Sunday News Roundup 24.12.22: CPA split, first sustainability standards, political chaos and more Canadian accounting news

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TORONTO, Dec. 22, 2024 – It’s been a chaotic week in Canadian politics and for the Canadian economy. Yet it's only fitting that our last Sunday News Roundup of the year (we won’t do one on December 29th) should coincide with the official split on Friday, December 20th, of CPA Canada from its largest two provincial counterparts, CPA Ontario and CPA Quebec. 

The CPA Standoff was the biggest Canadian accounting story of the year, with enough traction to make the headlines of the business press, which rarely happens in the accounting profession. 

We documented the standoff extensively — or as extensively as one can do when the core documentation (the Collaboration Accord) — is hidden from public viewing. As the Canadian Press reported, some chartered professional accountants in the two provinces have already joined the national organization, which will still be responsible for “education, exams and standard-setting for the accounting profession.” 

It will be interesting to see what happens next. Huge questions still remain in regards to regulation, marketing, and member fees. The smart thing for Ontario and Quebec to do now would be to immediately drop member fees but we suspect that any financial leeway will be taken up immediately by increased administrative and marketing (i.e., promotion of the profession) costs. CPAs may wonder why the split had to occur at all. 

And now, on to the rest of the news from the past week in Canadian accounting. 

CSSB sustainability standards released in same week as CPA split

While the timing was surely coincidental, there was some symbolism in the Canadian Sustainability Standards Board launching its first disclosure standards this past week, just two days before the official split between CPA Canada, CPA Ontario and CPA Quebec. After all, according to the provinces, financial transparency and disclosure was a major reason for the split, and the cost of funding the CSSB and the ISSB hub was in the millions of dollars. 

CSDS 1 and CSDS 2, along with supporting documentation, are now part of the CPA Canada Handbook, according to a press release from FRAS Canada. Interim Chair Bruce Marchand, who replaced Charles-Antoine St-Jean earlier this year, said: "Today's announcement signifies our commitment to advancing sustainability reporting that aligns with international baseline standards — while reflecting the Canadian context. These standards set the stage for high-quality and consistent sustainability disclosures, essential for informed decision-making and public trust." 

It's that “Canadian context” part that makes you pause. 2025 will see the election of a new federal government completely beholden to the whims and machinations of the oil and gas industry. A Poilievre government will do more damage to the environment than even the provincial government of Doug Ford. (Alberta readers are now angrily hitting the “unsubscribe” button.) While the future of the standards may in time prove beneficial to both the accounting profession and to climate change, their short-term impact (meaning the next four years) is unclear, to say the least. 

Homeowners Beware: Property taxes will hit you hard in 2025

Talk of tax increases in Canada have focused on headline-grabbers such as capital gains changes (which have yet to and may never become law) but we’ve been focused on a more pernicious tax increase: property taxes. Ever since Jean Chrétien balanced the books by offloading costs to the provinces which, like the Mike Harris government, then downloaded the costs to municipalities, we have seen higher taxes and fewer services for each dollar paid through property taxes. 

But recent hikes are beginning to garner more attention. First came the outrageous costs of a new provincial policing contract in Ontario. Now we’re seeing articles like ‘It didn’t happen overnight’: Why property taxes are skyrocketing in some Ontario cities. Watch for this issue to still have legs in 2025 when homeowners get hit with their first property tax instalments. At the same time, the Canadian Taxpayers Federation is turning on the Doug Ford government, for not indexing tax rates to the price of inflation. 

Accounting Dealbook: MNP picks up two BC firms

Homegrown national accounting firm picked up two more accounting firms this month: Farmanara & Rezai CPA LLP, which is based in Vancouver, and (“Farmanara & Rezai”), and Nurmohamed & Associates Inc. (“Nurmohamed”), which is based in Surrey. 

And two Montreal tax law firms, Spiegel Sohmer, and Ravinsky Ryan Lemoine, will merge their practices on January 1, forming a new 75-lawyer firm under the Spiegel Ryan banner, according to Law.com. 

Accounting Software News

Intuit scores with PWHL

Just 10 days ago, Intuit had some fun news to announce: the accounting software giant has entered a multi-year partnership across Canada with the Professional Women’s Hockey League (PWHL), naming Intuit QuickBooks as the league's Official Accounting Software Partner. What that translates into for the PWHL is big bucks in sponsorship and advertising, which will help to grow a product that, by all accounts, is more exciting (and affordable!) than watching the Leafs on a Saturday night. Good for Intuit. 

Quick Hits: Articles of Interest

Finally, with so much going on in Canada — Chrystia Freeland’s resignation, the long-awaited fall economic statement, ongoing threats of tariffs from the president-elect south of the border, and more, here are some of the accounting and tax articles that you may have missed from around the world. 

Canadian

Capital gains reform really did target the wealthiest (Policy Options)
U.S. bill could end income tax nightmare for Americans living abroad (Globe and Mail)
Canadians won't be taxed on disability benefit under proposed rule change (Canadian Press)
How much more tax will Ottawa levy, and how much will come from the dead? (Policy Options)
Taxing grocery store food wrong, GST break makes things worse (PostMedia)
Millions of Canadians could be about to make a very risky tax decision (Wealth Professional)
Government attempts at making tax filing easier don’t address the bigger problem (Financial Post)
Nova Scotia to Cut HST to Lowest in Atlantic Canada by April 2025 (Retail Council of Canada) 

International

PE Partner Reveals the Real Reason Private Equity is Going Crazy For Accounting (Going Concern)
KPMG Brings Up the Rear For Revenue Season With $38.4 Billion in 2024 (Going Concern)
China introduces new rule to tighten scrutiny on foreign accounting firms' domestic operations (Reuters)
AICPA asks SEC to reject PCAOB rules that pose 'significant challenges' (Journal of Accountancy)
CPAs Deliberate on the Decline of Accounting (Wall Street Journal)
Ernst & Young Accused of Helping Brooge Defraud SPAC Investors (Bloomberg Law)
Accounting Today publishes its latest research report, The Year Ahead: 2025 in Accounting (Press Release)

By Canadian Accountant staff.