KPMG Private Enterprise Tax

Helping private companies understand, plan and execute effective business and tax strategies

KPMG’s private company tax services offer advice on both personal tax and corporate tax

Private companies and enterprises across Canada face many challenges and opportunities when it comes to conducting business while managing personal investments. It is important to develop a sound financial plan to enhance your personal and family wealth. KPMG Private Enterprise and private company tax advisors support your business growth by helping individuals and private companies effectively manage issues like income tax planning and wealth preservation through Corporate and Personal Tax Services.

Operational frameworks for enterprise and private company tax

KPMG Private Enterprise tax professionals provide corporate and personal tax services to help manage tax issues. We offer strategic financial and tax planning services to individuals, enterprises, and private companies when it comes to personal finances and taxes. We help businesses consider compensation strategies to reduce business and personal taxes, the most effective way to manage income taxes payable by the company and its shareholders, and succession, estate planning and wealth preservation.

ESG considerations for enterprise and private company tax

Environmental, social, governance (ESG) are non-financial factors that our financial advisors consider during the investment process. The potential value of your investment can be impacted by waste management, political contributions, customer satisfaction, and even tax policy. Our ESG strategy takes it all into account.

We work with clients to develop and implement an ESG strategy and ensure that private companies and enterprises demonstrate long-term values and make investments through a sustainable lens, including that of tax policy. Your KPMG financial advisor will continuously monitor and report on performance and review the processes throughout. Investors are using this information to make investment decisions and disregard companies that are not ESG-compliant and those with weak reporting related to tax and transparency.

Business tax, income tax, and personal tax compliances

KPMG Private Enterprise tax professionals are here to help you understand how your business will be affected by tax changes and rulings to effectively create a tax plan that can manage or reduce corporate tax challenges. You can trust KPMG Private Enterprise tax professionals to assess the effectiveness of your business structure, identify tax-saving opportunities, income tax planning, and develop a customized tax program for your business.

When owning a business, corporate tax shouldn’t be your only concern. You must also consider how tax rules impact your personal and family taxes. Personal tax is complex and constantly changing, but KPMG Private Enterprise tax professionals can work with you to better manage your overall taxes by assessing tax rules that may affect your personal and family taxes.

Succession, estate planning, and wealth preservation

Building a successful business takes a lot of hard work, so you want to make sure it remains in good hands in the future while also maintaining your personal wealth. KPMG Private Enterprise tax professionals can help you develop an estate plan for transferring wealth to your heirs and a succession plan for your business. KPMG helps you think about the future today so you can mitigate risks, like unplanned transactions, family conflict, probate fees and more.

Tax risk and controversy management

There are a wide range of tax risks and controversies that are a burden to private enterprises. Tax policies are constantly changing, making it hard for businesses to keep up and adapt. Transparency is critical in the tax environment. Both public and private companies are frequently asked to articulate their tax risk management framework to third parties, so having this information readily available accelerates the process.

KPMG helps with tax planning for companies by implementing tax risk strategies that will mitigate risks and manage controversies to resolve tax disputes and avoid unnecessary tax costs. There are several tax technologies that KPMG utilizes to help businesses tackle tax regulatory changes and facilitate streamlined processes. One Port is one of these technologies. It is a secure, one-stop hub for all engagements to simplify tax processes, including tax returns, compilations, and reviews. By harnessing innovative technology, KPMG helps businesses achieve more.

Frequently asked questions (FAQs)

Determining appropriate owner-manager compensation is an important strategic decision to consider. As enterprise and private company tax advisors, we recommend an effective and tax-efficient approach to determine your salary and/or dividend mix. Some strategies may include:

Deferring income to the next calendar year by accruing bonuses
Enhancing capital dividend payments
Setting up a holding company

Our strategic financial and tax planning services will help you calculate the best way to structure your salary and/or dividends to reduce your overall tax burden.

Utilizing our customizable tax software, your KPMG Advisor will help you prepare tax returns, information returns, and elections. Our software incorporates changes in tax legislation and personal status, allowing it to create and analyze different scenarios and identify opportunities.

KPMG uses a holistic approach when it comes to managing the tax footprint of a business. Combining our technology, transformation and compliance capabilities, we have developed a new framework—Tax Reimagined. This technologically driven approach helps organizations develop and implement a customized operating model for tax and financial functions. This will result in reduced costs, mitigated risks, and increased strategic value. KPMG works with your business to bring tax enterprise, an understanding of the technology, and an innovative operational framework to help you reimagine your enterprise and private company tax footprint.

When targeting investors, businesses need to have an ESG strategy where they can address climate change and sustainability goals. Shareholders are looking for ESG objectives, including responsible tax policies, when investing and they can impact the overall value of an investment. Through public discourse, board pressure and shareholder activism, they are ensuring businesses are pursuing a responsible tax policy. This is why governments, NGOs, investment managers and portfolio companies need to develop strategies utilizing the ESG angle.

When it comes to the future of your enterprise or private corporation and wealth, it is important to create a plan to ensure it is in good hands. KPMG Private Enterprise tax professionals help develop estate and succession plans that are sensitive to your business and personal needs. We will consider, unplanned transactions, family conflict, probate fees and other fees into account when planning for your future, so that you will never get caught off guard.

When there isn’t a family member ready to inherit the business, an exit strategy is needed instead of a succession plan. Selling your business may be a one-time significant transaction, so you want to make sure you know the most tax-efficient way to sell a business. KPMG Private Enterprise tax professionals will work with you to explain different options and assist with the transaction to maximize your after-tax proceeds.

KPMG professionals have a vast knowledge of enterprise and private company tax and experience in business tax planning. Our advisors help clients address challenges and look ahead to find new opportunities. The tax landscape is constantly changing and can be complicated to understand, but KPMG can help you make sense of it all.