Download June 2012 issue - Institute of Chartered Accountants of BC
Download June 2012 issue - Institute of Chartered Accountants of BC
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<strong>June</strong>/Summer <strong>2012</strong><br />
Celebrating<br />
achievement<br />
On the Cover<br />
Meet this year’s recipients<br />
<strong>of</strong> the Early Achievement,<br />
Community Service, and<br />
Ritchie McCloy Awards<br />
In this <strong>issue</strong><br />
Unification update<br />
Regional Check-Up summary<br />
Status report on transfer pricing<br />
Practice review program update
A voice for women<br />
in the pr<strong>of</strong>ession<br />
Go to www.cica.ca/women<br />
and join the conversation.<br />
The CICA's Women's Leadership Council is a voice for women CAs. We act as a catalyst for change, promoting<br />
a work environment within the <strong>Chartered</strong> Accountancy pr<strong>of</strong>ession that provides for the retention, promotion<br />
and advancement <strong>of</strong> women to positions <strong>of</strong> leadership without bias, unintended or otherwise, based on gender.<br />
We provide resources and education to further women's advancement in the CA pr<strong>of</strong>ession.
contents<br />
On the Cover<br />
10<br />
Meet the Early<br />
Achievement Award<br />
Winners<br />
6<br />
Unification Update<br />
14<br />
Community Service<br />
Awards<br />
20<br />
Ritchie W. McCloy<br />
Award<br />
22<br />
Regional Check-Up<br />
summary<br />
24<br />
Making the Most <strong>of</strong><br />
Your Retirement<br />
4 Notes from the President<br />
A final update, and a thank<br />
you...<br />
26 Tax Traps & Tips<br />
Transfer pricing – latest<br />
status report<br />
28 Financial Facts &<br />
Money Matters<br />
Wealth management –<br />
discover what you don’t<br />
know about your clients<br />
30 PD News<br />
Spring/summer PD<br />
highlights<br />
32 Plugged In<br />
News for and about members<br />
& students<br />
Member announcements<br />
Event notice<br />
In memoriam<br />
Notice to all <strong>BC</strong> members<br />
Notice to all Yukon<br />
members<br />
PRL notice<br />
38 For the Pr<strong>of</strong>ession<br />
An update on national<br />
harmony in practice review<br />
programs<br />
Want to get<br />
the word out?<br />
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Email:<br />
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Cover image: Fuse/Getty Images
<strong>June</strong>/Summer <strong>2012</strong>, No.504<br />
Published eight times annually by the<br />
<strong>Institute</strong> <strong>of</strong> <strong>Chartered</strong> <strong>Accountants</strong><br />
<strong>of</strong> British Columbia.<br />
Editor<br />
Michelle McRae<br />
A final update,<br />
and a thank you...<br />
Design<br />
Blindfolio Design<br />
604-761-9212<br />
Advertising<br />
Advertising In Print<br />
Phone: 604-681-1811<br />
Fax: 604-681-0456<br />
Director <strong>of</strong> External Affairs<br />
Kerri Brkich Wilcox<br />
<strong>Institute</strong> Council<br />
Lenard F. Boggio, FCA<br />
President<br />
Gordon Holloway, FCA<br />
1st Vice-President<br />
Karen Christiansen, CA<br />
2nd Vice-President<br />
Michael Macdonell, CA<br />
Treasurer<br />
Rosemary Anderson, CA<br />
Olin Anton, CA<br />
Barbara Brink<br />
Don Coulter, CA<br />
John Crawford, CA<br />
John Gingell, CA<br />
Andrew (Sandy) Hilton, CA<br />
David Hughes<br />
Roland Krueger<br />
Dan Little, FCA<br />
John Mackenzie, CA<br />
Sheila Nelson, CA<br />
Ben Sander, FCA<br />
Eric Watt, CA<br />
Chief Executive Officer<br />
Richard Rees, FCA<br />
Beyond Numbers is printed in British Columbia and<br />
mailed eight times annually to more than 9,000<br />
chartered accountants and more than 1,800 CA students<br />
in public practice, industry, education, and government<br />
service throughout <strong>BC</strong>, Canada, and other countries.<br />
Beyond Numbers’ editorial and business <strong>of</strong>fices<br />
are located at:<br />
Suite 500, One Bentall Centre, 505 Burrard St., Box 22<br />
Vancouver, <strong>BC</strong> V7X 1M4<br />
Phone: 604-681-3264<br />
Toll-free in <strong>BC</strong>: 1-800-663-2677<br />
Fax: 604-681-1523<br />
Internet: www.ica.bc.ca<br />
Opinions expressed are not necessarily<br />
endorsed by the <strong>Institute</strong>.<br />
Beyond Numbers supports the CA pr<strong>of</strong>ession in <strong>BC</strong><br />
by sharing news from the <strong>Institute</strong> and news about<br />
members, by sharing viewpoints on <strong>issue</strong>s <strong>of</strong> specific<br />
interest to members, and by promoting member<br />
involvement in <strong>Institute</strong> activities.<br />
Publications Mail Agreement No: 40062742<br />
Notes from the President<br />
In my final column as president, I would like to provide one last update on the<br />
matter that Council and <strong>Institute</strong> staff have been busy with for the past year:<br />
the unification initiative.<br />
As you’re likely aware, Council’s draft report to government with<br />
recommendations was made available to members on April 27, and a members’<br />
vote was open from May 1-18. Through that vote, members provided their views<br />
on six important questions that were based on the report recommendations.<br />
At the time <strong>of</strong> this writing, the preliminary results indicate that over 4,800 <strong>BC</strong><br />
CAs voted, representing 43% <strong>of</strong> the membership—the highest participation level<br />
in decades; 52% <strong>of</strong> these respondents support the unification <strong>of</strong> the existing<br />
accounting Acts into one Act; 9% believe that elected Council should decide;<br />
and 39% do not support unification.*<br />
Given the amount <strong>of</strong> consultation that was undertaken over the last year, and<br />
the results <strong>of</strong> the earlier survey, these results did not come as a surprise. We<br />
now believe that we have a very clear picture <strong>of</strong> how the membership views the<br />
unification initiative.<br />
Looking ahead, your next Council, which will be elected in <strong>June</strong>, has a mandate<br />
to continue unification discussions in <strong>BC</strong> as part <strong>of</strong> a national initiative. It’s<br />
important to note that while the vote is a significant milestone, it is not the end<br />
<strong>of</strong> the unification process. Council will continue working on your behalf and on<br />
behalf <strong>of</strong> the public and our pr<strong>of</strong>ession, monitoring national developments and<br />
deliberating on next steps.<br />
I would like to thank all the members who participated in the unification<br />
initiative through meetings, our surveys, and the vote. Your feedback provided<br />
Council with invaluable insight in our decision-making process.<br />
I would also like to thank my fellow Council members—particularly the<br />
incoming president, Gord Holloway, FCA—for their dedication and support<br />
during my time on Council. And I would like to extend a special thanks to<br />
Richard Rees and his team at the <strong>Institute</strong> who worked especially hard this year<br />
in support <strong>of</strong> the initiative. I am incredibly proud <strong>of</strong> the role I was able to play in<br />
shaping the future <strong>of</strong> our pr<strong>of</strong>ession, and honoured to have had the opportunity<br />
to serve as your president over this past year.<br />
—Len Boggio, FCA<br />
*Not all paper ballots had been received at the time <strong>of</strong> this writing; therefore, they were<br />
not counted in this total. The full vote results will be posted online at www.ica.bc.ca as<br />
soon as they are available.<br />
4 ica.bc.ca <strong>June</strong>/Summer <strong>2012</strong>
Left to Right:<br />
Vern Blair, Cheryl Shearer, Robert D. Mackay, Kiu Ghanavizchian, Chad Rutquist, Gary M. W. Mynett,<br />
Chris Halsey-Brandt, Andy Shaw, Jeff P. Matthews, Farida Sukhia<br />
Blair Mackay Mynett Valuations Inc.<br />
is the leading independent business valuation and litigation support practice in British<br />
Columbia. Our practice focus is on business valuations, mergers and acquisitions,<br />
economic loss claims, forensic accounting and other litigation accounting matters.<br />
We can be part <strong>of</strong> your team, providing you with the experience your clients require.<br />
Suite 1100<br />
1177 West Hastings Street<br />
Vancouver, <strong>BC</strong>, V6E 4T5<br />
Telephone: 604.687.4544<br />
Facsimile: 604.687.4577<br />
www.bmmvaluations.com<br />
Vern Blair: 604.697.5276<br />
Rob Mackay: 604.697.5201<br />
Gary Mynett: 604.697.5202<br />
Andy Shaw: 604.697.5212<br />
Jeff Matthews: 604.697.5203<br />
Cheryl Shearer: 604.697.5293<br />
Farida Sukhia: 604.697.5271<br />
Chris Halsey-Brandt: 604.697.5294<br />
Kiu Ghanavizchian: 604.697.5297<br />
Chad Rutquist: 604.697.5283
Unification Update: Members Vote to<br />
Endorse Council’s Recommendations<br />
By Richard Rees, FCA<br />
At the time <strong>of</strong> this writing, the ICA<strong>BC</strong><br />
unification vote had just closed, and<br />
we now know that the majority <strong>of</strong> <strong>BC</strong><br />
CAs voted to endorse Council’s draft recommendations<br />
to the provincial government. 1 I’d<br />
like to begin by thanking everyone involved<br />
in the unification initiative—a challenging and<br />
emotional <strong>issue</strong> that is complex and multidimensional.<br />
Over the last year, we undertook the largest<br />
outreach effort to date on any <strong>Institute</strong> initiative.<br />
Our objective was to fulfill our dual mandate <strong>of</strong><br />
representing both the public, and our members’<br />
interests; to engage, inform, and establish the<br />
views <strong>of</strong> members and stakeholders on unification;<br />
and ultimately, to ask members to vote on<br />
Council’s draft recommendations.<br />
Through this outreach, Council President Len<br />
Boggio and I have enjoyed talking to you. We’ve<br />
heard a diversity <strong>of</strong> opinions, both for and<br />
against change, and the fact that that so many<br />
CAs took an interest in the unification initiative<br />
helped us understand, and take into account,<br />
the memberships’ perspective throughout these<br />
discussions.<br />
From my perspective, this vote is not about<br />
having a “winning” or “losing” side; rather, it’s<br />
about whether or not our recommendations are<br />
appropriate and truly reflective <strong>of</strong> what we heard<br />
during the consultation: In essence, are we doing<br />
what we should to support Council, represent<br />
members, and fulfill our public interest mandate.<br />
Looking at the outcome, the preliminary results<br />
indicated over 4,800 <strong>BC</strong> CAs voted, representing<br />
43% <strong>of</strong> the membership—an excellent response<br />
rate and the largest in recent memory. Of those<br />
who voted, 52% support the unification <strong>of</strong> the<br />
existing accounting Acts into one Act, and 9%<br />
believe that elected Council should decide. Given<br />
that Council has stated that it unanimously<br />
supports unification as part <strong>of</strong> a national initiative,<br />
this equates to 61% supporting unification.<br />
39% <strong>of</strong> members who voted do not support<br />
unification.<br />
1<br />
Not all paper ballots had been received at the time <strong>of</strong> this writing; therefore, they were not counted in this total. The full vote results will be posted online<br />
at www.ica.bc.ca as soon as they are available.<br />
6 ica.bc.ca <strong>June</strong>/Summer <strong>2012</strong>
Council will continue working with those accounting bodies that are supportive <strong>of</strong> the unification<br />
initiative and will also continue to play a leadership role at the national level on such <strong>issue</strong>s as certification<br />
and uniform regulation—areas that we know are critical to our members as we participate in the process<br />
going forward.<br />
Looking at unification across Canada, the situation is fluid:<br />
• In <strong>BC</strong>, our colleagues at CMA<strong>BC</strong> have released member survey results that are overwhelmingly<br />
supportive <strong>of</strong> unification (91%), and they remain committed to the goal <strong>of</strong> a unified accounting<br />
pr<strong>of</strong>ession, and we know our own members endorse Council’s recommendation to unify as part <strong>of</strong> a<br />
national initiative;<br />
• In Alberta, the CMA and CGA bodies have released a provincial merger proposal;<br />
• In Saskatchewan, all three bodies have released a provincial merger proposal;<br />
• In Manitoba, 59.5% <strong>of</strong> CAs voted in favour <strong>of</strong> unifying with the CMA body, which also received<br />
endorsement from its members;<br />
• In Ontario, the CAs have reaffirmed their commitment to unification, while the CGA and CMA<br />
bodies have withdrawn from discussions;<br />
• In Quebec, the CPA legislation has been enacted, and there is now one accounting body, ending the<br />
status quo for Canada’s accounting pr<strong>of</strong>ession; and<br />
• In the Maritime provinces and northern territories, unification discussions are ongoing.<br />
We have stated all along that this process would be complicated, and as discussions have progressed,<br />
some bodies have become uncomfortable with the process and have withdrawn.<br />
The largest ones are CA Alberta, CMA Ontario, and CGA-Ontario. As we go to press, we have just<br />
been notified that CGA-<strong>BC</strong> is also withdrawing from discussions, citing the uncertainty in Ontario,<br />
and it is likely that other, smaller CGA bodies may follow their lead.<br />
While this is incredibly disappointing—especially given the level <strong>of</strong> support from <strong>BC</strong> CGA members<br />
(with 84% supportive, 11% neutral, and 5% not supportive)—as we move from concept to action,<br />
it is inevitable that the volume <strong>of</strong> <strong>issue</strong>s and concerns will increase. This jockeying for position is<br />
absolutely par for the course, especially given the divergent interests at the table.<br />
However, it is important to note that even with these organizations withdrawing, there are still<br />
accounting bodies in every jurisdiction in Canada participating in unification discussions. These<br />
participating bodies represent the majority <strong>of</strong> pr<strong>of</strong>essional accountants in Canada and include all <strong>of</strong> the<br />
CA <strong>Institute</strong>s, with the exception <strong>of</strong> Alberta. The Alberta CA <strong>Institute</strong> continues to say they will not<br />
walk away from their partners in the CA pr<strong>of</strong>ession.<br />
Moving forward, at the core <strong>of</strong> this initiative is the premise that the pr<strong>of</strong>ession is better <strong>of</strong>f<br />
recommending a solution rather than having one imposed by provincial governments. In Quebec, the<br />
government effectively facilitated unification, and this encouragement could happen elsewhere. In<br />
addition, the Quebec legislation has established good precedents that should be emulated and built<br />
upon across Canada.<br />
A significant step is the implementation <strong>of</strong> the new CPA certification program in 2013. Given that<br />
we’ve heard from many CA Training Offices that they want a consistent national program, and<br />
Quebec’s CPA body will use the new certification program that is being developed, it is very likely that<br />
the new program will be implemented across the country. As such, it is likely to be the only<br />
program that can deliver a national designation. We intend to see this program <strong>of</strong>fered in <strong>BC</strong> in<br />
conjunction with the other provincial bodies who can commit to unification.<br />
At present, I remain optimistic that we will ultimately be able to make a strong recommendation to<br />
the <strong>BC</strong> government around potential unification and enhanced uniform regulation in <strong>BC</strong>. Given the<br />
support in each body’s respective vote and surveys, I would expect the government will be prepared to<br />
work with us.<br />
The <strong>BC</strong> CA vote has established that there is a consensus and support for the work <strong>of</strong> Council, who<br />
have positioned <strong>BC</strong> to align with the dominant and pre-eminent pr<strong>of</strong>ession across the country—<br />
currently, those accounting bodies working towards unification.<br />
The next few months are likely to be challenging, and I do not know when it will be the appropriate<br />
time to make a recommendation to the <strong>BC</strong> government. We will continue to keep members informed<br />
<strong>of</strong> developments, and we <strong>of</strong>fer thanks, again, to everyone who has contributed to the process.<br />
Richard Rees , FCA, is the CEO <strong>of</strong> the <strong>Institute</strong> <strong>of</strong> <strong>Chartered</strong> <strong>Accountants</strong> <strong>of</strong> <strong>BC</strong>.<br />
Top-line vote results*<br />
Q1: Do you support a common<br />
regulatory framework for all<br />
pr<strong>of</strong>essional accountants that<br />
reflects current high standards?<br />
Yes: 63% No: 37%<br />
Q2: Do you support a new<br />
rigorous internationally<br />
recognized pr<strong>of</strong>essional<br />
accounting certification program<br />
that meets the high standards <strong>of</strong><br />
the existing programs?<br />
Yes: 63% No: 37%<br />
Q3: Do you support the<br />
pr<strong>of</strong>ession <strong>of</strong>fering a separate<br />
intermediate certificate program<br />
for those who aspire to a career<br />
in accountancy but choose not to<br />
complete the full <strong>Chartered</strong><br />
Pr<strong>of</strong>essional Accountant<br />
program?<br />
Yes: 58% No: 42%<br />
Q4: Do you support granting a<br />
new common designation<br />
(<strong>Chartered</strong> Pr<strong>of</strong>essional<br />
Accountant)?<br />
Yes: 52% No: 48%<br />
Q5: Do you support mandatory<br />
use <strong>of</strong> legacy designations (i.e.:<br />
CA, CGA, CMA) in conjunction<br />
with the new <strong>Chartered</strong><br />
Pr<strong>of</strong>essional Accountant<br />
designation for a period <strong>of</strong> 10<br />
years, with optional use <strong>of</strong> the<br />
legacy designations with the CPA<br />
thereafter?<br />
Yes: 74% No: 26%<br />
Q6: Do you support the<br />
unification <strong>of</strong> the current existing<br />
accounting Acts into one Act as<br />
part <strong>of</strong> a national initiative across<br />
Canada?<br />
Yes: 52%<br />
Elected Council Should Decide: 9%<br />
No: 39%<br />
*As at May 22, <strong>2012</strong> (Not all paper<br />
ballots had been received at the<br />
time <strong>of</strong> this writing; therefore,<br />
they were not counted in this<br />
total. The full vote results will be<br />
posted online at www.ica.bc.ca as<br />
soon as they are available.)<br />
<strong>June</strong>/Summer <strong>2012</strong> ica.bc.ca 7
Recommendations contained in the draft report to the<br />
<strong>BC</strong> government<br />
The leadership <strong>of</strong> <strong>BC</strong>’s CAs recommend to the <strong>BC</strong> provincial government that current provincial accounting<br />
regulations be modernized and streamlined. Specifically, we recommend that, as part <strong>of</strong> a broader, national initiative<br />
that will better protect the public interest and better serve British Columbia and Canada’s economic interests both<br />
domestically and abroad, the government:<br />
• Unify the three current existing accounting Acts into one.<br />
> The benefit <strong>of</strong> this change is a robust, consistent, regulatory environment that will provide protection for<br />
consumers and other users <strong>of</strong> accounting services.<br />
> Another benefit <strong>of</strong> this change would be the establishment <strong>of</strong> a single governing body that would continue to<br />
provide the existing mandates <strong>of</strong> self-regulation, education, and advocacy for all pr<strong>of</strong>essional accountants in <strong>BC</strong>.<br />
We recommend that the new Act continue the current high standards <strong>of</strong> the accounting pr<strong>of</strong>ession by empowering<br />
the new body to:<br />
• Create and implement a new, common regulatory framework, including codes <strong>of</strong> conduct, practice inspection,<br />
disciplinary processes, and an effective and consistent public accounting regime. This would be developed in<br />
concert with other Canadian jurisdictions.<br />
> The benefit <strong>of</strong> this change would be a regulatory framework that is nationally consistent, which facilitates labour<br />
mobility and inter-jurisdictional business.<br />
• Create a new, rigorous, internationally recognized pr<strong>of</strong>essional accounting certification program that meets the<br />
high standards <strong>of</strong> the existing programs. In addition, a separate certificate program will be <strong>of</strong>fered for those who<br />
aspire to a career in accountancy but choose not to complete the full pr<strong>of</strong>essional accounting program.<br />
> The benefit <strong>of</strong> this change would be a harmonized training and certification program for all pr<strong>of</strong>essional<br />
accountants in <strong>BC</strong>.<br />
• Grant a new common designation, <strong>Chartered</strong> Pr<strong>of</strong>essional Accountant (CPA). During the transition, existing<br />
members <strong>of</strong> each accounting body will be required to display their legacy designations (CA, CMA, CGA) in<br />
conjunction with the CPA designation for a period <strong>of</strong> 10 years, with optional use <strong>of</strong> the legacy designations with<br />
CPA thereafter.<br />
> The benefit <strong>of</strong> this change would be the evolution to a single designation, CPA, which would align <strong>BC</strong> and the<br />
rest <strong>of</strong> Canada with the globally dominant designation that is recognized by our largest trading partners.<br />
In addition, we recommend that the new Act provide greater protection <strong>of</strong> the public by:<br />
• Enabling the body to oversee undesignated and unregulated individuals providing public accounting services in <strong>BC</strong>.<br />
> The benefit <strong>of</strong> this change would be greater protection <strong>of</strong> the public interest and would align <strong>BC</strong> with many<br />
jurisdictions in North America, where there are regulations in place regarding the practice <strong>of</strong> public accounting,<br />
including the new CPA legislation introduced in Quebec.<br />
In summary, with government’s support, unification <strong>of</strong> the province’s three<br />
accounting Acts, consistent with other provinces, could result in a common<br />
regulatory structure affecting approximately 26,000 CPAs in <strong>BC</strong>, as well as 2,000<br />
firms that practise public accounting—all <strong>of</strong> which would become CPA firms.<br />
These firms employ well over 10,000 pr<strong>of</strong>essional accountants and others.<br />
8 ica.bc.ca <strong>June</strong>/Summer <strong>2012</strong>
The ICA<strong>BC</strong> Member Recognition Program<br />
Some <strong>of</strong> our 2010/2011 award winners, photographed by Kent Kallberg <strong>of</strong> Kent Kallberg Studios Ltd.<br />
Do you know a CA who’s gone the extra mile in the community, made an exemplary contribution<br />
to the pr<strong>of</strong>ession, or achieved outstanding success early in his or her career? Acknowledge their<br />
achievements by nominating them for an ICA<strong>BC</strong> award!<br />
You can nominate a colleague for:<br />
Fellowship (FCA)<br />
Lifetime Achievement<br />
The Honorary CA Designation<br />
Nomination deadlines:<br />
• Fellowship, Lifetime Achievement, Honorary CA:<br />
October 15, <strong>2012</strong><br />
Nomination forms<br />
Forms are available on the <strong>Institute</strong> website at www.ica.bc.ca under Member Centre/Forms and<br />
Dues/Member Recognition/Nomination Forms.<br />
<strong>June</strong>/Summer <strong>2012</strong> ica.bc.ca 9
On the Cover<br />
Awards for Early Achievement:<br />
Bob Sanghera, CA & Mike Stubbing, CA<br />
By Jennifer Weintraub<br />
Every year the <strong>Institute</strong> grants awards<br />
for early achievement to CAs who<br />
have made significant pr<strong>of</strong>essional<br />
accomplishments within ten years <strong>of</strong> earning the<br />
CA designation. This year’s award recipients are:<br />
Bob Sanghera, CA, and Mike Stubbing, CA.<br />
Balraj (Bob) Sanghera, CA<br />
Bob Sanghera grew up in Lillooet, <strong>BC</strong>, with his<br />
parents and older brother, Barinder. In 1990,<br />
the family moved to Richmond, the city Bob<br />
still calls home to this day.<br />
“My brother and I were close growing up, and<br />
I ended up following in his footsteps,” he says. “I<br />
entered the commerce program at the University<br />
<strong>of</strong> British Columbia two years after he did.”<br />
While Barinder went on to become a lawyer,<br />
Bob decided to pursue a career in business. After<br />
graduating from U<strong>BC</strong> in 1997, he took a job<br />
with the Canada Customs & Revenue Agency,<br />
initially as a customs <strong>of</strong>ficer. After his brief stint<br />
in government—first with the CCRA and later<br />
with the CRA—Bob decided to pursue his CA<br />
designation.<br />
“I was ready for a change,” he remembers,<br />
“and I’d been told that having a CA would open<br />
a lot <strong>of</strong> doors in the business world.”<br />
After landing a position with Ernst & Young<br />
in Vancouver, Bob started his articles in January<br />
<strong>of</strong> 2000. He qualified as a CA in 2002, and was<br />
promoted to manager just one year later.<br />
While working at Ernst & Young, Bob was<br />
asked to join a four-person committee that was<br />
tasked with creating the initial curriculum for a<br />
development program for the firm’s tax staff.<br />
This curriculum included both theoretical and<br />
practical components, and served as a recruiting<br />
tool and career track guide for all tax staff<br />
employees at the firm.<br />
“It was a great experience for me to assist in<br />
establishing a work curriculum and career track<br />
that could be used by the firm,” he says. “I was<br />
fortunate to be able to get involved in such a big<br />
project so early on in my career.”<br />
10 ica.bc.ca <strong>June</strong>/Summer <strong>2012</strong>
In December 2003, Bob made the decision to<br />
join Smythe Ratcliffe as a manager.<br />
“This was an exciting move for me,” he explains,<br />
“because as it was an opportunity to do<br />
tax planning and work closely with a wide<br />
variety <strong>of</strong> clients—particularly family-owned<br />
businesses.”<br />
Bob quickly established himself as a leader at<br />
Smythe Ratcliffe. He was promoted to senior<br />
manager in 2006, and was invited to become a<br />
tax partner in 2009. Currently, he’s the practice<br />
group leader <strong>of</strong> the firm’s tax practice.<br />
“The most rewarding part <strong>of</strong> my job is the<br />
variety <strong>of</strong> work—that, and the people,” he says.<br />
“Each day, I’m dealing with different tasks, new<br />
<strong>issue</strong>s, new challenges. And I work with incredibly<br />
bright people here. The relationships I’ve built<br />
are so rewarding.”<br />
As for his biggest challenge, Bob points to his<br />
schedule.<br />
“Juggling everything is challenging,” he says.<br />
“It’s a demanding, deadline-oriented pr<strong>of</strong>ession,<br />
and you’re always on the go. It’s important to<br />
balance work and family needs. Taking my<br />
daughters to their activities and spending time<br />
with my family—these are things you just need<br />
to make a priority.”<br />
Despite the various demands for his time and<br />
attention, Bob has been giving back to the CA<br />
pr<strong>of</strong>ession for almost 10 years. He joined the<br />
ICA<strong>BC</strong>’s Young CA Forum soon after earning<br />
his designation, and was an active member <strong>of</strong><br />
the group for several years.<br />
“This was a great opportunity for me to provide<br />
a younger CA prospective and to give back to<br />
the pr<strong>of</strong>ession,” he says. “There are many <strong>issue</strong>s<br />
relevant to new CAs, and it’s important for them<br />
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<strong>June</strong>/Summer <strong>2012</strong> ica.bc.ca 11
to have a voice at the <strong>Institute</strong>.”<br />
Currently, Bob serves as a member <strong>of</strong> the<br />
ICA<strong>BC</strong>/CRA Liaison Committee, and as chair<br />
<strong>of</strong> the PKF Canadian Tax Interest Group, which<br />
consists <strong>of</strong> 12 associated firms across Canada. In<br />
this latter role, he oversees monthly conference<br />
calls and organizes two annual tax conferences.<br />
Also a strong believer in giving back to the<br />
community, Bob has served on the cabinet <strong>of</strong><br />
the <strong>BC</strong> Children’s Hospital Night <strong>of</strong> Miracles<br />
Gala Dinner for the past three years. The Night<br />
<strong>of</strong> Miracles Gala Dinner is an annual event that<br />
targets the South Asian Community and raises<br />
approximately $300,000 for <strong>BC</strong> Children’s<br />
Hospital each year. The cabinet is committed to<br />
raising $3 million to support the construction <strong>of</strong><br />
an international radiology room in the new <strong>BC</strong><br />
Children’s Hospital.<br />
“There was an opportunity to join the cabinet,<br />
and it was an easy decision for me to make,” Bob<br />
says. “We were invited to go on a tour <strong>of</strong> the<br />
hospital, and got the chance to talk to the doctors,<br />
as well as to the mother <strong>of</strong> a heart surgery patient<br />
who was just a baby. As a parent, it’s easy to take<br />
for granted having healthy children. This is a<br />
great cause, and it’s important that the doctors<br />
and the patients have the resources they need.”<br />
Bob also supports the Vancouver Board <strong>of</strong><br />
Trade’s Leaders <strong>of</strong> Tomorrow (LOT) Program,<br />
and in 2010-2011, he mentored a business<br />
student who ended up entering the CA program.<br />
“I think finding a good mentor is very critical<br />
to being successful,” he says. “I’ve been fortunate<br />
to have great mentors throughout my career,<br />
and the LOT Program presented me with a<br />
great opportunity to give back.”<br />
As for the Early Achievement Award, Bob says<br />
it came as a complete surprise.<br />
“I’m very grateful and happy, but I was<br />
certainly not expecting this,” he <strong>of</strong>fers. “I don’t<br />
think I’ve done anything that other people don’t<br />
do. I also just feel fortunate to have great colleagues<br />
who would think to nominate me. It is<br />
very humbling to receive this award.”<br />
Bob credits much <strong>of</strong> his success to his family,<br />
friends, and colleagues.<br />
“My parents, Balwant and Baldev Sanghera,<br />
immigrated to Canada from India, and were<br />
great role models,” he says. “They instilled in me<br />
the values <strong>of</strong> education and hard work. Without<br />
them, there’s no way I’d be where I am today.<br />
And, <strong>of</strong> course, my wife, Raj, and kids, Nisha (6)<br />
and Saiya (3)—none <strong>of</strong> my success would be<br />
possible without Raj’s support. My brother was<br />
also an excellent role model for me.<br />
“I also want to thank Devinder Gill, CA,” Bob<br />
adds. “He’s a long-time family friend, and he<br />
played a big role in pushing me in the direction<br />
<strong>of</strong> the CA. Devinder was a few years ahead <strong>of</strong> me in school and then in the CA program, so I was really<br />
able to look to him for guidance and advice.”<br />
Bob also acknowledges the support <strong>of</strong> his colleagues—both past and present.<br />
“I’d like to thank Billie Raptis, CA, and Jas Hayre, CA, for the guidance they provided when I was<br />
at Ernst & Young,” he says. “And the mentorship I have received from Larry Vicic, CA, the managing<br />
partner at Smythe Ratcliffe, and from Tom Morton, CA, and Bill Macaulay, CA—the other two tax<br />
partners here—has been incredible. They created these great opportunities for me... paved the way,<br />
really. I’m thankful to them and to the rest <strong>of</strong> the staff—I’m fortunate to work with such a great team<br />
<strong>of</strong> people.”<br />
Michael (Mike) Stubbing, CA<br />
As a small child growing up in Frobisher Bay, Northwest Territories (now Iqaluit, Nunavut), Mike<br />
Stubbing was sure he was destined to become a pr<strong>of</strong>essional hockey player. As he got a bit older,<br />
though, his future career path wasn’t so clear.<br />
“I really had no idea what I wanted to be when I grew up,” he says. “I just knew I didn’t want to be<br />
a doctor—I saw the crazy hours my dad worked and wanted to steer clear <strong>of</strong> that.”<br />
Mike laughs as he realizes he’s in the heart <strong>of</strong> tax season, adding: “I may have chosen the wrong<br />
pr<strong>of</strong>ession.”<br />
His path to the CA designation was a gradual one. At 15 years old, Mike moved to Ottawa to<br />
complete his last three years <strong>of</strong> high school. Still not sure what career path he wanted to follow after<br />
graduating, he applied to a number <strong>of</strong> universities across the country. After being accepted to Simon<br />
Fraser University’s business program, he started his studies in 1995.<br />
“There was never a real ‘Aha!’ moment that led me to the CA program,” Mike remembers. “I took a<br />
stab at accounting and liked it. Plus, SFU had a great CA co-op program that guaranteed five work<br />
terms and a full-time job afterwards. I got a placement with Grant Thornton’s New Westminster<br />
Office, and it was an incredible experience.”<br />
Mike completed all five work terms at Grant Thornton, graduated from SFU in the summer <strong>of</strong> 2000,<br />
and wrote the UFE that September. He qualified as a CA in late fall <strong>of</strong> 2001, soon after transferring to<br />
the firm’s Edmonton <strong>of</strong>fice. While in Edmonton, he also transferred out <strong>of</strong> audit and into tax.<br />
“It was an exciting move for me, because I felt I had a real knack for tax, and I enjoyed its practicability,”<br />
he explains. “I love that you can give useful, tangible advice to people.”<br />
Mike was promoted to manager in 2002, and became a senior manager just two years later. Then, in<br />
the fall <strong>of</strong> 2006, he made the decision to transfer to the West Coast.<br />
“My wife Natalie and I were ready to start a family, and we’d always loved the charm and beauty <strong>of</strong><br />
Victoria,” he says.<br />
Within three years <strong>of</strong> transferring to Grant Thornton’s Victoria <strong>of</strong>fice, Mike was made a partner. He<br />
was 32.<br />
Looking back, he credits much <strong>of</strong> his rapid career advancement to Terry Wainman, CA, a tax partner<br />
at Grant Thornton Edmonton who introduced him to the world <strong>of</strong> teaching and writing.<br />
“Terry was a phenomenal mentor to me,” he says. “He showed a lot <strong>of</strong> trust in me and would give<br />
me very challenging work from an early stage. Pretty early in my tax career, Terry was asked to teach<br />
a couple <strong>of</strong> two-day courses for the <strong>Institute</strong> <strong>of</strong> <strong>Chartered</strong> <strong>Accountants</strong> <strong>of</strong> Alberta that he didn’t have<br />
time to take on. He immediately suggested that I teach them. I was pretty hesitant, because I’d only<br />
been a CA for a couple <strong>of</strong> years. But because Terry put his confidence in me, I agreed.”<br />
It was a pivotal opportunity, as Mike discovered a passion for teaching and writing. Since teaching<br />
that first course in 2002, he has taught a number <strong>of</strong> income tax courses, and a component <strong>of</strong> the ICAA<br />
course, “Managing Financial Risk for Millionaires.” He has also lectured on tax and business matters<br />
for the Canadian Tax Foundation, the University <strong>of</strong> Alberta, Grant MacEwan University, the<br />
National Judicial <strong>Institute</strong>, and Camosun College, and continues to present on technical tax <strong>issue</strong>s to<br />
various pr<strong>of</strong>essionals, such as bankers, brokers, lawyers, and other accountants.<br />
“It’s always a challenge, and I still get butterflies in my stomach,” he says, “but by the end I feel great.”<br />
In terms <strong>of</strong> writing, Mike co-authored a paper for the Canadian Tax Foundation’s 2007 <strong>BC</strong> Conference,<br />
a white paper on farm succession (2010), and a two-and-a-half day course for Grant Thornton’s senior<br />
non-tax pr<strong>of</strong>essionals.<br />
His enthusiasm for working with students has also made him a natural fit for recruiting at his firm.<br />
“I truly enjoyed my years as a student,” he says, “so helping with recruiting is a small way <strong>of</strong> giving<br />
back.”<br />
12 ica.bc.ca <strong>June</strong>/Summer <strong>2012</strong>
Mike Stubbing, CA<br />
In addition to his involvement in the CA pr<strong>of</strong>ession,<br />
Mike is an active board member for the<br />
Vancouver Chapter <strong>of</strong> the Society <strong>of</strong> Trust &<br />
Estate Practitioners (STEP).<br />
“Trust and estate planning is something I’m<br />
very interested in,” he says. “I benefited from<br />
STEP for several years, so I felt like it was my<br />
turn to pitch in. It’s really nice to be involved in<br />
an organization that puts so much effort into<br />
continually educating others.”<br />
When asked what keeps him ticking, Mike<br />
immediately credits those around him.<br />
“It’s the people,” he says. “I love my job because<br />
I get to interact with other pr<strong>of</strong>essionals, staff,<br />
and clients on a regular basis. I feel fortunate to<br />
be exposed to so many different perspectives.<br />
“People are always saying, ‘You must be so<br />
good at math,’” he adds. “I tell them: ‘I can add<br />
and subtract and multiply, but even that I don’t<br />
do on a daily basis.’ Being a CA is really not a<br />
numbers job at all.”<br />
What he finds most rewarding, however, is also<br />
what he finds most challenging.<br />
“I’m really driven to please people,” Mike says.<br />
“In this field, though, that’s not always easy. I’m<br />
constantly trying to ensure that each client and<br />
staff member feels as though our relationship is<br />
rewarding in some way.”<br />
Receiving the Early Achievement Award for<br />
his efforts is just icing on the cake.<br />
“I thought it was extremely touching that my<br />
colleagues would even think to nominate me,”<br />
he says. “I feel really lucky to be surrounded by<br />
such a thoughtful, generous group <strong>of</strong> people.”<br />
Mike credits a number <strong>of</strong> people for helping<br />
him get to where he is today.<br />
“First, I need to thank my family,” he says.<br />
“I’m so lucky to be able to go home to my wife,<br />
Natalie, and kids, Anna (5) and Jason (2), each<br />
day. They’ve put a lot <strong>of</strong> balance into my life,<br />
and changed me in a good way.<br />
“I also thank my parents for being phenomenal<br />
role models,” he adds. “My mom is one <strong>of</strong> the<br />
kindest people you could ever meet, and she<br />
modelled the importance <strong>of</strong> treating people<br />
properly. And my dad—he received the Order<br />
<strong>of</strong> Canada in 2009. He’s a very smart guy and a<br />
real hard worker, who gave his patients the best<br />
care possible, every day. I try to emulate that.”<br />
On the pr<strong>of</strong>essional side, Mike thanks Terry<br />
Wainman, CA, and two other mentors: Bob<br />
Broder, CA, a partner at Grant Thornton’s<br />
Victoria <strong>of</strong>fice, and Susan Mehinagic, FCA, the<br />
<strong>of</strong>fice’s now-retired managing partner.<br />
“I’ve worked closely with Bob over the past few<br />
years,” Mike says. “He is very knowledgeable<br />
about tax and accounting, but he’s also phenomenal<br />
at providing clients with excellent advice.<br />
Most importantly, he treats our staff properly—<br />
the way they should be treated. Bob leads by<br />
example, and I’ve really enjoyed learning from<br />
him.<br />
“And Susan was the <strong>of</strong>fice managing partner I<br />
worked with before I became a partner here in<br />
Victoria,” he adds. “She saw potential in me,<br />
took me under her wing, and gave me a lot <strong>of</strong><br />
guidance in that transition from senior manager<br />
to partner.”<br />
Jennifer Weintraub is the CA recruiter for the<br />
<strong>Chartered</strong> <strong>Accountants</strong> <strong>of</strong> <strong>BC</strong>.<br />
Photo <strong>of</strong> Bob Sanghera by Kent<br />
Kallberg <strong>of</strong> Kent Kallberg Studios in<br />
Vancouver. Photo <strong>of</strong> Mike Stubbing<br />
by John Yanyshyn <strong>of</strong> Visions West<br />
Photography in Victoria.<br />
<strong>June</strong>/Summer <strong>2012</strong> ica.bc.ca 13
Community Service Award Winners<br />
By Michelle McRae and Vanessa Woznow<br />
Seven CAs have been recognized this year for their outstanding contributions to the community:<br />
C. Edward (Ted) Butterfield, CA; Grant Gilmour, CA; Gordon Gunn, CA·CISA; Doug Johnstone, CA;<br />
Jasvinder S. (Jas) Kalsi, CA, CPA (Illinois); Doug Wallis, CA; and Paul Winstanley, CA.<br />
C. Edward (Ted) Butterfield, CA<br />
Ted Butterfield, CFO <strong>of</strong> IWG Technologies Inc. and International Water-Guard<br />
Industries Inc., credits much <strong>of</strong> his lifelong interest in volunteerism and<br />
philanthropy to the example set by his parents.<br />
“My parents were both teachers, and were very involved in our community<br />
for as long as I remember,” says Ted. “Their admirable example motivated me<br />
to help build better outcomes for our society.”<br />
Ted’s many contributions to the community have included serving on the<br />
executive and board <strong>of</strong> the Boys and Girls Clubs <strong>of</strong> Greater Vancouver from<br />
the early 1980s to 2004, during which time he also chaired several <strong>of</strong> the organization’s committees. In<br />
the 1990s, he served as both a director and member <strong>of</strong> the executive <strong>of</strong> the McMillan Space Centre.<br />
A committed member <strong>of</strong> his church, he has served as chair <strong>of</strong> its board on three separate occasions.<br />
One <strong>of</strong> Ted’s recent commitments has been his role as chair and president <strong>of</strong> Prostate Cancer<br />
Foundation <strong>BC</strong>, which sees him working not only with the organization’s board, but with other<br />
like-minded organizations across Canada. These efforts have already helped lead to the emergence <strong>of</strong><br />
a collective, Canada-wide voice and fundraising organization: Prostate Cancer Canada.<br />
“The great thing about collaboration is how much we are able to achieve working together,” Ted says.<br />
“Through our shared efforts, and a strong regional<br />
organization, we have not only seen an increase<br />
in fundraising, but also a significant growth in<br />
awareness <strong>of</strong> prostate cancer across the country.<br />
This is the most common cancer affecting men<br />
today, with one in seven receiving the diagnosis.”<br />
The cause is a deeply personal one, as Ted,<br />
himself, is a cancer survivor, having received his<br />
first diagnosis 10 years ago. He credits dedicated<br />
volunteers, all <strong>of</strong> whom had experience with<br />
prostate cancer, with helping him select and prepare<br />
for his best treatment option. Once treated,<br />
he eagerly accepted an invitation to give back.<br />
“I wanted to help lead this passionate, growing<br />
community to better serve those men and their<br />
families affected by the disease,” he says.<br />
Through strong board leadership, and interorganizational<br />
partnership, Ted is working to<br />
raise funds, spread awareness and knowledge,<br />
and seek better treatments for both initial and<br />
reoccurring cancer diagnoses.<br />
In addition to his work with Prostate Cancer<br />
Foundation <strong>BC</strong>, Ted currently serves on the<br />
board <strong>of</strong> the Lion’s Gate Rotary Club and volunteers<br />
his leadership to the Club’s international<br />
affairs program.<br />
“My CA training and leadership experience<br />
has actually enabled me to make a difference<br />
where needed,” says Ted, when asked about the<br />
rewards <strong>of</strong> giving back. “Not to mention the<br />
friendships that I’ve formed, as a result <strong>of</strong> my<br />
participation with these incredibly worthwhile<br />
volunteer service organizations.<br />
“In all honesty,” he adds, “I have benefited so<br />
much from my volunteering experiences. And it<br />
wouldn’t be possible for me to engage in these<br />
activities—alongside my career and family<br />
adventures—if it weren’t for the support <strong>of</strong> my<br />
family and my employers.”<br />
Ted’s wife Fay, and their three grown children and<br />
four grandchildren, are also involved in volunteer<br />
activities.<br />
14 ica.bc.ca <strong>June</strong>/Summer <strong>2012</strong>
S. Grant<br />
Gilmour, CA<br />
Grant Gilmour, co-owner<br />
<strong>of</strong> the firm Gilmour<br />
Knotts Incorporated in<br />
Langley, has been giving<br />
back to the community<br />
steadily for many years,<br />
particularly through his<br />
involvement with the Rotary Club <strong>of</strong> Langley<br />
Sunrise.<br />
One <strong>of</strong> his major contributions through Rotary<br />
has been his leadership <strong>of</strong> the Sunrise Club’s<br />
dictionary project. When he first took on the<br />
project in 1998, the plan was to donate dictionaries<br />
to one class <strong>of</strong> grade 4 students at one local<br />
school. Within the span <strong>of</strong> approximately four<br />
months, Grant successfully drove the expansion<br />
<strong>of</strong> the project to include all grade 4 students in<br />
the entire Langley School District.<br />
“I believe literacy is as important as health,” he<br />
says. “I came to the thought that a dictionary is<br />
like a vaccination—that if we could reach<br />
enough kids, we were certain to reach the ones<br />
who really needed the dictionaries.”<br />
To put a human face to the project, Grant had<br />
the idea to deliver the dictionaries via a one-day<br />
car rally involving teams <strong>of</strong> Rotarians. It was<br />
a huge success, and continues on today. Each<br />
September, as they hand deliver approximately<br />
1,600 dictionaries to the grade 4 students at<br />
35 local schools, volunteers demonstrate their<br />
commitment to both community spirit and<br />
literacy. Moreover, the dictionary project has<br />
branched out to other Rotary clubs across the<br />
country, including 15 in Western Canada alone.<br />
“It’s amazing how a good idea just gets legs <strong>of</strong><br />
its own and grows,” Grant says.<br />
Case in point: “Shred-a-thon.”<br />
“The Scouts’ after-Christmas tree-chipping<br />
fundraiser gave me the idea to create an event<br />
where the public could ‘chip’ (shred) documents<br />
after tax season in exchange for donations,” he<br />
explains. “It was a solution to a problem clients<br />
had been asking me about for years—how to get<br />
rid <strong>of</strong> old documents without risking identity<br />
theft.”<br />
To date, the Langley Club has hosted six<br />
Shred-a-thons. After the inaugural event in<br />
2005, Grant created a how-to manual for other<br />
Rotary clubs, and the ripple effect has led to<br />
Shred-a-thons across North America.<br />
His contributions as a Rotarian have reached<br />
beyond North America as well. In 2010, he<br />
played an instrumental role in the delivery <strong>of</strong><br />
$400,000 in medical supplies to a hospital in<br />
Iligan City, in the Philippines.<br />
“I acted as a ‘connector’ for a contact <strong>of</strong> mine<br />
named Jun Tallo,” he says. “I must have spoken to the right people, because the project came together<br />
in record time and with great results. I am still surprised today at how much one phone call can achieve.<br />
The people at both ends <strong>of</strong> the project have been great, especially Jun.”<br />
Their collaboration is ongoing.<br />
“This year, we connected him with a fire truck from White Rock,” Grant says. “It now has a new<br />
home in the Philippines.”<br />
In addition to his ongoing work with Rotary, the father <strong>of</strong> four has served on the planning council at<br />
his children’s school for two years, and also volunteers as a Cub Scout leader.<br />
“Seeing smiles on kids’ faces is the most rewarding thing,” Grant says. “There’s nothing like having a<br />
10-year-old in a shopping mall yell: ‘Hey mom, there’s the dictionary man!’”<br />
Gordon Gunn, CA•CISA<br />
For over two decades, Gordon Gunn has energetically and selflessly committed<br />
himself to advancing community initiatives through his various volunteer<br />
roles, and it’s fair to say that his work has greatly contributed to both the<br />
vitality <strong>of</strong> Victoria’s not-for-pr<strong>of</strong>it sector, and to Canada’s financial management<br />
industry.<br />
“It was instilled in me in the very early stages <strong>of</strong> my career that CAs should<br />
give back to their communities,” Gordon says. “Non-pr<strong>of</strong>it organizations are<br />
<strong>of</strong>ten looking for financial competencies, so my early volunteering typically<br />
involved acting as a treasurer. In some cases, I was asked by my employers to take on specific volunteer<br />
roles when a need was identified.”<br />
Gordon has contributed his leadership to the community in a variety <strong>of</strong> ways, including serving as<br />
treasurer and vice-president <strong>of</strong> finance with the Boy Scouts <strong>of</strong> Canada; president, treasurer, and director<br />
<strong>of</strong> the Great Canadian Family Picnic Society (an initiative aimed a promoting national unity); and<br />
secretary-treasurer <strong>of</strong> the Ballet Victoria Society.<br />
In 2007, Gordon was named to the Mayor’s Task Force on Ending the Cycle <strong>of</strong> Addiction,<br />
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<strong>June</strong>/Summer <strong>2012</strong> ica.bc.ca 15
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Mental Health, and Homelessness. The next year,<br />
he became involved with the Greater Victoria<br />
Coalition to End Homelessness. For the past three<br />
years, he has served as the Coalition’s secretarytreasurer.<br />
“Street homelessness in Greater Victoria had,<br />
over 15 years, grown to become the leading<br />
social <strong>issue</strong> in our community,” he explains. “ I<br />
leapt at the opportunity to join the Coalition as<br />
secretary-treasurer when it arose. We are now<br />
halfway through our 10-year mission to end<br />
homelessness in Victoria by 2018. We have<br />
made a difference, and more projects are on the<br />
way.”<br />
Also keenly involved with financial management<br />
boards and organizations, Gordon has volunteered<br />
as treasurer and director <strong>of</strong> the Canadian<br />
Association <strong>of</strong> Management Consultants, as<br />
director <strong>of</strong> the Information Systems Audit<br />
and Control Association International, and as<br />
director and president <strong>of</strong> the Association’s<br />
Victoria Chapter. In 2005, he was elected<br />
president <strong>of</strong> the Victoria Chapter <strong>of</strong> the Financial<br />
Management <strong>Institute</strong> <strong>of</strong> Canada (FMIC), a<br />
pr<strong>of</strong>essional association for those interested in<br />
public sector financial management.<br />
A partner in KPMG’s Risk Consulting practice,<br />
Gordon also leads his <strong>of</strong>fice’s community service<br />
program, and his keen interest in volunteerism<br />
has inspired many peers to find their own ways<br />
to give back. In recognition <strong>of</strong> his efforts, he was<br />
awarded KPMG’s CEO Community Service<br />
Excellence Award in 2008.<br />
“I think every volunteer sets a positive example<br />
for others, including the coming generations,”<br />
says Gordon, when asked what he enjoys most<br />
about his volunteer work. “It is also a great way<br />
<strong>of</strong> building a community network. I love to<br />
meet people who are passionate and enthusiastic<br />
about their community, and I am proud that I<br />
live in a city where so many people choose to<br />
give back.”<br />
In addition to his CA·CISA designation, Gordon<br />
holds the certified management consultant (CMC)<br />
designation and the project management pr<strong>of</strong>essional<br />
(PMP) certification. This won’t be his first<br />
time at the awards podium—in 1992, he received<br />
the ICA<strong>BC</strong>’s “CA <strong>of</strong> the Year Award,” (now the<br />
Community Service Award).<br />
Doug<br />
Johnstone, CA<br />
Since moving back to his<br />
hometown <strong>of</strong> Castlegar<br />
15 years ago, Doug<br />
Johnstone has been involved<br />
with a number<br />
<strong>of</strong> grassroots initiatives<br />
aimed at improving the<br />
quality <strong>of</strong> life in his community. Focusing<br />
on arts and culture, he has contributed greatly<br />
to the town’s overall social and economic revitalization.<br />
“I grew up here,” says Doug. “It’s my hometown.<br />
I want to help it prosper economically through<br />
successful enterprise, but also spiritually through<br />
artistic endeavours.”<br />
Pinnacle Pr<strong>of</strong>essional Accounting Corporation<br />
(PAC), Doug’s accounting firm, provides pro<br />
bono accounting services to a number <strong>of</strong> diverse<br />
organizations, including the Rossland Chamber<br />
<strong>of</strong> Commerce, the Doukhobor Heritage Retreat<br />
Society, and the Castlegar Sculpture Walk Society.<br />
His firm is also involved in a “greenification”<br />
project, an initiative that focuses on providing<br />
options to clients that benefit the environment,<br />
local charities, and not-for-pr<strong>of</strong>its. As part <strong>of</strong><br />
this project, when clients choose to receive their<br />
year-end documents in an electronic format, a<br />
contribution is made in their name to one <strong>of</strong><br />
seven local charities. In recognition <strong>of</strong> its work<br />
to promote green initiatives, Pinnacle PAC was<br />
awarded the Green Award from the Castlegar<br />
Chamber <strong>of</strong> Commerce in 2011.<br />
In addition, Doug was instrumental in turning<br />
a once desolate residential lot into the “Downtown<br />
Art Farm,” an outdoor art gallery<br />
and urban community garden that supports<br />
Castlegar’s food bank. He donated the land,<br />
provided the funding, and contributed countless<br />
volunteer hours to the project.<br />
“On a personal level,” he says, “I’m really<br />
proud <strong>of</strong> what we were able to achieve with the<br />
Art Farm.”<br />
Doug credits much <strong>of</strong> his interest in the arts to<br />
his partner Willow.<br />
“Before I met Willow, I think I was much<br />
more <strong>of</strong> a left-brain thinker,” he says. “It was her<br />
passion for the arts, and her artistic nature,<br />
that really spurred my interest in these kinds <strong>of</strong><br />
projects.”<br />
Doug’s other forays into the arts community<br />
include serving as logistics coordinator on the<br />
board <strong>of</strong> the Castlegar Sculpture Walk, a legacy<br />
project aimed at beautifying the downtown core.<br />
Through sponsorships from local businesses and<br />
individuals, Sculpture Walk oversees the installation<br />
<strong>of</strong> sculptures and art pieces around town.<br />
“One <strong>of</strong> my goals for the future is to turn<br />
Sculpture Walk into a self-sustaining initiative,”<br />
he says. “It has grown into such an amazing<br />
program, and we want to make sure it continues<br />
to succeed.”<br />
Currently, Doug is also spearheading efforts<br />
to revitalize downtown Castlegar through an<br />
initiative called the “Vacant Windows Project,”<br />
which aims to beautify the city by placing local<br />
art in the windows <strong>of</strong> vacant buildings. In<br />
addition, his firm features local artists on its<br />
company homepage every month, and contributes<br />
gallery space showcasing local talent in three <strong>of</strong><br />
its <strong>of</strong>fices on an ongoing basis.<br />
“I am lucky enough to be in a position where<br />
I can contribute to the economic and social<br />
well-being <strong>of</strong> my community,” Doug says. “I<br />
do what I can to support and empower local<br />
businesses, artists, and food providers. The end<br />
result will be enrichment <strong>of</strong> our whole region.”<br />
Jasvinder S.<br />
(Jas) Kalsi, CA,<br />
CPA (Illinois)<br />
Jas Kalsi, a sole-practitioner<br />
in Surrey, has<br />
been an active volunteer<br />
with Lower Mainlandbased<br />
organizations for<br />
many years—particularly<br />
athletic and cultural programs and initiatives.<br />
His involvement with the Canadian International<br />
Dragon Boat Festival Society is his most<br />
long-standing, spanning more than 14 years.<br />
“I initially became involved as a paddler in the<br />
mid-1990s, joining ‘Team Masala’ with a group<br />
<strong>of</strong> friends,” Jas says. “I enjoyed competing in the<br />
event so much, that when I heard the Society<br />
was looking for a treasurer, I jumped at the<br />
chance to apply for the position.”<br />
He has been a fixture on the board ever since.<br />
“I’ve continued to work with the organization<br />
because I believe in its goals and objectives,” he<br />
says. “I work with great people, and we organize an<br />
event that is truly world class. Dragon boating<br />
is an event where people <strong>of</strong> all capabilities—<br />
juniors, seniors, individuals with physical<br />
challenges such as visual impairment, survivors<br />
<strong>of</strong> cancer and other diseases—can all come<br />
together and compete on an equal basis.”<br />
<strong>June</strong>/Summer <strong>2012</strong> ica.bc.ca 17
In 2005, Jas took on the role <strong>of</strong> chair.<br />
“My responsibilities include ensuring that the<br />
festival continues to be successful—not only<br />
financially, but also for every single participant,<br />
volunteer, spectator, and sponsor,” he says. “We<br />
now operate a year-round facility, which includes<br />
training for coaches and paddlers, and educational<br />
activities for our junior members. This initiative<br />
culminates every year with the Dragon Boat<br />
Festival in <strong>June</strong>. It is the largest and most<br />
successful annual dragon boat festival outside<br />
<strong>of</strong> Hong Kong, with over 100,000 spectators<br />
coming out to watch.”<br />
Under his leadership, the Society has increased<br />
revenues from year-long programs by 50%, and<br />
continually operates without a deficit. Together<br />
with staff and board members, Jas has also<br />
helped build and implement the Society’s plans<br />
for succession and strategic leadership. He also<br />
played a lead role in organizing an initiative to<br />
develop a community boathouse in Vancouver.<br />
The community boathouse was recently recognized<br />
by City Council as an approved amenity<br />
centre, and Jas and his colleagues are now working<br />
on a conceptual plan.<br />
When it comes to the Society’s success, Jas is<br />
quick to credit his tight-knit team, saying: “I am<br />
so proud <strong>of</strong> the staff, my fellow board members,<br />
and the literally hundreds <strong>of</strong> volunteers who<br />
have helped to shape this Society and make it a<br />
key Vancouver event.”<br />
In addition to volunteering with the Society,<br />
Jas serves on the advisory board <strong>of</strong> the Vancouver<br />
International Bhangra Celebration, and as a<br />
director and treasurer for Badminton <strong>BC</strong>. Past<br />
volunteerism includes coaching for five years<br />
with the Surrey Youth Soccer Association.<br />
“From a very young age, my siblings and I<br />
were brought up with the notion that giving<br />
back to the community should be an extremely<br />
important part <strong>of</strong> our lives,” Jas explains. “I’m<br />
grateful to my parents for that lesson. And I’m<br />
also grateful for the support my girlfriend Walaa<br />
and my four kids give me in pursuing these<br />
activities, because my volunteer work provides<br />
me with a great sense <strong>of</strong> accomplishment, pride,<br />
and happiness.”<br />
Doug Wallis,<br />
CA<br />
For more than 10 years,<br />
Doug Wallis has been<br />
committed to furthering<br />
the goals <strong>of</strong> the Canadian<br />
Network for International<br />
Surgery (CNIS),<br />
a Vancouver-based organization<br />
created to promoting lasting and<br />
sustainable improvements in health and safety in<br />
developing countries.<br />
He first learned about the organization in 2001,<br />
while working as the director <strong>of</strong> pr<strong>of</strong>essional<br />
advisory services for the ICA<strong>BC</strong>.<br />
“I <strong>of</strong>ten dealt with the public, including<br />
NPOs, and I was very aware <strong>of</strong> the need for the<br />
skills that CAs can bring to such NPOs,” says<br />
Doug, now a partner with Smythe Ratcliffe<br />
in Vancouver. “The CNIS was looking for a<br />
volunteer CA, and I called to learn more. Their<br />
capacity-building model was and continues<br />
to be a major impetus to my involvement. The<br />
organization sends MDs and nurses to Africa to<br />
teach skills to local practitioners, and the local<br />
practitioners who receive this training then use<br />
those skills to improve the lives <strong>of</strong> many, many<br />
Africans over an extended period. The ripple<br />
effect is quite amazing.”<br />
He joined the organization in 2002 as chair <strong>of</strong><br />
the finance committee. At that time, the CNIS<br />
was struggling with its finances, so Doug helped<br />
organize the records and provided guidance<br />
and assistance in developing the accounting and<br />
funding systems. By helping to make the organization<br />
more stable, he also helped the CNIS<br />
address its biggest challenge: obtaining funding<br />
from the Canadian International Development<br />
Agency (CIDA).<br />
Special grants from the CIDA, in turn, enabled<br />
Doug to travel to Africa in 2004 and 2006 to<br />
volunteer in the field. During his first trip, he<br />
spent two weeks in Uganda, working with the<br />
administrator <strong>of</strong> one <strong>of</strong> the CNIS’s African<br />
partner organizations, the Injury Control Centre<br />
at Makerere Medical School in Kampala to help<br />
the Centre improve its financial systems and the<br />
quality <strong>of</strong> financial reporting to stakeholders.<br />
“It was fascinating to experience the cultural<br />
differences in how the business side <strong>of</strong> health<br />
pr<strong>of</strong>essions in Africa differs from our North<br />
American model,” Doug recounts. “The differences<br />
are indeed striking.”<br />
In 2006, he travelled to Ethiopia to contribute to<br />
a six-day workshop presented by the CNIS, during<br />
which he taught participants about accountability<br />
through budgeting, financial reporting, and<br />
communication. The workshop was part <strong>of</strong> a<br />
larger project to build six sustainable teaching<br />
laboratories for surgical skills in the country’s<br />
main medical teaching institutions.<br />
“Now that I’ve had the opportunity to travel<br />
to Africa myself, I have a sense <strong>of</strong> what our<br />
Canadian volunteers receive back for their<br />
participation,” he says. “It’s very gratifying. And<br />
it’s also gratifying to work with the qualified and<br />
dedicated individuals who serve on our board.”<br />
Doug chaired the CNIS board from 2006 to<br />
2008, and continues to chair the finance committee.<br />
Earlier in his career, he volunteered with<br />
the Crisis Centre <strong>of</strong> <strong>BC</strong> in Vancouver, and with<br />
a variety <strong>of</strong> organizations in Prince Rupert<br />
(where he lived during the 1970s and 1980s).<br />
“In the end, you do the volunteer work<br />
because it’s important,” he says. “You just find<br />
the time. The internal rewards are clearly worth it.”<br />
Paul<br />
Winstanley, CA<br />
Paul Winstanley has been<br />
contributing to the community<br />
ever since his days<br />
as an articling student.<br />
“While playing in the<br />
field hockey section <strong>of</strong><br />
the Vancouver Rowing<br />
Club, I was put forward as a director <strong>of</strong> the<br />
board by that section,” Paul recounts. “Once the<br />
other board members found out I was a CA<br />
student, they pressed me into service as treasurer.<br />
I was by far the youngest on the board, and it<br />
was very educational to be around such capable,<br />
experienced volunteers.”<br />
An accomplished amateur athlete who played<br />
cricket for the Canadian Junior National Team<br />
and field hockey for both the <strong>BC</strong> Senior Field<br />
Hockey Team and the Senior National Field<br />
Hockey Team during the 1970s, Paul eventually<br />
parlayed his love <strong>of</strong> team sports into a new<br />
volunteer role as coach <strong>of</strong> youth boys’ soccer<br />
with the Lynn Valley Soccer Association in<br />
1986. Since then, he has gone on to coach youth<br />
girls’ soccer with the West Vancouver Soccer<br />
Association, youth boys’ baseball with the Lynn<br />
Valley Little League, and field hockey with local<br />
clubs, and regional and provincial organizations.<br />
“Coaching is about helping young people<br />
develop self-confidence to allow their potential<br />
to be realized,” Paul <strong>of</strong>fers. “Team sports are an<br />
18 ica.bc.ca <strong>June</strong>/Summer <strong>2012</strong>
excellent forum to develop social skills and how<br />
to work together towards a common goal.”<br />
He continues to serve as head coach for<br />
Handsworth Secondary School’s senior field<br />
hockey team, having coached the team since<br />
2003. Under his leadership, the team has won<br />
numerous championships, including the 2011<br />
<strong>BC</strong> “AAA” Provincial Championship.<br />
In 2010, Paul received the Community Sport<br />
Volunteer Award from the North Shore<br />
Sports Awards. The award recognized not<br />
only his coaching efforts but also his extensive<br />
contributions at the board level. In addition<br />
to volunteering with organizations such the<br />
Hollyburn Family Services Society, the West<br />
Vancouver Family Place Society, and the West<br />
Vancouver Soccer Association, Paul served<br />
as coordinator <strong>of</strong> the West Vancouver Field<br />
Hockey Club women’s section for six years,<br />
during which he helped increase the number <strong>of</strong><br />
Club teams in the women’s league from three to<br />
nine. He also helped found the Adanacs High<br />
Performance Program, which provides recruiting<br />
opportunities for athletes who want to play field<br />
hockey at the university level (to date, over 100<br />
players have received scholarships to universities<br />
across North America). And as a director (ongoing)<br />
<strong>of</strong> the West Vancouver Field Hockey Facilities<br />
Society, he worked tirelessly to help bring a new<br />
artificial turf field designed for field hockey to<br />
the North Shore.<br />
All the while, Paul has juggled his volunteerism<br />
with his work as a sole-practitioner in West<br />
Vancouver and his responsibilities as a father <strong>of</strong><br />
three.<br />
“The rewards far exceed the time and effort,”<br />
he says. “And my wife Diane was the reason I<br />
was able to spend time in the community doing<br />
what I loved to do.”<br />
Sadly, Diane lost a lengthy battle with breast<br />
cancer on March 20th. A few days before her<br />
passing, Paul was able to share the news <strong>of</strong> his<br />
latest award.<br />
“I told her that this award was largely due to<br />
her support, and she still showed her sense <strong>of</strong><br />
humour and said ‘too bloody right!’” he says.<br />
“This award is for her.”<br />
Michelle McRae is the editor <strong>of</strong> Beyond Numbers<br />
magazine.Vanessa Woznow is the ICA<strong>BC</strong>’s manager<br />
<strong>of</strong> public affairs.<br />
ICA<strong>BC</strong>’s Benevolent Fund<br />
<strong>of</strong>fers financial support to<br />
members in need<br />
All information is held in the strictest<br />
confidence<br />
To apply for financial assistance, contact:<br />
David Chiang, CA·CIA<br />
Senior Director <strong>of</strong> Member Services<br />
and Fund Secretary<br />
Phone: 604-488-2629<br />
Toll Free: 1-800-663-2677<br />
Email: chiang@ica.bc.ca<br />
<strong>June</strong>/Summer <strong>2012</strong> ica.bc.ca 19
Ritchie W. McCloy Award Goes to<br />
Shane Onufrechuk, CA<br />
By Michelle McRae<br />
The Ritchie W. McCloy Award for CA Volunteerism recognizes the value <strong>of</strong> a CA or non-CA’s contributions to<br />
the CA pr<strong>of</strong>ession, whether through an individual project or a series <strong>of</strong> activities. In addition to their dedication<br />
to the pr<strong>of</strong>ession, award recipients must embody values such as openness, honesty, and generosity. This year’s<br />
recipient is Shane Onufrechuk, CA.<br />
Shane Onufrechuk has been an active<br />
contributor to the CA pr<strong>of</strong>ession in <strong>BC</strong><br />
ever since he moved to this province<br />
from Alberta in 1997. In addition to being a<br />
long-time member <strong>of</strong> both the ICA<strong>BC</strong> PD<br />
Taxation Program Committee Advisory Group<br />
and the ICA<strong>BC</strong> Taxation Forum, Shane has<br />
contributed extensively to the <strong>Institute</strong>’s pr<strong>of</strong>essional<br />
development program, the CA School<br />
<strong>of</strong> Business (CASB), and the CA Education<br />
Foundation <strong>of</strong> <strong>BC</strong> (CAEF).<br />
“Most <strong>of</strong> my volunteer efforts have been tied<br />
to education,” he says. “I’ve always had a strong<br />
interest in education—particularly within the CA<br />
pr<strong>of</strong>ession. I think the quality <strong>of</strong> our education<br />
program is very high, and really like the idea<br />
<strong>of</strong> being involved in the various education<br />
programs delivered to students and members.”<br />
Shane’s early contributions to the pr<strong>of</strong>ession<br />
included marking exams and serving on the<br />
board <strong>of</strong> examiners for the School <strong>of</strong> <strong>Chartered</strong><br />
Accountancy (the precursor to CASB). With the<br />
advent <strong>of</strong> CASB, he became involved in developing<br />
and reviewing cases and scenarios.<br />
“It was a lot <strong>of</strong> fun to do that kind <strong>of</strong> creative<br />
work,” he says. “I haven’t been nearly as involved<br />
in curriculum development for CASB in<br />
the last few years, but I continue to teach the<br />
face-to-face modules. And I particularly enjoy<br />
the Module 6 UFE prep program, because I get<br />
to work with some very bright, motivated<br />
students on higher level, ‘real life’ CA skills.”<br />
Shane is equally enthusiastic about his work<br />
with the <strong>Institute</strong>’s PD program, which began 10<br />
years ago.<br />
“I really enjoy teaching, so I never felt it was a<br />
hardship,” he says. “Members really do seem<br />
to appreciate when people are willing to take<br />
the time to teach PD courses. I think this is<br />
especially true in the area <strong>of</strong> taxation, which a lot<br />
<strong>of</strong> people view as challenging. Given that it’s an<br />
area I specialize in, it’s nice to simply share<br />
my expertise with someone and get a thanks in<br />
return.”<br />
Shane has also shared his expertise as a course<br />
developer and lecturer for the CICA’s PD<br />
program, and through his service on the <strong>BC</strong><br />
<strong>Institute</strong>’s PD Taxation Program Committee<br />
Advisory Group. The Advisory Group meets<br />
regularly to ensure that the ICA<strong>BC</strong>’s taxation<br />
course <strong>of</strong>ferings meet the needs <strong>of</strong> members.<br />
Shane joined the Group in 2005, and has served<br />
as chair for the last five years.<br />
“A number <strong>of</strong> us have been on the committee<br />
for a long time, so there is a sense <strong>of</strong> camaraderie<br />
and history that makes working together a<br />
pleasure,” he says. “Also, a number <strong>of</strong> us have<br />
done a lot <strong>of</strong> teaching in the program, so I think<br />
we have a good feel for the important <strong>issue</strong>s.”<br />
Moira Bryans, CA, director <strong>of</strong> pr<strong>of</strong>essional<br />
development for the ICA<strong>BC</strong>, describes Shane’s<br />
contributions as invaluable.<br />
“Shane has made a significant contribution to the<br />
PD tax program, identifying topics and resources<br />
that ensure the highest quality for our education<br />
programs,” Moira says. “He authors several tax<br />
courses that are <strong>of</strong>fered across Canada, and for<br />
many years has also been a respected and popular<br />
instructor. His enthusiasm and expertise for tax<br />
is a great asset to our PD program. Under his<br />
guidance, the size and quality <strong>of</strong> our tax courses<br />
has grown substantially. We are indebted to<br />
him for the time and talent he has given to our<br />
members’ pr<strong>of</strong>essional development.”<br />
Shane also currently chairs the ICA<strong>BC</strong> Taxation<br />
Forum, which he joined in 2006. The Forum<br />
helps the ICA<strong>BC</strong> coordinate information-sharing<br />
meetings with tax practitioners and employees<br />
<strong>of</strong> the Canada Revenue Agency. It also helps<br />
coordinate the “Tax Traps & Tips” articles published<br />
in Beyond Numbers, and the RRSP and tax<br />
tips released to media each year.<br />
“My favourite role within the Forum is getting<br />
involved in organizing the annual CRA roundtable,”<br />
he says. “It has allowed me to meet the<br />
senior people at the CRA and discuss <strong>issue</strong>s <strong>of</strong><br />
concern for our members. I think, in a number<br />
<strong>of</strong> cases, we’ve been able to identify and resolve<br />
<strong>issue</strong>s that were really making tax practitioners’<br />
lives a challenge.”<br />
Stella Leung, CA, pr<strong>of</strong>essional standards advisor<br />
for the ICA<strong>BC</strong>, has worked with Shane for a<br />
number <strong>of</strong> years.<br />
“Shane has been serving on the Taxation Forum<br />
for many years now, and he has been very<br />
generous in sharing his expertise by writing a<br />
number <strong>of</strong> Tax Traps & Tips articles for Beyond<br />
Numbers,” Stella says. “He is also a regular<br />
participant in the Forum’s liaison meetings with<br />
the CRA, and he always asks very insightful<br />
questions!”<br />
20 ica.bc.ca <strong>June</strong>/Summer <strong>2012</strong>
Shane is also an ongoing contributor to the<br />
CAEF, having joined its board <strong>of</strong> governors in<br />
2010.<br />
“Being on the Foundation’s board <strong>of</strong> governors<br />
allows me to get involved in the improvement <strong>of</strong><br />
the quality <strong>of</strong> accounting education,” Shane<br />
says. “I find that extremely rewarding. Getting<br />
to brainstorm as to the most cost-effective way<br />
to provide the most benefit, with really smart<br />
people who know the accounting education<br />
landscape, is a lot <strong>of</strong> fun.”<br />
He manages to fit these various commitments<br />
into a very busy schedule. The senior tax advisor<br />
with Davis LLP in Vancouver is also a husband<br />
and father <strong>of</strong> two, a member <strong>of</strong> the Canadian Tax<br />
Foundation, a director <strong>of</strong> the Human Dignity<br />
Initiative (a charitable organization), and an avid<br />
runner and triathlete.<br />
“Like most things in life, there is never enough<br />
time, until you actually do it, and then, magically,<br />
somehow there is,” Shane says. “Unless you<br />
make time for these kinds <strong>of</strong> things, I think<br />
you can go through life missing out on some<br />
wonderful opportunities. I’ve met so many<br />
incredible people through my volunteer involvement<br />
with the pr<strong>of</strong>ession, and it feels like I<br />
get a lot more out <strong>of</strong> it than I could possibly be<br />
putting in.”<br />
Still, he admits it isn’t easy: “Obviously these<br />
commitments have come at the expense <strong>of</strong> time<br />
with my family. My wife Gail has been exceedingly<br />
supportive <strong>of</strong> all <strong>of</strong> my endeavours, in all areas,<br />
and I am fortunate to be with someone so<br />
understanding. I couldn’t do this without her.<br />
I also feel fortunate to have worked with Scott<br />
Sinclair and Tim Duholke [both FCAs], who<br />
were—and continue to be—great role models as<br />
CAs who give more to the pr<strong>of</strong>ession than they<br />
take.”<br />
While the same can be said for Shane, he is<br />
quick to share any kudos with others.<br />
“It was incredibly kind <strong>of</strong> someone to nominate<br />
me for the Ritchie McCloy Award, but there are<br />
many others at the <strong>Institute</strong> who are equally, if<br />
not more, deserving,” he says. “That being said,<br />
it does feel nice to be appreciated.”<br />
“I’ve met so many incredible<br />
people through my volunteer<br />
involvement with the pr<strong>of</strong>ession,<br />
and it feels like I get a lot more<br />
out <strong>of</strong> it than I could possibly be<br />
putting in.”<br />
aic_bc_beyond_numbers(december2011)_Layout 1 12/8/2011 10:19 AM Page 1<br />
We Value Canada<br />
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guess is an educated answer.<br />
You can’t afford to guess when it comes to property portfolios.<br />
Consult an AIC designated member to ensure you have the<br />
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Appraisal <strong>Institute</strong> <strong>of</strong> Canada<br />
British Columbia<br />
Advisory Services | Consultation | Due Diligence | Feasibility Studies | Valuation<br />
<strong>June</strong>/Summer <strong>2012</strong> ica.bc.ca 21
Working, Living, and Investing<br />
in Regional <strong>BC</strong> in 2011<br />
By Marlyn Chisholm<br />
In 2011, most <strong>of</strong> the province saw improved fortunes. Overall, exports grew, and both the goods and services sectors saw modest but positive employment<br />
gains. Lumber exports continued to recover, and for the first time coal was <strong>BC</strong>’s top export. Electricity and other energy exports also climbed, although<br />
the value <strong>of</strong> natural gas declined due to lackluster prices. And while there were signs <strong>of</strong> a recovery in the US, most <strong>of</strong> <strong>BC</strong>’s export growth occurred in the<br />
Pacific Rim—particularly the fast-growing Chinese and South Korean markets. Between 2008 and 2011, the Pacific Rim’s share <strong>of</strong> <strong>BC</strong>’s exports grew from<br />
32% to 43%; the US share declined from 56% to 43% during this same time period.<br />
Overall, our provincial economy has recovered from the recession <strong>of</strong> 2008-09. Looking forward into <strong>2012</strong>, it is expected the province will continue to see<br />
modest economic growth, building on last year’s export gains. Surging world demand for <strong>BC</strong> coal and minerals, and some major infusions <strong>of</strong> investment<br />
capital on both public and private sector projects will drive this growth, however tighter fiscal policy and slowing housing market activity are expected to<br />
suppress these forces to some degree.<br />
Working in Regional <strong>BC</strong><br />
Job Creation<br />
Last year, <strong>BC</strong>’s employed labour force grew by 18,200, to reach 2.28 million. This number sits above the province’s pre-recession high. The service sector<br />
accounted for 74% <strong>of</strong> this growth.<br />
The Mainland/Southwest enjoyed the largest absolute increase in employment, with 30,700 new jobs. This was largely dominated by growth in the goodsproducing<br />
sector, with increased employment in construction and other resource industries.<br />
The second-largest job gains occurred in Northwest <strong>BC</strong> (the Nechako and North Coast combined), with 2,900 new employed workers, while the Kootenays<br />
ranked third, with a gain <strong>of</strong> 2,700 jobs. Growth in both <strong>of</strong> these regions was led by employment gains in the service sector.<br />
The Thompson-Okanagan and Vancouver Island/Coast were the only regions that saw employment losses in 2011, with declines <strong>of</strong> 2,500 and 16,700<br />
respectively. Job losses in the Thompson-Okanagan occurred primarily in the resource and agriculture sectors. In the Vancouver Island/Coast region, stagnant<br />
population growth and a slowdown in capital investment and construction activity all contributed to a regional economic slowdown. The greatest losses were<br />
concentrated in the service sector, and occurred outside <strong>of</strong> the Victoria Census Metropolitan Area.<br />
Table 1: Employment in All Development Regions, 2006-2011 (000s)<br />
Job Creation (000)<br />
Region 2006 2007 2008 2009 2010 2011 5-Year 1-Year<br />
2006-11 2010-11<br />
Cariboo 82.8 85.0 83.5 75.5 80.3 81.2 -1.6 0.9<br />
Kootenay 68.4 76.7 71.6 71.0 69.4 72.1 3.7 2.7<br />
Mainland/Southwest 1306.2 1357.6 1382.9 1369.2 1388.4 1419.1 112.9 30.7<br />
Northwest <strong>BC</strong> 42.8 42.0 44.8 41.5 40.4 43.3 0.5 2.9<br />
Northeast 34.0 37.0 37.7 35.8 37.0 37.2 3.2 0.2<br />
Thompson-Okanagan 247.6 250.4 256.6 248.0 257.2 254.7 7.1 -2.5<br />
Vancouver Island/Coast 365.5 373.9 389.3 377.0 383.8 367.1 1.6 -16.7<br />
British Columbia 2,147.2 2,222.6 2,266.4 2,217.9 2,256.5 2,274.7 127.5 18.2<br />
Goods 453.8 483.5 490.9 438.8 442.7 447.4 -6.4 4.7<br />
Services 1,693.4 1,739.0 1,775.6 1,779.1 1,813.8 1,827.2 133.8 13.4<br />
Source: Statistics Canada<br />
Unemployment<br />
After peaking at 7.7% in 2009, <strong>BC</strong>’s unemployment rate declined slowly over the next two years, to reach 7.5% in 2011. In March <strong>2012</strong>, the provincial<br />
unemployment rate was 7.0%, well below the rate <strong>of</strong> March 2011 (8.0%).<br />
All <strong>of</strong> <strong>BC</strong>’s Development Regions saw their unemployment rates decline in 2011, with the one exception being Vancouver Island/Coast. The greatest<br />
improvement took place in the Northeast, where estimated unemployment declined by 1.9 percentage points (ppt) to reach 4.9%—a reflection <strong>of</strong> strong<br />
economic activity and a tight labour market—and the Kootenay’s rate declined by 1.1 ppt, to reach 8.2%. The Thompson-Okanagan ranked third, with a<br />
decline in its unemployment rate <strong>of</strong> 0.7 ppt, but this decline was caused by a significant number <strong>of</strong> workers leaving the labour market.<br />
Due to the number <strong>of</strong> lost jobs in 2011, the unemployment rate in the Vancouver Island/Coast rose by 1.4 ppt to reach 7.7%, its highest level since 2004.<br />
22 ica.bc.ca <strong>June</strong>/Summer <strong>2012</strong>
Table 2: Unemployment Rate in All Development Regions, 2006-2011<br />
Percentage point<br />
change<br />
Region 2006 2007 2008 2009 2010 2011 5-Year 1-Year<br />
2006-11 2010-11<br />
Cariboo 6.1 5.1 6.7 12.1 8.1 7.6 1.5 -0.5<br />
Kootenay 6.2 5.5 4.9 8.7 9.3 8.2 2.0 -1.1<br />
Mainland/Southwest 4.5 4.0 4.3 7.2 7.6 7.3 2.8 -0.3<br />
Northwest <strong>BC</strong> 6.8 8.1 7.8 10.6 10.2 8.6 1.8 -1.6<br />
Northeast 1 3.7 2.1 4.8 7 6.8 4.9 1.2 -1.9<br />
Thompson-Okanagan 5 4.4 5.5 8.8 8.6 7.9 2.9 -0.7<br />
Vancouver Island/Coast 4.9 4.3 4.4 7.3 6.3 7.7 2.8 1.4<br />
British Columbia 4.8 4.3 4.6 7.7 7.6 7.5 2.7 -0.1<br />
Source: Statistics Canada<br />
In 2011, four Development Regions saw the youth unemployment rate decline, particularly in the north, where resource-related jobs were plentiful.<br />
Investing in Regional <strong>BC</strong><br />
Business and investment activity<br />
According to the <strong>BC</strong> Major Projects Inventory (MPI), in the fourth quarter <strong>of</strong> 2011 there were 542 major projects proposed in <strong>BC</strong>, <strong>of</strong> which 349 had broken<br />
ground. The approximate value <strong>of</strong> these projects was $189.7 billion. 2 Residential/commercial projects accounted for half <strong>of</strong> all projects cited in the MPI, 3<br />
with the remaining occurring in utilities, transportation and warehousing, public services, energy and mining, manufacturing, and other services. 4<br />
Most <strong>of</strong> the projects proposed or underway last year were concentrated in the more heavily populated Mainland/Southwest, Vancouver Island/Coast, and<br />
Thompson-Okanagan Development Regions, with these regions accounting for approximately 62% <strong>of</strong> all estimated capital investments in <strong>BC</strong>. 5<br />
In the Mainland/Southwest, commercial and residential investments accounted for 64% <strong>of</strong> all major projects. In comparison, in the Cariboo, North Coast,<br />
Nechako, and Northeast Development Regions the mineral, oil and gas sectors comprised 77% <strong>of</strong> all investments.<br />
While the absolute number <strong>of</strong> resource-related projects is small compared to the proliferation <strong>of</strong> residential/commercial projects in <strong>BC</strong>, the former are<br />
expected to generate considerable economic activity during their construction and operation. Direct provincial tax revenues from the existing natural<br />
resources industry are projected to be $2.986 billion in <strong>2012</strong>/2013, or 7% <strong>of</strong> all <strong>BC</strong> government revenue. 6 Activity in the province’s resource sector is expected<br />
to continue to grow over the next few years, particularly as demand for these products increases.<br />
Incorporations 7<br />
Between 2010 and 2011, <strong>BC</strong>’s business incorporations rose by 1.8%, to reach 30,844. This increase reflected strengthened investor and entrepreneurial<br />
confidence in most regions <strong>of</strong> the province. While five <strong>of</strong> the eight Development Regions saw positive growth in this indicator, the provincial average was<br />
buoyed by strong growth in the Nechako, North Coast, and Northeast. The most dramatic increase in business incorporations occurred in the North Coast,<br />
which recorded a one-year increase <strong>of</strong> 23.7%. The Nechako and Northeast experienced 12.5% and 11.5% gains in this indicator respectively, a signal that<br />
many entrepreneurs saw merit in starting businesses in these regions.<br />
The Kootenay, Thompson-Okanagan, and Vancouver Island/Coast experienced small declines in this indicator, marking the fourth year in a row that these<br />
regions have remained at levels below their 2007 peak.<br />
continued on page 30<br />
1<br />
Values for 2011 have been estimated because <strong>of</strong> data suppression below 1,500.<br />
2<br />
<strong>BC</strong> Major Projects Inventory, December 2011. This estimate excludes the capital cost <strong>of</strong> projects that were completed or on hold.<br />
3<br />
“All projects” includes those that were proposed, started, completed, and on hold as <strong>of</strong> December 2011.<br />
4<br />
Ibid.<br />
5<br />
<strong>BC</strong> Major Projects Inventory, December 2011. This estimate excludes the capital cost <strong>of</strong> projects that were completed or on hold.<br />
6<br />
British Columbia Ministry <strong>of</strong> Finance, Budget and Fiscal Plan, <strong>2012</strong>/13 to 2014/15, Table 1-8, Revenue by Source. February 21, <strong>2012</strong>. Includes oil and gas,<br />
minerals, energy.<br />
7<br />
Bankruptcies are not discussed because data for 2011 is unavailable until later in <strong>2012</strong>.<br />
<strong>June</strong>/Summer <strong>2012</strong> ica.bc.ca 23
Making the Most <strong>of</strong> Your<br />
Retirement<br />
By PPC Canada<br />
A note from Member Services: The <strong>Institute</strong> provides its members and students, as<br />
well as their immediate family members, with a number <strong>of</strong> benefits through PPC<br />
Canada’s Employee and Family Assistance Program. Most members are aware <strong>of</strong><br />
the provision <strong>of</strong> confidential counselling services; however, there are many other<br />
free and confidential services available under this benefit program.<br />
The PPC series in Beyond Numbers is intended to highlight these services. Our May<br />
instalment <strong>of</strong>fered tips for coping with stress. This latest instalment explains how<br />
planning ahead can make for a much more satisfying retirement.<br />
For more information about PPC and your member benefits, visit the ICA<strong>BC</strong><br />
website at www.ica.bc.ca/ppc. To book services, contact PPC directly at<br />
www.ca.ppcworldwide.com or call 1-800-663-9099. To access the online health<br />
and wellness tools, use the following log-in on the PPC website: username: “healthy”;<br />
password: “living”; key code for e-counselling: “healthyliving.”<br />
As you know, there are many different ways to spend your retirement years—from travelling<br />
across the country in a motor-home to volunteering abroad. Perhaps you’ve already started<br />
your retirement planning, and have explored different financial options to ensure that you<br />
can live comfortably after you retire. But have you considered “practising” retirement in advance <strong>of</strong> the<br />
actual thing?<br />
Regardless <strong>of</strong> how happy the thought <strong>of</strong> retirement makes you, or how eager you are to start your next<br />
adventure, it’s important to remember that retirement is a major life change, and one that can be<br />
overwhelming. So before you enter, <strong>of</strong>ficially, into this new phase <strong>of</strong> life and jump into a new schedule<br />
or commit yourself to new activities, it would be wise to “practise” your retirement lifestyle first. In<br />
doing so, you may learn that you prefer a boat to an RV, or would rather stay close to your grandkids<br />
than make a permanent move to Arizona.<br />
Start planning<br />
When planning for your retirement, it helps to think in blocks <strong>of</strong> two to five years. This will give you<br />
room to experience a lifestyle and make adjustments as needed. You may like to go hiking, but after<br />
two to five years, will you have had your fill? By breaking retirement into separate increments, you also<br />
give yourself the liberty to explore completely different options.<br />
In prioritizing these plans, be sure to consider your physical condition or any specific health considerations<br />
that may arise. For example, you might want fit any activities that require a high level <strong>of</strong><br />
physical stamina into the first few years <strong>of</strong> retirement, when you are likely to have more energy. Of<br />
course, there are those who defy the odds, and run marathons well into their 80s!<br />
Take action<br />
Even if you are years away from retirement, you can still take some action now. Just as you should<br />
begin planning financially for retirement years in advance, so should you begin planning what you will<br />
do with your time. Consider all aspects <strong>of</strong> retirement by asking yourself the following questions:<br />
• Where will I live? For some retirees, retirement means moving to a new location. Some want to be<br />
closer to family, and some simply want to escape the cold. You may be dreaming <strong>of</strong> a home in the<br />
desert, on the water, or in the mountains, but ask yourself: Can I really live there year-round? Before<br />
committing to a new home, try out the area through smaller stays. Also:<br />
> Visit at different times during the year. If you’ve visited during the peak-touring season and have<br />
only seen your potential locale at its best, try to visit at other times <strong>of</strong> the year.<br />
> Consider the access or proximity to health care. It may sound ideal to live in a quiet, rural location,<br />
especially if you’ve lived in a fast-paced urban environment for many years; however, rural living can<br />
also have its disadvantages, particularly when it comes to amenities. Check to see where clinics or<br />
hospitals are located. In all likelihood, you will become more dependent on such facilities as you age.<br />
• Where will my spouse/partner be during<br />
this time? Will he/she be retiring at the same<br />
age? If not, how will we balance our schedules<br />
and plans?<br />
• What will I do with my time? This is undoubtedly<br />
a huge question, but it is important<br />
to explore your interests before making<br />
extensive plans that are focused in any one<br />
direction.<br />
> Develop your interests. If you’ve always<br />
wanted to learn a new hobby, test it out<br />
before retirement, because you may find<br />
that it isn’t as exciting or as fulfilling as you<br />
thought. Take some introductory classes<br />
now to find out what really interests you.<br />
> Practice the new lifestyle. You won’t know<br />
if you’ll be content engaging in your new<br />
activities until you try them out. Take a<br />
few days to practice being “retired” and<br />
focus solely on the activities you have in<br />
mind.<br />
· For example, if you plan to do extensive<br />
travelling in a motor-home, but have<br />
never taken a trip in an RV, rent a motorhome<br />
and try it out! You need to know<br />
what you’re getting into. You might love<br />
it, or you might discover that you don’t<br />
actually like driving a big vehicle very<br />
much. Better to find out before you<br />
invest in an RV!<br />
· Another example: If you’re thinking<br />
about channelling a lot <strong>of</strong> your energy<br />
into volunteerism, try out some opportunities<br />
now.<br />
> Figure out if there are any hobbies or<br />
activities that you and your spouse/partner<br />
could share in retirement.<br />
• Can I live within my budget? Living on a<br />
fixed budget may be a new experience for<br />
you. Calculate your living expenses, and<br />
practise living for a month or two within the<br />
limits that your retirement plan will allow.<br />
This experience should help you answer the<br />
following questions:<br />
> Can I maintain my desired lifestyle under<br />
this budget?<br />
> Will it allow me to take the trips I’ve<br />
planned?<br />
> Will it enable me to pay for my activities?<br />
If you find that your budget can’t accommodate<br />
your desired lifestyle, you’ll need to<br />
reassess some <strong>of</strong> your decisions. You still have<br />
time to explore other options, such as working<br />
part-time during retirement or saving more<br />
now.<br />
24 ica.bc.ca <strong>June</strong>/Summer <strong>2012</strong>
Assess your retirement<br />
The great thing about “practising” retirement is<br />
that you can do it more than once to test out<br />
new ideas. Once you’ve done one or more trial<br />
runs, here are some follow-up questions to answer:<br />
• Is there anything missing in this lifestyle?<br />
• Does it feel balanced? Remember that these<br />
activities will not be breaks from the workday.<br />
• What does my spouse/partner think about<br />
these plans? Many couples discover that they<br />
have different perspectives when it comes to<br />
retirement. Anticipate differing opinions,<br />
and negotiate a compromise you can both<br />
live with.<br />
• What does my family think? Family members<br />
may have different assumptions/expectations<br />
regarding your retirement, so express your<br />
expectations clearly, and let them know what<br />
they can expect from you with regard to your<br />
time and availability.<br />
The freedom that comes from retirement can be<br />
overwhelming, but with a little preparation<br />
ahead <strong>of</strong> time, you’ll be able to make this transition<br />
a smooth one and discover the lifestyle that<br />
works best for you.<br />
PPC Canada can help you with<br />
your retirement planning!<br />
Did you know that, as member <strong>of</strong> the<br />
ICA<strong>BC</strong>, you—along with your immediate<br />
family members—are eligible to receive<br />
free pr<strong>of</strong>essional assistance in trying to<br />
help prepare for a life transition such as<br />
retirement?<br />
PPC Canada provides services to<br />
assist with all <strong>of</strong> life’s challenges. Below<br />
are some <strong>of</strong> the ways that PPC can<br />
assist you and your family:<br />
• Financial <strong>issue</strong>s: consultation with<br />
certified financial pr<strong>of</strong>essionals for<br />
<strong>issue</strong>s related to debt management<br />
and retirement planning.<br />
• Legal <strong>issue</strong>s: one-on-one<br />
consultations with a certified legal<br />
pr<strong>of</strong>essional and referrals.<br />
• Nutritional coaching: consultation<br />
and nutritional planning with a<br />
registered dietician.<br />
• Quitting smoking: PPC’s “Quitcare”<br />
program helps individuals to kick the<br />
habit with the help <strong>of</strong> trained coaches.<br />
• Counselling services: to assist you<br />
with the emotional side effects <strong>of</strong><br />
planning for retirement.<br />
CFO - $200,000 – Our candidate<br />
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They are seeking an opportunity<br />
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they will have the opportunity to<br />
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Director <strong>of</strong> Finance - $130,000<br />
– Our candidate has current<br />
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They have solid experience gained<br />
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Intermediate Accountant - $48,000<br />
– A senior level student who is<br />
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They have a majority <strong>of</strong> their<br />
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Accounts Payable Clerk - $40,000<br />
– This person has excellent experience<br />
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that can <strong>of</strong>fer a stable work environment.
Tax Traps & Tips<br />
Transfer Pricing: Latest Status Report<br />
By Gordon Denusik, CA, and Jason Evans<br />
Simple fact: If your company has cross-border transactions with related parties, your company<br />
has to address transfer pricing. And because it’s an area on which all tax authorities continue to<br />
focus their resources, transfer pricing (and, in particular, the consequences <strong>of</strong> a transfer pricing<br />
reassessment) is creating some sleepless nights for owner-managers, CFOs, and controllers.<br />
The purpose <strong>of</strong> this article is to pick up where “Transfer Pricing Audits Present Unique Challenges”<br />
(Beyond Numbers, May 2011) left <strong>of</strong>f, and provide you with more information that demonstrates the<br />
uniqueness <strong>of</strong> transfer pricing vis-a-vis other forms <strong>of</strong> tax, along with an update on some <strong>of</strong> latest<br />
developments in the transfer pricing world.<br />
Transfer pricing – secondary adjustments<br />
The concept <strong>of</strong> secondary adjustments is one <strong>of</strong> the unique characteristics <strong>of</strong> transfer pricing.<br />
When a taxpayer carries out transactions with non-resident companies and—on audit—is reassessed<br />
by the Canada Revenue Agency (CRA) on the basis that the original terms and conditions were not<br />
representative <strong>of</strong> arm’s length pricing, the taxpayer faces not one, but two adjustments: the primary and<br />
secondary adjustments. The primary adjustment increases taxable income, thus resulting in additional<br />
income tax, related interest, and possibly penalties. The secondary adjustment is a deemed dividend,<br />
for which withholding tax (per Part XIII <strong>of</strong> the Income Tax Act or Act) and related interest and penalties<br />
apply.<br />
The premise behind the secondary adjustment or deemed dividend is to account for the benefit<br />
conferred on a non-resident participating in a transaction, if the non-resident is considered to have<br />
been overpaid for goods, services, or intangible property received by the company.<br />
Example: If a Canadian corporation buys goods from a related nonresident<br />
entity for $100, but the CRA reassesses for $20 on the basis<br />
that the arm’s length price was $80, the Canadian corporation is subject<br />
to the following adjustments:<br />
1. Primary adjustment: income tax and related interest on the $20<br />
taxable income – 30% <strong>of</strong> $20 = $6 plus interest and any penalties.<br />
2. Secondary adjustment: Part XIII withholding tax, and related interest and<br />
penalties on the $20 deemed dividend – 25% <strong>of</strong> $20 = $5 plus interest<br />
and penalties. (The 25% rate assumes no reduced tax treaty rate.)<br />
Total taxes on a $20 transfer pricing income adjustment= $11 plus<br />
interest and any penalties.<br />
Taxpayers are <strong>of</strong>ten surprised by the application <strong>of</strong> the secondary adjustment. Not only can the total<br />
tax, interest, and penalties arising from the secondary adjustment be significant—the CRA can also<br />
start collection actions on the entire amount owing even if the taxpayer is objecting to the primary<br />
adjustment. Further, because the secondary adjustment is a deemed dividend and not an actual<br />
dividend, any Canadian withholding tax is generally not eligible for a foreign tax credit in the other<br />
jurisdiction.<br />
Federal budget proposes<br />
changes to secondary<br />
adjustments<br />
The <strong>2012</strong> federal budget announced on March<br />
29, <strong>2012</strong>, proposes to clarify the tax implications<br />
<strong>of</strong>, and ambiguities regarding, secondary adjustments<br />
in transfer pricing transactions.<br />
Currently, for example, it is not entirely clear<br />
in certain scenarios whether the provisions <strong>of</strong><br />
the Act that create the deemed dividend interact<br />
properly with the obligations to withhold tax. As<br />
an example, consider transfer pricing adjustments<br />
that involve a transaction between a Canadian<br />
company and a related sister corporation. Does<br />
the Act allow the CRA to impose a deemed<br />
dividend under such a scenario? If so, is it by<br />
way <strong>of</strong> the ultimate parent directing the global<br />
intercompany arrangements, thus conferring a<br />
benefit? And, if the parent conferred the benefit,<br />
which treaty is relevant for the reduced withholding<br />
tax—the treaty <strong>of</strong> the parent company<br />
(which may have directed the global intercompany<br />
arrangements) or the treaty <strong>of</strong> the other party to<br />
the transaction?<br />
New proposed paragraphs to section 247 <strong>of</strong><br />
the Act would provide the necessary and clear<br />
interaction to allow the CRA to impose secondary<br />
adjustments (i.e. deemed dividends) in all<br />
scenarios, even the example above. The only<br />
exception would be where the other transacting<br />
party is a controlled foreign affiliate <strong>of</strong> the<br />
Canadian corporation; in this case, the benefit<br />
conferred on the non-resident would be more<br />
akin to a capital contribution than a dividend,<br />
and no deemed dividend/secondary adjustment<br />
would arise for the Canadian corporation.<br />
The <strong>2012</strong> budget proposals also provide clarity<br />
as to which non-resident is deemed to have<br />
received the dividend. The proposals state that<br />
the treaty <strong>of</strong> the non-resident who is party to<br />
the transaction—not the treaty <strong>of</strong> the parent<br />
company—is the relevant one in determining<br />
withholding tax on the deemed dividend. This<br />
clarification could result in higher withholding<br />
taxes, as the other party to the transaction (for<br />
example, a foreign sister company) may not have<br />
sufficient share ownership in the Canadian<br />
entity to qualify for the most reduced treaty rate<br />
for dividends.<br />
For example, imagine a scenario in which the<br />
adjustment arises from a transaction with a sister<br />
company in Mexico, and where the ultimate<br />
parent <strong>of</strong> both the Canadian and Mexican<br />
companies is a US company. Under the budget<br />
proposals, there would be a 15% withholding<br />
tax on the deemed dividend. This 15% rate<br />
would be applied because <strong>of</strong> the Canada/Mexico<br />
treaty, and because the Mexican company does<br />
26 ica.bc.ca <strong>June</strong>/Summer <strong>2012</strong>
not have any shareholding in the Canadian<br />
company. Without the budget proposals, the<br />
withholding tax may only be 5%, on the basis<br />
that: a) the US parent conferred a benefit to<br />
Mexico, b) the arrangement falls under the<br />
Canada/US treaty, and c) the US has shareholdings<br />
in the Canadian company.<br />
The budget proposals provide for the taxpayer<br />
to have the transfer pricing adjustment repatriated<br />
in order to avoid the application <strong>of</strong> withholding<br />
tax, and to avoid the interest that would<br />
otherwise be payable on the withholding tax<br />
reassessment (note: certain action steps would be<br />
required to demonstrate repatriation). However,<br />
this potential relief from secondary adjustments<br />
would be subject to the “concurrence <strong>of</strong> the<br />
Minister.” In other words, the CRA would<br />
have the leeway to make the ultimate decision.<br />
Currently, it is CRA administrative practice<br />
to allow repatriation <strong>of</strong> a transfer pricing<br />
adjustment, and thus enable taxpayers to avoid<br />
the assessment <strong>of</strong> the secondary adjustment,<br />
only if—among other conditions—the taxpayer<br />
agrees not to appeal the primary transfer pricing<br />
income tax adjustment. As for taxpayers who<br />
wish to proceed with repatriation under the new<br />
measures to avoid the secondary adjustments,<br />
we are not sure what criteria the CRA would<br />
impose in order to give its concurrence.<br />
The new measures discussed above would<br />
apply to transactions that occur on or after<br />
March 29, <strong>2012</strong>.<br />
Downward adjustments at the<br />
discretion <strong>of</strong> the CRA<br />
The budget proposal to give the CRA the<br />
decision-making power to grant repatriation<br />
is <strong>of</strong> concern to tax practitioners given the<br />
experiences taxpayers have had with downward<br />
adjustments via Subsection 247(10) <strong>of</strong> the Act.<br />
Generally, if your company discovers an error<br />
subsequent to filing an income tax return, you<br />
can simply file an amended return to correct the<br />
error (information circulars 75-7r3 and 84-1<br />
provide guidance on this). However, for transfer<br />
pricing, Subsection 247(10) <strong>of</strong> the Act states<br />
that no downward transfer pricing adjustment<br />
shall be made unless “…in the opinion <strong>of</strong> the<br />
Minister, the circumstances are such that it<br />
would be appropriate that the adjustment be<br />
made.” In other words, the CRA has the authority<br />
to reject any taxpayer’s request to amend a previously<br />
filed income tax return where the request<br />
involves correcting the transfer pricing and<br />
producing a downward adjustment to taxable<br />
income. Throughout the country, the CRA has<br />
used its authority to reject requests made by<br />
taxpayers for downward adjustments.<br />
Ensure that your company’s transfer<br />
pricing is correct before filing the<br />
income tax return, because a “one-way<br />
street rule” applies after the tax return<br />
is filed. This means that only the tax<br />
authority can make favourable transfer<br />
pricing adjustments.<br />
This “one-way street rule”—where the authority, and not the taxpayer, is allowed to make favourable<br />
transfer pricing adjustments after a tax return is filed—is not unique to Canada. Similar rules apply in<br />
other countries, including the US. Specifically, 1.482-1(a)(3) <strong>of</strong> the US Transfer Pricing Regulations<br />
states: “…no timely or amended returns will be permitted to decrease taxable income based on<br />
allocations or other adjustments with respect to controlled transactions.” Moreover, a decision by the<br />
US Court <strong>of</strong> Federal Claims (Intersport Fashions West, Inc. v. United States) earlier this calendar year<br />
emphasizes the inability to amend the transfer pricing after a return has been filed. The Internal<br />
Revenue Service (IRS) had rejected a taxpayer’s claim to amend its return to correct a calculation error<br />
in transfer pricing, and the Claims Court supported the IRS’s decision.<br />
Increased US transfer pricing audit activity<br />
While the CRA has always been very active in conducting transfer pricing audits, IRS activity in this<br />
area generally used to be limited to very large multinationals, with very large cross-border transactions.<br />
This has changed over the last few years, with the IRS acquiring additional resources.<br />
As a result, the likelihood <strong>of</strong> Canadian-owned US subsidiaries being contacted by the IRS and<br />
subjected to IRS transfer pricing audits has increased. And it is not only the IRS that may scrutinize<br />
transfer pricing—US states have become more active as well. In fact, a number <strong>of</strong> US states—for<br />
example, Minnesota, New Jersey, and Louisiana—have even gone as far to retain the services <strong>of</strong> outside<br />
transfer pricing consultants to conduct examinations on their behalf. What’s frightening about this<br />
scenario is that, typically, these consultants are being compensated on a contingency basis—in other<br />
words, they’re being paid a percentage <strong>of</strong> any amounts ultimately collected on adjustments they’ve<br />
proposed.<br />
The upshot? You’ve always had to be ready for a CRA transfer pricing audit; now, you may also have<br />
to be ready for a US federal or even US state transfer pricing audit.<br />
More news on the horizon: Supreme Court decision on Glaxo<br />
In January <strong>2012</strong>, the Supreme Court <strong>of</strong> Canada heard one <strong>of</strong> the most important transfer pricing<br />
cases in Canada to date, The Queen v. GlaxoSmithKline Inc. The Supreme Court will likely render its<br />
decision on the case later this year. This decision should provide helpful guidance on how to interpret<br />
and apply Canada’s transfer pricing law, including clarification as to whether the “reasonable business<br />
person test” should play a role in transfer pricing. You can expect to hear more about this case, and<br />
about transfer pricing in general, in a future <strong>issue</strong> <strong>of</strong> Beyond Numbers.<br />
Gordon Denusik, CA, and Jason Evans both work with the Transfer Pricing Group <strong>of</strong> KPMG LLP in<br />
Vancouver. Denusik is a partner and Evans is a senior manager.<br />
<strong>June</strong>/Summer <strong>2012</strong> ica.bc.ca 27
Financial Facts & Money Matters<br />
Wealth Management – Discover What You<br />
Don’t Know About Your Clients<br />
By Tanner Philp, CA, CIM<br />
Editor’s note: This article is the second in a five-part series on wealth management<br />
<strong>issue</strong>s by Tanner Philp (Part 1 was our May <strong>2012</strong> cover story). Look for Part 3 to<br />
appear in the October <strong>issue</strong> <strong>of</strong> Beyond Numbers in our Financial Facts & Money<br />
Matters column.<br />
In my first article on wealth management <strong>issue</strong>s, I provided context and a framework to help clients<br />
develop a strategic roadmap to financial well-being. In this and subsequent articles, I will provide<br />
greater detail on what I view as the fundamental building blocks <strong>of</strong> a good wealth management plan.<br />
The expression “early queen deployment” comes from the game <strong>of</strong> chess and references a tendency<br />
<strong>of</strong> novices to launch the game’s most powerful piece prematurely. This mistake <strong>of</strong>ten leads to their<br />
downfall. As technical subject-matter experts, I believe we have a tendency to fall into this trap when<br />
working with clients. I have observed that pr<strong>of</strong>essionals such as CAs, lawyers, and investment managers<br />
are <strong>of</strong>ten eager to impress their clients with their technical prowess, and sometimes do so without<br />
context and before giving the client an opportunity to fully articulate their most pressing needs. This is<br />
classic early queen deployment—acting without knowledge <strong>of</strong> the entire landscape.<br />
It is understandable that advisors <strong>of</strong>ten default to their own areas <strong>of</strong> expertise when helping<br />
clients. For example, a CA might think the best first step with a client is creating a tax planning<br />
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strategy; for a lawyer, it might be creating a<br />
creditor management structure; and for an investment<br />
manager, it might be determining asset<br />
mix. Each advisor tends to rush into their area <strong>of</strong><br />
expertise, believing it ought to be the highest<br />
priority for clients. However, advisors might not<br />
know what their clients’ highest priorities are<br />
and, if so, risk misdirecting them.<br />
In my first article, I discussed the need to build<br />
an after-tax cash flow model for clients to<br />
understand their future cash inflows and outlays.<br />
Planning and risk mitigation opportunities<br />
naturally emerge from such a cash flow model,<br />
which provides missing context for assessing<br />
the need for and ROI <strong>of</strong> wealth management<br />
strategies. Cash flow models are built from<br />
assumptions <strong>of</strong> the future—sometimes called<br />
variables. In order to determine these variables,<br />
or at least a proxy, we need to engage in a<br />
detailed discovery process with clients.<br />
As logical as this may sound, it is worth reiterating<br />
here that advisors regularly fall prey to<br />
early queen deployment. If you want to create<br />
value-add and lasting relationships with your<br />
clients, you need to unlock their dreams and<br />
fears before discussing solutions.<br />
Components <strong>of</strong> discovery<br />
The goal <strong>of</strong> discovery is to amass sufficient<br />
information about a client to help build a wealth<br />
management plan that takes into consideration the<br />
client’s unique circumstances. Any experienced<br />
advisor will tell you that there are no cookiecutter<br />
families—each one is unique. With that<br />
in mind, here’s a laundry list <strong>of</strong> some areas<br />
to learn about, which may indicate planning<br />
opportunities or risks to mitigate. Given the<br />
breadth <strong>of</strong> information that makes up a family<br />
picture, this is certainly not an exhaustive list;<br />
rather, these are some <strong>of</strong> the areas that I believe<br />
are more frequently relevant:<br />
• Family dynamics: May include work/home<br />
roles, marital break-ups, prior relationships,<br />
inheritance, problem children or extended<br />
family, disabled dependents, health-care needs,<br />
and more. This topic can be a minefield, so<br />
tread carefully. That said, using a wealth<br />
management tool to solve a family <strong>issue</strong> for a<br />
client can create a significantly greater sense<br />
<strong>of</strong> allegiance than solving an <strong>issue</strong> that’s<br />
purely financial.<br />
• Business ownership: May include capital<br />
structures, operational plans, succession<br />
plans, exit strategies, management teams, and<br />
more. Understanding how a business is<br />
owned and run can indicate opportunities to<br />
integrate personal and corporate planning,<br />
<strong>of</strong>ten related to tax planning and creditor<br />
BeyondNumbers-ad-square_<strong>2012</strong>.04.10.indd 1<br />
28 ica.bc.ca <strong>June</strong>/Summer <strong>2012</strong><br />
4/18/12 11:18:03 AM
management. Ultimately, helping a client<br />
monetize a business may be the best solution<br />
to all <strong>issue</strong>s.<br />
• Real estate: May include ownership structures,<br />
principal residences, vacation properties,<br />
investments, liquidity, and more. Understanding<br />
real estate holdings can reveal<br />
opportunities to balance risks across the<br />
broader range <strong>of</strong> a client’s assets, and can lead<br />
to potential tax planning opportunities and<br />
risks (for example, US vacation properties).<br />
This is <strong>of</strong>ten balanced with personal use <strong>of</strong><br />
property.<br />
• Charitable giving: May include interests,<br />
available structures, quantum, timing, and<br />
more. Often, the burning question is how<br />
much a client can afford to give. Cash flow<br />
modelling and understanding taxable benefits<br />
and control structures is vital. However,<br />
these technical points have to be balanced<br />
with the client’s goal to give back to their<br />
community in a meaningful way, as defined<br />
by the client.<br />
• Retirement plans: May include activities,<br />
lifestyle, expenditure needs, sources <strong>of</strong> capital,<br />
and more. The information collected on this<br />
topic forms the basis for the cash inflow and<br />
outflow assumptions in the important after-tax,<br />
cash flow model. When it comes to expenditures<br />
and income streams, “How much? and<br />
“When?” are vital variables.<br />
• Risk appetite: This is the client’s willingness<br />
to take tax-planning risk, creditor risk, and<br />
investment risk. Perception and reaction to<br />
risk indicates the available set <strong>of</strong> wealth<br />
management solutions—from mundane to<br />
aggressive. If an advisor doesn’t have a good<br />
read on their client’s risk appetite, they risk<br />
compromising the relationship every time<br />
they recommend a course <strong>of</strong> action.<br />
Each <strong>of</strong> the items listed above can yield myriad<br />
planning opportunities. For example: If a client<br />
has entered into a second marriage while raising<br />
kids from the first marriage, there may be a need<br />
for a testamentary trust in the estate plan; a<br />
business without a successor may indicate<br />
the need for an exit plan; a disabled child may<br />
indicate the need for a disability trust; and so on<br />
and so forth. These ideas are not products—they<br />
are solutions to risks and opportunities identified<br />
during the discovery process. This customized<br />
approach, based on a deep discovery process, is<br />
what sets excellent advisors apart from the pack.<br />
“If you want to create value-add and<br />
lasting relationships with your clients,<br />
you need to unlock their dreams and<br />
fears before discussing solutions.”<br />
Tips for discovery<br />
Because clients don’t walk around with a dossier containing the pertinent information needed to help<br />
them, discovery can be a difficult process. Advisors will need to work to get this information. In some<br />
cases, it can take years to fully understand a client. Openly conferring with other advisors is valuable<br />
during this process, and it is always interesting to hear what different advisors take from the same<br />
conversation.<br />
Here are some tips to engage in discovery with your clients:<br />
• Use open-ended questions where possible, and keep closed-ended questions that result in yes/no<br />
answers to the minimum required. “What are your plans in retirement?” is likely to elicit a more<br />
engaging response than: “Do you plan to travel in retirement?” The latter can easily be answered<br />
with one word.<br />
• Avoid the use <strong>of</strong> double-barrelled and leading questions that can eat up valuable time and<br />
make the client feel like they need to conform to your expectations. For example, here’s a leading<br />
question: “Given that you are tight for cash and have to support your kids, do you think you will<br />
travel much?”<br />
• Follow the bouncing ball. If a client wants to talk about a particular item, let them. Ask questions<br />
that continue the conversation along that path until you feel it has been exhausted. Having a reference<br />
list <strong>of</strong> questions can be useful, but don’t be so regimented that you miss a learning opportunity—the<br />
client’s answer to the first question will usually tell you what to ask next, and so on. Also, don’t feel<br />
that you need to learn everything in one meeting. As mentioned earlier, discovery takes time.<br />
• Talk with other advisors to fill in missing pieces <strong>of</strong> information. Again, clients are not necessarily<br />
good at giving the information advisors actually need. This information usually trickles out over<br />
longer periods <strong>of</strong> time, and not usually to the same person.<br />
• Visit clients at their home, at least some <strong>of</strong> the time. When you are at a client’s home, you can<br />
observe some <strong>of</strong> the intimate aspects <strong>of</strong> their life. Ask them about the picture <strong>of</strong> their grandchildren<br />
on the wall and follow the bouncing ball: “Have you considered providing some funding for their<br />
education?” A positive response indicates potential value in several solutions: family trust planning,<br />
RESPs, and estate planning, to name a few.<br />
• Socialize with clients, as appropriate. Spending time with clients in a casual setting provides<br />
an opportunity to talk about matters other than business, and that’s when the really important<br />
information emerges.<br />
On the road to a wealth management plan...<br />
A detailed and thoughtful discovery plan, generated over time, provides the necessary information to<br />
design and implement a strategic wealth management plan. In my next article, I’ll bridge from discovery<br />
to the next important step in wealth management: building an after-tax cash flow model.<br />
Tanner Philp, CA, CIM, is an investment counsellor at R<strong>BC</strong> PH&N Investment Counsel in Vancouver,<br />
where he is responsible for providing wealth and discretionary investment management solutions to private<br />
clients.<br />
<strong>June</strong>/Summer <strong>2012</strong> ica.bc.ca 29
PD News<br />
JUNE-JULY PD PROGRAM<br />
For detailed course descriptions or a complete<br />
schedule <strong>of</strong> upcoming PD seminars, consult<br />
your spring <strong>2012</strong> PD catalogue or visit our website<br />
at www.icabc-pd.com. To register, call the<br />
PD department at 604-681-3264.<br />
Spring/Summer Conferences<br />
Information Technology Conference<br />
<strong>June</strong> 14-15, 8:30am-4:30pm<br />
Vancouver Convention Centre West<br />
CAs in Industry PD Day<br />
<strong>June</strong> 19, 8:30am-5pm<br />
Vancouver Convention Centre West<br />
Victoria CA Conference Day<br />
<strong>June</strong> 21, 8:30am-5pm<br />
Westin Bear Mountain Golf Resort & Spa<br />
Our popular conferences provide members<br />
with the most efficient way to obtain<br />
practical information for use in the<br />
workplace. A complete list <strong>of</strong> topics and<br />
conference speakers will be provided in<br />
future mailings, as well as on our website<br />
at www.icabc-pd.com.<br />
Free Seminars for CAs<br />
Tax in the Current Time Zone<br />
<strong>June</strong> 20, 7:30-9:30am<br />
Vancouver Convention Centre West<br />
Understanding Financial Statements for<br />
Non-Financial Directors<br />
<strong>June</strong> 21, 8:00-9:30am<br />
Vancouver Convention Centre West<br />
Quality Control – How to Make It<br />
Work for You<br />
July 11, 8:00-10:00am<br />
Vancouver Convention Centre West<br />
These sessions are free for CA members<br />
only. Seats are limited, and preregistration<br />
is required. For more<br />
information, go to www.icabc-pd.com or<br />
email pdreg@ica.bc.ca to register.<br />
Accounting & Assurance<br />
Business Combinations for Private and<br />
Public Enterprises<br />
This seminar will provide guidance related to<br />
the accounting for business combinations in both<br />
the public and private enterprise environment.<br />
It will provide an understanding <strong>of</strong> Section<br />
1582/IFRS 3 in the application <strong>of</strong> the acquisition<br />
method, and the preparation <strong>of</strong> consolidated<br />
financial statements.<br />
<strong>June</strong> 14, 9am-5pm, Vancouver<br />
Wealth Management Tools and Practices<br />
This seminar will give pr<strong>of</strong>essional advisors the<br />
tools they need to help themselves or their clients<br />
develop personal financial plans; collaborate<br />
with other pr<strong>of</strong>essional advisors who provide<br />
financial advice; and help integrate clients’<br />
personal financial planning into their corporate<br />
and family affairs.<br />
<strong>June</strong> 12, 9am-12:30pm, Abbotsford<br />
<strong>June</strong> 14, 9am-12:30pm, Vancouver<br />
IFRS – Foreign Currency Translation<br />
This half-day seminar will provide practical<br />
guidance regarding the terminology and methodology<br />
<strong>of</strong> foreign currency translation under<br />
IAS 21 and IAS 29. It will highlight differences<br />
between IFRS and Canadian GAAP, using examples<br />
to enhance significant differences.<br />
<strong>June</strong> 15, 9am-12:30pm, Vancouver<br />
The CAS Audit <strong>of</strong> Simple Entities<br />
This seminar will provide practical guidance<br />
on how the CAS requirements can be applied<br />
proportionally to the audit <strong>of</strong> very small entities,<br />
and how to prepare documentation that complies<br />
with the CAS in a cost-effective manner. A case<br />
study using a micro not-for-pr<strong>of</strong>it organization<br />
will be used to reinforce the learning.<br />
<strong>June</strong> 18, 9am-5pm, Vancouver<br />
ASPE: A Comparison to Part V<br />
This seminar will compare GAAP standards<br />
contained in CICA Handbook – Accounting Part V<br />
with those in Accounting Standards for Private<br />
Enterprises, now included in Part II <strong>of</strong> the CICA<br />
Handbook – Accounting. The objective <strong>of</strong> this<br />
course is to help participants understand what<br />
has and has not changed from current practice<br />
in all areas, and the impact <strong>of</strong> these changes on<br />
financial statements.<br />
<strong>June</strong> 21, 9am-5pm, Vancouver<br />
July 5, 9am-5pm, Victoria<br />
Corporate Treasury Management<br />
The treasury function has evolved from cash<br />
management and insurance to funding strategy,<br />
complex risk-management techniques, and<br />
oversight <strong>of</strong> many aspects <strong>of</strong> corporate risk<br />
management and loss reduction. This seminar<br />
will provide participants with the tools needed<br />
to add value to the treasury function in their<br />
organizations.<br />
<strong>June</strong> 21, 9am-5pm, Vancouver<br />
ASPE: A Survey <strong>of</strong> the Standards<br />
This seminar is designed for individuals seeking<br />
an in-depth, detailed review <strong>of</strong> ASPE. All<br />
ASPE Handbook sections will be reviewed and<br />
discussed in the material. The seminar will also<br />
feature an introduction on the changeover from<br />
GAAP to ASPE.<br />
<strong>June</strong> 25-26, 9am-5pm, Abbotsford<br />
July 12-13, 9am-5pm, Vancouver<br />
IFRS – A Comparison to Part V<br />
This seminar will examine the major differences<br />
between CICA Handbook – Accounting Part V<br />
(pre-changeover GAAP) and CICA Handbook –<br />
Accounting Part I (IFRS) for pr<strong>of</strong>it-oriented<br />
entities. The focus will be on the IFRS with significant<br />
differences from pre-changeover Canadian<br />
GAAP.<br />
<strong>June</strong> 27, 9am-5pm, Vancouver<br />
Principles and Practices <strong>of</strong> Business<br />
Acquisitions<br />
This seminar will focus on the major considerations<br />
involved in analysing a possible acquisition,<br />
making a deal, financing the transaction, and<br />
operating the merged entity.<br />
<strong>June</strong> 27, 9am-5pm, Vancouver<br />
ASPE: The Transition<br />
This half-day seminar will review the retrospective<br />
impacts <strong>of</strong> adopting ASPE. The measurement<br />
and recognition changes required or considered<br />
on adoption will be explored. The objective <strong>of</strong><br />
the course is to provide deeper knowledge and<br />
understanding <strong>of</strong> the financial statement transition<br />
requirements <strong>of</strong> ASPE.<br />
<strong>June</strong> 28, 9am-12:30pm, Vancouver<br />
IFRS – A Survey <strong>of</strong> the Standards<br />
This seminar will provide a solid introduction<br />
to IFRS. Focus will be on IFRS that apply to<br />
most pr<strong>of</strong>it-oriented entities and that differ from<br />
Canadian GAAP. Note: The seminar will not<br />
provide a direct comparison with Canadian GAAP.<br />
July 5-6, 9am-5pm, Vancouver<br />
30 ica.bc.ca <strong>June</strong>/Summer <strong>2012</strong>
IFRS – An Update<br />
IFRS standards are changing and it is important<br />
to keep abreast <strong>of</strong> recent developments. This<br />
half-day seminar will provide participants with a<br />
review <strong>of</strong> new and revised IFRS, and an up-todate<br />
snapshot <strong>of</strong> other projects being considered<br />
by IFRS standards setters.<br />
July 9, 9am-12:30pm, Vancouver<br />
Financing Strategies<br />
This seminar will provide an in-depth review <strong>of</strong><br />
the various forms <strong>of</strong> financing used to fund capital<br />
projects and acquisitions, or to restructure<br />
existing capital. By using real-life examples,<br />
identifying common pitfalls, and highlighting<br />
key elements and case studies, the seminar will<br />
put financial executives in a better position to<br />
seek out and negotiate with capital providers.<br />
July 10, 9am-5pm, Vancouver<br />
PSAB 101<br />
This seminar will help participants understand<br />
the accounting recommendations <strong>of</strong> the Public<br />
Sector Accounting Board (PSAB). It will enable<br />
them to apply the recommendations in the<br />
preparation <strong>of</strong> government financial statements,<br />
and develop financial reporting in accordance<br />
with PSAB. The course will review the key<br />
recommendations in the PSAB Handbook, and<br />
a variety <strong>of</strong> examples will be used to help<br />
participants understand the application <strong>of</strong> these<br />
recommendations.<br />
July 12, 9am-5pm, Vancouver<br />
Management<br />
New: The Mobile Web for <strong>Accountants</strong><br />
This seminar will explore how financial pr<strong>of</strong>essionals<br />
can position themselves to take full<br />
advantage <strong>of</strong> portable Internet-connected devices<br />
such as smartphones and tablets. This information<br />
is especially relevant for accountants who,<br />
increasingly, are expected to be plugged in at all<br />
times, work on the fly, respond immediately,<br />
continuously monitor their clients, and collaborate<br />
at anytime from anywhere.<br />
<strong>June</strong> 18, 9am-12:30pm, Abbotsford<br />
July 25, 9am-12:30pm, Kelowna<br />
What’s Your Point? Present with Presence<br />
Whether you are standing onstage in front <strong>of</strong> a<br />
large audience, or sitting at a board room table<br />
or across a desk from a client, this workshop will<br />
help you get organized and deliver your message<br />
clearly and memorably.<br />
<strong>June</strong> 22, 9am-5pm, Victoria<br />
July 10, 9am-5pm, Vancouver<br />
Building Better Business Cases<br />
This seminar will give participants the tools they<br />
need to better evaluate and critically monitor<br />
capital expenditure (CAPEX) business cases. It<br />
will provide the knowledge and skills needed to<br />
help participants avoid making CAPEX business<br />
case flaws and errors.<br />
<strong>June</strong> 22, 9am-5pm, Vancouver<br />
Winning-Edge Negotiation Skills<br />
This seminar will teach you a proven, practical,<br />
step-by-step approach to win-win negotiations,<br />
and show you how to protect yourself from<br />
“hardball” negotiators. Learn how to win your<br />
opponent over, rather than win over your opponent.<br />
<strong>June</strong> 22, 9am-5pm, Victoria<br />
Pr<strong>of</strong>essional Presence<br />
In today’s world, we need to make a good first<br />
impression quickly, whether we’re communicating<br />
by email, voicemail, or face to face. This practical<br />
workshop will provide you with valuable skills<br />
to increase your effectiveness and your confidence<br />
in any situation, and will help you build<br />
better business relationships.<br />
<strong>June</strong> 26, 9am-5pm, Vancouver<br />
Project Management – Tips & Traps<br />
This seminar will take you through the steps to<br />
successfully implement project management. It<br />
is intended for senior managers who want to<br />
understand the applicability <strong>of</strong> this tool, and/or<br />
want to identify opportunities for improvement<br />
in their own organizations or in their clients’<br />
organizations.<br />
<strong>June</strong> 26, 9am-5pm, Vancouver<br />
You’re Speaking: But Are You Connecting?<br />
In this seminar, you’ll learn how to make minor<br />
changes to your personal speaking style that will<br />
lead to a major improvement with each audience<br />
you address. You’ll come away with ideas and<br />
skills that will help you get results in less time.<br />
<strong>June</strong> 28, 9am-12:30pm, Vancouver<br />
Excel - Advanced<br />
Although many accountants consider themselves<br />
experts at using Excel, most are self-taught and do<br />
not use Excel to its full potential. This course is<br />
designed to take experienced, self-taught users to<br />
the next level. It will provide real world examples<br />
developed by accountants for accountants.<br />
July 16, 9am-5pm, Vancouver<br />
New: Excel Boot Camp<br />
This course is an intensive, two-day program<br />
designed to take experienced, self-taught users <strong>of</strong><br />
Excel to the next level. It will provide real-world<br />
examples developed by accountants for accountants,<br />
and will cover features in Excel 2003,<br />
2007, and 2010.<br />
July 19-20, 9am-5pm, Vancouver<br />
Taxation<br />
Income Tax Refresher: Corporate Tax<br />
This two-day seminar will go beyond corporate<br />
tax preparation to review the personal and<br />
corporate tax-planning opportunities that are<br />
available for corporate taxpayers.<br />
<strong>June</strong> 22-23, 9am-5pm, Vancouver<br />
Basic Canadian Income Tax Issues in<br />
Cross-Border Transactions<br />
This half-day seminar will provide participants<br />
with a basic overview <strong>of</strong> several key <strong>issue</strong>s,<br />
including certain Canadian income tax reporting<br />
requirements relating to the taxation <strong>of</strong> transactions<br />
between Canadian companies and non-resident<br />
businesses.<br />
This seminar will be valuable to members in<br />
industry and practitioners who deal with, or expect<br />
to deal with, cross-border business transactions.<br />
<strong>June</strong> 26, 9am-12:30pm, Vancouver<br />
Breaking Up Is Hard To Do<br />
When a marriage or common law relationship<br />
ends, the division <strong>of</strong> family assets can be complicated.<br />
Learn how business and family assets are<br />
classified in family law, and the role you can play<br />
in advising both lawyers and clients effectively.<br />
<strong>June</strong> 26, 9am-12:30pm, Vancouver<br />
New: Canadian Resident Trusts & Estates<br />
with Non-Resident Beneficiaries<br />
The objective <strong>of</strong> this seminar is to help attendees<br />
understand the taxation <strong>issue</strong>s and reporting<br />
requirements for an estate or trust that is resident<br />
in Canada or deemed resident in Canada, where<br />
there are one or more beneficiaries who do not<br />
reside in Canada. Planning techniques to minimize<br />
taxation will be discussed.<br />
<strong>June</strong> 28, 7:30-9:30am, Vancouver<br />
Remember that our spring/summer<br />
program provides your last chance<br />
to use your 2011-<strong>2012</strong> PD passports,<br />
which expire July 31, <strong>2012</strong>. There are<br />
no carry-forward provisions for<br />
unused portions.<br />
<strong>June</strong>/Summer <strong>2012</strong> ica.bc.ca 31
Plugged In: News for and about members & students<br />
Announcements<br />
Congratulations to our 50- and 60-year members!<br />
50-year members<br />
Mr Dennis E. Atkinson, CA<br />
Mr Robert H. Baker, CA<br />
Mr Ross E. Bird, CA<br />
Mr Robert D. Brawn, CA<br />
Mr Douglas K Bruce, CA<br />
Mr Irving A. Buckwold, CA<br />
Mr Malcolm A. Christie, CA<br />
Mr Arthur L. Cinnamon, CA<br />
Ms Sonja K. Clark, CA<br />
Mr A Brian W. Coleman, CA<br />
Mr Robin R. Cordwell, CA<br />
Mr Hugh A. Creighton, CA<br />
Mr Russell W. Daneluk, CA<br />
Mr Antony W. Dawson, CA<br />
Mr Kenneth M. Dye, FCA<br />
Mr Olaf M. Falkenhagen, CA<br />
Mr Charles A. Fiford, CA<br />
Mr Kenneth M Fleming, CA<br />
Mr Robert A. Food, CA<br />
Mr Lawrence Fox, CA<br />
Mr D. Stuart Fraser, CA<br />
Mr George R. Fraser, CA<br />
Mr James D. Gray, CA<br />
Ms Mavis J. Hadland, CA<br />
Mr Jack W. Halpin, CA<br />
Mr Harold B. Hancock<br />
Mr Barrie L. Henderson, CA<br />
60-year members<br />
Mr Walter E. Askin, CA<br />
Mr John R. Croll, FCA<br />
Mr Derek J. D. Falck, CA<br />
Mr John E. Goodwin, CA<br />
Mr Robert A. Gourlay, CA<br />
Mr Jeremy H. V. Hooper, CA<br />
Mrs Blanche A. Howard, CA<br />
Mr William G. Inkster, CA<br />
Mr Robert E. Jamison, FCA<br />
Mr Robert W. Johnson, CA<br />
Mr David A. Jones, CA<br />
Mr Sammy Kee, CA<br />
Mr Alan K. Kemp-Gee, CA<br />
Mr Irving M. Kirsch, CA<br />
Mr Paul R. Kissack, CA<br />
Mr Robert J. Koster, CA<br />
Mr Michael R. Kotchan, CA<br />
Mr Earl W. Large, CA<br />
Mr Kenneth W. Lepin, CA<br />
Mr Ian M. Lochhead, FCA<br />
Mr Raymond E. Lucas, CA<br />
Mr Frederick A. Marsh, CA<br />
Mr Hugh W. McAdams, CA<br />
Mr Brian R. McCreadie, CA<br />
Mr Fred McKave, CA<br />
Mr Alan R McKinlay, CA<br />
Mr E. Michael McMahon, FCA<br />
Mr Sultanali G. Mohamedani, CA<br />
Mr Roy A. Moore, CA<br />
Mr D Bruce Morris, CA<br />
Mr Leif S. Nordahl, CA<br />
Mr Earl V. Nordstrand, CA<br />
Mr Clifford J. Hill, CA<br />
Mr William G. Homenuk, CA<br />
Mr Stanley B. Jenkins, CA<br />
Mr Keith M. Lightbody, CA<br />
Mr Frank B. Mason, CA<br />
Mr Joseph M. Ostafichuk, CA<br />
Mr James A. H. Pearson, CA<br />
Mr George R. Pritchard, CA<br />
Mr John R. Redworth, CA<br />
Mr Joseph F. B. Reilly, CA<br />
Mr Edward D. Renyk, CA<br />
Mr Alan W. Richman, CA<br />
Mr Larry R. Ridenour, CA<br />
Mr Reginald M. M. Rowe, CA<br />
Mr Donald R. Rush, CA<br />
Mr Kenneth A. Sherlock, CA<br />
Mr Gordon A. Sladen, CA<br />
Mr Roger D. Smith, CA<br />
Mr Ross S. Smith, FCA<br />
Mr David L. Staley, CA<br />
Mr George A. Stekl, CA<br />
Mr Robert J. Sundberg, CA<br />
Mr Graham S. Thompson, CA<br />
Mr Bui Thorlacius, CA<br />
Mr Roy B. Treasurer, CA<br />
Mr Jan B. Ullstrom, CA<br />
Mr H. William C. Watson, CA<br />
Mr Robert A. Watts, CA<br />
Mr Royston L. Welham, CA<br />
Mr John M. Wilson, CA<br />
Mr Thomas F. Rose, CA<br />
Mr Rupert N. Salomon, CA<br />
Mr David R. Sinclair, FCA<br />
Mr Harold H. Wolf, CA<br />
FVCAA Event Notice<br />
The Fraser Valley CA Association (FVCAA) is pleased to announce the following upcoming event:<br />
<strong>June</strong> 7, <strong>2012</strong><br />
ICA<strong>BC</strong> Executive & Committee Activities, Unification Activities, FVCAA Scholarship Presentation<br />
Keynote speaker: Incoming ICA<strong>BC</strong> President Gord Holloway, FCA (associate partner/practice leader, KPMG)<br />
The event will take place at the Cascade Community Centre in Abbotsford and start at 8am. The cost for the event is<br />
$35.00 and includes breakfast. RSVP to Laurie Daschuk at Laurie@fvcaa.ca.<br />
32 ica.bc.ca <strong>June</strong>/Summer <strong>2012</strong>
In memoriam<br />
Our deepest condolences to the<br />
family and many friends <strong>of</strong> Ken<br />
Maddison, FCA. Ken passed away<br />
peacefully on April 8, <strong>2012</strong>, after a<br />
short battle with cancer.<br />
Ken was well-respected in the<br />
business community. He worked in<br />
public practice for 31 years, and<br />
retired as a senior partner <strong>of</strong> KPMG.<br />
He also served as a director <strong>of</strong> several<br />
public companies in Canada and the<br />
United States.<br />
Deeply committed to public service,<br />
Ken held positions <strong>of</strong> leadership with<br />
many community organizations,<br />
including the United Way <strong>of</strong> the<br />
Lower Mainland; the North Fraser<br />
Harbour Commission; Sports <strong>BC</strong>; the<br />
Burnaby Parks & Recreation<br />
Commission; the Pacific Coast<br />
Association <strong>of</strong> Port Authorities (to<br />
which he was elected a life member);<br />
the Canada Summer Games; and the<br />
<strong>BC</strong> Lacrosse Association—to name<br />
but a few.<br />
Those members who knew Ken will<br />
also remember his alter ego, “Jelly<br />
Bean” the clown. Ken volunteered for<br />
more than 30 years as Jelly Bean,<br />
bringing smiles and comfort to<br />
children at parades and at the <strong>BC</strong><br />
Children’s Hospital. A proud Mason<br />
and a Shriner, he was a member <strong>of</strong><br />
the clown unit <strong>of</strong> Maple Leaf Park<br />
Lodge #63. In addition to serving as<br />
president <strong>of</strong> the clown unit, Ken also<br />
served as treasurer and CFO <strong>of</strong> the<br />
Shriners <strong>of</strong> British Columbia and<br />
Yukon, <strong>of</strong> which he was made<br />
treasurer emeritus. In addition, he was<br />
a member <strong>of</strong> the Canadian Shriners<br />
Hospital Committee and a tireless<br />
fundraiser for the Hospital.<br />
Ken was also a member <strong>of</strong> the<br />
Vancouver Golf Club and a long-time<br />
member <strong>of</strong> the Terminal City Club. In<br />
addition to golf, he enjoyed fishing<br />
and gardening.<br />
Ken is survived by his wife Elaine, his<br />
children, brother, grandchildren,<br />
stepchildren, and many other family<br />
members. Donations in his memory<br />
may be made to the Shriners Hospital<br />
for Children or the Canadian Cancer<br />
Society.<br />
Notice to all Yukon Members<br />
<strong>2012</strong> Yukon <strong>Institute</strong> <strong>of</strong> <strong>Chartered</strong> <strong>Accountants</strong> Annual General Meeting<br />
The Yukon <strong>Institute</strong>’s annual general meeting (AGM) will take place at 4:00 pm<br />
on Friday, <strong>June</strong> 22, <strong>2012</strong>, at the Edgewater Hotel, located at 101 Main Street,<br />
Whitehorse, YT. You will be able to access all meeting material via the Yukon<br />
<strong>Institute</strong>’s website at www.icayk.com effective May 31, <strong>2012</strong>.<br />
Notice to all <strong>BC</strong> Members<br />
REMINDER – ICA<strong>BC</strong> <strong>2012</strong> Annual General Meeting<br />
The ICA<strong>BC</strong>’s 107th annual general meeting (AGM) will be held Wednesday, <strong>June</strong><br />
20, <strong>2012</strong>, at the Hyatt Regency Vancouver, located at 655 Burrard Street,<br />
Vancouver, <strong>BC</strong>. The meeting will start at 3:30 pm.<br />
Agenda for AGM<br />
1. Notice <strong>of</strong> Meeting<br />
2. The Membership<br />
3. Appointment <strong>of</strong> Scrutineers<br />
4. Minutes <strong>of</strong> 106th AGM <strong>of</strong> <strong>June</strong> 22, 2011 (available online at www.ica.bc.ca)<br />
5. President’s Report (available online)<br />
6. Financial Statements as at March 31, <strong>2012</strong> (available online)<br />
7. Appointment <strong>of</strong> Auditors – <strong>2012</strong>/2013<br />
8. Notice <strong>of</strong> Motions – Amendments to the Bylaws and Rules <strong>of</strong> Pr<strong>of</strong>essional<br />
Conduct (available online)<br />
9. Election <strong>of</strong> Council – <strong>2012</strong>/2013 through 2013/2014 (available online)<br />
10. Other Business<br />
11. Adjournment<br />
Meeting material on ICA<strong>BC</strong> website<br />
Meeting material—including proxy, Council candidate voting information, and all<br />
other meeting material—is available on the <strong>Institute</strong>’s website at www.ica.bc.ca.<br />
If you do not have access to the Internet, you may request that a meeting<br />
package be mailed to you by contacting the <strong>Institute</strong> <strong>of</strong>fice at 604-681-3264<br />
or 1-800-663-2677 (toll free in <strong>BC</strong>).<br />
PRL Notice – Cancelled Licences<br />
Pursuant to its meeting <strong>of</strong> May 11, <strong>2012</strong>, the Practice Review & Licensing<br />
Committee announces that the following firms are no longer in public practice<br />
under these names:<br />
Firm Name<br />
Brent Zazubek<br />
Burkett & Abercrombie<br />
C.B. Wilson <strong>Chartered</strong> Accountant<br />
Chan Foucher LeFebvre LLP<br />
Chan Foucher LeFebvre LLP<br />
Chan Foucher LeFebvre LLP<br />
DG Smith & Company<br />
Graham Alce CA<br />
Jem Business Services Inc.<br />
N.J.R. MacKinnon, C.A.<br />
R.A. Hussey & Associates Inc.<br />
Rick Dauphinee Ltd.<br />
City<br />
North Vancouver<br />
Victoria<br />
Kelowna<br />
Quesnel<br />
Vanderho<strong>of</strong><br />
Prince George<br />
Fort St. John<br />
Nanaimo<br />
West Vancouver<br />
Vancouver<br />
Kelowna<br />
West Vancouver<br />
<strong>June</strong>/Summer <strong>2012</strong> ica.bc.ca 33
Working, Living, and Investing in Regional <strong>BC</strong> in 2011<br />
continued from page 19<br />
Table 3: Business Incorporations in All Development Regions, 2006-2011<br />
Percentage point<br />
change<br />
Region 2006 2007 2008 2009 2010 2011 5-Year 1-Year<br />
2006-11 2010-11<br />
Cariboo 601 560 557 440 456 476 -20.8% 4.4%<br />
Kootenay 603 730 644 490 504 494 -18.1% -2.0%<br />
Mainland/Southwest 24,114 24,538 21,445 19,483 22,714 23,335 -3.2% 2.7%<br />
Nechako 137 131 118 72 88 99 -27.7% 12.5%<br />
North Coast 90 106 108 85 76 94 4.4% 23.7%<br />
Northeast 669 542 444 327 479 534 -20.2% 11.5%<br />
Thompson-Okanagan 3,196 3,446 3,124 2,375 2,577 2,476 -22.5% -3.9%<br />
Vancouver Island/Coast 3,863 3,983 3,645 3,159 3,411 3,335 -13.7% -2.2%<br />
British Columbia 33,273 34,036 30,085 26,431 30,305 30,844 -7.3% 1.8%<br />
Source: Statistics Canada<br />
Number <strong>of</strong> business establishments<br />
After three years <strong>of</strong> growth, the number <strong>of</strong> business establishments in <strong>BC</strong> slipped in 2011, decreasing by 1,383, or 0.4%, to reach 368,879. The greatest<br />
losses occurred among establishments with 20 or more employees, while the number <strong>of</strong> the establishments with no employees (i.e., self-employed or sole<br />
proprietorships) grew by 0.5%.<br />
A review <strong>of</strong> regional data shows that in most cases, the total number <strong>of</strong> business establishments declined for almost all size categories. Only the Nechako<br />
saw an overall increase in the number <strong>of</strong> business establishments, recording a modest growth rate <strong>of</strong> 0.1%.<br />
The North Coast and Kootenay Development Regions underwent the greatest declines, with the total number <strong>of</strong> establishments falling by 1.7% and 1.4%<br />
respectively. In both cases, the greatest losses were incurred by large establishments with 50 or more employees.<br />
Two exceptions to this contraction in the number <strong>of</strong> establishments was a 0.8% gain in businesses with no employees in the Mainland/Southwest (reflecting<br />
an ongoing trend toward greater self-employment), and an increase in the number <strong>of</strong> establishments with 20 to 40 employees in both the Nechako and the<br />
North Coast. This was a reflection <strong>of</strong>f on-going growth in transportation and warehousing, construction, and several service sector industries.<br />
Living in Regional <strong>BC</strong><br />
Educational attainment<br />
Labour force educational attainment plays a central role in productivity gains, and helps to determine our province’s competitive position in the world<br />
market. Between 2010 and 2011, <strong>BC</strong>’s share <strong>of</strong> the labour force with post-secondary education rose from 64.4% to 65.9%, a gain <strong>of</strong> 1.5 ppt. Over the past<br />
five years, this indicator has risen by 5 ppt, but in absolute terms <strong>BC</strong> still lags behind some eastern Canadian jurisdictions, such as Ontario.<br />
In 2011, labour force educational attainment rose in all Development Regions, except for the Northeast and Vancouver Island/Coast. The principle driving<br />
force behind rising education levels was industry’s growing need for workers with technical skills, specialized training, or an advanced degree. The largest gains<br />
were made in the Kootenay, Northwest, and Cariboo (8.1 ppt, 5.3 ppt, and 2.7 ppt respectively). Nevertheless, they still lag behind the educational<br />
attainment levels <strong>of</strong> the Mainland/Southwest and Vancouver Island/Coast, although the gap is closing. (See Table 4 on page 31.)<br />
Dependence on the social safety net<br />
In 2011, there was no overall change in <strong>BC</strong>’s social safety net dependency. The share <strong>of</strong> <strong>BC</strong>’s workforce-age adults who depended on basic income assistance<br />
and employment insurance remained steady at 2%. The story is more positive at the regional level. In six out <strong>of</strong> eight Development Regions, social safety net<br />
dependency declined, as more workers re-entered the labour force; in the other two, the dependency ratio remained the same.<br />
The greatest decline in this indicator took place in the North Coast and Nechako, where social safety net dependency declined by 0.4 ppt, and the Northeast ranked<br />
second place, with a decline <strong>of</strong> 0.3 ppt. Dependency in the Mainland/Southwest and Thompson-Okanagan declined slightly, by 0.1 ppt, while it remained the same<br />
in the Kootenay and Vancouver Island/Coast.<br />
In spite <strong>of</strong> these favourable developments, there have been no significant changes in absolute rankings among regions. The Northeast continues to enjoy the lowest<br />
social safety net dependency ratio in <strong>BC</strong>, at 1.2%, and the Mainland/Southwest Development Region is second lowest at 1.7%. At the high end <strong>of</strong> the spectrum, the<br />
North Coast Development Region persisted in having the highest dependency ratio in the province, at 4.8%.<br />
34 ica.bc.ca <strong>June</strong>/Summer <strong>2012</strong>
Table 4: Percent <strong>of</strong> Labour Force Age 25 to 54 with a Post-Secondary Certificate/Diploma or<br />
Higher, 2006 to 2011<br />
Percentage point<br />
change<br />
Region 2006 2007 2008 2009 2010 2011 5-Year 1-Year<br />
2006-11 2010-11<br />
Cariboo 50.9 52.4 56.2 55.7 53.1 55.8 4.9 2.7<br />
Kootenay 53.1 53.3 53.2 56.8 55.1 63.2 10.1 8.1<br />
Mainland/Southwest 64.1 64.4 65.1 65.0 67.1 68.4 4.3 1.3<br />
Northwest <strong>BC</strong> 51.3 44.7 47.7 50.8 54.0 59.3 8.0 5.3<br />
Northeast 48.4 54.8 53.9 53.8 49.6 48.5 0.1 -1.1<br />
Thompson-Okanagan 54.6 58.7 57.5 60.7 59.6 61.5 6.9 1.9<br />
Vancouver Island/Coast 59.4 59.8 62.3 62.0 64.1 64.0 4.6 -0.1<br />
British Columbia 61.0 61.7 62.6 63.0 64.4 65.9 5.0 1.5<br />
Source: Statistics Canada<br />
Full report available online<br />
The full version <strong>of</strong> the <strong>BC</strong> Check-Up, Regional Edition is available on the <strong>BC</strong> Check-Up website at www.bccheckup.com under “Regional Edition.” For more<br />
information about the report, contact Vanessa Woznow, the <strong>Institute</strong>’s manager <strong>of</strong> public affairs, at woznow@ica.bc.ca.<br />
Marlyn Chisholm is the principal <strong>of</strong> Chisholm Consulting and the lead economist on the ICA<strong>BC</strong>’s annual <strong>BC</strong> Check-Up report.<br />
Classifieds<br />
KELOWNA CA FIRM LOOKING TO<br />
EXPAND CLIENT BASE -<br />
We are a well-established accounting<br />
firm with <strong>of</strong>fices throughout the<br />
Okanagan looking to further expand<br />
our operations by purchasing existing<br />
clients or an existing firm. We <strong>of</strong>fer a<br />
wide variety <strong>of</strong> experiences and a<br />
good breadth <strong>of</strong> knowledge <strong>of</strong> small<br />
to medium-sized business as well as<br />
personal taxes. If you are looking for<br />
an opportunity to scale down your<br />
business or retire, we have<br />
experience in <strong>of</strong>fice purchases and<br />
will focus on making a smooth as<br />
possible transition. We will work with<br />
you and your clients to make sure the<br />
fit is good and that the clients are<br />
comfortable with the transition.<br />
Please contact:<br />
bckelownaca@gmail.com.<br />
Confidentiality will be respected.<br />
VANCOUVER - Mid-size CA firm<br />
looking to assist with your succession<br />
plan. $500k to $2m range. We can<br />
buy or merge in if the fit is right.<br />
Staying on after a purchase to affect<br />
a smooth transition is possible. Reply<br />
in confidence to:<br />
mergeprose@gmail.com.<br />
MERGER OR SUCCESSION<br />
OPPORTUNITY - Successful mid-size<br />
Vancouver-based firm is looking to<br />
expand through succession or<br />
merger opportunities throughout the<br />
lower mainland. Reply in confidence<br />
to mergeopportunities@gmail.com.<br />
SUCCESSION OR RETIREMENT<br />
PURCHASE - Downtown Vancouver<br />
multi-partner firm is looking to<br />
expand by assisting with your<br />
retirement or succession plan.<br />
Please reply to:<br />
successionpurchase@gmail.com.<br />
OFFICE SHARING FOR SOLE<br />
PRACTITIONER OR FIRM - We are<br />
an established small firm <strong>of</strong> 9 people<br />
(Vancouver Champlain Heights area)<br />
looking for a sole-practitioner or<br />
small firm to share our <strong>of</strong>fices and<br />
administrative resources. Ideal for<br />
the new practitioner starting out or<br />
for the established firm wanting to<br />
cut-costs. The <strong>of</strong>fice was tastefully –<br />
but not extravagantly – built out in<br />
2010 and can accommodate an<br />
additional 10 people very comfortably.<br />
The building has ample free parking<br />
and is located in a park-like setting<br />
beside a recreation centre and tennis<br />
courts. We are also open to a future<br />
partnership and/or buy-out with the<br />
right individual/firm. If interested,<br />
please email your name and<br />
telephone to employ.bc@gmail.com.<br />
<strong>June</strong>/Summer <strong>2012</strong> ica.bc.ca 35
At Your Service<br />
Personalized Portfolio Management<br />
Taxable, Registered, Tax-Free,<br />
and Pension Fund Accounts<br />
Independent Business Valuaons<br />
and Ligaon Support<br />
Corporate Reorganizaons<br />
Tax/Estate Planning<br />
Buy/Sells<br />
Shareholder Disputes<br />
Matrimonial Disputes<br />
Economic Loss Claims<br />
Valuation and Financial Services LLP<br />
Joe Bring, CA, CBV jbring@knv.com<br />
Direct line: 604‐560‐8005 www.knv.com<br />
PH: 604‐536‐7614 1‐800‐761‐7772<br />
Brian Mombourquee, CA • Joe Bring, CA, CBV<br />
Sandy Adachi, CA<br />
Surrey Vancouver Kelowna<br />
CUSTOMS CONSULTANTS<br />
Our team provides Customs Compliance Solutions to importers and exporters<br />
doing business in North America and Internationally including:<br />
Compliance Reviews<br />
NAFTA & FTA Qualification and Solicitation<br />
Tariff Classification & Valuation<br />
Customs Audit Assistance<br />
Appeals and Rulings<br />
wholyk@livingstonintl.com<br />
Tel 604-685-3555 (8042)<br />
Fax 604-687-2941<br />
Wyatt S. Holyk, B.Comm., CA<br />
Certified Customs Specialist (US & Canada)<br />
n<br />
www.welcomenetworks.com<br />
info@welcomenetworks.com<br />
Servicing Accounting Pr<strong>of</strong>essionals over 14 years.<br />
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U.S. & Cross-Border Tax Consultants<br />
! U.S. Federal and State Compliance<br />
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! Corporations " Partnerships " LLC’s<br />
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SERVING OTHER PROFESSIONALS SINCE 1988<br />
MARC W. KOTLER, CA<br />
T (604) 531-6207 ! F (604) 538-9713 ! E marc@kvdb.com<br />
www.kvdb.com<br />
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Contact me<br />
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Exclusive coverage for<br />
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• Term Life Insurance<br />
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• Long Term Disability<br />
• Office Contents<br />
Visit caipw.ca or call 1.800.661.6430<br />
36 ica.bc.ca <strong>June</strong>/Summer <strong>2012</strong>
Employment<br />
This is your opportunity to impact the direction <strong>of</strong> the Tax<br />
Team at D+H Group LLP. Working with our 2 Tax Partners,<br />
you will set the direction for tax planning in our growing<br />
business.<br />
You will be responsible for working directly with partners<br />
and clients on tax planning and reorganizations. You will<br />
play a key role in developing the pr<strong>of</strong>essional and technical<br />
skills <strong>of</strong> our growing Tax Team.<br />
Requirements:<br />
+ ten or more years <strong>of</strong> full-time tax experience with an<br />
emphasis on planning<br />
+ completed the CICA In-Depth Tax Courses<br />
+ detailed knowledge <strong>of</strong> income tax rules and planning<br />
opportunities for CCPC organizations<br />
Position <strong>of</strong>fers excellent advancement potential and<br />
competitive compensation. Flexible work arrangements<br />
available. Send your resume and cover letter<br />
to resume-pr<strong>of</strong>@dhgroup.ca.<br />
+<br />
DHgroup.ca<br />
604 731 5881<br />
resume-pr<strong>of</strong>@dhgroup.ca<br />
A B.C. Limited Liability Partnership <strong>of</strong> Corporations<br />
MANAGER<br />
FINANCIAL REPORTING<br />
Manage future growth<br />
Combine your strong technical accounting<br />
abilities with your experience leading teams<br />
<strong>of</strong> designated accountants for this growth<br />
orientated, international US listed company.<br />
This is a senior position requiring extensive<br />
US GAAP Public company reporting,<br />
budgeting and MD&A experience.<br />
The successful candidate will hold a CA<br />
designation with at least 5 years post<br />
designated experience and will have worked<br />
with complex US listed companies. Ability<br />
to lead teams in a dynamic and busy<br />
environment is essential.<br />
Contact Gavin Ryan<br />
for more details at:<br />
gryan@hays.ca<br />
or 604 648 4319<br />
$100,000 - $120,000<br />
SENIOR FINANCIAL<br />
ANALYST<br />
Add value through analysis<br />
One <strong>of</strong> <strong>BC</strong>’s largest, publicly traded<br />
companies is seeking a talented Senior<br />
Financial Analyst to provide value added<br />
services to strategic business units through<br />
detailed financial planning and analysis.<br />
Responsibilities include monthly<br />
performance reporting, budgeting, strategic<br />
planning and financial modelling.<br />
The successful candidate will have<br />
demonstrable success within an FP&A<br />
capacity, coupled with a strong commercial<br />
acumen and the ability to engage key<br />
stakeholders throughout an organisation.<br />
Contact Tim Pearson<br />
for more details at:<br />
tpearson@hays.ca<br />
or 604 648 4281<br />
$80,000 - $100,000<br />
FINANCE MANAGER<br />
FINANCIAL SERVICES<br />
Entrepreneurial and analytical<br />
Join this dynamic financial services business<br />
with operations across Canada. Utilise your<br />
strong technical accounting skills with great<br />
commercial acumen as you perform a broad<br />
range <strong>of</strong> accounting duties.<br />
Working with the senior management team<br />
you will also closely support the decision<br />
making with insightful performance related<br />
information.<br />
A CA with 2-5 years post designation<br />
experience, you have a strong track record <strong>of</strong><br />
working with dynamic and complex<br />
businesses and a desire to grow with a<br />
company.<br />
Contact Gavin Ryan<br />
for more details at:<br />
gryan@hays.ca<br />
or 604 648 4319<br />
$80,000 - $90,000<br />
<strong>June</strong>/Summer <strong>2012</strong> ica.bc.ca 37
For the Pr<strong>of</strong>ession<br />
National Harmony in Practice Review<br />
Programs: Update<br />
By Roger Merkosky, CA<br />
Changes to the practice review methodology and report in<br />
summer <strong>2012</strong><br />
Several years ago, the provincial CA institutes across the country embarked on a project to<br />
harmonize their practice review programs. So far, this has yielded a three-year risk adjusted cycle for<br />
practice reviews, a common method <strong>of</strong> file selection, and CA training <strong>of</strong>fices being assessed<br />
on practical experience requirements. The final leg <strong>of</strong> the project is to harmonize the way firms are<br />
evaluated.<br />
New evaluation methodology and a new report will be implemented for practice reviews starting in<br />
July <strong>2012</strong>. This new process will assist the Practice Review & Licensing Committee (“the Committee”)<br />
in performing its objective assessment <strong>of</strong> a firm and in determining appropriate remedial actions,<br />
and—more importantly—it will enable practitioners to constructively review any deficiencies to be<br />
addressed in order to improve the quality <strong>of</strong> their practices.<br />
As part <strong>of</strong> this new process, a structured approach to the classification and evaluation <strong>of</strong> deficiencies<br />
has been established. Effective July <strong>2012</strong>, deficiencies will be classified as either:<br />
• Reportable deficiencies – deficiencies considered important with respect to financial statement<br />
presentation and disclosure, and the documentation supporting engagement reports, as well as compliance<br />
with the Canadian Standard on Quality Control and the Rules <strong>of</strong> Pr<strong>of</strong>essional Conduct; or<br />
• Non-reportable deficiencies – immaterial deficiencies that are only discussed with the firm. These<br />
deficiencies will not be submitted to the Committee, nor will they be categorized; instead, they will<br />
simply be listed in the report and presented for educational purposes only.<br />
Reportable deficiencies<br />
Reportable deficiencies will be categorized as follows:<br />
• Financial statement presentation deficiencies;<br />
• Audit deficiencies;<br />
• Review deficiencies;<br />
• Compilation deficiencies;<br />
• Canadian Standard on Quality Control deficiencies; and<br />
• Rules <strong>of</strong> Pr<strong>of</strong>essional Conduct deficiencies.<br />
The reportable deficiencies will be identified by file and, other than those relating to quality control or<br />
Rules <strong>of</strong> Pr<strong>of</strong>essional Conduct, will be further categorized as either “significant reportable deficiencies”<br />
or “other reportable deficiencies.” This further sub-categorization will be based on the severity <strong>of</strong> the<br />
deficiency, and will help practitioners and the members <strong>of</strong> the Committee focus on the really important<br />
items.<br />
Simplified firm rating system<br />
The firm rating system will be simplified to three ratings:<br />
1. Meets requirements – The firm meets the requirements <strong>of</strong> the practice review program.<br />
2. Meets requirements with action plan – The firm needs to take a specified course <strong>of</strong> action to meet<br />
the requirements <strong>of</strong> the practice review program.<br />
3. Does not meet requirements – The firm does not meet the requirements <strong>of</strong> the practice inspection<br />
program, resulting in consequences ranging from a partial or full re-inspection to a referral to<br />
discipline.<br />
Scope<br />
Although these changes are focused on assurance<br />
and compilation engagements, the scope <strong>of</strong> the<br />
practice review program in <strong>BC</strong> will continue to<br />
include other assurance-type engagements, tax<br />
engagements, and specialized services that a firm<br />
might provide, and CA training <strong>of</strong>fices will continue<br />
to be part <strong>of</strong> the practice review program.<br />
Communication with<br />
practitioners<br />
As usual, practice review <strong>of</strong>ficers will go over the<br />
report with the firm, and practitioners will be<br />
C<br />
given the opportunity to provide comments<br />
prior to the report being finalized. Practitioners M<br />
will also be able to submit written comments to<br />
Y<br />
the Committee, and those whose firms receive a<br />
CM<br />
rating <strong>of</strong> “Does Not Meet Requirements” will<br />
MY<br />
be called by a member <strong>of</strong> the Committee to<br />
discuss the rating and the process.<br />
CY<br />
CMY<br />
Start date<br />
K<br />
Again, the new methodology and report will be<br />
implemented for practice reviews starting in July<br />
<strong>2012</strong>. If you have any questions about these<br />
changes, please contact me at merkosky@ica.bc.ca.<br />
Roger Merkosky, CA, is the director <strong>of</strong> Practice<br />
Review & Licensing at the ICA<strong>BC</strong>.<br />
Watch for the PR&L<br />
team in the field:<br />
Melvin Berg, CA<br />
Dennis Bettiol, CA<br />
David Braithwaite, CA<br />
Jennifer Jones, CA<br />
Dick Miller, CA<br />
Bruce Milley, FCA<br />
Valerie Warren, CA<br />
Catherine Wei, CA<br />
38 ica.bc.ca <strong>June</strong>/Summer <strong>2012</strong>
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YOUR TEAM OF EXPERTS IN<br />
Business Family Succession | Employee Benefits | Structured Settlements<br />
Insurance & Retirement Solutions | Private Investment Management<br />
Peter G. Lamb<br />
b.a., clu, tep,<br />
epc, csa<br />
Garry Zlotnik<br />
f.c.a., b.comm.,<br />
cfp, clu, ch.f.c.<br />
Martin Zlotnik<br />
b.comm., ll.b<br />
Mark A. Zlotnik<br />
c.a., clu<br />
P.M. (Pip) Steele<br />
b.comm., cfp,<br />
clu, ch.f.c.<br />
Robert E. Olson<br />
b.a.<br />
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Young<br />
cfp<br />
Carrie Lyle<br />
b.comm., mba,<br />
cma, cim<br />
Amin E. Jamal<br />
a.c.i.i., clu, tep<br />
John V.R. Wark<br />
b.comm., c.a, cfp,<br />
clu, ch.f.c.<br />
Ross Gibson<br />
dip.t<br />
Ken McNaughton<br />
cfp, clu, ch.f.c.,<br />
rhu, csa<br />
W.A. (Bill) Finlay<br />
b.a., c.a.<br />
Bruce K. Berger<br />
b.a., cfp<br />
Michael A. Healey<br />
b.a., cfp, chs<br />
Heidi U. Pullem<br />
cfp, cdfa<br />
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Anthony<br />
b.a., cfp<br />
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Nancy Pereira<br />
gba<br />
Philip Levinson<br />
c.a.<br />
John McKeachie<br />
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For more information, contact our Associates at:<br />
Vancouver 1200 Park Place, 666 Burrard Street Vancouver, <strong>BC</strong> V6C 2X8<br />
Tel: 604.688.7208 Fax: 604.688.7268 Toll Free: 1.800.663.1499<br />
Victoria 3711 Grange Road Victoria, <strong>BC</strong> V8Z 4S9<br />
Tel: 250.727.3445 Fax: 250.479.9716 Toll Free: 1.800.906.5666<br />
www.zlc.net