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Biotech and Pharmaceuticals
The Life Sciences industry is also a fairly large part of the Canadian economy where there has been a growing focus towards the design and development of technology, equipment, and methodologies of innovative products. During various phases of design and development, scientists and engineers may coordinate testing and experimental development to seek improved results. It may be common to believe that the SR&ED program is tailored towards large companies with dedicated research facilities, whereas there are several small to medium-size corporations taking benefits of cash refunds from the R&D tax credits. The cash refunds not only finance short-term growth but also create opportunities for future progression and investments.
Innovative chemical products and novel processes are a result of significant effort that qualifies for SR&ED. Frequently, the developments are less drastic resulting in incremental improvements to existing products and processes. These efforts are commonly disregarded during the preparation of SR&ED claims and therefore, they are unclaimed resulting in significantly reduced claims. At Tax Partners, we help chemical organizations determine, track, claim and defend all activities that qualify to maximize their claims. Several sectors where SR&ED claims are common include:
- Medical equipment and supplies
- Pharmaceutical and nutraceutical
- Biodiagnostics
- Life sciences
Pharmacists(Biotech Claims Experts):
We currently are one of the leading practices for Pharmacists(Biotech Claims Expert). Whether you own your Pharmacy or an associate our services and packages will match your needs. We handle all the tax and accounting so you can focus on the growth of your practice.
Buying and Selling Practice:
We assist Pharmacists in purchasing and selling their practices both from within our client base and our networks. We also assist with due diligence and financing requirements with lending institutions.
Incorporation:
Share structure for income splitting (Voting vs Non-voting), share classes, shareholder agreements. We work closely with lawyers to provide the ideal structures for your corporation. Pharmacists must consider the corporate structures as the practises gain value and these businesses qualify for the lifetime capital gains exemption amount of $850,000 per shareholder.
Full Accounting:
Cloud-based bookkeeping (pro-active management of expenses and business decisions to find solutions to reduce taxable income between corporations and personal. Separating business vs. personal. Payroll management for hygienists, staff.
Tax Planning:
Salary vs. Dividends, income splitting strategies, shareholder loans, home loans, etc. Avoiding tax triggers for purchasing additional properties, etc. Pharmacists can pay themselves and family members who work with them thru salaries and dividends (owners). The Pharmacist can pay themselves $45,000 of tax-free eligible dividends on the personal side if no other income is present.
Filing Corporate Returns(Biotech Claims Experts):
Annual filing of Corporate returns and keeping corporation compliant with CRA. We handle all CRA dealings for both personal and corporate.
HST Returns:
As the sales of pharmaceutical drugs are zero-rated but the over the counter has HST, pharmacies can claim input tax credits on rent and related expenses. Proper accounting is necessary to apply for refunds as CRA regularly conducts reviews and audits before giving refunds.
Financial Statements:
Annual financial statements for lending institutions, etc.
Holding Companies:
As revenues grow in the Pharmacy Corporation it is essential to consider holding companies to make additional purchases of assets and not pull it out of the corporation to cause tax triggers.
Sole proprietors (non incorporated – professional returns):
- Electronic T1 (professional personal tax return) filing
- Tax saving strategies (RRSP) and allowable expenses and deductions.
- Dealing with CRA inquiries and reviews
- Open communication with accountant
- Electronic bookkeeping (separation of professional vs. Personal expenses) pro-active vs. End of year.
Incorporated Pharmacists:
- Electronic T1 (personal tax return) filing – complimentary
- Corporate return T2 electronic filing
- Financial statements (Notice to Reader)
- HST returns
- Dealing with CRA (audits, reviews)
- Tax strategies – payroll vs. Dividend, shareholder loans, maximizing allowable deductions, personal vs. Business split.
- Access to accountant throughout the year and proactive management of your practice.
Contact the Biotech Claims Experts at Tax Partners today by email at info@taxpartners.ca or by phone at 905-836-8755.