Watch leaders from Global Upside, Boast Capital and provincial representative from the Canadian government as they explore Canada’s accounting, HR, payroll and regulatory “must knows”. For more info contact us at: info@globalupside.com

1. Doing Business in Canada
Where to Play and How to Win?

2. Chris King, Government of British Columbia
2
Chris King is the US East Coast representative for the Province of British Columbia. Chris provide
hands-on, fully funded, no-cost assistance to fast-growing US companies, entrepreneurs and
investors that are considering setting up, expanding, or maintaining physical operations in British
Columbia.
He and his colleagues on the US west coast and in British Columbia work to connect start-ups,
mid-cap and large corporations to the information and resources they need to locate or expand to
British Columbia more quickly and profitably, while reducing operational risk.
Easy global access
Opportunities in agrifoods, forestry, mining, natural gas, technology, transportation, etc.
2.4 million well-educated, skilled, diverse professionals
Attractive business incentives
Low business costs

3. Jeff Christie, Partner, Boast Capital
Jeff Christie is responsible for new client development, partnerships, and strategic growth at
Boast Capital while leading the Business Development Team. Prior to joining Boast Capital Jeff
competed as an Olympic athlete for 16 years in the sport of luge. He raced in the 2006 and
2010 Winter Olympics as well as 72 World Cups and 8 World Championships.
Jeff is actively involved in the local community. He is a member of the Canadian Olympic
Committee (COC) Board of Directors and Athletes Commission; was on the World Petroleum
Council Youth Foundation (WPCYF) organizing committee for the 2013 Forum. Jeff traveled to
Sochi in 2014 with CBC to commentate the Olympic games and conducts a number of public
speaking engagements. Jeff holds a Bachelor of Commerce from Royal Roads University in
Victoria, BC.
3
Boast Capital is a team of engineers and finance professionals with over 20 years experience
in helping companies in Canada and the U.S. claim and maximize R&D tax credits.
We have extensive knowledge about recovering cost through the Scientific Research &
Experimental Development (SR&ED) program, Interactive Digital Media Tax Credits (IDMTC),
and the US R&D Tax Credit program.

4. Ragu Bhargava, Co-Founder & CEO, Global Upside
Ragu and his team at Global Upside help companies tackle accounting, payroll, HR, and
compliance challenges in 90+ countries. Ragu goes by the mantra “impossible is not in my
vocabulary” and has helped Global Upside clients successfully navigate some of trickiest business
environments. In his previous avatars, Ragu was CFO at ActivIdentity (NASDAQ:ACTI) and held
leadership positions in several companies including Deloitte and NetIQ (NASDAQ: NTIQ), where
helped the company grow from $20 million to $300 million+ in revenue.
4
Founded 1999
Integrated accounting, payroll, HR, tax, compliance services
Consolidated services delivered via single point of contact in your time
zone, 24/6 support
Serves both startups and established multinationals Clients including
A10 Networks, Aruba Networks, 8x8, Enphase Energy, Real Networks,
Rhapsody, Zillow, and many more.
Global Upside Footprint

5. 5
Why Canada?
Strong Growth Record: Canada led all G-7 countries in economic growth over the past decade
(2003–2012).
Source: The World Bank
Welcoming Business Environment: Canada is the best country in the G-20 to do business,
according to both Forbes and Bloomberg.
Source: Forbes and Bloomberg
Highly Educated Workforce: Canada’s workforce is the most highly educated among members of
the OECD, with half of its working-age population having a tertiary level education.
Source: Organization for Economic Co-operation and Development
Low Tax Rates: Canada’s overall marginal effective tax rate is by far the lowest in the G-7 - about
17 percentage points lower than that of the United States.
Source: Finance Canada
Financial Stability: For the seventh consecutive year, the World Economic Forum has declared
Canada’s banking system to be the soundest in the world.
Source: World Economic Forum

6. 6
Vancouver British Columbia
Innovative, Creative, Sustainable
One of the most globally competitive tax regimes with low rates and generous refundable R&D incentives
First class infrastructure; Vancouver has North America’s best airport; an outstanding public transit system;
some of the fastest broadband speeds in the world
Closest major port to Asia, one of the world’s best natural deep-water harbors and a key international
transportation hub
Some of the lowest energy rates in North America, primarily derived from clean energy
Vancouver is one of top 10 lowest risk cities in the world to recruit, employ, and redeploy business talent
Vancouver is a magnet for global talent and investment; in 2013 it attracted more venture capital than any
other Canadian city

7. 7
Agenda
Location
Footprint (Small or Large?)
Entity Setup / Activities
Finding the right talent
Hiring and Employment Law
Tax and Accounting Support
Managing Canadian operations
Compliance

8. Setup and Strategy
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Plan for growth?
Permanent Establishment
(PE) Risks
Intellectual Property (IP)
Considerations
Management Support
/Centralization
Where to? Start up Activities
Representative Office
Branch vs. Subsidiary
Accounting Setup
Tax Considerations
Money Movement

9. Company Law Compliance
9
Registered Office
Substance Over Form (Tax Structure)
Taxes: HST/PST/GST/QST, Income, Others
Statutory Audit
Annual Reports

10. 10
What are your top concern when doing business in Canada?
1. Employment Law
2. Finding the right talent
3. Cost of doing business
4. Staying compliant
5. Taxation

11. Accounting and Payroll
11
Key Filings and Deadlines
Payroll
Management/Statutory Accounts
Corporate and Payroll Taxes
Stock Transaction (ESPP, RSUs, Stock Options)
AP/AR, Policy, Process, Systems Expertise

12. Hiring and Employment Law
12
“At Will” employment Statutory
Supplemental
Stock Options
Expatriates
Staffing
Employment Law
Work Time Regulations
Immigration (Visas)/Global Mobility
Employee Exits
Hiring
Contractors
Know the risks
Compensation & Benefits
Does not Exist

13. 13
How familiar are you with SR&ED Program?
1. Very familiar
2. Somewhat familiar
3. Not familiar

14. 14
Overview of the SR&ED Program
Benefits of Claiming SR&ED
Case Study
Requirements
Do’s and Don’ts
Outline

15. 15
What is SR&ED?

16. 16
Applicable Industries

17. 17
Qualifying Criteria
Must meet 3 criteria to qualify for SR&ED
Technical UncertaintyTechnical Challenge Iterative Process

18. 18
Examples

19. 19
SR&ED Benefits – Who Can Claim?

20. 20
SR&ED Benefits – Return rates for
Non-CCPCs

21. 21
SR&ED Benefits – Return rates for
SME CCPCs

22. 22
Case Study
Software company with operations in Vancouver (non-CCPC)
7 developers (1 front-end, 6 back-end)
Salaries are $75K per year and ~65% of time is eligible

23. 23
Case Study
Front end development not typically eligible
Eligible expenditure pool for salaries would be ~$292.5K ($75K x 65% x 6)
Proxy overhead method and non-CCPC rates of return
≅$93.6K worth of investment tax credits (ITCs)

24. 24
Requirements – Technical
Documentation
CRA requires that SR&ED documentation must:
Have been documented at the time the work was completed
Highlight technical obstacles or challenges
Be dated

25. 25
Requirements – Time Tracking
and Financial Statements

26. 26
When to Claim?
File within 18 Months of Fiscal Year End
Non-CCPC Claim Turnaround – 365 days/12 months

27. 27
Do’s and Don’ts
Do
Pay yourself and staff
Start time tracking and proper documentation now
Incorporate your company
Don’t
Underestimate the importance of documentation
Focus on the business opportunity
Leave SR&ED claims until the last minute

28. 28

29. 29
Do you want us to follow up with you?
Yes
No

30. Questions?
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Jeff Christie
Partner
Boast Capital
+1 (403) 589-2809
Jchristie@boastcapital.com
www.boastcapital.com
Ragu Bhargava
CEO
Global Upside
+1 (408) 219-8203
ragu@globalupside.com
www.globalupside.com
Chris King
Representative
Government of British Colombia
+1 (617) 515-8762
cking@britishcolumbia.ca
www.britishcolumbia.ca

31. 31
Thank you for attending.