Doug Tkach Elected President - The Institute of Chartered ...

More documents

Recommendations

Info

CRA Working Paper Policy Statement A long-awaited CRA policy statement dated May 31, 2010 – “Acquiring Information from Taxpayers, Registrants and Third Parties” – was first issued to CRA staff and is now on the CRA web site. The policy statement sets out the CRA’s current policy approach to acquiring, inter alia, auditors’ and accountants’ working papers. An annex more fully describes the CRA’s basket of compliance tools found in the Income Tax Act, the Excise Tax Act, and other legislation. The policy statement is required reading for anyone involved in the audit or review of financial statements or in the tax return process. In response to a CRA round table question at the Foundation’s 2004 annual conference, the CRA first announced its planned review of its existing policy. The CRA also said that it recognized the importance of its policy regarding access to auditors’ and accountants’ working papers, and thus before issuing a new policy it intended to conduct broad-based consultation in partnership with the tax, accounting, and business communities. Since then, the CICA and the CRA have had extensive and ongoing discussions on the issue, which is extremely important for both taxpayers and Canada’s chartered accountants in industry and professional practice. The CICA also obtained the views of its members through a survey it commissioned. Auditors’ and accountants’ working papers are critical to the integrity of the financial statement, audit/review, and corporate governance processes as a whole. If the CRA regularly sought access to auditors’ and accountants’ working papers, such a policy change could undermine the preparation of documents required to support financial reporting and inhibit the essential frank and open discussions between an auditor/ accountant, the audit committee, and management. Following are some key elements of the CRA FOLIO 4 policy set out in the policy statement. 1) From CICA-CRA discussions, CICA officials understand that the CRA does not view the policy statement as reflective of a significant policy change, but rather as an affirmation of its longstanding policy and a framework for compiling and discussing in one document all legislative and compliance tools available to it. 2) Not surprisingly, the CRA states that with the exception of privileged communications, it has the authority to examine not only the records and documents of the subject person under review, but also any other person’s records and documents that may relate to the subject person’s tax liability. (See, for example, subsection 231.1(1) of the Income Tax Act.) 3) The policy statement includes several extremely important overrides to point 2. a) Tax compliance disputes should be resolved primarily between the CRA and any specific taxpayer, and thus the CRA always tries to collect information from the most direct source and in the least intrusive manner possible. b) Information from third parties is sought when the taxpayer cannot or will not provide information. c) Access to tax accrual working papers and auditors’ or accountants’ working papers may be required occasionally, but not routinely. d) The CRA believes that a more effective and efficient relationship with taxpayers and their advisers can be achieved by grounding its actions on an understanding of the taxpayer’s business and by applying the key principles of transparency, impartiality, proportionality, and responsiveness. Until all other avenues to obtain the relevant information have been exhausted, taxpayers should not expect to routinely see requests for tax accrual working papers, and auditors and by Kevin Dancey, FCA Acquiring Information from Taxpayers, Registrants and Third Parties - required reading for anyone involved in the audit or review of financial statements or in the tax return process Distributed quarterly, this complimentary e-newsletter is a valuable source of timely synopses of information about trends and views, standards and regulations, client development, technology, marketing your services, professional resources, events and other information relevant to CAs in public practice – with links to the web-based sources. third-party accountants should not expect to routinely receive requests for their working papers. In particular the approach outlined in the policy statement suggests that requests for information from third parties should not occur at the commencement of a CRA audit. The CICA urged the CRA to clearly state that, in order for the CRA to maintain its objectivity and impartiality, it would restrict its requests to factual information and not routinely seek access to subjective analyses (including opinions) prepared by taxpayers or third parties. Unfortunately, the policy statement instead only declares that “[o]fficials will not be influenced by any subjective analyses, comments or opinions contained in the information or documentation reviewed.” Other countries have developed policies for access to working papers. For example, in the United States the IRS has stated that it will not request a taxpayer’s tax accrual working papers unless the taxpayer has engaged in a listed transaction. In Australia, only in defined exceptional circumstances is it Australian Tax Office policy to request working papers and subjective analyses from a taxpayer or an adviser. In Canada, the CRA, taxpayers, and tax professionals have little experience with the interpretation of the phrase “not routinely required” as it is used in the policy statement; moreover, it is clear that a policy built on that phrase is much less precise than the bright-line tests used by the Australian Tax Office and the IRS. The Audit Professional Services Directorate of the CRA’s Compliance Services Branch is responsible for monitoring nationally consistent compliance with the policy and for the development of further guidance. The policy statement encourages taxpayers and their representatives to discuss with the CRA any material differences of opinion between them and the CRA regarding the policy’s application. The CICA will track its members’ input to closely monitor the policy’s application in the field. The CRA has agreed to periodically review and discuss the policy’s application with interested parties, including the CICA. Kevin Dancey, FCA, is President and CEO of the CICA. This article was published in the June issue of Canadian Tax Highlights.
Foundation Receives Largest Gift in its History Ken Phernambucq, CA, Chair of the Board of the Manitoba Chartered Accountants Foundation, is pleased to announce the receipt of the largest gift in the history of the Foundation. Allan Johnson passed away in November 2009 and left a bequest to the Foundation in the amount of approximately $700,000. In his will, Allan indicated his intention “that the Manitoba Chartered Accountants Foundation use the proceeds of this bequest in a way that would perpetuate the name of my father, Frederick Johnson, as a memorial to his great interest in the education of students in accounting, and to his long association with the Institute of Chartered Accountants of Manitoba”. Frederick Johnson was a CA and professor at the University of Manitoba. He had a keen interest in the education of CAs and was involved with the establishment of the UFE as a national exam for CA students. Frederick served on the Institute’s Council for 18 years and was President of the Manitoba Institute from 1940-42 and President of the Dominion Association of Chartered Accountants (now the CICA) in 1944-45. He was elected an FCA in 1947. The Board of the Foundation is in the process of determining the use of the funds as well as appropriate recognition for this generous gift. Established in 1980, the Foundation’s mission is to enhance the quality of accounting education in Manitoba. The vision of the Foundation is that CA education in Manitoba will be seen to be the best in Canada, attracting a growing number of quality future chartered accountants. For more information or to make a donation to the Foundation, please contact Kim Metcalfe, CA, Executive Director, at 924-4419 or kmetcalfe@icam.mb.ca. Members considering leaving a gift to the Foundation in their will should consider consulting with the Foundation to ensure that the wording of the bequest allows the funds to be used by the Foundation and as the member wishes. Annual Softball Tournament Twelve teams were fielded in this year’s annual softball tournament. BDO defeated the Exchange Income Corporation 17-9 to win the A-side final and the Ernst & Young Trophy. Deloitte defeated KPMG in the B-side final. Thanks to all participants who came out to enjoy the day. B-side winners, the Deloitte Tigers. Risk Oversight and Governance Collection Part of an ongoing series of boardroom briefings, the Risk Oversight and Governance Collection provides a clear, concise overview of relevant governance issues. This comprehensive collection is designed to help board members to ask the tough questions, recognize signs of success and signs of imminent problems, and reflect and learn for the future. Choose just the print titles you need, or subscribe to receive the entire collection, including: • The 20 Questions Series • The CFO Series • The Not-for-Profit Series • Director Briefings For more information or to order, visit: CAstore.ca/rogc-PICA The team from BDO, winners of the Ernst & Young Trophy. FOLIO 5
Page 1 and 2: Doug Tkach Elected President Doug T
Page 3: Council and Officers Elected for 20
Page 7 and 8: 2010 Golf Tournament Breezy Bend Co
Page 9 and 10: 2010-2011 Fall / Winter PD Program
Page 11 and 12: Welcome to New Members ■ Admitted

Doug Tkach Elected President - The Institute of Chartered ...

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?