Shimmerman Penn was proud to return as a long-time sponsor of the Ontario Association of Architects (“OAA”) annual conference this year. Once again, we presented a Lunch & Learn session, and our Tax team presented on the recent changes to the taxation of private corporations in Canada. Our long-time involvement with the OAA includes assisting in drafting changes to the provisions of the Architects Act that deal with ownership rules for firms (2010), and developing a module on Corporate Structure for a new course, “Starting an Architecture Firm" (2018).

Partners Amir Fathollahzadeh, Mark McGinnis, Elaine Pantel, and Maj-Lis Vettoretti; and Managers Andrew Bernstein, Kristin Berry, Richard Konings, Romy Waxman, and Noha Yahia Abji attended our Lunch & Learn, "Firm Ownership and Growth Strategies." Elaine presented on succession plans, a key component of firm growth for architecture and design firms. She gave the key financial components of a succession plan, some common valuation methodologies, and essential qualitative elements of succession plans such as long-term mentoring of new owners.

The Shimmerman Penn team then broke into informal groups for "table talks" where participants could speak with our team members about current challenges in ownership transition they are dealing with. We shared ideas and strategies that we have helped firms develop and implement. With a deep understanding of the unique financial, accounting and tax issues facing the AED industry, we bring our clients additional value by providing tailored business solutions and helping them meet their short/long term goals.

The second portion of our participation at the OAA conference this year was a formal presentation given by Mark and Andrew from our Tax team on New Private Corporate Tax Planning Rules.

With a focus on shedding some light on the detailed changes and what these new tax rules mean for professional firm and small business owners, Mark presented the timeline of what has changed, and the impact on corporate and family tax planning. He took some specific questions from the audience but was clear that each case is unique and should be reviewed by a Tax professional.

Andrew then went into the specifics of the new Tax on Split Income (TOSI) relating to distributions from Private Companies. He explained the various ways TOSI will be taxed in the new regime, and ways in which income splitting for tax relief may still be possible under the new rules.

You can view and download the slides here. As always, this article and the attached slide deck should not be taken as Tax advice. You should consult with a Tax specialist on your specific situation. You can contact Mark or Andrew via our website.