What kind of accounting engagement is the most appropriate for my business?   How do I know how much a business is worth?   Do I have to pay tax on income from my foreign assets when I immigrate        to Canada?   What happens when I leave Canada to work abroad?   What do I need in order to open or increase my operating line of credit? What kind of accounting engagement is ther most appropriate for my business? There are three types of accounting engagements: Audit, Review and Notice to Readers. The type of engagement required by your organization may depend on the level of assurance demanded by regulatory authorities, financing institutions, private investors, or stockholders. A Notice to Reader provides the least amount of assurance and an audit provides the greatest amount of assurance. How do I know how much a business is worth? The only way is by getting a Valuation conducted on the business by an experienced Business Valuator. The Business Valuator will determine the fair market value of the shares or of the assets of the company by following basic rules of financial analysis and operations appraisal applied on historical, future oriented and statistical data of the company and the industry gathered on your behalf. The results of the valuation will come in the form of an Opinion, Estimation, or an Indication of Value of the shares or assets of the company that you are attempting to buy or sell. Do I have to pay tax on income from my foreign assets when I immigrate to Canada? Residents of Canada are subject to taxation on their world wide income. Section 94 of the Income Tax Act provides new immigrants a tremendous planning opportunity. Non-residents who move to Canada can essentially enjoy a five-year tax holiday by setting up an immigration trust. Assets in a properly structured trust grow tax-free for up to five years. In order to have the maximum time for the trust to escape Canadian tax, it should be set up before the person becomes resident in Canada. However, it can be set up after the immigrant takes up residence in Canada. Proper planning is essential to avoid the attribution rules of the Income Tax Act that can effectively wipe out the tax holiday. What happens when I leave Canada to work abroad? Many individuals leave Canada for a few years to work or study abroad. While these individuals generally can, if they wish, remain resident in Canada for tax purposes, some may prefer to give up Canadian residence, or may be required to do so. Canadian tax rules deem an individual who ceases Canadian residence to have disposed of each property owned at proceeds equal to fair market value. Any accrued taxable capital gain would be taxed in the year of departure. The taxpayer can use any available capital gains exemption to shelter the gains from deemed disposition, or minimize the departure tax. There are exceptions from the departure tax such as property situated in Canada, shares of a private corporation which is resident in Canada, certain pension benefits and employee stock options. What do I need in order to open or increase my operating line of credit? Most financial institutions normally request the applicant to provide financial statements of the previous three years. These statements, at a minimum, must be reviewed by a professional accountant. Notice to Readers statements compiled for tax filing purpose are of limited use. Generally banks look at the strength of various components such as: Cash flow Fixed assets Debt to Equity and other ratios Aged list of receivables Aged list of payables Inventory Personal Statement of Affairs Cash collateral or equivalent (Mutual funds, CSBs, stocks, subordination of shareholders loans, etc.) Other collateral such as a charge over property or equipment We are committed to maintaining the highest possible quality of service through ongoing education, participation in the Certified General Accountants Association of British Columbia Peer Practice Review Program, maintenance of national stringent standards, and the engagement of specialists in the field, when required.