CPIT Program Guide
PROGRAM GUIDE
Part 1. Introduction
1.1 Overview
The Corporate Planning Initiative for Tax (CPIT) aims to help business owners develop a comprehensive corporate tax plan to manage their tax liability. The program subsidizes the cost of working with a CPIT-approved tax planner and provides a cash bonus upon successful implementation of the tax plan.
Part 2. General Instructions for the CPIT
2.1 General Instructions, Terms, and Conditions
– All applications must be submitted through the CPIT online portal.
– Applications must be complete and include all required documentation.
– Funds are disbursed based on the fulfillment of eligibility criteria and successful review of the application.
2.2 Failure to Comply
Businesses that fail to comply with program requirements may be subject to disqualification and may need to repay any disbursed funds.
2.3 Disclosure of Information
Information provided by applicants may be shared with relevant governmental and regulatory bodies for verification and compliance purposes.
Part 3. Eligibility Criteria
3.1 Who Can Apply
To qualify for the Corporate Planning Initiative for Tax (CPIT), businesses must meet the following requirements:
– Be a Canadian-owned private corporation.
– Be a corporate tax residence of Alberta, British Columbia, or Ontario.
– Applicant must be a Director of the corporation.
– Have a minimum net corporate income of $150K OR liquid corporate net-worth of at least $750K.
– Demonstrate a positive track record of financial stability and growth.
– Operate as a for-profit business.
– Have been in business for at least 2 years.
3.2 Additional Criteria
In addition to the basic business criteria, all applicants must also meet the following requirements:
– Respect human rights codes, labor, environment, and anti-corruption standards, and engage exclusively in legal activities.
– Not have publicly traded shares of their own corporation.
– Not be a majority or wholly owned subsidiary or branch of a multinational corporation (MNC).
3.3 Compliance and Reporting
– Fraud or Misrepresentation: Any instances of fraud or misrepresentation will result in immediate disqualification and may involve legal action.
– Recovery of Funds: CPIT reserves the right to recover funds if they are found to have been misused or if the business is found to be ineligible post-disbursement.
– Monitoring and Reporting: Businesses must provide regular updates and reports on the use of funds and progress of the tax plan implementation.
– Intellectual Property Rights: Any intellectual property developed as part of the tax planning process remains the property of the business.
Part 4. Available Support and Funding
4.1 Corporate Tax Assessment Grant
– Up to $15,000 for a corporate tax assessment with an approved CPIT-approved advisor (paid directly to the advisor).
4.2 Implementation Bonus
– Bonus Corporate Tax Credit (CTC) refund ranging from $5,000 to $50,000 for the implementation of an approved corporate tax plan (paid to the business owner).
Part 5. Application Process
5.1 Assessment
Complete the online eligibility assessment form.
5.2 Consultation
Schedule a consultation with a CPIT-approved advisor to discuss business needs and potential tax advantages.
5.3 Application
Submit a detailed application outlining the intended use of funds, projected tax savings, and implementation plan.
5.4 Approval
Upon approval, $15,000 for the corporate tax assessment are paid directly to the advisor.
5.5 Implementation
After successful implementation of the tax plan, the bonus CTC refund of $5,000 – $50,000 is paid to the business owner within 30 days of having implemented the plan. Business owners must stay with the plan for 2 years or will be liable to pay back the bonus. They will not be liable for the fee paid to the advisor.
Part 6. Key Benefits
Participating in the Corporate Planning Initiative for Tax (CPIT) offers the following advantages:
6.1 Proactive Tax Planning
A CPIT-approved corporate tax planner helps business owners plan ahead, unlike accountants who often reactively handle finances or provides advice on current tax questions. A corporate tax plan is complimentary to the role of an accountant.
6.2 Tax Savings
Strategically manage tax liabilities, allowing businesses to retain more profits.
6.3 Increased Cash Flow
Improved cash flow management ensures financial sustainability.
6.4 Profit Retention
Enhanced ability to retain profits and let money work more effectively for the business.
7. Legal and Compliance
7.1 Confidentiality
Information provided by applicants may be shared with relevant governmental and regulatory bodies for verification and compliance purposes.
7.2 Compliance with Laws
Businesses must comply with all relevant Canadian laws and regulations.
7.3 Fraud Prevention
The program includes measures to detect and prevent fraud. Any business found guilty of providing false information will be disqualified and may face legal action.
8. Additional Documentation
8.1 Required Documentation
– Drivers license or Canadian passport
– Financial statements for the past two years
– Bank and investment statements
8.2 Submission Process
Upload required documentation through the online portal during the application process.
9. Audit and Review
9.1 Audit Rights
CPIT reserves the right to audit the records and financial statements of any business receiving funds under this program.
9.2 Review Process
Regular reviews will be conducted to ensure compliance with program requirements and the effective use of funds.
9.3 Reporting Requirements
Businesses must implement the program for a total of 2 years to remain compliant.
10. Privacy Policy
10.1 Accountability
The Association of Corporate Tax Planning (ACTP) and its sponsors are responsible for the personal information the CPIT receives from clients and will abide by the principles of PIPEDA in safeguarding that information in hard copy and computer documents.
10.2 Collection Purposes, Limitations on Collection, Use, Disclosure and Retention
Any and all personal, corporate, financial and related information is collected and kept solely for the purpose of providing advice and to ensure that any products or services you purchase through ACTP and its sponsors are provided quickly and correctly. In order to obtain products for you, the ACTP is required to share your personal information with insurers through intermediary brokerage firms. The ACTP only collect and keep information that helps them formulate advice including personal, financial and health information.
10.3 Consent
The nature of the ACTP’s work means the ACTP and its staff must collect and retain a lot of personal information about their clients including health data, financial data and identity verification data. ACTP uses this information to understand your financial needs and to identify possible solutions to problems you might have. In becoming the ACTP and its partner’s client, you agree to give the ACTP this information and allow the ACTP to share this information with companies you choose to buy financial products from and with relevant brokerage intermediary firms. You allow the ACTP to retain your information in paper or electronic files for as long as you wish the ACTP to be your advisor, or for as long as there is a business or legal need to retain the information. You also allow ACTP to share your information with client relationship management software vendors and financial analysis software vendors for the sole purpose of managing, organizing and analyzing your data so that ACTP can provide better service and solutions to you. Should your agent retire, die or otherwise become incapacitated, you allow ACTP to transfer your information to another agent or agency, to continue to service your needs. However, you have the right to choose a different agent at that time if you wish. You also agree to receive electronic communications or Commercial Electronic Messages (CEMs) from me. You may withdraw your consent to CEMs at any time.
10.4 Information Accuracy
I rely on receiving accurate information in order to make appropriate recommendations. You may review the personal information I retain about you upon request. I may also update the information regularly in an effort to ensure I am making recommendations about your situation based on the correct information.
10.5 Safeguards
All the written information the ACTP receives from you is either in secure filing cabinets or in password protected computer files. Any computer files stored off site are encrypted or locked. Old files that are discarded are shredded or otherwise completely destroyed. The ACTP, its partner, and its staff understands the sensitivity of this information and the importance of protecting it.
10.6 Safeguards
You may contact the ACTP at any time by telephone, email or letter at the address shown on this page about your files with the ACTP and request changes. You may review PIPEDA online at www.privcom.gc.ca. If you have any complaints about the ACTP procedures, the ACTP will investigate and provide you with a response as soon as practical. A full copy of the ACTP’s Privacy Policy is available upon request.
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