Canadian Businesses Encouraged to Invest in Economy
Canada’s corporate tax rate, reduced from 19% to 15% in 2012, currently creates a tax burden that is the second-lowest among developed countries, according to a recent KPMG survey. The central bank has held the main interest rate at only 1% for the past 2 years. Taxes for businesses and individuals have been lowered, and […]
Innovation Key to Canada’s Competitiveness Says GE Canada’s CEO
General Electric Canada’s President and CEO, Elyse Allan, spoke recently at the Economic Club of Canada about how process improvements and technology can help businesses mitigate the risk of doing business abroad. Allan stressed the need to expand in a global economy, and lauded he leadership role that the federal government is taking in their […]
SR&ED versus IRAP
Scientific Research and Experimental Development (SR&ED) and the Industrial Research Assistance Program (IRAP) are two of the largest government incentive programs in Canada. The chart below details some of the major differences between the 2 programs. Criteria Scientific Research and Experimental Development (SR&ED) Industrial Research Assistance Program (IRAP) Administration SR&ED is administered by the Canada […]
How to Keep Canadian Startups in Canada
Canada has had a problem developing, incubating, and commercializing the type of products that create new economies and new jobs. According to Richard Remillard, executive director of the Canadian Venture Capital Association, while the Canadian population is 1/10 the size of the US market, our venture capital industry is only 1/12 of that in the […]
Legislative Proposals Contain Changes to SR&ED Proposed in 2012 Budget
The Canadian Department of Finance has drafted legislative proposals, released August 14, that include the following changes to the SR&ED program: 1. Removal of capital from the expenditure base (for capital expenditures incurred in 2014). Effective January 1, 2014, capital expenditures cannot be claimed. To be claimable for capital expenditures before 2014, the expenditure must […]
Ample Government Funding Opportunities for Companies in Life Sciences Sector
According to the Financial Post, the life science sector attracts millions of dollars of funding each year from the federal and provincial governments: – The Scientific Research and Experimental Development (SR&ED) program provides a tax rebate on eligible R&D expenses. – The Industrial Research Assistance Program (IRAP) provides research and innovation assistance program for SMEs. – […]
CME Suggests Tax Reforms a Necessity for Manufacturing Growth
A pre-budget submission published last week by Canadian Manufacturers and Exporters (CME) makes recommendations to increase Canada’s tax competitiveness to spur global investment. Their recommendations can be summarized as follows: 1. PRODUCTIVITY – Make the Accelerated Capital Cost Allowance (ACCA), or the 2-year write-off for equipment and machinery, permanent. This will help drive business investment […]
Survey Shows: Federal Budget has Businesses on Edge
In June 2012, Deloitte conducted an online survey on the effects of the federal budget and how it impacts innovation investment in Canada. It was revealed that 80 percent of those surveyed believe that the budget will have a negative impact on the money available from SR&ED and offers little to no benefit for new […]
NorthBridge Summer 2012 Newsletter
NorthBridge’s 2012 summer newsletter is out! In this issue: –Get In the Game: Canada’s Digital Media Industry –New Fiscal Year’s Resolutions –NorthBridge Holds EMC Manufacturing Seminars –Federal Budget SR&ED Changes: Dollars and Cents –NorthBridge SR&ED Video
Increase Productivity by Opening Export Markets
Jeremy Leonard opines in the Financial Post that although Canada leads the G7 in GDP and employment growth during the past decade, labour productivity growth is lagging. Labour productivity growth slowed to an average of just 0.7% per year int he past decade, less than half its rate in the 1990s, and below the 2.4% […]