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Welcome to our PwC Private Business Exchange blog page!  PwC's Private Business Exchange program helps drive long-term success for private companies.

Federal budget 2013 - The impact on Canadian private companies

Unfortunately for entrepreneurs, the 2013 federal budget continued the trend of recent budgets—shutting down perceived tax advantages for private business owners, while offering little if any new opportunities.

The latest planning tools that the Department of Finance has targeted relate to products offered by the life insurance industry, principally to private business owners and high net worth individuals.

Any individuals who have invested in a leveraged insurance solution commonly referred to as a 10/8 policy or more recently a 9/7 policy should consult with their insurance and tax advisors about the impact of the budget on their insurance planning.

Also, anyone who has invested in an insured life annuity arrangement involving borrowings should seek professional advice on the implications of the budget.

Finally, as bad news usually comes in threes, the budget also proposes to raise the federal tax rate on ineligible dividends by almost 2% commencing in 2014. The increase is even higher after taking into account provincial and territorial taxes.

On the plus side, the budget didn't raise any other taxes and increased the lifetime capital gains exemption from $750,000 to $800,000 starting 2014, with indexation of the amount after 2014.

For more information, contact:

Jason Safar
Canadian Private Company Services Tax Leader
jason.safar@ca.pwc.com

Interested in the key findings from the Family Business Survey?

How have Canadian family businesses performed over the past year? What challenges with they face in the future? Click the image below to view highlights from the Canadian report!

Visit www.pwc.com/ca/familybusiness to download a copy of Creating a lasting legacy, the Canadian supplement to the 2012/13 PwC Global Family Business Survey, as well as related Let's Talk articles.

Register for our upcoming webinar on April 9th!

Setting time aside to focus on the strategic direction of a business is essential. The next webinar in our Growing your business series focuses on how owners and leaders of private companies can maximize their impact.

Maximizing your impact – Finding the time to think strategically
Tuesday, April 9, 2013 – 2:00-3:00 pm EDT

In today’s increasingly competitive market, there is no doubt that owners and leaders of private companies are looking for opportunities to create efficiencies and drive innovation within their business. Although this remains top-of-mind for most, the day-to-day demands of leading a successful private company can be challenging at times, leaving little time to think about the long-term strategic direction of the business.
In this session, you will learn about:

• how to build a case for strategic projects
• areas that build the value of a business
• insight into how companies are putting strategy into action

To register, click here.

Register now! Family business webinar on March 6th

The next session in our Growing your business webinar series will focus on Canadian family businesses. 
 
Creating a lasting legacy – Fundamentals for the future of Canadian family businesses
Wednesday, March 6, 2013 - 2:00 – 3:00 pm ET

The results of PwC’s Global Family Business Survey show that Canadian family businesses have performed well over the past year and continue to strive for steady measured growth. Although optimistic about the future, in an increasingly competitive market, how will they continue to grow, thrive—and survive?
 
In this session, you will learn about:
- highlights from the Canadian survey results and their significance to family businesses
- the importance of attracting the right talent and planning your succession
- perceived disadvantages unique to family businesses and why perception may not be the reality
 
Click here to register for this webinar

Wondering what the highlights are from the 2012 Business Insights Survey? Watch the video!

Interested in learning more about the key findings from the 2012 Business Insights Survey of Canadian Private Companies? How are business leaders feeling about the year ahead? How can strategic sourcing be a competitive advantage? How can technology be an enabler of strategy? Click here to watch the Business Insights video.

What are the key drivers that will help position private companies for competitiveness in the long term?

How did participants of the 2012 Business Insights Survey of Canadian Private Companies respond when asked, "What is the single most important driver in your business or in the Canadian business landscape that will kep position private companies for competitiveness and long-term success?"  

 

What individuals and owner-managed businesses need to do now to save tax

Before ringing in the New Year, there are key tax deadlines to meet before December 31st as well as tax strategies to keep in mind for 2013. Be sure to review the recently launched Year-end tax planner 2012 for everything you need to know about tax planning, upcoming tax deadlines, integration tables relating to active business income and investment income and key personal and corporate income tax rates.
Click here to access the Year-end tax planner - 2012

Income tax calculator for individuals
Wondering what your personal tax bill and marginal tax rates will be, regardless of where you reside in Canada? Click here to access our Income tax calculator for individuals.

Introducing the Business Insights Survey of Canadian Private Companies 2012

The eighth annual Business Insights Survey reveals how private companies are embracing change and adapting to increased competition, volatility and economic uncertainties.

What are private companies doing to position themselves for growth over the long-term? Results from over 400 respondents reveal that Canadian private companies are feeling confident in their ability to navigate through the uncertainties of today’s economy. Over the past few years, they have focused their attention on reducing costs and improving efficiencies as a means to survive the recessionary years. Today, they have embraced these strategies as an ongoing process, not to survive, but to grow, gain a competitive edge and reinforce their agility.

Download your company from the national report, as well as regional “On-the-ground” observations for British Columbia, Alberta, Ontario and Quebec at www.pwc.com/ca/businessinsights.

A strategic plan is the cornerstone to a company’s competitive advantage

There is often a lack of understanding about what a strategic plan really involves and the impact that it has on a company’s long-term growth.

Russell Fordham, a director in the consulting and deals practice of PwC, wasn’t surprised when participants of an informal poll conducted during a recent Growing your business webinar revealed that only 12% believed their employees could communicate their company’s vision. This disconnect can often stem from a lack of understanding about the strategic planning process and how to best cascade the plan internally throughout an organization.

This Let’s Talk article suggests how to begin the planning process, focus and prioritize initiatives, the importance of performance management and how to make a strategic plan come to life.

Thinking of growing your business? Listen to one company's advice

Weatherhaven is a Vancouver-based company that builds shelter systems and camps for a variety of customers around the world. In the following video, Weatherhaven CEO Ray Castelli talks about their strategic plan to break through the issue of scalability, including their need to develop their supply chain to build the revenue and growth potential of the company globally.