Friday News Roundup 21.01.29: Pressure mounts over CERB slip, Cannabis CEWS, COVID fraud and more

TORONTO, Jan. 29, 2021 – As most Canadians are focused on the ongoing pandemic and when they might be vaccinated, there were some odds and ends from the world of Canadian accounting (broadly speaking) that still made the news: 

Feds should “Man-ly” up over CERB slip

Pressure is mounting on the Liberal government to forgive self-employed Canadians who applied for the Canada Emergency Response Benefit (CERB) in good faith after a Canada Revenue Agency error. According to the Toronto Star, 441,000 Canadians have received CRA warning letters over the whole issue of net versus gross income. Green Party MP Paul Manly presented a petition with 7,000 signatures this week in the House of Commons. 

As we’ve reported in past roundups, many Canadian accountants, like tax policy pundit Allan Lanthier, agree that it’s time to move on, and “boot CERB to the curb.” 

Accountants weighing in on work from home expenses

Media outlets are looking for accounting experts who can weigh in on working for home. Practitioners should consider the marketing opportunities of proactively speaking to local media. Here, CBC Ottawa talks to local practitioners, who say the “2020 tax season may not be the goldmine some salaried employees expect.” 

New Brunswick auditor general independence

The Maritime province is struggling with the fact that it has a history of appointing former comptrollers to the position of provincial auditor general. According to the CBC, accounting experts have questioned the practice, and Opposition leaders agree. 

Alleged COVID-19 fraud investigation widens to CRA

What dull people we must be at Canadian Accountant. Such a lack of ambition. We can’t for the life of us figure out why someone making $176,608 a year (very close to the top 2% income in Canada) would engage in an alleged multi-million dollar fraud scheme. The Toronto Star, which broke the story, now reports that the man at the centre was receiving kickbacks from contractors (who were they?), and is now being investigated by the CRA. 

Cannabis CEWS goes up in smoke

According to the Globe and Mail, more than 100 licensed cannabis companies and their subsidiaries received tens of millions of dollars in pandemic relief subsidies that they did not need. Accounting and economics experts say many companies in the sector, which has drawn criticism for its accounting standards, never needed the money, as sales have actually increased during shutdowns. 

OSC issues best practice guidance for prospectus filings

Just like the headline says. The Ontario Securities Commission has seen a lot of confidential pre-filed prospectuses lately and is offering some best practices tips. 

By Canadian Accountant staff.