Ubisoft coming to Toronto

[Eug]

Even if no rules were imposed on holding investments in corporations to take advantage of lower taxes, people will eventually withdraw these funds and pay personal income tax. This is because the only reason to save/invest is to delay consumption until the future. In order to consume, money must be withdrawn from the corporation, as personal expenses are taxable benefits. You can't live rent-free in a house owned by a corporation you in turn own. Same with a car, vacations, etc. etc.

Indeed. Most people can't afford to keep money in the corporation doing nothing. Most people would have to flow-through almost all that cash anyway, and would end up paying nearly as much personal income tax as before, yet have the extra overhead (both in terms of money and in terms of hassle) of having the corporation.

Corporations also have a tendency of getting audited, if my friends with corporations-used-as-tax-shelters are any indication. Even when all the transactions are 100% legit, the audit is a royal PITA.

 

[afransen]

So I'm not exactly familiar with this industry and I don't have strong feelings about subsidy either way, but I do have some questions about some of the assumptions here. First, are these really good jobs? Second is this investment of strategic significance to the general economy?

Someone noted oil sands and vehicle production as old economy negative sectors, but hold on for a second. The oil sands is a strategic resource and vehicle production is the result of an established industrial complex relying on region strategic advantages. On the other hand creative employments such as this studio or say the film industry are far more transient. We want such activities to thrive and grow but they are actually higher risk investments.

First: they are sought after jobs at least. And they do tend to pay well. Second: they probably do not have much strategic significance outside the industry, but the industry is large and growing. It also represents a high value-added industry that could resist the call of cheaper labour in the East. I think Toronto could very well become a significant hub in the industry, building off an already solid presence in the film industry. And Toronto could likely hold on to this industry by offering a desirable place to live and a ready supply of talent from local universities. Vancouver and Montreal already capitalize on the ease of bringing in foreign workers who could not gain access to the US.

On the other hand, I don't think the oil sands or the car industry are declining industries. Cars may cause lots of problems, but that does not mean they are going anywhere. And the oil sands will be developed, unless we manage to pull off a cheaper source of energy faster than generally expected.

 

[kettal]

This isn't about 800 jobs; this is the Richard Florida influence at work.

 

[Hank]

Most people can't afford to keep money in the corporation doing nothing.

Rich people with large investments can (or frankly, anyone with investments not in an RRSP, which is a lot of people), and they're exactly the type of people that the rules are designed for.

 

[Eug]

Rich people with large investments can (or frankly, anyone with investments not in an RRSP, which is a lot of people), and they're exactly the type of people that the rules are designed for.

Yes I know. However, my point was that many middle income types don't really understand how these things work, and think that just by incorporating they'll save lots of money.

ie. Unless you know you can keep many tens of thousands of dollars sitting around doing nothing every year, you probably shouldn't be thinking about incorporation.

The logic even applies to upper income types who have significant debts. They'd often be better off paying off those debts first.

 

[tissot]

New article http://www.gamasutra.com/view/feature/5229/building_on_conviction_inside_.php

The office is located at Bloor/Lansdowne and their first game is going to be Splinter Cell.

 

[grey]

This is a fantastic investment by the provincial government and another good example of long-term planning.

I wonder if Hudak will use this to accuse McGuinty of being soft on violent videogames that are corrupting our children, or some other bullshit?

 

[hbl33]

I don't want to hear see, think or hear another Jack Thompson crap in Canada.