TORONTO, June 18, 2021 – Our weekly roundup of the odds and ends of Canadian accounting begins with an editorial from The Globe and Mail, Hit ‘Control-Alt-Delete’ on the world’s largest corporate tax loophole, following the announcement last week of a G7 agreement on a minimum corporate tax. For a refreshing and cynical take on the same topic, we recommend the G7 Tax Deal: If you think multinationals will be forced to pay more, you don’t understand Tax Avoidance, posted on Canadian Accountant.
And, in the Friday News Roundup on June 4, we also reported a major overhaul to the PCAOB, which will likely have ramifications in Canada. However, according to the Wall Street Journal, it seems that the SEC investigates former chairman of audit industry regulator on its handling of internal complaints.
The new equation at PwC is synonymous with technology … and trust
Launch of PricewaterhouseCoopers a great public relations effort last week called the new equation. There is a lot to dissect here, so we recommend that you read more and make up your own mind, but we’ll do our best to summarize …
A “benchmark global strategy”. A ton of money invested over the next five years to create jobs at PwC, including in Canada. The restructuring of the US company into two business segments, combining PwC’s certification and tax reporting practices into a new “Trusted Solutions” segment and the creation of a technology-focused “Consulting Solutions” segment, cybersecurity, business transactions, etc.
Some thoughts. We have already written about the success of Deloitte and its digital pivot. The word “technology” is mentioned 20 times in the press release. “Confidence” is mentioned 14 times. The word “tax” is mentioned twice, “audit” four times. Business continuity has his usual fun with the Big Four, saying it’s about recruiting. It is also possible to see PwC being proactive in separating its business units following calls for regulatory reform in the UK.
As part of the big announcement, PwC Canada announced a C $ 125 million investment for fiscal 22, which will focus on delivering PwC’s people and technology strategy in Canada. More information can be found at www.TheNewEquation.com.
Beware of the dismissal of aspiring accountants
Labor attorney Howard Levitt had a interesting chronicle in the Financial Post about a recent BC Court of Appeal decision. Essentially, an intern fired by a law firm (wrongly, as it turned out), successfully sued the firm. The judge in the case awarded the student compensation based on the salary she would have received had she been called to the bar.
As Levitt suggests, the case sets a precedent for any aspiring professional, including accountants, who may have been fired from an accounting firm, for example. We recommend reading the article, of course, but think about the rumors that abounded during the early days of the pandemic, of massive layoffs at accounting firms disguised as performance appraisal issues. Makes you wonder.
Regulators Propose Significant Changes to Public Company Annual Information Form and MD&A Documents
Vancouver lawyer suspended over client trust funds and accounting records
CRA gives spooky estimate of accidental excess TFSA contributions
By Canadian accounting staff.