This gives you a brief look at the challenges that new start ups can faced in Canada. The federal government is looking at changes to income tax code as well as other areas that could impact the profitability of a business in Canada. The federal government is also looking at more seed funding to support innovation.

1. CHALLENGES FACING
ENTREPRENEURS IN
CANADA - SEPTEMBER 2017
BY: PAUL YOUNG, CPA, CGA
SEPTEMBER 18, 2017

2. DISCLAIMER
• This presentation is on view of the middle class and the economy and should not be deemed the only
source

3. PAUL YOUNG - BIO
• CPA, CGA
• Financial Solutions
• SME – Risk Management
• SME – Emerging Technology
• SME – Business Process Change
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Financial Solutions
• SME – Supply Chain Management
Contact information:
Paul_Young_CGA@Hotmail.com

4. AGENDA
• Fastest growing companies in Canada
• Issues facing entrepreneurs
• Small Business Taxation Proposal Tech Market
• Federal Government and Small Business Tax

5. TOP 15 – FASTEST GROWING COMPANIES – CANADA
Source - http://www.canadianbusiness.com/profit500/2017-ranking-p500/

6. AREAS OF INFLUENCE FOR START UPS – CANADA
• Stock Options – Start up companies include stock options. Government has talked about changing the rules on stock
options - https://beta.theglobeandmail.com/report-on-business/small-business/startups/liberals-drop-controversial-
stock-options-tax-plan/article29337792/?ref=http://www.theglobeandmail.com& (It was drop, but could be raised again
as the government looks at tax reforms
• New tax proposal targeting small business corporation - http://bdoreinvestor.ca/2017/07/25/corporate-tax-planning-
proposal-attack-family-businesses-and-investors/. Many small start ups can start as private corporation before they tried
to raise capital through IPOs. The proposed tax changes on how wages and passive income is tax could impact start ups
• Access to capital – Many start up are always looking for investors as part of supporting their product life cycle. Canada
has many innovation funds that could be access - https://www.slideshare.net/paulyoungcga/is-canada-on-the-path-to-
innovation-success or https://www.slideshare.net/paulyoungcga/federal-government-programs-to-support-innovation-
and-business
• Other government policies
• Payroll taxes
• Access to markets
• Operation costs (Hydro, permits, user fees, etc.
• Carbon Taxation

7. NEW TAX PROPOSAL / TECH MARKET – CANADA
• Source - http://globalnews.ca/news/3741638/canadian-tech-ottawa-trudeau-small-business-taxes/
Canada’s tech community, including the head of one of the country’s best-known firms, is starting to
join a growing group grumbling about Ottawa’s proposed changes to small business taxes. They say
the plan could stifle investment and hamper innovation in a country trying to poise itself as an
entrepreneurial hotbed.
“I would encourage the government to look very closely because … it is causing a lot of concern to
business owners,” Ryan Holmes, CEO of social media management platform Hootsuite, said in an
interview at the Cascadia Innovation Corridor Conference.
Global News, September 13, 2017

8. JUSTIN TRUDEAU AND SMALL BUSINESS
Source - http://vancouversun.com/news/national/broken-promise-to-cost-small-business-2-2-billion
A Liberal MP came under fire Monday for
ignoring a question in Parliament relating
to news that her government’s broken
campaign promise to Canada’s small
businesses will cost the sector $2.2
billion over four years.
That figure, released by the finance
department to the Parliamentary Budget
Officer, Jean-Denis Frechette, was the
basis for a question from a Vancouver
Island MP.
“Why are Liberals taking billions from
small business?” asked Gord Johns, the
former president of the Tofino-Long
Beach Chamber of Commerce.
2015 Election Promise
Vancouver Sun – May 2, 2016
Source -
http://www.cbc.ca/news/politics/tr
udeau-scheer-question-period-tax-
analysis-wherry-1.4295500
• New proposal is looking at
professional corporation
that shift income to family
members
• The LPC has already broken
promise when it did not
reduce the federal small
business corporate tax to
9%
• Liberals have discussed tax
treatment of stock options
in the past
• Small business is the back
bone of Canada’s economy
Summary:
• People need to speak to their
local MP about proposal
• Proposal like this can lead to
other changes. It is important
to work with your tax
accountant