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Aux Merveilleux de Fred (Marvelous by Fred)

https://auxmerveilleux.com/en/

Aux Merveilleux de Fred (Marvelous by Fred) is a renowned artisan pastry shop specializing in exquisite French pastries. The Toronto shop is in an elegant and charming setting and offers a delightful array of handcrafted pastries made with the finest ingredients. With its commitment to quality and tradition, Aux Merveilleux de Fred provides pastry lovers with a unique and delightful experience.

Sector

Food & Hospitality / Pastry shop

Unique Challenges

Operating an international franchise like Aux Merveilleux de Fred comes with its unique set of challenges. Certain contractual obligations with the non-Canadian parties can be complex to navigate. For instance, if royalties are paid to a non-resident licensor, the licensee must withhold a certain percentage of the payment as tax and remit it to the tax authorities (Canada Revenue Agency). This also applies to dividends and interest. The intricacies of withholding tax are designed to ensure that non-residents pay tax on income earned in Canada, highlighting the need for thorough understanding and a professional approach.

Payroll management, especially with part-time and seasonal staff, adds another layer of complexity. The company must ensure full compliance with labour and tax laws while providing fair compensation to all its employees. Inaccurate payroll procedures, or late submissions, can lead to penalties and audits.

AZ Accounting Solution

To efficiently manage the complexity of non-resident disbursements, AZ Accounting implemented an effective process to ensure proper record-keeping. The team established a system of accounts to track accrued taxes, interest, royalties, and future dividends. This structure prevents misclassification and provides a current overview of the company’s liabilities. As part of this process, our accountants familiarized themselves with tax treaties between Canada and relevant countries and stay updated on changes in tax laws and withholding tax regulations.

As part of the comprehensive set of services, AZ Accounting offers a robust payroll management solution. The service features automated payroll processing to reduce “human errors”, qualified payroll professionals, compliance with labour laws and regulations, wage customization, employee and government disbursements, data privacy, and annual tax filings.

Success Factors

  • Customized services tailored to the client’s unique sector and needs
  • A comprehensive set of accounting solutions provided by AZ Accounting
  • Close collaboration and document management solutions
  • Thorough research and knowledge base of tax regulation
  • Management’s receptiveness to our advice

What the Client Says

AZ is a great and reliable boutique accounting firm. They have been taking care of us since day 1 (2019) and we are more than satisfied of the work they have accomplished. It is true that challenges such as withholding taxes on payments to non-resident shareholders and payroll management can be difficult to navigate but also just the basics of accounting sometimes…

AZ have implemented an easy and comprehensive work flow with our company and it actually helped us to have a better understanding of accounting in general. We are pastry chefs and bakers, accounting can be time consuming. We all should stay focus on what we’re good at, and having the right professionals on your side can only benefit your company.

Thank you to all the A to Z team..

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