MB Accounting

Day: August 1, 2025

  • NSDL likely to launch IPO in May 2023

    NSDL likely to launch IPO in May 2023

    In India’s dynamic capital markets, an Initial Public Offering (IPO) from a key institution like the National Securities Depository Limited (NSDL) is bound to generate excitement. Though speculation once centered around a May 2023 listing, delays pushed the timeline forward. Now, in July 2025, NSDL’s much-anticipated IPO has finally hit the markets, marking a significant milestone for the depository and the broader financial ecosystem.

    The Journey to Listing

    Initial buzz around a May 2023 IPO reflected the growing investor interest in India’s financial infrastructure and NSDL’s central role in it. As the country’s first and largest depository, NSDL is vital to the dematerialization and settlement of securities—a foundational function for the stock market.

    However, large-scale IPOs often face delays due to regulatory approvals, market conditions, and internal valuations. NSDL was no exception, with changes in issue size and prolonged valuation discussions pushing the offering to 2025.

    The IPO Details

    NSDL opened its IPO for public subscription on July 30, 2025, with the issue set to close on August 1, 2025. The offering is entirely an Offer for Sale (OFS), meaning no fresh capital will be raised. Instead, existing shareholders—including IDBI Bank, NSE, SBI, HDFC Bank, and Union Bank of India—are partially exiting their stakes. This move also helps these institutions comply with SEBI’s 15% cap on institutional ownership in depositories.

    • Issue size: ₹4,011.6 crore

    • Price band: ₹760–₹800 per share

    • Face value: ₹2

    • Lot size for retail investors: Minimum 18 shares

    • Expected listing date: August 6, 2025, on the BSE

    Why NSDL Appeals to Investors

    1. Market Leadership & Reach

    Founded in 1996, NSDL pioneered the dematerialization of securities in India and remains the market leader. It covers 99% of India’s PIN codes and serves clients in 186 countries, reflecting its widespread trust and reach.

    2. Stable, Recurring Revenue

    NSDL operates on a largely annuity-like model, earning through annual issuer charges, transaction fees, and value-added services. This provides a steady and predictable income, attractive to long-term investors.

    3. Strong Financials

    For FY25, NSDL reported:

    • Revenue: ₹1,420 crore (12% YoY growth)

    • Profit after tax: ₹343 crore (25% YoY growth)

    • EBITDA margin: 34.71%

    These figures highlight both growth and operational efficiency.

    4. Diversified Business Lines

    NSDL has expanded beyond core depository services through subsidiaries like:

    • NDML – Focused on e-governance solutions

    • NSDL Payments Bank – Entering digital banking

    This diversification reduces dependency on any one revenue stream and strengthens long-term prospects.

    5. High Barriers to Entry

    The depository business requires heavy regulation, advanced tech infrastructure, and market trust. With only two major players—NSDL and CDSL—this duopoly structure grants NSDL pricing power and stability.

    Valuation & Market Sentiment

    At the upper price band of ₹800, NSDL is valued at a P/E of ~46.6x based on FY25 earnings. Compared to peer CDSL, which trades at a higher multiple, NSDL’s pricing is considered reasonable.

    Brokerages have largely issued “Subscribe” ratings, particularly for long-term investors. Meanwhile, Grey Market Premiums (GMP) have shown healthy interest ahead of the listing, indicating possible listing gains. While GMPs are unofficial, they offer insight into investor sentiment.

    The Road Ahead

    NSDL’s IPO is more than just a corporate milestone—it reflects the maturity and depth of Indian capital markets. With rising retail participation, digital transformation, and financialization of savings, demand for depository services is poised to grow.

    NSDL’s strong foundation, technological leadership, and diversified portfolio position it to benefit from these trends. While the IPO didn’t arrive in May 2023 as initially expected, the July 2025 launch comes at a time of renewed investor confidence and domestic growth.

    For investors seeking exposure to a vital pillar of India’s financial infrastructure, NSDL offers a compelling opportunity. The markets will now watch closely as this trusted institution enters a new phase as a publicly listed company.

  • GOVT. INCENTIVES FOR SME’S IN THE MIDST OF COVID-19

    GOVT. INCENTIVES FOR SME’S IN THE MIDST OF COVID-19

    The advent of the COVID-19 pandemic plunged economies worldwide into an unprecedented crisis. Small and Medium-sized Enterprises (SMEs), often the most vulnerable yet vital engines of growth and employment, found themselves facing an existential threat. In response, governments globally unleashed a torrent of financial incentives, subsidies, and support programs, designed not just to keep these businesses afloat “amid COVID-19,” but to prevent a complete economic collapse. As of mid-2025, while the immediate emergency has subsided, the legacy of these incentives and the evolution of government support for SMEs continue to shape the business landscape.

    The Immediate Response: A Safety Net in Uncharted Waters

    In the chaotic early days of the pandemic, the primary objective of government incentives was to preserve jobs and liquidity. Businesses, suddenly facing lockdowns and plummeting demand, needed immediate relief to cover operational costs like payroll, rent, and utilities. The programs rolled out were characterized by their urgency, broad accessibility, and significant financial backing:

    Wage Subsidies

    Many nations introduced schemes to subsidize employee wages, encouraging businesses to retain staff rather than lay them off. The Canada Emergency Wage Subsidy (CEWS), for example, covered a substantial portion of employee wages, becoming a cornerstone of Canada’s economic response. Similarly, the UK’s Coronavirus Job Retention Scheme (Furlough Scheme) kept millions of workers employed.

    Rent and Mortgage Relief

    Recognizing fixed overheads as a major burden, incentives like the Canada Emergency Rent Subsidy (CERS) offered direct financial support for commercial rent or property expenses. Some countries also imposed moratoriums on commercial evictions.

    Tax Deferrals and Credits

    Governments allowed businesses to defer tax payments (e.g., income tax, sales tax, payroll tax), providing immediate cash flow relief. Some also introduced new tax credits, such as the Employee Retention Credit (ERC) in the U.S., which offered refundable tax credits for retaining employees.

    Direct Grants and Forgivable Loans

    Beyond traditional loans, some schemes offered direct grants or loans with significant forgivable portions if certain conditions were met (e.g., maintaining payroll). The Paycheck Protection Program (PPP) in the U.S. and the Bounce Back Loan Scheme (BBLS) in the UK were prime examples, quickly injecting billions into struggling businesses.

    Relaxed Lending Criteria and Guarantees

    Financial institutions were often incentivized or mandated to relax lending criteria for SMEs, backed by government guarantees to reduce the banks’ risk exposure. This ensured that even businesses with limited collateral could access much-needed funds.

    These emergency incentives were critical. They prevented a cascade of bankruptcies, maintained employment levels far better than anticipated, and laid the groundwork for eventual economic recovery. They demonstrated governments’ capacity for rapid, large-scale intervention when facing an existential threat to their economies.

    The Shift: From Emergency to Evolution

    As the world transitions from the “midst of COVID-19” to a post-pandemic reality (as of mid-2025), the nature of government incentives for SMEs has fundamentally shifted. The emergency relief programs have largely concluded, with the focus now squarely on managing repayments for past loans and fostering long-term resilience, competitiveness, and sustainable growth.

    Governments are now less focused on basic survival and more on strategic development. The new generation of incentives aims to address structural weaknesses exposed by the pandemic, prepare SMEs for future disruptions, and align them with national economic priorities:

    Digital Transformation and Adoption

    The pandemic highlighted the critical importance of digital capabilities. Current incentives often include grants, subsidies, and advisory services to help SMEs adopt e-commerce platforms, cloud computing, cybersecurity solutions, and other digital tools. In Pakistan, for example, initiatives focus on enhancing digital literacy and enabling online business operations for SMEs.

    Innovation and R&D

    Recognizing that innovation drives competitiveness, many governments offer tax credits, grants, and funding for SMEs engaged in research and development, particularly in emerging fields or those contributing to national strategic objectives.

    Sustainability and Green Initiatives

    As climate change remains a global priority, incentives are increasingly directed towards SMEs adopting eco-friendly practices, investing in renewable energy, reducing their carbon footprint, and developing green products or services. This includes access to specialized financing or tax breaks for green investments.

    Access to Finance and Credit Guarantees (Refined)

    While the broad emergency loan schemes are gone, governments continue to play a role in easing access to finance for SMEs. This often takes the form of refined credit guarantee schemes, interest rate subsidies, or specialized funds targeting specific sectors or underserved demographics. For instance, the State Bank of Pakistan’s SME Asaan Finance (SAAF) Scheme or Refinance Facilities for Modernization of SMEs are examples of ongoing efforts to provide affordable credit.

    Skills Development and Training

    Investments in upskilling and reskilling the workforce are critical for SMEs to adapt to new technologies and market demands. Governments provide incentives for employee training, apprenticeships, and vocational programs.

    Export Promotion

    Incentives for SMEs looking to expand into international markets, including export credit insurance, market access support, and trade financing, remain crucial for national economic diversification and growth.

    The pivot from broad, urgent relief to targeted, strategic incentives reflects a maturation of post-pandemic policy. Governments learned invaluable lessons about the fragility of SMEs and their pivotal role. Today’s incentives are designed to build a more robust, adaptable, and forward-looking SME sector, equipping them not just to survive the next crisis but to thrive in an increasingly digital, green, and interconnected global economy. For SMEs navigating this landscape, staying informed about these evolving incentives is paramount to unlocking opportunities for growth and resilience.

  • JUSTIN LATEST POLICY DEVELOPMENTS & ‘WSP’ AMID

    JUSTIN LATEST POLICY DEVELOPMENTS & ‘WSP’ AMID

    The Canadian government’s agenda for 2025 and beyond is multifaceted, aiming to build a stronger, more inclusive, and sustainable Canada. Key policy areas currently dominating the discourse include:

    Economic Growth and Fiscal Responsibility

    The 2025-26 Debt Management Strategy highlights the government’s commitment to raising stable and low-cost funding while maintaining a well-functioning market for Government of Canada securities. The Department of Finance’s 2025-26 Departmental Plan emphasizes building “one strong, united economy” by fostering investments that create well-paying jobs, reduce the cost of living, and strengthen economic security. Discussions around Budget 2025 also revolve around catalyzing investment and economic growth while aiming for efficiency in government operations. This often involves reducing interprovincial trade barriers, stimulating clean technology investments, and supporting Canadian industries amidst evolving global trade dynamics, particularly with the U.S.

    Infrastructure Investment and Modernization

    A cornerstone of the government’s long-term vision is robust investment in critical infrastructure. This spans various sectors:

    Transportation

    Funding continues for new transit systems, road networks, and supply chain improvements to enhance connectivity and economic efficiency.

    Clean Energy

    Significant capital is allocated to accelerate the transition to renewable energy sources, modernize the electrical grid, and develop new clean technologies to meet climate targets.

    Housing

    Addressing the affordability crisis remains a top priority, with ongoing programs and new initiatives aimed at increasing housing supply and reducing costs for Canadians.

    Digital Infrastructure

    Investments in broadband expansion and digital adoption programs for businesses underpin Canada’s digital transformation agenda.

    Environmental Sustainability and Climate Action

    Canada remains committed to its climate action goals, including achieving net-zero emissions by 2050. This involves ongoing investments in green technologies, carbon pricing mechanisms, and conservation efforts. International engagement on climate change, protecting nature and biodiversity, and implementing climate-change adaptation and mitigation strategies are central to Global Affairs Canada’s 2025-26 plan. The focus extends to ensuring access to clean water, particularly for Indigenous communities, an issue that consistently sees policy attention and funding.

    Social Equity and Reconciliation

    The government continues to prioritize social programs, including enhancements to the Canada Child Benefit, and efforts to make childcare more affordable and accessible. Significant resources are dedicated to advancing reconciliation with Indigenous Peoples. This includes substantial funding pledges to address infrastructure gaps (housing, water, education), support Indigenous-led initiatives, and implement the calls to action from various inquiries, such as those related to missing and murdered Indigenous women and girls. Addressing systemic racism and promoting gender equality also remain key pillars.

    Innovation and Research

    Policies are in place to foster a robust innovation ecosystem. This includes funding for research and development, the commercialization of new technologies, and support for Canadian researchers. Initiatives aimed at digital adoption for SMEs and strengthening the science and technology sector are integral to enhancing Canada’s global competitiveness.

    WSP Global’s Role Amidst Policy Developments

    Given these extensive policy ambitions, the private sector plays a crucial role in bringing these visions to fruition. This is where companies like WSP Global Inc. become indispensable partners. As a leading engineering and professional services firm, WSP is directly involved in many of the government’s strategic initiatives:

    Infrastructure Projects

    WSP’s core business involves designing, planning, and managing large-scale infrastructure projects – from public transit systems and highways to water treatment facilities and sustainable buildings. As the government continues its multi-billion-dollar infrastructure spending plan, WSP’s expertise is vital for project delivery, ensuring efficiency, innovation, and adherence to environmental standards.

    Climate and Environmental Consulting

    With Canada’s strong climate agenda, WSP’s environmental services – including climate change adaptation, environmental assessments, and sustainable design – are highly sought after. They assist in developing and implementing solutions that support the government’s net-zero targets and conservation efforts.

    Digital Transformation

    As cities and infrastructure become “smarter,” WSP’s capabilities in smart cities planning, data analytics, and digital project delivery align with the government’s push for digital adoption and modernization across sectors.

    Advisory and Strategy

    Beyond physical infrastructure, firms like WSP provide strategic advisory services, helping government bodies with feasibility studies, policy implementation, and long-term planning for complex initiatives.

    The ongoing partnership between government and the private sector, exemplified by firms like WSP, is essential for translating policy blueprints into tangible outcomes. These collaborations facilitate the specialized expertise, scale, and efficiency required for large national projects.

    In summary, Justin Trudeau’s latest policy developments reflect a mature governmental approach to complex challenges. The focus is firmly on long-term growth, sustainability, and social well-being, supported by strategic investments and a continued reliance on expert partners from the private sector to realize these ambitious goals. The “WSP” in this context is less about a specific policy acronym and more about the indispensable role that leading professional services firms play in building the Canada of tomorrow, brick by policy brick.

  • AMC Entertainment Holdings, Inc (AMC) Is Burning Cash and Will Need Investors To Stop It

    AMC Entertainment Holdings, Inc (AMC) Is Burning Cash and Will Need Investors To Stop It

    AMC Entertainment Holdings, Inc. (NYSE: AMC), once the darling of retail investors and the quintessential “meme stock,” continues its precarious dance on the edge of financial stability. While the company has shown remarkable resilience and ingenuity in navigating the choppy waters of a post-pandemic entertainment landscape, a deeper look at its financials reveals a persistent challenge: a significant cash burn that necessitates continued reliance on its fervent investor base to avert a more severe crisis.

    The COVID-19 pandemic dealt a near-fatal blow to the cinema industry, forcing closures and fundamentally altering consumer habits. While the box office has seen a gradual recovery, it remains far from its pre-pandemic highs. This new reality, coupled with AMC’s substantial debt load, has created a complex financial tightrope walk for CEO Adam Aron and his team.

    The Elephant in the Room: Cash Flow and Debt

    AMC’s financial statements consistently highlight a critical issue: negative free cash flow. Despite strategic efforts to boost revenue through premium offerings, enhanced food and beverage sales, and innovative content like concert films, the core business of movie exhibition, with its high fixed costs, still struggles to generate sufficient cash to cover its extensive operational expenses and, critically, its massive debt obligations.

    According to recent financial reports, while AMC has made strides in reducing its net loss and even achieving positive cash flow from operations in some quarters (like Q4 2024), the overall picture for the full year often shows a net cash used in operating activities. For instance, in fiscal year 2024, the company reported a net cash used in operating activities of $(50.8) million and a free cash flow of $(296.3) million. Even looking into Q1 2025, while the net loss narrowed, the cash used in operating activities remained substantial. This cash burn means that, without external intervention, AMC’s cash reserves, currently around $630 million at the end of 2024, would steadily diminish.

    The debt burden is equally formidable. While AMC completed significant refinancing transactions in July 2025, which saw new capital infusion and the equitization of a portion of its debt, the total debt load remains substantial. These transactions were crucial in addressing near-term maturities, particularly the 2026 debt, providing some much-needed breathing room. However, they don’t erase the underlying issue of a highly leveraged balance sheet, with total debt reported in the billions. Servicing this debt continues to consume a considerable portion of the company’s incoming revenue, limiting its ability to invest significantly in growth or build a robust cash buffer.

     

    The Dilution Dilemma: A Double-Edged Sword

    To combat its cash burn and manage debt, AMC has repeatedly turned to its loyal retail investor base, often through at-the-market (ATM) equity offerings. These offerings allow the company to sell new shares directly into the market at prevailing prices. While these capital raises have been instrumental in shoring up liquidity and enabling debt reduction (as seen with the $350 million ATM offering in late 2023 and further issuances in Q1 2025), they come at a significant cost: shareholder dilution.

    Each time new shares are issued, the ownership stake of existing shareholders is diluted, potentially decreasing the earnings per share and the intrinsic value of their holdings. While the “Apes” (as AMC’s retail investors are known) have, for the most part, accepted this dilution as a necessary evil to keep their beloved company afloat, it’s not a sustainable long-term strategy for shareholder value creation. The question then becomes: how much dilution can the stock endure before investor fatigue sets in, or before the market simply won’t absorb further offerings at a reasonable price?

    The Road Ahead: Innovation vs. Industry Headwinds

    AMC’s management is well aware of these challenges and has been proactive in innovating the cinema experience. Investments in premium large formats (PLF) like IMAX and Dolby Cinema, luxurious recliner seating, and an expanded food and beverage menu are all aimed at enhancing the movie-going experience and increasing per-patron spending. The pivot to distributing concert films, notably the successful Taylor Swift and Beyoncé tours, showcased a new revenue stream and a willingness to adapt.

    However, these efforts operate within the broader context of an industry still grappling with structural shifts. Streaming services continue to offer unparalleled convenience, and the pipeline of blockbuster films, though improving in 2025 and projected to grow in 2026, still faces uncertainties. While CEO Adam Aron expresses optimism for “roaring hot” box office years ahead, the pace of recovery and the long-term attendance trends are critical variables.

    The Investor’s Role: More Than Just Shareholders

    For AMC to truly break free from its reliance on frequent capital raises, it needs a sustained period of robust, positive free cash flow generated from its core operations. This would allow it to organically reduce debt, invest in the business without diluting shareholders, and eventually consider returning capital to investors.

    Until that point, the “Apes” remain AMC’s most vital financial bulwark. Their continued willingness to purchase newly issued shares, despite the dilution, provides the critical lifeline. While the recent refinancing efforts have bought time and strengthened the balance sheet somewhat, they haven’t fundamentally altered the cash-burning trajectory. The company will likely continue to need investor support, whether through further equity offerings or other mechanisms, to manage its debt and pursue its recovery strategy.

    In essence, AMC is not just burning cash; it’s burning through the patience and capital of its most dedicated investors. While their loyalty has been extraordinary, the question of long-term viability without a significant and sustained shift to positive cash generation remains. The show, as they say, must go on, but for how much longer can it be funded primarily by the audience?

  • How MB Accounting Helps with Corporate Tax Planning in Canada

    How MB Accounting Helps with Corporate Tax Planning in Canada

    Running a successful business in Canada requires more than just growing sales — it also means strategically managing your tax obligations. Proper corporate tax planning can significantly impact your bottom line by reducing tax liabilities, ensuring compliance, and aligning your business structure with long-term financial goals.

    That’s where MB Accounting stands out. With years of experience and a dedicated team of professionals, MB Accounting offers tailored corporate tax solutions for Canadian businesses of all sizes. From business tax return filing to proactive planning, they help companies stay ahead of the curve while maximizing their tax efficiency.

    In this article, we’ll explore how MB Accounting supports corporate clients, what sets them apart as a tax accountant in Canada, and why tax planning should be a top priority for any business owner.

    What is Corporate Tax Planning?

    Corporate tax planning involves analyzing a company’s financial situation from a tax perspective to reduce its liability within the legal framework. It’s not just about filing your business tax return — it’s about making informed decisions throughout the year to:

    • Optimize deductions and credits

    • Choose the most beneficial business structure

    • Plan income timing and dividend strategies

    • Defer or reduce taxes wherever possible

    When done right, tax planning can help you reinvest more capital into your business, improve cash flow, and stay compliant with federal and provincial tax regulations.

    Why Corporate Tax Planning is Crucial in Canada

    In Canada, corporate tax obligations can vary greatly depending on the type of business, province of registration, industry regulations, and the owner’s compensation structure. With both federal and provincial tax layers, along with changing tax laws, it’s easy for business owners to miss deductions, overpay, or face penalties.

    A knowledgeable tax accountant in Canada can help you navigate the complexities, identify opportunities for savings, and avoid costly errors. That’s where MB Accounting excels — offering personalized strategies that align with your unique financial goals.

    How MB Accounting Supports Corporate Clients

    MB Accounting provides a full suite of tax and financial services tailored specifically for corporations. Their approach is consultative, data-driven, and aligned with your growth objectives. Here’s how they help:

    1. Strategic Corporate Tax Planning

    MB Accounting works closely with each business to develop a comprehensive tax strategy that spans the entire fiscal year, not just during tax season. This includes:

    • Evaluating income distribution (salary vs dividends)

    • Identifying tax-saving opportunities and credits

    • Timing purchases and expenses for maximum deductions

    • Reviewing capital gains and loss strategies

    • Advising on intercompany transactions and holding structures

    With their expert guidance, businesses can reduce their effective tax rate while staying fully compliant with CRA regulations.

    2. Business Tax Return Preparation and Filing

    Filing a business tax return in Canada isn’t just about plugging numbers into software. It requires a deep understanding of corporate tax laws, changing regulations, and compliance documentation.

    MB Accounting handles all aspects of T2 corporate tax returns, including:

    • Accurate income statement and balance sheet analysis

    • Deductible expense tracking and categorization

    • SR&ED (Scientific Research and Experimental Development) claims

    • Filing GST/HST returns

    • Preparing CRA audit-ready documentation

    Their process ensures businesses file on time, reduce errors, and avoid unnecessary CRA audits.

    3. Corporate Structure Optimization

    The right corporate structure can make a huge difference in your tax exposure. MB Accounting helps businesses assess whether their current setup is tax-efficient. This includes:

    • Incorporating at the right time

    • Using holding companies to minimize risk and tax

    • Implementing family trusts or partnerships

    • Managing cross-border operations, if applicable

    By aligning your business structure with your financial goals, MB Accounting positions you for sustainable tax savings and operational efficiency.

    4. CRA Audit Support and Representation

    If your business is selected for a CRA audit, it’s critical to have professionals who understand how to handle the process. MB Accounting provides full support, including:

    • Preparing required audit documents

    • Communicating directly with CRA agents on your behalf

    • Resolving discrepancies and negotiating where necessary

    • Minimizing penalties and interest charges

    Their proactive tax planning often prevents audits before they happen — but if one occurs, you’re in capable hands.

    5. Year-Round Advisory Services

    Unlike many firms that only show up during tax season, MB Accounting remains available to clients throughout the year. They provide ongoing guidance on:

    • Cash flow forecasting

    • Tax installment payments

    • Capital asset purchases and depreciation

    • Payroll tax compliance

    • Dividend planning and shareholder compensation

    This consistent support ensures you’re always prepared and never caught off guard by unexpected tax issues.

    Why Choose MB Accounting as Your Tax Accountant in Canada?

    MB Accounting has built a reputation for delivering reliable, proactive, and personalized tax services to corporations across Canada. Here’s why businesses trust them:

    Industry Expertise

    Their team includes certified accountants and tax professionals with experience across a range of industries — from tech and retail to manufacturing and real estate.

    Client-Focused Approach

    They take the time to understand your business and tailor strategies that meet your specific goals, not just generic solutions.

    Technology-Driven Tools

    MB Accounting uses modern accounting platforms and secure cloud systems, making it easy for clients to upload documents, track filings, and communicate in real-time.

    Transparent Pricing

    No hidden fees or surprise charges — just honest, flat-rate pricing and detailed service breakdowns.

    Corporate Tax Planning for Startups and SMEs

    If you’re a startup or small business owner, tax planning may feel overwhelming. But in truth, the earlier you start, the more you save in the long run. MB Accounting specializes in helping new businesses:

    • Choose the right time to incorporate

    • Understand startup-specific tax credits

    • Track business expenses and receipts accurately

    • Plan for income growth and investor funding

    • File their first business tax return with confidence

    They provide mentorship and accounting clarity so entrepreneurs can focus on building, not bookkeeping.

    Final Thoughts

    Tax planning isn’t just a financial task — it’s a strategic business decision. With proper guidance, Canadian businesses can unlock thousands in tax savings, avoid CRA issues, and ensure long-term success.

    Whether you’re a startup, growing corporation, or established enterprise, MB Accounting offers the expertise, support, and insight needed to navigate the complex world of corporate tax planning. Their team of trusted professionals delivers value beyond tax season, acting as true partners in your financial journey.

    If you’re ready to maximize your returns and minimize tax stress, connect with MB Accounting today and build a smarter, more tax-efficient business in Canada.

    Frequently Asked Questions (FAQ’s)

    Q1: What is corporate tax planning?

    A: Corporate tax planning is the strategic management of a business’s tax obligations to minimize liability while staying compliant. It includes income distribution, deductions, credits, and structuring decisions.

    Q2: How do I reduce corporate taxes in Canada?

    A: You can reduce taxes by optimizing expenses, choosing between salary and dividends, deferring income, claiming business-related credits, and working with an experienced tax accountant in Canada like MB Accounting.

    Q3: What services does MB Accounting offer for corporations?

    A: MB Accounting offers tax planning, business tax return filing, CRA audit support, corporate structuring, HST/GST compliance, and year-round financial advisory services.

  • LOANS FOR SMES AMID ‘COVID-19’

    LOANS FOR SMES AMID ‘COVID-19’

    The COVID-19 pandemic, a seismic event that reshaped global economies, placed an unprecedented strain on small and medium-sized enterprises (SMEs). Often operating on tighter margins and with less access to conventional capital, these businesses faced an existential threat as lockdowns, supply chain disruptions, and plummeting demand brought operations to a screeching halt. In response, governments worldwide launched a multitude of emergency loan programs, acting as a crucial financial lifeline. 

    While the immediate crisis has long passed, understanding the impact of these loans and the shift in SME financial support is vital for navigating today’s economic landscape.

    The Immediate Crisis: A Deluge of Emergency Loans

    During the peak of the pandemic, governments recognized that a wave of SME bankruptcies would lead to mass unemployment and a catastrophic economic collapse. The priority was clear: inject liquidity rapidly to help businesses cover fixed costs, retain employees, and weather the storm. This led to the swift creation of innovative, often government-guaranteed, loan schemes designed for speed and accessibility.

    Across the globe, similar models emerged:

    North America

    In the United States, the Paycheck Protection Program (PPP) provided forgivable loans to small businesses to keep their workforce employed. The Economic Injury Disaster Loan (EIDL) program offered direct, low-interest loans. In Canada, the Canada Emergency Business Account (CEBA) offered interest-free loans, a portion of which was forgivable if repaid by a certain deadline, providing crucial breathing room for hundreds of thousands of businesses.

    Europe

    The UK’s Bounce Back Loan Scheme (BBLS) and Coronavirus Business Interruption Loan Scheme (CBILS) offered government-backed loans through commercial banks, designed to be quickly accessible and with generous terms. European Union member states also implemented various national guarantee schemes and state aid measures to support their SMEs.

    Asia

    Countries like Pakistan, for instance, saw the State Bank of Pakistan introduce deferments, rescheduling options, and refinance schemes to support SMEs, alongside broader policy adjustments to encourage lending.

    These programs were characterized by their urgency, relatively low-interest rates (or even interest-free periods), and significant government guarantees, which encouraged commercial banks to lend during a period of extreme uncertainty. They helped millions of SMEs retain employees and maintain some semblance of operations, preventing a far deeper recession.

    The Transition: Repayment and Aftermath

    As of mid-2025, the era of emergency COVID-19 loans has largely concluded. Applications for most of these programs closed long ago. The focus has decisively shifted from emergency disbursement to the repayment phase. For many businesses, particularly those that fully utilize these loans, managing this debt is a significant ongoing challenge.

    While the forgiveness components (e.g., portions of CEBA, full PPP forgiveness for qualifying businesses) provided substantial relief, businesses are now grappling with the remaining loan balances amid persistent economic headwinds. Inflation, rising interest rates on commercial loans, and lingering supply chain issues mean that the operating environment is still tough. Governments and financial institutions have often provided extensions and flexible repayment options, but the expectation is now firmly on businesses to service their debts. This period is a true test of the resilience built (or exposed) during the pandemic.

    For some, the emergency loans served their purpose, allowing them to pivot, innovate, and emerge stronger. For others, the debt burden represents a significant drag on recovery, necessitating careful financial planning and, in some cases, further restructuring.

    Beyond the Pandemic: Evolving SME Financial Support

    The experience of COVID-19 has profoundly influenced how governments and financial institutions approach SME support. While the urgent, broad-brush loan schemes are a relic of the pandemic’s emergency phase, the understanding of SMEs’ vulnerability and their critical role in the economy has led to the evolution of support mechanisms. Today’s focus is less on immediate survival and more on sustainable growth, digitalization, and resilience.

    Current SME loan and incentive programs are now typically geared towards:

    Digital Transformation

    Recognizing the accelerated shift to digital operations during the pandemic, many governments now offer grants, loans, and advisory services to help SMEs adopt new technologies, enhance e-commerce capabilities, and improve cybersecurity. Programs like Canada’s Digital Adoption Program (CDAP) are prime examples.

    Innovation and Green Transition

    Loans and grants are increasingly available for SMEs investing in research and development, sustainable practices, clean technologies, and energy efficiency upgrades, aligning with broader climate goals.

    Sector-Specific Support

    While broad programs have ended, targeted assistance may still exist for specific sectors that faced prolonged recovery challenges (e.g., tourism, arts) or those deemed strategically important for future economic growth.

    Export and Internationalization

    Financial support for SMEs looking to expand into international markets remains a priority for many nations, leveraging export credit agencies and development banks.

    Traditional Financing with Enhanced Guarantees

    Beyond emergency measures, governments continue to work with commercial banks to de-risk lending to SMEs through established credit guarantee schemes. These aim to improve access to finance for viable businesses that might lack sufficient collateral or a long credit history.

    Venture Capital and Equity Funding

    Efforts are also underway to stimulate private investment in high-growth potential SMEs, recognizing that not all businesses are best served by debt.

    The legacy of COVID-19 on SME financing is two-fold: an indelible lesson in the necessity of swift, scalable government intervention during a crisis, and a renewed commitment to fostering a resilient, innovative, and digitally-enabled SME sector through a more nuanced and strategic array of financial tools. While the direct emergency loans are now a part of history, their impact continues to shape the strategies designed to ensure SMEs not only survive but thrive in the post-pandemic world.