BC Business – How to sell your business for the best value

 It has often been said that the most important transaction business owners will ever make is when they decide to exit their business. BCBusiness recently discussed the topic with two experts in the field: Kellie Manchester, a partner with Sequeira Partners Inc. (which specializes in selling businesses); and Cindy David, President of Cindy David Financial Group Ltd., which helps entrepreneurs build and protect their wealth as well as retire on their own terms.

Click here to read the article on bcbusiness.ca.

BC Business – You sold your business! Now what?

It’s one thing to trust thousands of dollars to a friendly investment adviser at the bank. It’s quite another to hand over millions. That’s the worry for many family-business owners after selling their life’s work—leaving them with a huge bucket of cash and potentially a paralyzing fear over what to do next, says Cindy David, senior estate planning advisor with Raymond James.

Click here to read the article on bcbusiness.ca.

Reflect. Reboot. Refocus. – CALU’s 27th Annual General Meeting

We live in an age of constant change, new challenges, and increasing complexity. At the same time, we’re fortunate to work in an environment abundant in opportunities, if we are open to them.

Doing so means we need to reflect, reboot and refocus:

  • Reflecting means not throwing away the past, but energizing for the future. What can we can learn from what got us here? And how can it propel us to where we go next?
  • Rebooting means looking at challenges and opportunities like we’re seeing them for the first time – and not being afraid to make a left turn in what you’re accustomed to. Rebooting creates energy.
  • And refocusing means sessions that are sharper, more precise, and more dialed in on what matters most to CALU members

CALU 2018 helped members stare down challenges, overcome obstacles, and identify opportunities. Looking forward to AGM 2019!

When does it make sense to pay off debt with investments?

There is no hard or fast rule BUT if the cost of borrowing increases to 5% you may want to consider cashing in investments to reduce exposure to debt.  If rates are lower, and taking into consideration where we’re at in a market cycle whether we’re in a bull or a bear market, it makes sense to use debt and stay invested.

Robert Ward presents Tax Cuts and Jobs Act of 2017

We had the honor of listening to Robert Ward of WardChisholm, P.C. speak about the Tax Cuts and Jobs Act of 2017 and its impact on Canadians doing business in the US and US citizens living in Canada. On December 22, 2017 President Trump signed the Tax Cuts and Jobs Act into law. This is the most significant piece of United States tax legislation in over 40 years making meaningful changes to the ways in which individuals and businesses in the United States are taxed.



What have we learned?

  • U.S. tax reductions do not help if the same income is taxable in Canada.
  • U.S. tax planning is critical if the United States taxes assets or income Canada does not.
  • When the tax effect of different structures is approximately the same, non-tax considerations become determinative
    • Limit liability
    • Limit U.S. tax reporting
  • At death, Canada taxes unrealized gain. The United States taxes the entire fair market value.
  • U.S. citizens living in Canada have to contend with both countries taxation of world-wide income while alive and world-wide assets at death.
  • Residents of Canada who are not U.S. citizens only have to pay U.S. taxes on:
    • U.S. source income while alive and
    • Assets present or deemed present in the U.S. at death:
      • Shares of U.S. corporations
      • Debt obligations
      • Taxable property
  • Estate, Gift, and Generation-Skipping Transfer Tax Exemptions of U.S. citizens doubled in 2018, but will be halved in 2026.
  • For Canadian citizens owning U.S. assets, the higher one’s net worth, the lower the US Estate Tax Exemption provided by the Canada-US Tax Treaty.
  • U.S. Real Estate is best acquired through a Trust, properly designed and funded.
  • U.S. Real Estate purchased without a Trust can be mortgaged to avoid U.S. estate tax. Must be non-recourse debt.

Click here for Robert’s full explanation of the Tax Cuts and Jobs Act of 2017.

About the speaker

Robert E. Ward, JD, LL.M., is a nationally recognized authority on tax, business and estate planning. Mr. Ward has taught law as an adjunct professor at the George Mason University School of Law, where he conducted classes in Estate and Gift Taxation, Estate Planning, and Business Planning from 1986 until 2015. He has also taught as an adjunct faculty member at the University of Baltimore School of Law: Fiduciary Income Taxation (1988) and at Golden Gate University’s Masters in Taxation Program: Taxation of Corporations and Shareholders (1982). He currently teaches US Taxation in the Graduate Tax Program at UBC’s Allard School of Law.

BC Business – Navigating the New Taxation Landscape Requires a Deft Touch

The release of the 2018 budget in February saw the federal government introduce amended rules on how passive investment income for Canadian-controlled private corporations (CCPCs) would be taxed. And while they are an improvement over the punitive tax rates proposed a year prior, Ottawa’s scheme to restrict access to the small business deduction if the passive income of a corporation exceeds $50,000 is still a major blow to the business community, says Cindy David, president and estate planning adviseer for Cindy David Financial Group Ltd.

Click here to read the article on bcbusiness.ca.

Budget 2018

The new federal budget includes several measures that target the cornerstone of the Canadian economy: small and medium sized enterprises (SMEs). How will the new budget affect you and your business?

The restrictions on income splitting introduced in 2017 and the new passive investment income rules from this year’s budget legislation are the most significant developments that will put pressure on many businesses to make adjustments to their structure and operations. A reduction in the small business tax rate will provide some relief, while other changes may require close attention from you and your tax team.

SMEs are very important to the Canadian economy, meaning that the policy changes incorporated in this budget can have far-ranging consequences.
As a business owner, you are a leader in your corporation and your community. Your objective may be seeking meaningful, effective tools for protecting your employees, growing your business, supporting your communities and effectively funding your own retirement.

Grant Thornton works with SMEs to manage challenges and realize opportunities – to help business owners navigate through these tax measures in this new environment.

To review the full impact of Budget 2018, see the Grant Thornton executive briefing.

Should I pay for my insurance annually or monthly?

Save premiums on your term life, disability and critical illness insurance by paying annually instead of monthly. The insurance companies charge almost a full 13th month for the privilege of paying on monthly through pre-authorized chequing (PAC).  If you can afford it from a cash flow perspective, you can make the change anytime throughout the  year, and pay less for the same coverage.

Cindy speaks at St. George’s School Career Day

Cindy had the honor of presenting at the annual St. George’s Careers Day event on March 9, 2018. This year’s theme – Finding your Purpose: Not Just a Job – corresponds with their efforts to help their students strive for purpose and meaning in the planning of their post-secondary studies and future careers.  This goes far beyond individual pursuits and includes working towards goals that will make a positive difference in the lives of those around them.  The following quote by Mark Zuckerberg aptly sums up the theme of this year’s event:

“Purpose is that sense that we are part of something bigger than ourselves, that we are needed, that we have something better ahead to work for. Purpose is what creates true happiness…But it’s not enough to have purpose for yourself. You have to create a sense of purpose for others.”


The students walked out with more wisdom, guidance, and a true appreciation for the speakers.