Friday News Roundup 21.06.11: G7 corporate tax deal, charity disbursements, CRA, RSM, and more

Wrapping up the odds and ends in this week’s Canadian accounting news

Jun 11, 2021 Author: Canadian Accountant

TORONTO, June 11, 2021 – News broke early last Saturday morning that G7 finance ministers had agreed to a proposed global minimum corporate tax rate, prior to meeting with their brethren in the G20. Predictably, analysis and opinion followed, mixed in with some odds and ends from the world of Canadian accounting news in the past week.

Global corporate tax deal. Where do you stand?

Among the reactions to news of a global minimum corporate tax agreement, the Toronto Star says the deal is an “important step towards fairness” and the “free ride is over.” As Reuters points out, Britain and its “lattice” of tax haven jurisdictions (hello, Isle of Man), will be hard hit by new rules, as Canadian Accountant has also pointed out here. We published an article on some of the misperceptions and confusing language around the deal.

The Conservative Party opposes the deal, with Ed Fast, the party’s finance critic, saying Canada will surrender our sovereignty to set our own tax rates, which even the National Post calls “misguided.” But the Fraser Institute also wants Canada to reject the plan. (It should be noted that Allan Lanthier, a regular columnist in Canadian Accountant, called for a global minimum corporate tax in the Financial Post last February.)

Charity disbursement quotas. Time for a charities regulator?

Flying under the radar these days is the federal government’s interest in reviewing the current (3.5 per cent) disbursement quota, which “is the minimum amount of its funds that a public or private foundation or charitable organization is required to spend each year in pursuit of its charitable objects,” according to Edward Waitzer, a lawyer and chair emeritus at Osgoode Hall Law School and the Schulich School of Business, York University.

According to Waitzer’s Op-ed in the Toronto Star, it’s trusts and foundations that have the most to worry about, and by extension the clients of Canadian accountants specializing in trusts and estate planning. Says Waitzer, “at minimum there has been a long-standing consensus in the sector favouring more transparency and accountability by the CRA’s charities directorate. It would be timely for this policy concern to be revisited.”

Is the CRA targeting Muslim charities?

The International Civil Liberties Monitoring Group says the Review and Analysis Division of the Canada Revenue Agency's charities directorate works with national security agencies to carry out audits of Muslim charities, “with little accountability or independent review,” reports the CBC. The CRA says “it does not select registered charities for audit based on any particular faith or denomination ... it is firmly dedicated to diversity, inclusion and anti-racism,” which sounds like boilerplate key messaging.

RSM to open new Vancouver business hub

RSM Canada LLP is expanding its presence in Western Canada by opening a new Vancouver office, supporting businesses on both sides of the Canada-U.S. border, across the Pacific Northwest. As part of its investment commitment in the region, RSM aims to add 150 full-time positions to its Vancouver-based team over the next three years.

Vancouver represents the next phase of growth for RSM in Canada since the business first entered the Toronto market in December 2017. Less than a year later, RSM joined forces with three distinguished firms—in Calgary, Red Deer and Edmonton—to marry global insights and industry expertise with the businesses’ strong local teams in Alberta and Western Canada.

CPA Canada small business financial literacy resources

Whether you’re a practitioner advising SMBs or you’re running your own SMB or startup, CPA Canada has a wide range of resources for managing small business finances. Most notable is a podcast, “Managing Money,” available in both English and French. Perfect for recommending to your small business clients as a value-added resource.