Your Property Tax Solution.
For 41 years, we’ve been at the top of our field by creating a process that generates results. Over a three year average, 95% of our clients generate profit through our tax mitigation strategies. From principals to associates, we all share the same goal of helping our clients maximize property value and minimize occupancy costs.
Your Property Tax Solution.
For 40 years, we’ve been at the top of our field by creating a process that generates results. Over a three year average, 95% of our clients generate profit through our tax mitigation strategies. From principals to associates, we all share the same goal of helping our clients maximize property value and minimize occupancy costs.
Sectors We Serve
Case Study 1: Hotel and Convention Centre
Issue: The client, a national hotel operator, acquired the property in 2005. Subsequent to the sale, the client built a limited service, all-suites hotel.
Danger: MPAC’s returned assessment was based on: Pro-forma valuation of a full service hotel including F&B and rental revenue, of limited service hotel, and convention centre...
Why AEC: Our initial review confirmed that rental revenue in the pro-forma was the revenue from leasing convention centre as the client was not an operator.
Client Success: We were successful in persuading MPAC to properly account for revenue generated by convention centre. This resulted in significant reduction of a full service hotel component.
Case Study 2: Last Advisor Missed Savings
Issue: The client is a co-operative entity that occupies a large portion of a British Columbia property. A portion of the property may qualify for a re-classification into a lower...
Danger: Incumbent provider had historically completed 'desktop reviews' that didn't include inspecting the property or obtaining information from client to understand...
Why AEC: Using AEC's Tax Information Principle(™), we assigned a project manager to determine a course of action that produces the best possible result for the client.
Client Success: Within 7 months of being engaged, we successfully negotiated a settlement at PARB level realizing a refund of in excess of $50k for our client.
Case Study 3: Determining Fair Market Rent
Issue: A few years after completion of redevelopment project the developer sold their leasehold interest in the property. City filed an appeal to increase the assessed value.
Danger: AEC became involved when our client approached one of our partner law firms, with a request to review a settlement proposed by another consulting firm.
Why AEC: We took a strong position that Assessment Act required the valuation of the fee simple interest. AEC had to get all parties to understand how to determine fair market rents.
Client Success: The appeals on this head office property settled recently after only the first week of hearings were complete.
Case Study 4: Resolved without a Hearing
Issue: Client occupies a large distribution warehouse. The property was appealed as a protective measure to ensure that it was fairly and equitably assessed with similar properties...
Danger: The company needed to ensure the savings were not eroded over time by increases above the normal. Raising the profile of this property to the assessor's attention is...
Why AEC: We were able to do an initial review that would mitigate any potential dangers. Our evaluation of each of these components allowed us to uncover the hidden tax savings that...
Client Success: Upon reviewing the comparable assessments we determined that the property was unfairly assessed. Resulted in a large reduction in value and tax savings.
Case Study 1: Value for Built-to-Suit Property
Issue: Receiver appointed sell assets associated with tool and die facility. Sold machinery + equipment to liquidator who occupied premises for purposes of cataloguing equipment.
Danger: Subject property was purpose built by previous occupant which suggests that value in use will not be recovered in "exchange" of market place.
Why AEC: AEC achieved the best case scenario for the client wherein their objectives of selling their machinery & equipment to utilize the real estate with appropriate valuation.
Client Success: Subject sells for 50% of replacement cost to owner / user where subject is going to be altered for retail distribution.
Case Study 2: Industrial Facility Class Change
Issue: This service engagement related to a light manufacturing operation that cleaned, repaired and distributed leased uniforms and linens.
Danger: There was an initial hunch that the classification of the property was incorrect and had not been adequately reviewed and/or properly interpreted in the past.
Why AEC: This specific jurisdiction had instituted a rate reduction for Light Industrial properties to reduce the amount of tax collected for Education purposes.
Client Success: We were successful at the second level of appeal on this engagement and subsequently the decision has been appealed further for judicial review by the assessment authority.
Case Study 3: Landmark Forestry Decision
Issue: As a result of the economic changes in the Canadian forest industry by 2008 only a portion of the entire facility was used to produce pulp, the remainder of the sawmill and...
Danger: For the 2008 base year, the assessor stated that the significant number of machine and mill closures, if anything increased the value of those mills still in operations and...
Why AEC: Reductions like this require a broad range of expertise and a partnership between the client, the consultant and the legal counsel. They also require persistence and...
Client Success: The Assessment Review Board reduced the assessment from $50,334,000 to $14,041,000 or a 72% reduction -- a landmark case in Canadian property tax and valuation.
Case Study 4: Light Industrial Class Change
Issue: This industrial client has a British Columbia property classified as Class 6 - Business / Other. The issue was whether parts of the properties should be classified as Class 6...
Danger: AEC won the initial appeal to the Property Assessment Appeal Board (PAAB). However, BC Assessment did not agree and pursued further appeal to a stated case on point of law....
Why AEC: AEC, through this case, pioneered the approach that the client's facility should be considered Light Industry, and as such, a lower tax class rate should be applied....
Client Success: The client's subject property has been deemed as Light Industrial and will continue to receive tax savings associated with the lower tax class rate.
Case Study 1: Oil & Gas Appeals Stalled
Issue: AEC is retained to review and advise on long outstanding assessment appeals from 2002 relating to a number of plants recently acquired by our client.
Danger: Parties to the appeal are at a stalemate, each year the risk grows both to the municipality and the taxpayer.
Why AEC: AEC has a reputation for balanced analysis. AEC was able to leverage our expertise in the area of Oil and Gas assets and pursue a fair and reasonable conclusion.
Client Success: The risks and dangers associated with longstanding open appeals are concluded through mutual agreement between all stakeholders.
Case Study 2: Compliance/Year End Reporting
Issue: AEC is retained to represent client on all matters of assessment and taxation. A detailed review of all assets and their related assessments is required.
Danger: As the company has grown, the existing and new assets have been merged together leading to inflated assessment values and they have forfeited their right to appeal.
Why AEC: AEC has a reputation for strong relationships and reporting to clients and the assessment community.
Client Success: Client’s current assets are updated from an assessment perspective, assessments are verified, reduced where appropriate and inventory and status are detailed.
Case Study 1: Powerplant Assessment
Issue: AEC is retained to determine the fairness and correctness of property assessment decades after the original cost records are lost.
Danger: Over many decades the rules for assessment have changed and the original capital reports used to determine the assessments both for buildings and equipment are lost.
Why AEC: AEC has a reputation for detailed machinery and equipment and building analysis. AEC also has expertise in detailed insurance valuations.
Client Success: AEC’s detailed isolation of the components of the complex generation asset results in a re-allocation of the buildings and equipment to more favourable tax classifications.Read More...
Case Study 2: Increasing Demands on Clients
Issue: AEC’s Energy clients constantly have to deal with changes in legislation and a higher demand for meticulous data associated with the various components of their business.
Danger: The ATM process for an Energy client is an intricate one. This means that AEC’s Energy team is constantly challenged to keep up with the overwhelming amount of information.
Why AEC: A key contributor to the 2012 success was AEC’s exclusive Canadian rights to the ONESOURCE Property Tax™ (OPT) software system.
Client Success: AEC’s Calgary-based Assessment & Tax Management (ATM) team proved that 2012 was a productive and efficient year.Read More...
Case Study 3: Making Power Competitive
Issue: An AEC Client became concerned when it noticed significant unexpected and unusual increases in its assessments. Assessment values and corresponding taxes were climbing...
Danger: If the unprecedented assessment inflation continued, property tax – historically a minor expense to be properly tracked and paid – would soon have a material effect on profit...
Why AEC: With innovation, and the technical strength and inclination to approach problems from unconventional directions, AEC was recognized as possessing the capability to both find...
Client Success: AEC identified that the historic approach to assessing maintenance and other non-taxable capital spending had undergone a fundamental change. AEC also identified that assets...Read More...
Case Study 1: Big-Box Tenant Change Mgr
Issue: Large, big box tenant in regional shopping centre. Asset manager appointed a new property manager which resulted in an adjustment in tax allocation methodology.
Danger: Change in allocation method was discovered by AEC. Review of current and prior years indicated substantial over-charge situation.
Why AEC: Analysis was developed with appropriate back-up and support from lease documentation and relevant legislation.
Client Success: Refunds in excess of $800k identified for recovery.Read More...
Case Study 2: National Retailer
Issue: Client has completed a recent acquisition adding 300 leases to it's national portfolio of standalone retail, distribution, and office space properties.
Danger: Client is struggling with implementation of upgrades to lease administration software. Client does not have time, resources or expertise to thoroughly review and audit...
Why AEC: AEC access to client’s existing lease administration platform has enhanced our ability to get to the data with minimal investment by client personnel.
Client Success: Tax penalties arising from late payment issues has been reduced to less than $5,000 on payments in excess of $100M.Read More...
Our Latest Blogs
- Market Value Assessment in Ontario...really ?
- AEC Response to Calgary Councillor Gian-Carlo Carra on the Issue of Taxes
- AEC Win: Molson Toronto Brewery
- AEC Win: Edmonton East (Capilano) Shopping Centres
- AEC Supports Seneca College and the Future of Real Property Administration
- Fraser Institute Report: "The Compliance & Administrative Costs of Taxation in Canada 2013"
Our Latest Tweets
- "Ontario small businesses pay more than their fair share of property taxes" - Canadian Fed. of Independent Business http://t.co/xIPoDLwjwl — 1 week 5 days ago
- Bob Langlois asks: "What if You Knew What was Coming?" ... as it pertains to listening to your team and your clients. http://t.co/vXEhL4udll — 2 weeks 8 hours ago
- Ontario Real Estate Law Developments: "MPAC Working Papers - Should They be Used or Not?" re: tenant tax allocations http://t.co/zgX5Omnz5t — 2 weeks 6 days ago