Sunday News Roundup 25.03.30: Considering Carney and more Canadian accounting news
Our weekly Canadian accounting news roundup includes Mark Carney and his Brookfield track record, accounting firm dealbook, articles of interest and more
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TORONTO, March 30, 2025 – According to the latest polls, the Liberals led by Mark Carney are not only leading the Conservatives in support, but potentially headed for a majority government — unthinkable as that seemed until Donald Trump was elected and Justin Trudeau resigned.
It may be time therefore to ask what a Carney government might mean not only for Canada but for Canadian accountants. Accountants by nature tend to vote for conservative governments. Certainly, Carney has stolen the Conservatives’ thunder in large part by campaigning more to the right, cancelling both the carbon tax and proposed hikes to capital gains taxation.
One would think that CPAs would admire Carney. A Harvard-educated central banker who skates well and was praised by Stephen Harper for his role in mitigating the Great Recession. This past week, the Toronto Star published an article about Carney’s role as chairman of Brookfield Asset Management, listing a litany of supposed corporate dodginess. But let’s get real. If you have even a modicum of governance experience, you know that chairpersons simply rubber stamp the strategies of executives, not the other way around, and that is especially true in corporate governance.
CPAs should love Carney’s Brookfield track record. Big Four partners and their plebes should appreciate Brookfield’s “apparent pattern of aggressive tax avoidance consistent across (Brookfield’s) global operations” through the use of transfer pricing, most specifically its hundreds of subsidiaries registered in Bermuda. And management accountants, so many of whom work in private equity, should appreciate Brookfield’s massive real estate portfolio and private equity investment, no matter how questionable its acquisitions.
If anything, Brookfield resembles the kind of large, homegrown corporation that employs thousands of Canadians, and is always looking for ways to maintain “competitiveness,” including through tax legislation.
The federal election is therefore beginning to look like a battle between two very powerful business interests — Bay Street versus 7th Avenue SW, Toronto versus Calgary, Carney versus Poilievre.
It doesn’t help Mr. Poilievre that his campaign is being undermined by Ontario Premier Doug Ford. Their mutual dislike runs deep. As reported by Canadian Press, Ford’s election strategist, Kory Teneycke, tore into Poilievre’s campaign this past week during a panel discussion at the Empire Club (where Bay Street power brokers rub shoulders), noting the obvious: after years of telling Canadians that our country is “broken,” Poilievre is struggling to appear patriotic in the onslaught of Donald Trump. (And that's not even mentioning Danielle Smith.)
CBC investigates CRA scammers and government inaction
Over the years, The Fifth Estate has done some excellent reporting on taxation and the Canada Revenue Agency, including everything from the KPMG Isle of Man scandal to tax havens to money laundering. Now in its 51st year, the program kicked off March by investigating the loss of millions of dollars by the Canada Revenue Agency though identity theft, and the seeming denial of the issue by the federal government.
In Who’s stealing millions from Canadian taxpayers?, the CBC does some excellent investigative journalism to document the identity theft of ordinary Canadians, the security lapses of the tax preparation software industry, and the actual criminals running relatively simple scams that have resulted in missing millions.
Most offensive of all, perhaps, is the lack of action taken by those in charge of the Canada Revenue Agency and the Ministry of Revenue. Or the lack of sympathy. Or the lack of common decency.
Accounting Dealbook
Doan Grant Thornton, now sporting a nifty new corporation slogan (“In Canada. For Canada.”), has acquired three new accounting firms. MacGillivray Chartered Professional Accountants & Business Advisors is a firm based in the GTA. Embree & Co. LLP was based in Guelph and Ontario and served clients Southwestern Ontario. And Newton Israelstam LLP was based in downtown Toronto.
BPM LLP, a San Francisco-based accounting and consulting firm, has acquired WBM Partners LLP, a Calgary-headquartered accounting and consulting firm, as reported by Consulting.ca. “WBM provides accounting, audit, tax, and business advisory services to individuals and companies in real estate and land development, hospitality, transportation, and professional services. The firm’s advisory offerings include business transition, corporate governance, M&A, and financial advisory. WBM has 37 professionals and offices in Calgary and Toronto.”
MNP LLP, meanwhile, continues to add accounting firms to its roster. In March alone MNP added Houle and Associates Chartered Professional Accountants, which is based in Ottawa, and Toronto-based insurance advisory firm, Sterling Park Financial Group Inc.
This came just weeks after the homegrown national accounting firm added three more firms to its roster, further expanding its already massive footprint in Francophone regions of Quebec and the Maritimes: Guérin Morin CPA Inc., based in Sherbrooke, Québec; EPR Robichaud in Dieppe, New Brunswick; and Montreal-based consulting services firm, Talent Flex Conseil Inc.
Accounting Software News
Accounting software platform Xero has released a new reconcile period feature in bank reconciliation to Canadian customers. “Reconcile Period” enables users to easily compare your bank statement to their Xero accounting transactions.
According to Xero, “Reconciliation is a pivotal step in identifying any discrepancies between a bank statement and the corresponding accounting entries in Xero. Reconcile period is an optional feature that helps you more easily verify the accuracy of your financial data and quickly detect any errors or missing entries for correction.” The company will soon add the ability to attach a PDF bank statement to your reconciliation. Find out more here.
Quick Hits: Articles of Interest
Canadian
Carney's green funds at Brookfield used Bermuda tax haven to attract investors (CBC)
Poilievre offers investor tax break, Singh targets 1st-time homebuyers, Blanchet offers help to seniors (CBC)
Canadians face chaotic tax season owing to last-minute rule changes and delayed forms (Globe and Mail)
International
By Canadian Accountant staff.
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