Besides aiding farms and small businesses with their annual tax filings, Farm Business Consultants Inc. is a tax and accounting firm that can also help its Members in business situations that call for more specialized tax and accounting knowledge. Say, for example, when a business decides to expand through the purchase of another business. In a scenario such as this, tax knowledge and expertise is critical to assuring that the purchase is as smooth and as cost-effective as possible. And Farm Business Consultants serves as the opportune tax consulting firm to provide that critical tax knowledge and expertise that’s needed.
Take, as illustration, the example of a Woodstock-based business that was looking to purchase a farm several years ago. The owner of this business was a Member of Farm Business Consultants, and as a Member, he had been very happy with the quality of consulting service FBC had provided him. And indeed, the quality of consulting work that Farm Business Consultants would provide the business owner in his farm purchase would make him an even more satisfied Member.
Unfortunately, there was a problem, and a potentially significant impediment, in the business owner’s purchase of the farm. This small business proprietor was buying the farm with his spouse. However, as a partnership, they were not registered for the Goods and Services Tax, or GST. The fact that they were not registered had the potential of causing a serious problem and a serious expense, as the seller of the farm was a registrant of GST. Because of this, the couple would have to pay an additional $24,500 in order to buy the farm. This was an enormous expense that was being added to the farm purchase, one that the couple was not expecting.
Fortunately, the Woodstock business proprietor was a Member of Farm Business Consultants. If he hadn’t been, there was a strong chance that the couple would have paid the additional fee for the farm.
These were all points that Farm Business Consultants’ tax and accounting expertise were able to effectively and successfully address.
The FBC tax specialist working with the Woodstock couple immediately applied for a GST registrant number with the Canada Revenue Agency on behalf of the couple. The application was processed successfully and that action alone helped save the couple $24,500 when they purchased the farm.
The advice and consultation Farm Business Consultants provided to this Woodstock couple reinforced why FBC is one of the largest and most experienced rural income tax consulting firms in the country.