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What is a capital gain? A capital gain is the profit you make when you sell an asset. An asset can include land, buildings, stocks, bonds, fund units, and trust units. How are capital gains taxed? When you sell an asset at a profit, you must include 50% of the profit in your taxable income for the year. This is commonly referred to as the inclusion rate . For example, if you own shares in a taxable account that you sold for $5,000, and you bought those shares back for $3,000, you have a profit of $2,000. You must now include 50% of the profit in your taxable income, which in this case would be $1,000. What the federal government has changed (Quebec as well) is the inclusion rate of capital gains and losses above a certain amount. What has changed? Starting June 25, 2024, if you have capital gains exceeding $250,000, two-thirds of each dollar earned above $250,000 will be added to your taxable income instead of 50%. Gains under $250,000 will continue to be included at 50%. Capital gains in registered accounts such as an RRSP, RRIF or TFSA are not subject to this change. Let's look at an example to understand this change and compare it to the old rules: Jean had owned a rental property for 15 years. He decided to sell it in August 2024. The initial purchase price was $200,000, and he sold the property for $500,000. Calculation amount Old rules (before June 25, 2024) New rules (effective June 25, 2024) Calculation amount Old rules (before June 25, 2024) New rules (effective June 25, 2024) Amount of the provision $500,000 $500,000 Initial cost $200,000 $200,000 Capital Gain $300,000 ($500,000 - $200,000) $300,000 ($500,000 - $200,000) Added to income $150,000 (50% of $300,000) $125,000 (50% of the $250,000 threshold) + $33,333 (2/3 of $50,000) = $158,333   Based on the example above, we see that changing the inclusion rate for earnings over $250,000 results in an additional income of $8,333. Who does this affect? Based on the $250,000 threshold, this new measure will affect high-income Canadians who have substantial capital gains. For example, the sale of real estate other than your principal residence , such as a rental property. Another example is a large portfolio of stocks/mutual funds in a taxable account with substantial transactions. Low-income Canadians who could be affected are those who receive inheritances, for example, residential property passed down from a deceased person to a relative. Is there a way to avoid it? The only sure way to avoid this change is to ensure your capital gains transactions remain below $250,000. For example, if you sell stocks that would put you over the $250,000 threshold, be sure to sell those stocks gradually over several years to stay below the threshold. Update : The federal government recently announced that it is postponing the increase in the capital gains inclusion rate until January 1, 2026.

🔍 Key points     Here are the key points to remember:     1. Investments and expenditures     The budget includes new commitments of $141.4 billion over the next five years. Objective: to strengthen the Canadian economy, increase productivity, diversify trade, and cope with global shocks.       2. Tax measures for businesses     Introduction of a super productivity deduction: enhanced tax incentive for new capital investments. Immediate charge-off for eligible manufacturing or processing buildings acquired after November 4, 2025. Enhanced tax credit for research and development (SR&ED) activities: ceiling raised. Increased incentives for critical minerals and the manufacture of clean technologies.       3. Measures for individuals and taxation     Increase in the "cumulative capital gains exemption": it will apply up to $1.25 million of eligible capital gains. Temporary tax credit for personal support workers (up to $1,100 per year). Simplification and streamlining of eligible investments in registered plans (RRSP, TFSA, etc.) for a new structure starting in 2027. Abolition of the tax on under-utilized housing (TLSU) from the calendar year 2025.       4. Other notable measures     Modernization of transfer pricing rules for Canadian companies with foreign operations. Strengthening measures to combat financial fraud, improving access to bank funds, etc.           🎯 Implications for your context — MTLAF & clients     Given your role (business, technology, international), here's what stands out:   For service or technology companies in which you invest or develop: the super productivity deduction and the immediate transfer of capital investments can significantly improve after-tax profitability. For entrepreneurs with holdings or incorporated companies: the increase in the capital gains exemption (up to $1.25M) is a lever to consider in exit or liquidity strategies. For individuals in your client portfolio: the simplification of registered plans and tax credits (e.g. for attendants or personal support) can be value-added arguments in your recommendations. For international compliance: the new transfer pricing rules reinforce the importance of engaging with companies that have cross-border operations (e.g., Canada ↔ USA) — a relevant point for your "cross-border" vision.

1. There is no inheritance tax in Canada     Unlike the United States or some European countries, Canada does not impose inheritance tax. But… it imposes a tax on deemed capital gains upon death.   👉 Death = deemed disposition of all assets at market price. This creates a capital gain that may be taxable.         🔶 2. Tax implications upon death     Here is what is generally taxable:     🔸 Real Estate     Main residence: exemption (no tax). 2nd building / rental building: → Taxable capital gains (included at 50% in the income of the last tax return). → Recovery of depreciation if applicable.       🔸 RRSP / RRIF     Taxable at 100% in the last tax return if it is not transferred to the spouse.       🔸 Company shares / investments     Capital gains on accumulated value. Possibility of using the Capital Gains Deduction (CGD) if shares of qualifying CCPC ($1M+).       🔸 Foreign goods     Always taxable in Canada + sometimes double taxation depending on the country (taxes).           🔶 3. Exemptions and advantageous transfers       ✔ Transfer to spouse (tax rollover)     No immediate tax. The assets pass to the spouse without tax, deferred only until their death.       ✔ Rollover to a spousal trust     Possibility via exclusive testamentary trust for the spouse (more flexible in terms of control).       ✔ Small businesses – DGC ($1,250,000 since 2024)     May reduce corporate stock tax upon death.           🔶 4. Inheritance costs and obligations     Even though there is no "inheritance tax", there are other costs:     🔸 Approval (probation)     Quebec: no probate if notarized will. Other provinces: variable fees.       🔸 Final tax (T1 return – Last return)     Sometimes       🔸 T3 tax return (estate trust income)       🔸 Administration:     Liquidator / Executor An accountant Notary Market ratings           🔶 5. Planning tools to reduce inheritance tax       1. Trust (Family Trust, testamentary trust, spousal trust)     Allows you to freeze the value. Reduces future taxes. Protects the heritage.       2. Estate Freeze     To freeze the value of a company to avoid tax on future appreciation.       3. Life insurance     A powerful tool for: pay the tax upon death protect the cash flow of the heirs optimize business transfer         4. Planned donation (before death)     It's better to give away certain assets during your lifetime to control the tax impact.

Here is the detailed explanation based on Canadian tax law. Exemption for Main Residence (ERP) This is the key concept in Canada for avoiding capital gains tax when selling a property. To claim the ERP for a given year, the property must meet all of the following conditions: It must be a housing unit, a leasehold interest in a housing unit, or a share of the capital stock of a housing cooperative. You must have owned the property alone or jointly with another person. You, your current or former spouse or common-law partner, or your child must have "ordinarily inhabited" the property during the year. Application to your situation Your specific case Since you have never lived in the unit and no other member of your family has done so, you cannot claim the Principal Residence Exemption for any of the years you owned it (2021-2024). Renovation period The renovation period does not qualify as "ordinary housing". Calculating capital gains tax Because the ERP does not apply, the entire profit from the sale will be considered a taxable capital gain. Taxable capital gain = (Selling price - Selling expenses) - (Purchase price + Purchase expenses + Capital improvements) Important definitions: Sales costs: Include real estate agent commissions, legal fees, and any other costs directly related to the sale. Major improvements: These are renovations that add value to the property, extend its useful life, or adapt it for new uses (for example, adding a bathroom, replacing the roof, renovating the kitchen). The cost of these improvements can be added to your purchase price (Adjusted Cost Base) to reduce your taxable gain. Keep all your invoices for the renovations you have made. How the gain is taxed: Inclusion rate: Only 50% of your capital gain is taxable. This is called the taxable capital gain. Tax payable: You add this taxable amount (50% of the gain) to your annual income for the year of the sale. It is then taxed at your marginal tax rate (which depends on your total income and the province where you live). Example : Purchase price (2021): $400,000 Sale price (2024): $550,000 Major improvements (with invoices): $30,000 Real estate commission and legal fees: $35,000 Capital gain = $550,000 - $35,000 - ($400,000 + $30,000) = $85,000 Taxable capital gain (added to your income) = $85,000 x 50% = $42,500 You would then pay tax on that $42,500 at your marginal tax rate. The "Change of Address" Strategy As in France, this strategy is ineffective in Canada. The Canada Revenue Agency (CRA) examines the usage history for the years you owned the property. What doesn't work Moving out just before the sale will not allow you to claim the property as your primary residence for the entire period of ownership. You can only designate the property as your main residence for the years you actually lived there. Limited impact Since you are selling in the same year you are moving, you could only claim the ERP for a fraction of a year, which offers minimal benefit and would not exempt the gains from previous years (2021-2023). Summary for Canada Postman Your situation Impact on capital gains tax Primary residence No, you never lived there during 2021-2023. The ERP exemption does not apply. The gain is taxable. Change of address Now, just before the sale. It won't work. The CRA assesses property usage year by year. Tax calculation Sale in 2024. 50% of the capital gain is added to your income and taxed at your marginal rate. Strong recommendation Document everything Gather all invoices for your purchase (legal fees, land transfer tax) and especially for all major improvements made during the renovation. This is the most effective way to legally reduce your taxable gain. Consult a professional It is strongly recommended that you speak with a Canadian accountant or tax advisor before finalizing the sale. They can: Confirm which renovation costs qualify as major improvements. Advise on the specific tax impact based on your province of residence and total income. Make sure you complete your tax return correctly to report the sale. www.montrealaccountingfirm.com

Here is a clear and structured process for onboarding a new client to QuickBooks Online (QBO). These are the steps you or your team can follow to get started correctly and ensure a smooth transition to this modern accounting solution. Information preparation and collection Customer basic data Full company name Owner's name Business address Phone and email Company number (NE) Financial exercises Fiscal year end date GST/QST reporting frequency GST/HST Reporting Frequency Tax rebate periods Technological history Software used: Excel, Sage, Zoho Existing data format Prepare for data migration Identify the technical challenges Volume of operations Number of monthly transactions Number of active employees Types of business activities Needs for specialized reports This information gathering phase is crucial to personalize the implementation according to each client's specific needs and avoid future complications. Creating a QuickBooks Online account Access QuickBooks Online Navigate to the official QuickBooks website and begin the registration process for a new business. Select the appropriate package Choose between Essentials, Plus or Advanced depending on the needs identified during information gathering. Create the company profile Legal name of the company Legal type (company, sole proprietorship, corporation) Default currency (CAD or multi-currency) QBO accounting start date Selecting the right plan from the start avoids costly migrations and ensures that all necessary features are available. Company setup Accounting configuration Customize the accounting plan according to the specific activity Suitable for the following sectors: catering, professional services, retail Create detailed sub-accounts if necessary Taxes and compliance Activate GST/QST for Quebec Configure GST/HST for other provinces Define the appropriate tax rates Accounting method Choosing between accrual accounting (for most businesses) or cash accounting (for some small businesses) affects how revenues and expenses are recognized. Payment methods Configure the options: checks, bank transfers, credit cards, PayPal. Enable online payments to facilitate customer payments. Bank connection Establishing a secure connection The bank connection automates transaction import and significantly reduces manual data entry. This critical step ensures real-time synchronization of financial data. Connect accounts Link all business bank accounts and company credit cards via the secure interface. Plaid Check Confirm the secure connection with Plaid, the third-party service that ensures the integrity of banking data. Historical Import Download 90 days or 12 months of history depending on your analysis and comparison needs. Important: Verify that all business bank accounts are connected, including savings accounts and lines of credit used for transactions. Data migration Customers and suppliers Import via Excel or CSV files. Verify the completeness of contact details, payment terms and transaction history. Products and services Transfer the complete catalogue with prices, descriptions, SKU codes and appropriate taxation categories. accounting plan Import the custom plan if available, ensuring that the accounting codes match correctly. Crucial verification of the balances The most critical step is verifying the opening balance. All bank balances, accounts receivable, and accounts payable must exactly match the data from the old system. An error at this stage will propagate to all future transactions. Accuracy required for the opening sales Minimum checks before final validation Payroll configuration (if applicable) QuickBooks Payroll module integration For businesses with employees, setting up payroll in QuickBooks ensures compliance with Canadian tax requirements and simplifies human resources management. Employee information Social Insurance Number (SIN) Salary and pay frequency Date of hiring and status Personal contact information Deductions and benefits Federal withholding taxes Provincial detentions RRQ/RPC and AE contributions Taxable employee benefits Government synchronization Connection with Revenu Québec ARC integration for discounts Automated T4 reports Statement 1 for Quebec Automation and integration Workflow optimization Automation reduces manual errors and increases efficiency. Proper configuration of rules and integrations transforms QuickBooks into a true financial control center. Automatic banking rules Set up rules to automatically categorize recurring expenses such as rent, utilities, and purchases from regular suppliers. This reduces monthly review time by 60 to 80%. Recurring bills Create billing templates for regular clients. Schedule automatic sending according to contractual terms to improve cash flow. Receipt Bank / Dext Automatic scanning of receipts and invoices with optical character recognition (OCR) for automatic extraction of accounting data. PayPal & Stripe Synchronization of online payments for automatic reconciliation of e-commerce transactions and digital services. Shopify Integration Direct connection with online sales platforms for automatic import of orders, inventory and sales data. Customer and employee training Transfer of essential knowledge Proper training ensures successful adoption of QuickBooks and reduces usage errors. Investing in training results in increased customer autonomy and less technical support required. User access management Configure the appropriate access levels: owner (full access), accountant (supervision), accounting technician (data entry and reporting). Define permissions according to responsibilities. Billing training Teach how to create custom invoices, apply appropriate taxes, send invoices automatically, and track late payments. Recording of expenses Training on the correct categorization of expenses, the use of the mobile application to capture receipts, and the management of reimbursement claims. Consultation of financial reports Explain the interpretation of the balance sheet, income statement (P&L), cash flow statements, and tax reports. Customize dashboards as needed. Final check Comparison of sales Verify that all opening balances in QuickBooks exactly match the data from the old accounting system. Bank reconciliation Perform a full reconciliation of the previous month to identify any discrepancies between bank statements and records. Validation reports Generate and review the profit and loss statement (P&L) and balance sheet for final validation before going live. Critical checkpoints This step determines the success of the implementation. Every identified discrepancy must be resolved before declaring the system operational. Rigorous verification prevents future complications and ensures customer confidence in the new system. Professional tip: Document all checks performed and keep a copy of validation reports for future reference. Monitoring and support Ensuring long-term success Implementation doesn't end with going live. Structured follow-up ensures successful adoption and continuous system optimization according to evolving client needs. 30-day follow-up Complete review of the first weeks of use. Correction of initial errors, adjustment of automatic rules and additional training if necessary. 90-day evaluation Analysis of system performance, optimization of processes and identification of opportunities to improve workflows. Continuous support Monthly maintenance packages including bookkeeping, QuickBooks technical support and optimization advice. MTLAF Package Fixed monthly fees including: Professional bookkeeping Unlimited QuickBooks technical support Monthly financial reports Optimization tips Professional support transforms technical implementation into a true business partnership, creating a lasting and mutually beneficial relationship.

Here is a clear summary of the differences between a sole proprietorship and an incorporated company in Quebec/Canada: 1. Legal liability Sole proprietorship The owner is personally liable for all the company's debts and obligations. If the company has financial problems, creditors can seize your personal assets (house, car, etc.). Incorporation The company is a separate legal entity. Liability is limited to the company's assets, which protects the owner's personal assets (except in cases of gross negligence or personal guarantees given to the bank). 2. Taxation and duties Sole proprietorship Your income is taxed directly on your personal tax return, at your progressive personal tax rate. This can quickly become substantial if your income increases. Incorporation The company pays tax on its profits at the corporate tax rate (much lower than the personal rate, approximately 12–15% in Quebec for an eligible SME). You only personally pay tax when you withdraw money (salary or dividends). This allows you to defer taxes and better plan your income. 3. Costs and administrative obligations Sole proprietorship Inexpensive to start, simple accounting obligations (income/expenses, basic bookkeeping). Incorporation Incorporation fees (approximately $400–$600), more complex obligations (articles of incorporation, annual returns, full bookkeeping, financial statements). An accountant is often required. 4. Funding and credibility Sole proprietorship Financing is primarily based on the owner's personal credit. Less credible for investors or large institutions. Incorporation Improved credibility with banks, investors, and partners. Easier to sell shares, raise capital, or bring in new partners. 5. Growth and Succession Sole proprietorship Difficult to transfer or sell, because the business is directly linked to the individual. Incorporation Easier to sell or transfer (sale of shares). Can continue to exist even if the founder retires. ✅ In summary: Sole proprietorship Simple, fast, inexpensive, but high personal risk and fewer tax advantages. Incorporation More complex and expensive, but protects your personal assets, offers significant tax advantages and facilitates growth.

An essential legal document to secure relationships between partners and guarantee the stability of your business Why a Shareholders' Convention? The shareholders' agreement goes well beyond the company's articles of association. It clearly defines the rights, obligations, and relationships between all the company's shareholders. Clarity Establishes precise internal operating rules Protection Protects the interests of all shareholders Stability Ensures the company's long-term viability Clarification of the Rules of the Game The agreement establishes the internal rules of operation between shareholders and avoids grey areas that can create conflicts. Decision-Making Defines who makes strategic decisions and how: majority vote, unanimity, or veto right. Role Allocation Clearly distinguishes between active shareholders and passive investors Dividend Distribution Establishes the precise terms for profit distribution Protection of Minority Shareholders The Challenge Without an agreement, majority shareholders often have more power, leaving minority shareholders vulnerable to unilateral decisions. The Solutions Veto rights over certain key decisions Pre-emption clauses (priority purchase rights) Fair exit guarantees Tag along clause for protection Entry and Exit Management The agreement precisely defines how one can enter or exit the company's capital, avoiding endless debates. Right of First Refusal Before selling to a third party, offer your shares to the other shareholders. Joint Exit Clauses Tag along/drag along to protect minority interests or allow for a global sale Evaluation Methods Objective criteria for determining the value of shares Conflict Prevention and Resolution Mediation Amicable resolution of disputes before escalation Arbitration A faster and more confidential alternative to the courts. "Shotgun" clauses Forced buyout in case of insurmountable deadlock These mechanisms limit lengthy and costly legal battles, preserving the company's relationships and resources. Sustainability and Stability of the Company The convention acts as "insurance" for the survival of society, even in difficult situations. Sale of Shares Clear procedures when a shareholder wants to sell Death or Disability Business continuity guaranteed in the event of unforeseen circumstances Strategic Differences Mechanisms for managing disagreements about vision Future Growth Framework for evolution and development The Concrete Benefits Conflict Reduction Fewer arguments thanks to clear rules Legal Economics Reducing conflict resolution costs Operational Stability Business continuity ensured A Governance and Protection Tool The shareholders' agreement secures the relationships between partners, protects the interests of each party and guarantees the long-term stability of the company. Security Protected partner relationships Equity Everyone's interests respected Sustainability Long-term stability guaranteed Next Steps Do you want to secure your business with a shareholders' agreement tailored to your situation? Consultation Analysis of your current structure and your specific needs Editorial Preparing a template agreement tailored to your firm Set up Finalization and signing of your shareholders' agreement Contact us to obtain a sample agreement tailored to your situation.

Business takeover is about buying an existing company to run and grow it, rather than starting from scratch as in traditional entrepreneurship. In other words, you "take the wheel" of a vehicle that's already running, rather than building one from scratch in your garage. 🧠 The advantages Huge time savings You start with clients, a brand, employees and a structure already in place. Less risk You know the financial history, the profitability, the current contracts — in short, fewer grey areas than a start-up. Easier access to financing Banks and investors like to finance a company that already has revenue and a solid track record. Potential for rapid improvement A good buyer quickly identifies weaknesses (poor management, lack of automation, tax inefficiency, etc.) and creates value in a short time. 👉 For example, implementing AI accounting tools or automating invoicing could double the margin without increasing sales. ⚠️ The challenges The price and the financing You need to assess the true value of the business (not just what the seller says 😅). The financing options can combine personal investment, bank loans, and seller financing. Human integration Taking over a team, a culture and sometimes a charismatic founder is an art in itself. Due diligence Thoroughly audit the financial, legal, tax, and operational aspects before signing. 💼 The modern takeover Today, we increasingly hear about the investor-buyer: someone who acquires several companies in the same sector (often under the same group). It's a roll-up strategy — like what private equity funds do in accounting firms, clinics, or professional services firms. 👉 A concrete example for you: Take over 3 or 4 small, local accounting firms, merge them under MTLAF, standardize processes, introduce AI automation, and create a strong regional brand. This is literally smart business acquisition combined with a scale-up vision.

Faced with financial difficulties, there are concrete and effective strategies to rectify the situation before it is too late. An alarming observation, but not inevitable. Bankruptcy never happens overnight. It is often the result of a series of difficulties that gradually accumulate: chronic lack of liquidity, recurring payment delays, unpaid tax debts, poor management of operational costs, or a business strategy poorly adapted to the current market. For many entrepreneurs, the word "bankruptcy" resonates as a personal failure and a definitive end. Yet, this critical situation also serves as a valuable wake-up call that can open the door to necessary restructuring and a new phase of stronger, more sustainable growth. Statistics show that companies that act quickly in response to early warning signs are 73% more likely to turn things around compared to those that wait passively. Identify the root causes Before taking action, an accurate diagnosis is necessary. A superficial diagnosis invariably leads to inadequate solutions that only delay the inevitable. In-depth financial analysis Understanding exactly where the money is going, identifying uncontrolled spending areas, and pinpointing lost margins is crucial. This analysis should cover the last 24 months to identify trends. Audit of monthly cash flows Analysis of profitability ratios by sector Assessment of doubtful debts Sales management and positioning Check if the problem stems from a lack of customers, incorrect market positioning, or overly aggressive competition that erodes margins. Analysis of the sales pipeline Competitive analysis and positioning Customer satisfaction assessment Internal structure and fixed costs Sometimes, fixed costs (salaries, rents, software subscriptions, insurance) are disproportionate to the revenue generated, creating a structural imbalance. Audit of current contracts Analysis of the fixed costs/revenue ratio Employee Productivity Assessment Critical point: Without this methodical analysis, any solutions implemented will remain superficial and temporary. The investment of time and resources in this diagnostic phase largely determines the success of corrective measures. Immediate financial reorganization The first crucial step is to stabilize the financial situation to buy time and create the space needed for structural reforms. Negotiation with creditors and suppliers Contact them immediately to obtain realistic payment terms. Transparency and a concrete plan significantly increase the chances of acceptance. Offer regular partial payments rather than a total moratorium. Debt consolidation Establish a structured repayment plan that prioritizes debts according to their criticality: government taxes, employee salaries, then commercial creditors. Negotiate reduced interest rates in exchange for a firm commitment. Reduction of non-essential spending Identify and immediately eliminate all costs that do not directly impact revenue generation: underutilized software subscriptions, unprofitable marketing, unnecessary expenses. This measure can free up 15-30% of the monthly budget. Cash flow optimization Optimized cash management is the lifeblood of any company undergoing restructuring. Every day counts in this critical phase. Accelerated cash collection Implement a system for systematically following up with customers who are late on their payments. Offer attractive discounts (2-5%) for early or cash payments. Implement stricter payment terms for new customers. Weekly follow-up phone call Immediate billing upon delivery Payment upon order for new accounts Rigorous monitoring of flows Create a detailed weekly dashboard that monitors every cash inflow and outflow. This visibility allows you to anticipate problems and quickly adjust operational decisions. New sources of funding Actively explore temporary options: revolving lines of credit, inventory financing, private or family investors, government programs to help struggling businesses. operational restructuring Process automation Implementing technological solutions to automate repetitive tasks: automated accounting, electronic invoicing, automated inventory management. This modernization can reduce payroll costs by 20-35% while improving efficiency. Business model review Analyze each product or service line to identify unprofitable segments. Sometimes, bravely abandoning 20% of your business can save and revitalize the remaining 80%. Focus resources on your highest-margin activities. Contract renegotiation Systematically review all current contracts: property leases, energy contracts, professional services, insurance. Negotiate more favorable terms or explore less expensive alternatives without compromising quality. Operational restructuring often requires difficult but essential decisions. The goal is to create a more agile and efficient organizational structure, capable of generating more value with fewer resources. Targeted growth strategy Rather than spreading efforts too thin, a laser-focused approach to the most profitable segments maximizes the chances of a rapid turnaround. Focus on maximum profitability Precisely identify the products or services generating the highest margins and focus 80% of sales efforts on these segments. Analyze customer acquisition cost per segment to optimize investments. Precise and measurable marketing Abandon scattered marketing campaigns in favor of targeted actions with measurable ROI. Use digital marketing for its traceability: geo-targeted online advertising, segmented email marketing, and optimized local SEO. Strategic Partnerships Developing commercial alliances to expand the customer base without significant additional costs: mutual referencing agreements, distribution partnerships, complementary collaborations with non-competing companies. Fundamental principle: During a recovery, it's better to excel in a niche market than to fail in a broad one. Specialization allows you to build recognized expertise and defensible profit margins. Legal and tax framework Specialized professional support is not a luxury but an absolute necessity to navigate effectively through the legal and tax complexities of business recovery. Insolvency Consultation Consult a licensed insolvency trustee as soon as possible to explore all available options: consumer proposal, formal restructuring, voluntary arrangement with creditors. These professionals are well-versed in the crucial legal nuances. Immediate tax optimization Reduce the immediate tax burden through legal strategies: negotiated payment deferrals, maximum use of available tax credits, tax-efficient restructuring of assets. Preventive legal protection Implement preventative measures to protect critical assets and maintain operations during the recovery period. Understand the legal implications of each strategic decision. The costs of these consultations generally represent less than 5% of the potential savings achieved through their interventions. It's an investment with a proven return. Turning the crisis into an opportunity Bankruptcy is not a final condemnation, but an urgent call to action and transformation. Economic history is full of examples of companies that have emerged from financial crises stronger, more efficient, and more competitive than before. With proactive and methodical management, a strategic reorganization adapted to market realities and support from qualified experts (specialized accountants, experienced tax specialists, insolvency lawyers), a company in difficulty can not only avoid definitive closure, but also bounce back with stronger foundations. Restructured companies Success rate with professional support Average months Average time for complete recovery Turning around a business requires courage, discipline, and perseverance, but the rewards far outweigh the challenges. It's an opportunity to build a more resilient, agile organization better adapted to the demands of the modern market. Immediate action is your best ally. Every day of hesitation reduces the available options and increases the complexity of recovery.

Optimization of registered accounts RRSP Immediate deduction from your taxable income → reduces the tax payable this year. CELI No impact on income but all withdrawals/gains are tax-free. FHSA (if you haven't bought a house yet): deductible contributions + tax-free withdrawals for a first residence. 👉 Strategy: always maximize the account that corresponds to your objective (retirement vs home purchase vs liquidity). Income splitting (if in a couple or retired) Pension splitting Up to 50% of pension income transferred to the spouse → reduces the total household tax. Loan at the prescribed rate Useful if one spouse has a lower income → to grow investments in their name. Exemptions and credits Primary residence Capital gains exemption on resale. Charitable donations Generous credit; even more advantageous if you give listed securities (shares, funds). Medical expenses, tuition fees, disability credit Often overlooked. Employment expenses / self-employment Home office Proportion of expenses (rent, internet, electricity, etc.) that are deductible. Vehicle expenses, insurance, supplies If eligible. Avoid costly mistakes Do not overuse "sprinkling" strategies (TOSI) With private company → strict CRA rules. Always keep receipts, forms (T2200 for employees) and proof Without it, the CRA will refuse the deductions. ✅ Immediate action priorities Check your taxable income and compare it with the tax brackets → this determines if an RRSP is more profitable than a TFSA. If you are planning to buy a house → open a FHSA quickly (new and very advantageous tool). If you are in a couple/retired → calculate the impact of a pension splitting or a prescribed loan. Prepare a checklist of receipts/expenses (donations, medical, home office). Consult a tax specialist for complex arrangements (trusts, management companies, inheritance).