Refinancing Business Debt

Refinancing can save your business thousands—if done correctly. Lower interest, better terms, or consolidated debt improve cash flow, but poor timing or incomplete records can damage credit. Mackisen CPA Auditors Montreal guides businesses through refinancing with CPA-certified financial statements and strategic planning for CRA and lender compliance.

Legal and Regulatory Framework
Bank Act (Canada) Section 462: Allows restructuring of existing credit agreements.
Income Tax Act (Canada) Section 20(1)(c): Permits interest deduction on income-earning debt.
Taxation Act (Quebec) Section 34: Requires accurate reporting of refinanced obligations.
CPA Canada Handbook Section 1500: Sets guidelines for debt modification accounting.
Financial Administration Act (Quebec): Demands documentation of debt adjustments for audit.

Key Court Decisions
Beaudoin v. The Queen (2020): Disallowed interest deductions on non-compliant refinancing.
Royal Bank v. Canada (2019): Approved restructured loans backed by CPA-verified financials.
Simard Beaudry Construction v. Canada (2019): Validated CPA certification for debt restructuring.
Lincora Group v. Quebec (2019): Penalized misclassified refinanced loans.
Tremblay Holdings v. The Queen (2021): Recognized CPA oversight as proof of transparency.

Why CRA and Banks Review Refinancing
Refinancing affects interest deductions and loan classification. CRA reviews transactions to ensure tax and financial accuracy. Mackisen CPA Auditors Montreal structures refinancing plans that comply with tax laws and maximize financial benefit.

Mackisen Strategy
Debt Assessment — Analyze interest rates and amortization terms.
Refinancing Plan — Design a structure that aligns cash flow with tax efficiency.
Financial Statement Preparation — Update balance sheet and income projections.
CPA Certification — Verify and document transactions for CRA acceptance.
Lender Negotiation — Assist in rate renegotiation and compliance review.

Powering Client Needs and Financial Relief
A Montreal distributor cut interest expenses by 30 percent after Mackisen restructured its debt. A Quebec tech firm secured better terms through CPA-verified statements. A Calgary construction business avoided CRA issues after properly documenting its loan renewal.
How Mackisen Clients Benefit

• Reduced interest and monthly payments

• Stronger credit ratings

• CPA-certified compliance for CRA and banks

• Consolidated debt visibility

Common Questions
When should I refinance? When interest rates drop or cash flow is tight.
Will CRA review my refinancing? Yes, for interest deduction accuracy.
Do I need a CPA? Essential for tax and lender compliance.
Can I refinance multiple loans? Yes—with CPA planning.
Does it affect my credit? Proper refinancing improves scores.

Why Mackisen
Mackisen CPA Auditors Montreal ensures debt refinancing reduces costs without creating compliance risks. Our CPAs align financial and tax strategies to protect profit and liquidity