowd Funding 11:00 AM-11:20 AM ET

July 15, 2021

Global Real Estate Investments Trends and Opportunities 9:00 AM-10:00 AM ET

Moore Global’s Real Estate Resource Portal 10:00 AM-10:05 AM ET

Constructing the New Normal 11:00 AM-11:30 AM ET

To register and learn more about the event, please CLICK HERE.

Senior Associate, Transfer Pricing

Segal LLP is a rapidly growing mid-size accounting, tax and business advisory firm headquartered in midtown Toronto. Segal is committed to growth by investing in our team, providing continuous learning and a positive, supportive work environment all with a focus on providing clients best in class client service.

This position represents a significant opportunity for those looking to advance their career by playing a major role in a growing organization. In this role you will make significant contributions within a specialty service offering while continuing to be a well-rounded strategic advisor to our clients by working with colleagues from tax, accounting, and business advisory teams.

Responsibilities

  • Work with the Transfer Pricing Principal & Practice Leader on client engagements and deliverables, and practice development initiatives. You will work on all aspects of the transfer pricing lifecycle including, planning, operationalization, documentation, and audit defense.
  • Evaluate and analyze various inter-company transactions, including (but not limited to) tangible goods, intangible property, services, financing, secondment of employees, and cost-sharing arrangements, across a wide range of industries.
  • Attend functional analysis interviews, transcribe notes, prepare meeting minutes, perform financial and economic analyses, carry out industry and market research, economic valuations, comparative financial benchmarking, and prepare documentation per local country requirements.
  • Assist with compilation of responses to local country tax authority audits and investigations.
  • Prepare and analyze financial and economic data for tax and regulatory compliance purposes, relying on tools such as Microsoft Word, Excel, Access, and various statistical sampling packages.
  • Review and analyze financial statements.
  • Participate in client discussions, have a hands-on approach, and operate as an extension to the clients’ tax & finance team and the business.
  • Adopt a pragmatic mindset in working with clients and apply transfer pricing concepts and economic/financial knowledge to resolve their challenges covering all aspects of the transfer pricing lifecycle.

Qualifications

  • A minimum of 2 – 3 years of transfer pricing experience gathered in public accounting, consulting, or an in-house role in Canada (local candidates with prior experience in mature markets like the United States, United Kingdom or Australia will be considered).
  • Experience in the following areas: transfer pricing studies, related party disclosures review, reporting and filing (e.g. T106 filings for Canada) financial statement analysis, quantitative and competitive analysis, statistical sampling, and econometrics.
  • Experience with S&P Capital IQ, ktMine, and Bloomberg Professional/LoanConnector is essential.
  • Working proficiency in Microsoft Suite including Word, Excel, PowerPoint, Access, and Project is essential.
  • Stay up to date on international transfer pricing developments such as the OECD BEPS Project & Transfer Pricing Policy developments, transfer pricing cases and rulings, and Digital Services Tax.
  • Be a self-starter and possess effective written/verbal communication skills and solid analytical skills.
  • Be organized and able to meet multiple project deadlines while being detail oriented.
  • Bachelor’s degree in Economics, Business Administration, Finance, Mathematics or Statistics from an accredited college/university, required.
  • Advanced degree such as a master’s in business administration (MBA), Economics, International Economics, Finance, Law, Taxation (M. Tax), or Accounting; or professional qualification(s) such as CPA (including the CPAC In-Depth Tax course), CFA, or the Transfer Pricing certificate from Chartered Institute of Taxation, U.K. (CIOT), would be an asset.

Your application should include a cover letter and up to date resume.

To submit your resume for this position, please contact us by email here.

Chief Financial Officer

The Chief Financial Officer (CFO) is a seasoned strategist who understands current accounting practices and trends and thrives in a role that demands accountability, clear communication, change management and presentation skills, and the exceptional ability to manage growth.  The CFO will have both a day-to-day and ongoing impact on company operations, helping us to analyze, strategize, and grow our financial position and act as a business partner to the firm’s partners and senior leadership team on all financial matters.   

Objectives of this Role 

  • Professionalize the finance function and provide expertise and guidance to the firm through a period of planned growth and expansion. 
  • Lead and manage a finance team of four including the Controller, and Accounting Assistant to prepare and present financial and management discussion and analysis reporting.
  • Lead and collaborate with the leadership team on the development and use of best-practice policies, programs, technology, and tools that ensure a well-controlled yet flexible organization with strong fiscal management, project management, cross team communications and workflow. 
  • Enforce compliance with all regulatory reporting monitoring existing and new legislation. 

Key Responsibilities and Accountabilities 

  • Lead the process to efficiently develop proposal budgets, provide access to project finance information, and manage contract/grant compliance and reporting. 
  • Research opportunities and trends analyze internal financial and practice management operations and technologies, identify areas of cost reduction and process enhancement and efficiency.
  • Monitor firm performance with tracking, establish corrective measures as needed, and prepare detailed reports, both current and forecasted. 
  • Ensure cash flow is compatible with company operations, by overseeing the day-to-day accounting, recording, reporting, and internal control activities of the firm. 
  • Update and further develop the firm’s financial reporting framework including: 
    • Budgeting & Forecasting; coordinate the development of the annual operating budget. 
    • Oversight of practice management, engagement, and financial IT systems, ensuring compliance, accuracy, and efficiency. 
    • Internal accounting and reporting 
    • Cash Management including monitoring and measuring improving turnover, establishing formal AR management and vendor selection procedures.  
    • Insurance including oversight of professional liability insurance program and the firms commercial and business insurance.  
    • Partner remuneration – documentation and processes 

Skills and Qualifications 

  • Minimum 10+ years of progressive experience in finance.   
  • Understanding of advanced accounting, regulatory issues, and tax planning 
  • Minimum 5+ years of experience in an executive leadership role 
  • CPA designation. Master’s degree in accounting, business accounting, or finance 
  • Strong understanding of operational matters from a financial perspective 
  • Demonstrated finance experience in evaluating, interpreting, presenting financial information and trends to partners and leadership group. 
  • People management experience with the ability to coach, train, and lead direct reports. 
  • Strong interpersonal and communication skills with experience in effectively communicating key complex financial data & presentations.   
  • Exceptional verbal, written, and visual communication skills. 
  • Negotiation and business strategy skills 
  • Proven skills and experience with industry standard financial tools (ex. Excel, PowerPoint) 
  • Experience with the selection, design and implementation of ERP and EDI an asset 

Preferred Qualifications 

  • Experience with mergers and acquisitions including due diligence and post-acquisition integration best practices.  
  • Knowledge of partnership reporting in a professional services environment 

To submit your resume for this position, please contact us by email here.