Topics touched on included;

Growth, Efficiency and Risk……While every organization must choose its own path, there are business imperatives you must embrace in this new reality; investing in growth, driving efficiency and managing risk.

Corporate Income Tax Rates

Substantively enacted provisions;

-          Reduction of general rate to 15%, which will be phased in from 19% in 2009 to 15% in 2012.

-          Federal government request collaboration of provinces to each reduce their tax rates to 10%.

Substantively enacted as of November 16, 2009;

-          Ontario government has announced intention to reduce it general corporate tax rate from 14% to 10% by July 1, 2013.

-          The manufacturing and processing tax rate will also be reduced to 10% on July 1, 2010.

Ontario Budget Highlights;

-          2009 year ends are the first to file a single corporate tax return with the CRA.

-          A reduction in the corporate minimum tax (CMT) rate is proposed, from 4% to 2.7%.

-          Further, a coporation or an associated group with under $50 million in total assets or under $100 million in annual gross revenues will not pay CMT.

-          These changes are effective for taxation years ending after June 30, 2010.

-          The proposed rate reduction will be pro-rated for taxation years straddling the effective date.

Changes to CCA rates (tax depreciation)

-          For manufacturing and processing equipment, a 50% straight -line CCA rate has been extended for equipment acquired in 2010 & 2011.

-          Half year rule applies

-          For eligible new computers and system software used in Canada, a CCA rate of 100% applies, with no half year rule.

-          Changes to apply to assets acquired after January 17^th 2009 and before February 2011.

Tax Planning Opportunities;

-          Multiply small business deduction

-          Review of harmonization transitional debits/credit

-          Loss carry-backs - consider NOT carrying back

-          Partnership deferral - permanent deferral of one year's income

-          Employee profit sharing plan - eliminate corporate installments, defer tax for up to 13 months

-          Multiple capital gains deductions

-          Estate freeze using discretionary family trust

-          Thaw estate freeze

-          Creditor proofing

-          New holding company

-          New operating company

-          Sister company to hold capital assets

-          Corporate income tax installments (will income be lower this year)

-          Apprenticeship credits

Harmonized Sales Tax - Things to be thinking about;

-          How will HST impact your cash flow and budget for next year?

-          Does your system have the capability to keep track of restricted input tax credits separately?

-          Will the timing of the system and process change implementation conflict with year end or qty reporting?

-          What types of provincial sales tax (PST) capabilities need to be retained in the system after HST implementation?

-          What will happen with existing contracts that straddle the pre - and post - HST effective date?

-          How will transitional rules apply to goods/services purchased before July 1, 2010 and delivered after that date?

-          Is it possible to defer or restructure PST taxable purchases of equipment to avoid paying PST and take advantage of HST input tax credits?

-          Are wording changes required fir brochures, flyers, advertisements, catalogues, signs, coupons and rebate forms?

-          What type of training will the accounting or tax department need to be prepared for HST?

-          When should pricing be adjusted in order to pass on PST savings to customers?