February/March 2010

Recognizing excellence

On the Cover In this issue Meet the BC profession’s New: Accounting standards for private newest FCAs and Lifetime enterprises ready for early adoption Achievement Award The basics of alter ego trusts winners Treating the public with courtesy TROUBLE FINDING THAT PERFECT BALANCE? WE CAN HELP — WITH CICA WORK/LIFE TOOLS AND RESOURCES ONLINE

A CA career is a challenging one, but your life goals and demands need and deserve so much of your time. How do you balance the two priorities? The CICA Work/Life website is a great place to start. With online tools, resources and specific information on work/life issues for CAs, the life balance you’re looking for may be just at your fingertips. Just go to www.cica.ca/worklife.

WorkLife 2010.indd 1 1/19/2010 12:36:49 PM TROUBLE FINDING THAT contents On the Cover 4 Notes from the President PERFECT BALANCE? Celebrating ongoing excellence Want to get WE CAN HELP — WITH CICA WORK/LIFE 6 For the Profession TOOLS AND RESOURCES ONLINE New: Accounting Standards the word out? for Private Enterprises Advertise in Beyond Numbers! 24 Tax Traps & Tips The basics of alter ego trusts Here’s why: 26 PD News 90% of BC CAs surveyed read Winter PD Highlights Beyond Numbers 28 Plugged In goes out to News for and about members Beyond Numbers & students more than 9,000 members, Movers & shakers in the more than 1,800 students, profession and over 200 external Notice from Member Services: Have you given us your most stakeholders—including recent contact info? other institutes, associations, Event Profile: CA Social Networking Group hosts wine and professional organizations tasting In Memoriam: Derek R. Beyond Numbers has won 8 Lukin Johnston, FCA awards for both content Meet the New 34 Ethical Dilemmas and design, including FCAs Treating the public with Blue Wave Awards of Merit courtesy from the International Association of Business 18 Communications – BC Branch Lifetime Achievement Awards To place an ad in Three inspiring FCAs take Beyond Numbers, contact our home this year’s awards representatives at: for lifetime achievement Advertising in Print A CA career is a challenging one, but your life goals and Tel: 604-681-1811 demands need and deserve so much of your time. How do 710 – 938 Howe St. you balance the two priorities? Vancouver, BC V6Z 1N9 The CICA Work/Life website is a great place to start. With Fax: 604-681-0456 online tools, resources and specific information on work/life issues for CAs, the life balance you’re looking for may be just Email: at your fingertips. [email protected]

Just go to www.cica.ca/worklife. 10%

Cert no. SCS-COC-000648

Feb/Mar 2010 ica.bc.ca 3

WorkLife 2010.indd 1 1/19/2010 12:36:49 PM February/March 2010, No.485

Published eight times annually by the Institute of Chartered Accountants of British Columbia. Editor Celebrating ongoing Michelle McRae Design excellence Blindfolio Design 604-761-9212

Advertising Advertising In Print Phone: 604-681-1811 Fax: 604-681-0456

Senior Director of External Affairs Lesley MacGregor

Institute Council Karen Keilty, FCA President

Peter Norwood, FCA 1st Vice-President

Lenard Boggio, FCA Notes from the President 2nd Vice-President

Michael Macdonell, CA Treasurer In the January 2010 issue of Beyond Numbers, we celebrated the Jack Arnold, CA success of our latest UFE grads. These students represent the future for the CA Linda Lee Brougham, CA profession and, if their accomplishments to date are anything to go by, we can Kyman Chan, CA Karen Christiansen, CA expect to see great things from them in the coming years and decades. John Crawford, CA It is every bit as much a privilege to welcome 20 new FCAs into the Gordon Holloway, FCA Fellowship of the BC Institute. Each and every one of the new Fellows David Hughes Anthony Mayer, CA demonstrate the immense contribution made by chartered accountants to the Al McNair province, to the country as a whole, and internationally. They are inspirational Sheila Nelson, CA role models for young CAs today, and a testament to the great strength of our John Sims, FCA James Topham, CA profession as we move forward in 2010. Kenneth Tung As for our Lifetime Achievement Award winners—as you might expect, they Praveen Vohora, CA are an awe-inspiring group. Through decades of commitment and

Chief Executive Officer accomplishment, W. Randolph Clerihue, FCA, John R. V. Palmer, FCA, and Richard Rees, FCA David R. Sinclair, FCA, have demonstrated what can be achieved by one person in one career. These members, and the others who have been awarded Beyond Numbers is printed in British Columbia and mailed eight times annually to more than 9,000 this highest distinction from the Institute in previous years, are true leaders chartered accountants and more than 1,800 CA students that deserve our respect and accolades. It is an honour to have them as part of in public practice, industry, education, and government service throughout BC, Canada, and other countries. our profession, and an honour to know that the CA designation helped them achieve their great heights. Beyond Numbers’ editorial and business offices are located at: Suite 500, One Bentall Centre, 505 Burrard St., Box 22 Vancouver, BC V7X 1M4 –Karen Keilty, FCA

Phone: 604-681-3264 Toll-free in BC: 1-800-663-2677 Fax: 604-681-1523 Internet: www.ica.bc.ca

Opinions expressed are not necessarily endorsed by the Institute.

Beyond Numbers supports the CA profession in BC by sharing news from the Institute and news about members, by sharing viewpoints on issues of specific interest to members, and by promoting member involvement in Institute activities.

Publications Mail Agreement No: 40062742

4 ica.bc.ca Feb/Mar 2010 Become an ICABC leader! Call for Council nominations

Effective leadership is vital to the CA profession. It is with that awareness in mind that the BC Council sets the goals for the ICABC each year, determining what the Institute should be doing, for which constituencies, at what cost, and with what expectations.

Are you, or someone you know, interested in becoming a leader among CAs? As a Council member, you’ll focus on the strategic issues faced by our membership and the profession as a whole— issues such as education and professional development. You’ll also get the chance to expand your skills and your network.

What you’ll gain: • A chance to help advance your profession • Access to up-to-date information about the challenges faced by CAs • The opportunity to exchange ideas and perspectives with other leaders in the profession • Exposure to a wealth of professional and personal contacts

What you’ll need: • A demonstrated commitment to the accounting profession • A strong background in community and volunteer work • Leadership experience

If you or anyone you know is interested in running for election to Council, you’ll find the Council Nomination Form on our website at www.ica.bc.ca under Member Centre>Forms>Leadership and choose the Council Nomination Form.

Feb/Mar 2010 ica.bc.ca 5 For the Profession

Accounting • Take the new ICABC PD course entitled, “Transitioning to Private GAAP” (additional sessions are continuously being added). This full-day seminar will provide a review of the new accounting Standards for Private standards for private enterprises, and compare them with the current GAAP standards contained in Enterprises Available the CICA Handbook. The seminar will also provide detailed guidance on the new standards, and help participants understand the impact of these standards on the accounting model and financial for Early Adopters statements of their organizations. For more information and to register, call the PD department at By Taj Haer, CA 604-681-3264. Director of Advisory Services Private enterprise standards herald new look for the Handbook With the addition of accounting standards for private enterprises, the CICA Handbook - Accounting has fter waiting for many years to see been reorganized to reflect the Accounting Standards Board’s strategy for adopting different sets of standards that relate to the specific standards for different categories of entities. Ainterests of private enterprises, we are Accordingly, the electronic Handbook has been divided into the following parts: pleased to announce that such standards are • Preface to the CICA Handbook - Accounting; now available for early adoption. You will • Part I – International Financial Reporting Standards (please see note below*); find the new accounting standards for private • Part II – Accounting Standards for Private Enterprises (available since December 2009); enterprises on the Knotia website as part of the • Part III – Accounting Standards for Not-for-Profit Organizations (availability TBA*); CICA Handbook - Accounting. • Part IV – Accounting Standards for Pension Plans (availability TBA*); and The effective date for these new standards is • Part V – A complete set of the existing Handbook contents. January 1, 2011. However, if you would like to adopt the standards immediately—for fiscal *Publicly accountable enterprises, not-for-profit organizations, and pension plans will continue to year ends of 2009—early adoption is permitted. follow the existing Handbook - Accounting (Part V) until these particular accounting standards have Please see “Information and resources” below, as been finalized and issued. Watch for further updates on standards for not-for-profit organizations and there are several tools available to help you pension plans. If you would like to review the 2009 IFRS, these standards are available through Knotia. familiarize yourself with the new standards prior to adoption. Handbook changes also reflect new auditing standards The CICA Handbook - Assurance has also been restructured to reflect the Auditing & Assurance Information and resources Standards Board’s adoption of international standards on auditing (ISAs) as “Canadian auditing • Read more about the key changes in the new standards” (CASs). With the exception of the Canadian Standard on Quality Control (CSQC 1), the accounting standards for private enterprises, CASs will come into effect for audits of financial statements for periods ending on or after December and about how to make the transition to these 14, 2010. The CSQC 1 became effective December 15, 2009. All firms providing assurance services new standards, at www.cica.ca>Services & are required to implement CSQC 1. Products>Member Services>Report on Industry> The most recent update, “Update #3” (September 2009) to the Quality Assurance Manual (QAM) January 2010 Focus on the new Accounting details the required changes, and is designed to help members and firms comply with the CSQC 1 Standards for Private Enterprises. standard. • Access a free online webinar entitled, “Getting The revised Handbook and the QAM are available through Knotia at www.knotia.ca. The former is Familiar with new Canadian Accounting free for members, and the latter is available for purchase. Standards for Private Enterprises” at www. cica.ca/privateenterprises. This CICA webinar, More resources originally conducted on January 14, 2010, For more information and resources on all standards changes, visit the CICA’s Standards in Transition explains the standards and the one-time transi- website at www.cica.ca/transition. tional provisions, and will help you create a If you have questions or require further information, call Taj Haer, CA, director of Advisory Services timeline and transition plan. at the Institute, at 604-488-2621 or [email protected].

6 ica.bc.ca Feb/Mar 2010 SEAMLESS

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Feb/Mar 2010 ica.bc.ca 7 On the Cover Meet the Newest Members Elected to Fellowship By Deborah Folka, MA, APR, Kerri Brkich, and Ashley Hetherington

he FCA designation recognizes a member’s distinction in more than one of the following categories: the work of the Institute or a similar professional association, their career, community service, and research, teaching, writing, and/ Tor speaking. The following members were elected to the Fellowship in 2009/2010:

Dale Barkman, FCA “I always look for signifi- cance in life,” says Dale Barkman, “so I felt very honoured and gratified that my peers thought my contributions were significant enough to warrant an election to the Fellowship.” A partner with the Burnaby firm of Barkman & Tanaka, Chartered Accountants, Dale came to the CA profession later than most. His first calling, he says, was as a youth pastor. To that end, he earned an undergraduate degree in religious education and a graduate degree in philosophy from the University of BC. It was a meeting with Larry Nelson, FCA, in 1984 that prompted him to contemplate a career change: “I was the treasurer of my church at the time, and Larry was the outside auditor. He encouraged me to consider becoming a CA.” Dale subsequently joined Larry’s firm (then Nelson & Co.) as an articling student in 1985. He became a CA in 1989, and a partner with the firm that same year. Accordingly, the firm became “Nelson & Barkman.” (Following Larry’s retirement in 1994, Wayne Tanaka, CA, became Dale’s partner.) Throughout his second career, Dale has been active in the CA profession. He chaired the ICABC’s Bylaws and Fee Resolution committees, and was a member of the CICA’s Ethics Standards Harmonization Committee, providing key leadership on the issue of accountants’ inde- pendence in client review and audit engagements. In the community, Dale has successfully combined his early work in the church with his CA expertise, leading seminars for church treasurers throughout Western Canada, and authoring a church treasurers’ manual that has

8 ica.bc.ca Feb/Mar 2010 seen wide distribution. Highly regarded for own accounting firm, A. S. Bubber and Associates, realized in 2008, Kwantlen Polytechnic his volunteer assistance on church and charity located in Surrey. University appointed him as its first chancellor, financial issues across Canada, Dale mentors Arvinder credits his work as a CA with opening making him the first South Asian chancellor of business students at Trinity Western University doors and providing opportunities to give back a Canadian university in the process. and provides personal financial management to others. Active with organizations such as the “We are shaped by everyone we meet,” Arvinder counselling to young couples who are just Fraser Health Authority (as a director), the says. “I have had great friends and colleagues, starting out, as well as to those experiencing Surrey Board of Trade, and the BC Premier’s both at work and in organizations that I have economic challenges. Asia Pacific Trade Council (as vice-chair), he been involved in. I want to thank them all. I also On the home front, he and his wife Linda have says education is his real passion. thank my family for their support.” two children: Mindy (25), who is currently “Access to post-secondary education is impor- teaching English to accounting students in tant,” Arvinder says, “especially for non-traditional Robert (Bob) Cambodia, and Neil (20), a third-year business students—those who, due to economic, cultural, Byford, FCA student at Trinity Western. or family background, do not aspire to obtain a “There are so many Dale credits much of his success to his wife, post-secondary education.” people who have influ- and also to his former colleague. “Linda sup- As chair of the board of governors for Kwantlen enced my career,” says ported my decision to go back to school just University College from 2002 to 2007, Arvinder Bob Byford, looking before our first child was born, and Larry was saw firsthand the challenges faced by many back over his 40-year the best mentor I’ve ever had,” he explains. “I non-traditional students, and saw a need for career in accounting and owe a great deal of my success in becoming a CA educational institutions to partner with commu- finance. “I have worked and then succeeding in my career to them both.” nities and other organizations to provide access in a partnership, and the support for our diverse for such students. To that end, he and a group professional and private endeavours has been Arvinder of friends founded the SPARK Education invaluable.” Bubber, FCA Foundation in 2003. After earning a BA in law and business “It was a great honour In partnership with Kwantlen Polytechnic administration from Simon Fraser University in to even be nominated,” University, the Surrey School Board, and the 1969, Bob was one of SFU’s first graduates to says Arvinder Bubber of provincial government, the Foundation launched article with Peat Marwick (now KPMG LLP) in being elected an FCA. “I the SPARK Program in 2004. To date, it has Vancouver. He qualified as a CA in 1971. feel humbled.” been a resounding success, with 95% of SPARK Bob became an audit partner with the firm in Arvinder first became a participants graduating from high school, 1978. Five years later, he was promoted to CA in England in 1975, and 85% continuing on to post-secondary managing partner of the firm’s BC Region having immigrated to the United Kingdom after education. Consulting Practice, which subsequently grew earning a bachelor of science degree from the “We had no idea that it would be such a to become the largest practice of its kind in University of Punjab in India. Following a success,” Arvinder reveals. “These young people, Western Canada. A founding partner of the Peat subsequent move to Canada in 1976, he joined given a bit of encouragement and support, Marwick Corporate Finance practice in 1984, the ranks of Saskatchewan CAs and began a surprised everyone.” Bob later became the senior vice-president and lengthy career working with provincial and Arvinder’s contributions to education also director of KPMG Corporate Finance Inc. He municipal governments. In 1991, he relocated include tirelessly campaigning for Kwantlen to retired from the firm in 2008, but continues to 10.OBRTurnbullAd1A 1/22/10 2:15 PM Page 1 again—this time to BC, where he opened his achieve university status. After this goal was have a role in business development strategy.

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Feb/Mar 2010 ica.bc.ca 9 Bob’s experience as a lead corporate financial California, Washington, and British Columbia. became a CPA (Illinois) in 1999; and earned advisor has been sought by many prominent While he says he has never given recognition his CA specialist designation in information businesses over the years, including Orca Bay much thought, Bob describes his FCA election technology (CA·IT) in 2004. Today he oversees and the Vancouver Canucks, Future Shop Inc., as a pleasant surprise. his firm’s global technology operations. and Keg Restaurants Ltd. He is also a former For Michael, success always comes down to elected governor of the Vancouver Stock Michael relationships. “I’ve worked with some of our Exchange, and was a retained advisor to the Calyniuk, FCA clients for over 30 years,” he explains. “We’ve Superintendent of Brokers and Insurance (BC). Currently the global chief grown up together, and I’ve learned as much In addition, Bob has contributed to numerous information officer for from them as they have from me.” publications and has been featured as a guest PricewaterhouseCoopers Michael credits his clients for encouraging him speaker at various events. This includes serving LLP and an advisory to get involved in community endeavours such as an honorary lecturer for the faculties of law partner working out as the PricewaterhouseCoopers/Richmond Auto and business administration (MBA program) at of Vancouver, Michael Mall Annual Charity Golf Tournament and the the University of BC. Calyniuk describes his Maple Leaf Junior Tour (the former raises funds In the community, Bob has acted as lead career as “an incredible journey.” for Canuck Place Children’s Hospice, while financial advisor to the BC Cancer Research Michael joined PwC in 1974, shortly after the latter provides young Canadians with the Agency and the BC Cancer Foundation, and graduating from the University of BC with a opportunity to learn golf while also teaching participated in a competitive proposal that led bachelor of commerce and travelling for four them life lessons). Michael currently chairs both to the successful funding of the new cancer months around the world—a trip that included events. research centre in Vancouver. He has also been a solo journey on the Trans-Siberian Railway. One of his most rewarding experiences, an active supporter and director for numerous He has been with the firm ever since, and Michael says, was participating on Premier Gordon not-for-profit organizations, such as the says his career has lacked neither variety nor Campbell’s Technology Council in 2001-2004. Vancouver Symphony Foundation and the Air excitement: “Thirty-five years later, I feel like “We worked with communities throughout Canada PGA events. I’ve had at least ten different careers!” the province on the ‘Bridging the Digital On the entrepreneurial side, Bob and his Michael has worked in audit and business Divide’ initiative, aimed at providing broadband wife Roswitha bought their first thoroughbred advisory services, and has consulted for local pri- high-speed Internet access to all regions of the horse in 1976 from E.P. Taylor, one of the vate business clients and national, multinational, province,” he recounts. “What I found most world’s leadingdap_beyondnumbers_sep09.eps breeders. Over the next 9/9/2009 25 years, 1:56:57 PM and public sector clients. He became a member rewarding was the fact that we were making a they successfully owned and raced horses in of the Singapore Society of Accountants in 1981; difference for the people of BC.” When looking back over his career, Michael acknowledges the current and retired partners and employees of PwC for their support and for recognizing the importance of community service, and he gives special thanks to Sara Deacon, his executive assistant for over 17 years, “for helping to make everything happen.” “My accomplishments couldn’t have been achieved,” Michael adds, “without the continual support and encouragement of my wife Darlene, and our children Tamarah and Braeden.”

Gary Chan, FCA “I think being a CA means being committed to your clients, your profession, your peers, and your community,’’ says Gary Chan, a part- ner with the firm Chan Foucher LeFebvre LLP in Prince George. Gary has lived in Northern BC since 1972. A commerce graduate from the University of BC, he began his articles in Vancouver with a predecessor firm of Deloitte & Touche LLP before relocating to Prince George. There he completed his articles and qualified as a CA in 1973. That same year, Gary began specializing

10 ica.bc.ca Feb/Mar 2010 in taxation. He later completed the CICA’s (for which he has served in various executive practice beginning in 1973, when—after In-Depth Taxation Program and became a capacities). His civic contributions have garnered stumbling across “a slew” of CA job postings member of the Canadian Tax Foundation. him several awards, including a “Distinguished at his university career centre—he joined HR In 1982, Gary moved into general business Service Award” from the Kiwanis Club. Doane and Company (now Grant Thornton advisory services, providing accounting, auditing, Looking back, Gary credits Lou Jewett, FCA, LLP) in Toronto. taxation, and financial advisory services to small and the late Robert MacFarlane, FCA, for After working in training and recruiting, and and medium-sized organizations. In 1995, he being significant role models early in his career. later audit, in 1988 John found his niche in helped form Chan Foucher LeFebvre, which he He also credits his wife, Kammy, and their two human resources. He became the firm’s national and his partners have since built into the largest children for their continuous encouragement and human resources partner in 1994, and later be- locally-owned and operated public practice firm support—especially with regard to his involve- came a member of its National Management in Northern BC. ment in the CA profession and the community. Committee. Throughout his career, Gary has made extensive “I was very surprised and honoured to be According to John, his professional focus contributions to both the CA profession and the awarded an FCA,” he says. “I believe life is a involved concepts such as strategic vision and community. His volunteer efforts with the collection of experiences, and I just do what competency maps—all of which tied in perfectly ICABC include serving on the Professional needs to be done.” with the committee work he was doing around Conduct Enquiry Committee, the Rulings professional education. This committee work Committee, and the Practice Review & Licensing John Gunn, FCA included serving as a volunteer member (and Committee. In addition, Gary has lectured on “I had just joined the chair) of the CICA’s Inter-Provincial Board of tax for both the ICABC and the College of New Institute’s Council to Examiners in the 1980s, during which time the Caledonia. And in 1996, he initiated what is discuss the UFE results Board implemented a number of changes now an annual conference for CA firms in when Karen [Keilty, FCA] designed to improve the education and exami- Northern BC. welcomed me and an- nation of CAs nationwide. His efforts in this “These experiences have all contributed to my nounced that I’d been area helped lead to his FCA election with the professional development,” he says. “And they have elected an FCA,” says Ontario Institute in 1991. enabled me to share my love of the profession John Gunn, CEO of the John continued his involvement in CA with others.” CA School of Business (CASB). “I was stunned. education throughout the 1990s, serving as a In the community, Gary has been active with I didn’t see it coming at all.” member of the CICA’s Education Re-engineering the Prince George Brain Injured Group, the Prior to joining CASB in 2006, John had Task Force (1996-1999), which mapped out the Canadian Red Cross, and the Kiwanis Club already enjoyed a 30+-year career in public competency-based CA education system that

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Feb/Mar 2010 ica.bc.ca 11 is now in place. He also chaired the CICA’s Achievement Award from Vancouver Magazine, a $100-million business into a $1.4-billion Education Research Subcommittee and the and he was inducted into the BC Restaurant industry, and Peter has played a leading role in ICAO’s Education Planning and Development Hall of Fame with a DiR Na Award in 2002. that growth. For the past five years, he has Committee. Bud has also been active in real estate chaired the BC Motion Picture Production By the time the opportunity arose to join development throughout North America, and Industry Association, working with industry CASB, John was ready for a change of pace. has served on boards and in management roles professionals and liaising with the provincial “I’d had an interesting and fulfilling career,” he in public and private sector enterprises in and federal governments to position BC as a says, “but at 50, I stepped back and thought: technology, manufacturing, mining, and finan- world-class centre for digital entertainment. ‘What do I want to do now?’ It was as though cial and environmental industries, including Known for his patience and acumen, Peter my entire career experience had prepared me for Trimin Capital. He is an advisor to the board proved so effective as chair that the board voted CASB. This position was tailor-made.” of PAKIT Inc., having previously served as an to alter its rules regarding mandatory rotation to John joined CASB when it was at a Audit Committee member and Corporate enable him to continue in the role longer than crossroads—after moving successfully through Governance chair. Very involved in the Young planned. the start-up phase, the school needed someone Presidents’ Organization early in his career, Peter has also provided leadership in the to take it to the next organizational level while in Bud is now an alumnae member of the World community. Active with the North Shore the midst of unprecedented growth. Under his Presidents’ Organization. Chamber of Commerce, he has served as a leadership, the school has continued to flourish, Together with his wife Dotty—with whom he director for many years and was chair in and the success of its students speaks volumes. shares three adult children (Wendy, Karen, and 2003-2004. He also served on the board of the “It’s our team that makes CASB so successful,” Jordan) and six grandchildren—Bud created BC Chamber of Commerce from 2003 to 2006, John is quick to point out. “I want to thank all a family charitable foundation. Through this and is now a director of the Burnaby Board of of my colleagues—it’s a pleasure to lead such an foundation and fundraising efforts in their Trade. In addition, Peter has provided advice to amazing group!” restaurants, the couple has raised over $1 million, the Canada Revenue Agency’s Film Advisory which they’ve contributed to a wide variety of Committee and Small Business Advisory Wilbert G. charities, including the Burnaby Association for Committee. (Bud) Kanke, the Mentally Handicapped, Covenant House, “I was advised early on to get involved in FCA the BC Firefighters Burn Fund, and the Union the community, and I have really benefited from The call was definitely Gospel Mission. doing so,” he says. “I’ve been really fortunate to unexpected—Bud Kanke “There have been times when I wondered if have great employers, too, and to have worked found out about his FCA I should hold on to my CA,” Bud admits, “but with great people over the years. That gives you election just after step- I’m so glad I did. It’s the best toolbox you can the freedom to make mistakes and to learn and ping out of the shower. have in business.” grow.” “I got the call after Peter and his wife Janine have three grown finishing a morning workout,” Bud chuckles. Peter D. Leitch, daughters—Jennifer, Elizabeth, and Melissa— It’s hard to believe the award-winning FCA and two granddaughters. He describes himself as entrepreneur actually finds time to exercise. “My first thought was an avid fisherman (angler) and says he enjoys Now president of Kanke Seafood Restaurants how inspiring this honour cycling to work when the weather permits. Ltd. and K Group Holdings, Bud has founded is, and how it makes me and managed a total of 11 restaurants over 38 want to do more and do years. These restaurants, many of which have better,” says Peter Leitch become local landmarks, have generated over of his FCA designation. $450 million in sales. A University of BC Bud made the move into industry soon after commerce graduate, Peter articled with Thorne earning his CA designation in 1964, joining Riddell (now KPMG LLP) in Vancouver Rivtow Straits, a tugboat company. A few years and earned his CA designation in 1983. After later, a group wanting to launch a seafood running a division of Ticketmaster from 1983 to restaurant near the Rivtow offices approached 1987, he joined Cannell Films. Cannell Films him, and as Bud recalls: “It took me only a started construction of North Shore Studios the minute to see the huge opportunity.” That following year, and later sold the studio to Lions eatery became The Cannery—widely considered Gate Entertainment, now one of the largest Vancouver’s first serious seafood restaurant. independent film and television studios in the Bud established Kanke Seafood Restaurants world. During that time, Peter held the posi- Ltd. in 1972. Over time, he added Joe Fortes tions of president of Lions Gate Studios and and Mulvaney’s restaurants to his portfolio, as senior vice-president of Lions Gate Entertainment. well as Viva! and the Fish House in Stanley Park. Then in 2006, Lions Gate Entertainment sold Goldfish Pacific Kitchen is his most recent the studio to Bosa Developments, and it was enterprise. renamed North Shore Studios once again. Peter His success as a restaurateur has garnered him is now the studio’s president. numerous awards, including a 2001 Lifetime BC’s film and television sector has grown from

12 ica.bc.ca Feb/Mar 2010 Elio R. Luongo, says, “without the incredible support of my Nadir H. FCA family and, in particular, my wife Rosanna.” Mohamed, FCA Elio Luongo says he was “I’m honoured to receive taken aback when a call N. J. (Norm) this recognition from interrupted his meeting Mayr, FCA my peers,” says Nadir with a client. Long-time lecturer and Mohamed of being “I was surprised that my educator for the CA elected to the ICABC assistant was routing a profession, Norm Mayr, Fellowship. “My training call to me,” Elio recounts, originally wanted to be- as a CA has helped me “but when Karen Keilty [FCA] told me why she come a physics professor. gain a deeper understanding for how businesses was calling, I was thrilled. Plus, we came up with In fact, he had almost really work, and it has been a great platform a solution for the client’s issue, so it was an ‘A’ completed his education from which to build my career.” day all around.” in that field before turning to the CA designation. A graduate of the University of BC, Nadir After graduating from Simon Fraser University “It was a bit of a circuitous route to becoming earned his CA in September 1981 while articling with a business administration degree in 1983, Elio a CA,” he admits. “But when I started thinking with PricewaterhouseCoopers. The following articled with Arthur Andersen in Vancouver. about job opportunities and was encouraged to month, an opportunity arose that would help He obtained his CA designation in 1986, take an accounting course, I woke up to the shape his future. and worked for a brief time with the Canada possibilities.” “One of my friends had a job interview lined Revenue Agency before joining the tax group at The provincial Gold Medallist of his class, up with BC Tel, but he ended up accepting an KPMG LLP in Vancouver in 1987. Norm earned his CA designation in 1980 after offer from another company first,” Nadir recalls. In his tenure with KPMG, Elio has remained articling at KPMG LLP in Vancouver and “So I went to the interview in his place.” focused on tax. During the 1990s, he shared his completing an MBA at the University of BC in Nadir joined BC Tel in October 1981, and expertise with the public by collaborating with 1978. He has been an audit partner with the has worked in the telecommunications industry former Vancouver Sun “Money” columnist Mike firm since 1987, the Professional Practice ever since. In August 2000, he joined Rogers Grenby on weekly tax articles of general interest. partner for the Greater Vancouver Area since Wireless as president and COO, a position that From 2005 to 2007, he led KPMG’s 180- 1996, and the leader for the GVA Mining required him to relocate to Ontario. member GVA tax practice, and served on the Practice since 2006. In total, Norm has over 30 “Moving to Toronto was a big decision,” he firm’s National Tax Management Committee years of experience in the mining, forestry and says, “but the chance to work for Ted Rogers and its board of directors. Today, he’s the technology sectors and the Rogers brand was just too compelling to managing partner in the Greater Vancouver “It has been a very rewarding career,” he says. turn down.” Area, and serves as a member of the firm’s Right from the beginning, Norm has given Nadir was appointed president and CEO of National Management Committee. back to the profession, serving as a seminar the company in 2001. Under his leadership, In the community, Elio has been active with leader and senior lecturer for the BC Institute’s Rogers Wireless experienced 13 consecutive the Vancouver Board of Trade, the Business School of Chartered Accountancy (SCA) from quarters of double-digit growth. Council of BC, St. Helen’s School and St. 1981 to 2000. During that time, he also served In May 2005, Nadir was promoted to president Thomas Moore Collegiate, the Surrey Chamber as the principal author of the SCA’s accounting and COO of Rogers Communications Group. of Commerce, and Junior Achievement of BC. course materials. A popular and dedicated Then in March 2009, Rogers’ board of directors In addition, the federal Minister of Industry teacher, it’s fair to say that Norm influenced unanimously appointed him president and recently appointed him to a seven-year term on literally thousands of CA students over the years. CEO for Rogers Communications, Inc. the National Competition Tribunal. His contributions to the profession also include Nadir attributes his success, in large part, to “Do what you love, love what you do, and serving as the BC representative on the founding the strength and determination demonstrated you’ll never work a day in your life,” Elio says. “I board of the CICA’s Accounting Standards by his family. “My parents taught me to have feel so fortunate to have lived that with my Board from 1991 to 1994, for which he worked a strong work ethic and to be caring and career as a CA. And it’s what I tell young people on many significant changes to new Handbook inclusive,” he recounts. “I grew up with a strong who are considering this profession: The CA is standards, and serving for six years as a member sense of community, and that’s why I believe the best ‘business degree’ you can obtain. The of the Canadian Advisory Group to the Interna- giving back is so important.” experience and learning are second to none.” tional Accounting Standards Committee. While living in BC, Nadir volunteered with Elio attributes a lot of his own success to In the community, Norm has volunteered a number of non-profit organizations, including the culture of mentorship he found in public tirelessly for the Lower Mainland Ringette the Canadian Club, the United Way, and practice. “It’s something I try to live each day,” League and as a member of the Dean’s External Volunteer Vancouver. In Toronto, he currently he says. “I’ve been fortunate to have had many Advisory Board for Simon Fraser University’s serves on the board of TD Bank Financial great mentors who took an interest in me and business school. Group and Ryerson University. He’s also an my career, and now I pay it forward.” Norm and his wife Marina have two children: active member of the Aga Khan Foundation, Elio and his wife Rosanna have three children: Nicholas (24), currently studying mechanical a non-profit agency that supports social de- Domenic (21) and Stefano (19), both of whom engineering at BCIT, and Ashley (22), a recent velopment programs in Asia and Africa. are studying business at SFU, and Carmela (17), graduate of the Rensselaer Polytechnic Institute “My wife and I got involved with Aga Khan a Grade 12 student. in New York. Ashley will begin her CA articles because it plays an important role in developing “None of this would have been possible,” Elio this fall at KPMG Vancouver. human potential,” Nadir explains.

Feb/Mar 2010 ica.bc.ca 13 He and his wife Shabin, also a CA, share many I hope to inspire others.” from BC Hydro, have two children: Chris (28), interests aside from their commitment to the Allan also credits his “excellent support who works in artist management for Nettwerk community. “We’re partners in everything we system,” saying: “My wife Jan and our kids Music Group in Vancouver, and Ryan (24), do,” Nadir says. Heather [a teacher in Victoria] and David [a CA who is teaching and travelling in Korea after and manager at PwC in Vancouver] have earning an arts degree from Mount Allison Allan Neale, always been there for me. I also appreciate my University in New Brunswick. FCA colleagues at NNC for continually supporting, “A lot of people have helped me along the way, “We’d just finished our and often contributing to, my volunteer efforts.” but Don Carter [FCA] is the one who really practice review, and as encouraged me to get involved in committee soon as the PR officer Peter R. work,” says Peter, currently first VP of the left, my phone rang with Norwood, FCA ICABC Council. “I’m grateful for that, and also a call from the Institute,” “Nothing compares to for the support I’ve received from my family recounts Allan Neale, a the feeling you get when throughout.” partner with Norgaard you receive news of *Peter became a certified management accountant Neale Camden Ltd., in Victoria. “My first the honour,” says Peter in 1992 and a fellow of the Society of Management thought was: ‘What could’ve gone wrong?’ Norwood of his FCA Accountants of Canada in 2005, making him an Then I learned I’d been elected an FCA! It was a election. “I was so hum- FCMA. surprise and a big honour.” bled and so pleased.” Allan became a CA in 1980 while working at Peter began his CA articles after earning Ian Petrie, FCA Coopers and Lybrand (now Pricewaterhouse a bachelor of commerce degree from the “I wasn’t surprised when Coopers LLP) in Winnipeg. He became a partner University of Alberta in 1974 and an MBA from Karen called me,” says with the firm in 1987, and transferred to its the University of Western Ontario in 1978. He Ian Petrie. “She was a Victoria office two years later. In 1992, he became a CA in 1980 while articling with partner of mine when I co-founded Norgaard Neale Camden (NNC). Deloitte & Touche LLP (then Deloitte Haskins was at Deloitte, so it Throughout his career, Allan has made a point & Sells) in Vancouver. didn’t seem unusual for of giving back, both to the CA profession After working as a manager with Deloitte from her to be calling.” and the community. He volunteered with the 1981 to 1985, Peter held several positions in But when the ICABC CICA’s Impact CA Program between 1996 industry. He also became a part-time instructor president announced that she was calling on and 2008, and has served on the CICA’s in the School of Chartered Accountancy and official Institute business, Ian was caught off Government Affairs Advisory Committee since the CMA Program, and served as director of guard. “My initial thought was: ‘What have I 2004. Both groups have raised the profession’s education for the Society of CMAs of BC for done?’” he laughs. “When I found out I’d been profile among senior level federal bureaucrats three years.* elected as an FCA, I was overwhelmed. I had no and cabinet ministers. Passionate about education, Peter moved idea I’d even been nominated.” In the community, Allan has volunteered as into academia full-time in 1994, becoming an Ian’s 39-year career in public practice began in a hockey coach and mentor since 1989. His instructor at both Langara College and the 1966, when he joined the Vancouver office of teams have won provincial championships and Sauder School of Business at the University of Gardner McDonald & Co (now Deloitte & participated in both the Bantam AAA Western BC. Still teaching at both institutions, he also Touche LLP). The University of BC commerce Canadian Championships and the Quebec Pee chairs Langara’s School of Management and graduate became a CA in 1969, and a partner Wee International Tournament. He was named is the co-author of a university accounting four years later. Transfers to the firm’s Prince BC’s Coach of the Year in 2000 and Victoria’s textbook. George and Toronto offices followed, but in Sports Person of the Year in 2001, and a His extensive contributions to CA education 1981, Ian returned to Vancouver to stay. He “Coaching Excellence Award” has been created include serving on the CICA’s board of examiners retired from the partnership in 2005. in his name. and the ICABC’s Professional Development and Much of Ian’s career focused on private clients Since 1989, Allan has also been involved with PD Management Program committees. He has in the retail sector, and in keeping with this the Rotary Club of Victoria. He has served as also served as a member of the Accounting focus, he served on Deloitte’s National Retail treasurer and president (2002), and currently Educators’ Symposium Committee for the Committee and chaired the Retail Committee serves as auditor for the board. He also acts Chartered Accountants Education Foundation for the Vancouver office. In addition, Ian as the liaison and student mentor for both the (CAEF), and as chair of the CAEF’s board oversaw human resources while working at the University of Victoria’s Rotaract Club and the of governors. In addition, Peter was a key Prince George and Toronto offices, and served Esquimalt High School Interact Club. contributor to the strategic planning of the in this same capacity in Vancouver for seven “Whenever you’re involved in service to young CA School of Business in 2006-2009, and has years. people, you get back far more than you put in,” served on its board of directors since 2006. His contributions to the profession and the he says. “They inspire me!” In the community, Peter coached hockey community are considerable. A member and Allan credits his success to a former high school for ten years and served on the board of the chair of numerous ICABC committees between teacher in Winnipeg. Richmond Minor Hockey Association. He also 1983 and 1997, Ian also served on Council for “Miss E. M. Lee inspired me to go to univer- chaired the Langara College Foundation from four years. He also volunteered as treasurer of sity and achieve my dreams,” he explains. “My 1997 to 2003. organizations such as Klahanee Park Housing work in the community is payback to her, and He and his wife Helen, who recently retired Society, the West Vancouver Memorial Library

14 ica.bc.ca Feb/Mar 2010 Foundation, the Vancouver Community College Maria Pinelli, visor or board member of organizations such Foundation, and the Retail Merchants FCA as the BC Technology Industry Association, Association of BC, and as treasurer and president Maria Pinelli, Americas Science World, the Entrepreneur Organization, of the Rotary Club of West Vancouver and the director, Strategic Growth and the Kauffman Foundation, and was a judge Hollyburn Country Club. Markets for Ernst & for the Forbes Business Competition. For Hollyburn, Ian developed a new financial Young LLP, believes Still, she says her FCA election came as a com- reporting format and helped institute changes to most of us owe our plete shock: “It’s overwhelming. I feel humbled improve governance. “We had a great time,” he careers to those who’ve and honoured to be recognized by my peers.” says of the experience. “I worked with some “dared” to believe in us. wonderful people.” “I’ve been so fortunate to have had wonderful Tony Swiderski, Still active in the community, Ian also keeps mentors and colleagues helping me develop FCA busy with numerous hobbies, and enjoys opportunities throughout my career,” Maria “Without his guidance, travelling with his wife Carolyn and spending explains. “And I’ve been very fortunate to have I would never have expe- time with their grandchildren. a strong support system at home. My family rienced the joys of this “I really enjoyed my career and worked with has provided incredible support and encourage- career and developed the some wonderful clients,” he says, “but there are ment.” lifelong friendships I so so many other things I want to do.” The golf Based in New York City, Maria has been with deeply value,” says Tony and gardening enthusiast describes video editing Ernst & Young ever since she graduated from Swiderski, recalling a as his latest passion, saying it allows him to use McMaster University with a commerce degree fateful conversation with his friend and mentor his creative side to produce DVDs of his travels in 1986. She earned her CA designation (with John Palmer, FCA,* almost 30 years ago. with Carolyn. honours) in Ontario in 1989 while articling Tony explains that after earning an MBA from with Ernst & Young in Toronto, and then the University of Toronto in 1979, he “drifted” joined the ICABC in 1995 after transferring to into the CA profession, accepting an articling the firm’s Vancouver office. position with PricewaterhouseCoopers LLP In her current role as Americas director, Maria primarily because the opportunity presented focuses on fast-growth, high-potential companies. itself. By the time he became a CA in 1981, he Thus far, she has led over 20 IPOs in Canada, wasn’t sure he’d found the right fit. London (UK), China, and the United States, “John convinced me to stick with the profession, and her work has taken her to countries all over and advised me to move to Vancouver, join the world, including Brazil, China, and Israel. KPMG, and enter tax,” he recalls. “His guidance Maria has worked in four different locations changed my life.” in North America, and currently juggles her After discovering a “love for the problem- work in New York City with her family life in solving elements of tax,” Tony built a career Vancouver. She and her husband, Paul Fletcher, for himself in the tax practice of KPMG LLP’s CA, managing partner of Deloitte & Touche LLP Vancouver office. A partner with the firm since in Vancouver, have two children—daughter 1989, he served in various leadership roles Vanessa (23) is at the University of Waterloo, before becoming the national partner-in-charge and son Christopher (10) attends St. Augustine’s of the International Corporate Tax Practice in in Vancouver. Maria considers her lifestyle a 2005. In 2008, he took on his current role as great example of how the CA profession can the Canadian partner-in-charge of the US work for men and women who want to achieve Corporate Tax Practice. a work-life balance. “What I find most rewarding is seeing the “I’ve always thought our profession was the members of my team develop and prosper in a perfect choice for women wanting to combine high-performance, collaborative environment,” family and career,” she says. “It’s flexible, it’s di- says Tony. Actively involved in recruiting and verse and interesting, lifelong learning is valued, advising young CAs and articling students at his and there is a commitment to developing firm, he says mentoring talented up-and-coming leadership skills.” professionals is one of his greatest passions. To further her own skills, Maria has completed Tony has also published, spoken, and written executive programs at Harvard University and extensively on professional matters, and is active the Kellogg School of Business. Because of in the community. He is a former member of her expertise, she has made presentations to the Carleton University’s Presidential Advisory Com- US Congress, and has provided briefings and mittee, and recently joined the Streetohome testimony to the US Treasury, the Senate Banking Foundation, which aims to reduce homelessness Committee, the Public Accounting Oversight in Vancouver. Board, and the US Securities and Exchange Looking back over his career, Tony says he is Commission. most proud of having raised his son Mathieu In the community, Maria has served as an ad- as a hands-on parent, while at the same time

Feb/Mar 2010 ica.bc.ca 15 maintaining a deeply rewarding career. “My firm seamless, with clients becoming friends and develop their leadership potential and have a provided genuine support and understanding, work activities melding with social activities positive impact on society. which enabled me to balance my professional without me or my wife Bev even noticing. We Now enjoying retirement, Bob continues to and personal lives in my own way,” he says. enjoy it tremendously.” volunteer with BCIT, the Canadian Cancer Today, Mathieu is a 21-year-old student Larry credits Bev, to whom he has been Society, the Forum for Young Canadians, and attending the University of BC. Tony now married for 35 years, with much of his success. Rainbow Collaborative Technologies. He also spends much of this leisure time skiing, playing “I couldn’t have done it without her,” he says. enjoys participating in triathlons, playing music, tennis, and sharing these and other activities He and Bev have two daughters: Carolyn and spending time with his family. with his wife Angela, a CA he met at KPMG. (32) and Brooke (30). Outside of work, he says Bob thanks his wife, Carol, and their children, For his success, Tony credits the support you’ll find him skiing at Whistler or riding his for all of their support over the years. provided by Angela and Mathieu, the support Harley. “I often tell people that I’ve had the best life in and guidance provided by his parents, and the the world,” he says. “I’ve been blessed with great wisdom imparted by his mentors John Palmer, Robert (Bob) parents, a great family, great peer leaders, and a FCA, John Zaytsoff, CA, and Don Miller, CA. Wiens, FCA great career.” *John Palmer is one of the ICABC’s newest “The first thing that Lifetime Achievement Award winners (see page 18). struck me when I heard Leonard about my FCA was: Zirnhelt, FCA Larry Van ‘I wish Dad had lived “I couldn’t believe it Hatten, FCA to see this,’” says Bob when I got the call,” Larry Van Hatten got Wiens. “He would have says Leonard Zirnhelt the news of his FCA been so proud.” of his FCA election. while sitting in an air- It was Bob’s father, George, a CA in Alberta, “I was really surprised. port in Palm Springs. who inspired him to join the CA profession. I recognized the accom- “We’d just had a terrific “My dad was a great role model of a professional,” plishments of people five-day golf trip, so this he says. who’d received their FCA, and I didn’t think I surprising and wonder- Both CAs worked in public practice for a was there.” It’s a modest statement coming from ful news turned a great day into a day to number of years and became partners with a CA who has spent the past 40 years supporting remember,” Larry says. “I was just thrilled when predecessor firms of Deloitte & Touche LLP. BC’s forestry sector and its players. Karen [Keilty, FCA] called me.” Bob says they both enjoyed being part of Leonard grew up in the Cariboo, where Since becoming a CA in BC in 1975, Larry has Deloitte’s alumni: “The firm does a great job at forestry predominated. He articled with Rigsby built a distinguished career in public practice. making us feel like we have always been a part of Johnson in Williams Lake and Prince George, Equipped with extensive experience in the the culture.” but left public practice in 1968 to work for a broker-dealer industry and with entrepreneurs, After 16 years with Arthur Andersen, Bob logging contractor in Mackenzie. Larry came to his current position as an audit moved into industry to join FACS Records “The experience was gratifying, but being partner with Ernst & Young LLP in Vancouver Centre Inc. as the company’s president and out of public practice was very isolating,” he after his former firm, Ellis Foster, Chartered CEO. He worked with FACS for 13 years before remembers. “What I enjoy most about being a Accountants, merged with Ernst & Young in 2005. becoming CFO of D-Wave Systems, a high-tech CA is the broad spectrum of businesses and During his 25 years with Ellis Foster, Larry company he co-founded. Bob’s resume also people you get to work with and serve.” was instrumental to the firm’s growth, helping it includes a brief period in the public sector, The following year, Leonard returned to develop into one of the biggest mid-sized firms working as director of the Accounts of Canada public practice, this time with the Prince George in Canada. Today he is a member of Ernst & for the Office of the Comptroller General when office of Rickard Crawford (now KPMG LLP), Young’s BC Leadership Team. it was re-established in 1978, and he describes where he began focusing his career on forestry In the community, Larry has been very his two-year stint in government as one of the operations. involved with the BC Children’s Hospital highlights of his career. “Forestry was, and is, a big part of Prince Foundation as a director and as chair for three “It was enormously satisfying professional George,” he says. “I found that there were a terms, helping it evolve into one of the most work,” he explains. “You knew that you were lot of dynamic things I could do within the successful foundations in the province. In 2000, really making a difference in the reporting of industry.” he received a Community Service Award from your country’s financial results.” Through his efforts—both professionally and the ICABC in recognition of his contributions Making a contribution has always been as a volunteer—Leonard has had a significant to the Foundation. Larry has also donated important to Bob, who describes community impact in the industry. For example, his his time to the Brit-Lions Rugby Club and to involvement as Canada’s lifeblood. pioneering work as an associate member of the several other community organizations. Throughout his CA career, Bob contributed to Central Interior Logging Association led to the Larry advises young people considering the CA a number of non-profit organizations, including development of innovative software designed profession to “have a passion for being a profes- the United Way, Science World British Columbia, to assist independent forestry contractors with sional.” Leadership Vancouver, St. Vincent’s Hospital contract negotiations. He is also one of the “Yes, it will be long hours and hard work, Foundation, the University Hospital Foundation, founding members of the Prince George Forest but it is also extremely rewarding,” he says. and AISEC, an international, student-run Exhibition, and his stewardship helped this “I have found that my own life has become organization that aims to help young people regional event become one of the largest forestry

16 ica.bc.ca Feb/Mar 2010 expos in the world. Garry Zlotnik, Garry has applied his leadership skills to In addition, Leonard has contributed to the FCA numerous charitable endeavours over the years. Resource Awareness Committee, the Forest Although Garry Zlotnik These include the ZLC Financial Group Alliance of BC, KPMG’s Forest Industry has a long and stellar Foundation Charity Golf Tournament, which Practice Committee, and the Spirit of the North record as a professional has raised and distributed over $600,000 for Fundraising Committee. and as a volunteer, he charity since its inception. Garry has also served Though now “retired,” Leonard continues to never thought he would on the Professional Advisory Committee for the work as a consultant for KPMG. be nominated as an Vancouver Foundation, and on the board of “I was always proud to be a CA,” he says, “and FCA. directors of the Canadian Association of Family it’s wonderful to still be working with clients “I’ve so long been outside the business of Enterprise (CAFE) BC Chapter, which he I’ve known for over 30 years.” accounting that it makes this honour particularly chaired in 1999-2000. Leonard also volunteers with the Prince special and I’m excited to be recognized by my Highly active in the Jewish community, Garry George Community Foundation, and continues peers,” Garry says. “I also immediately thought has served as a director, treasurer, and president to play hockey. He co-founded the Prince of my close friend Dave McShane, FCA, who of Vancouver Talmud Torah, and as a member George Oldtimers Hockey Association, some passed away shortly after he received his FCA and chair of the Jewish Community Foundation. 30+ years ago, and now plays with the Prince a couple of years ago. I think many of us are In 2006, he co-chaired the Jewish Community George Over 50 Oldtimers Hockey Association. particularly humbled to be invited into the same Centre Maccabi Games, helping to raise over He thanks his former mentor Wayne Ackerman, group as Dave.” $2 million to finance the sporting event. In FCA, for bringing him back into public practice, After receiving his CA designation in 1980, 2008, he and his brother Mark, also a CA, were and his wife Judi and three children—Melanie, Garry joined his father in the family business, recognized with the prestigious Negev Award, Lane, and Russell—for supporting him through- ZLC Financial Group Ltd., offering estate presented by the Jewish National Fund of out his career. planning, life insurance, employee benefits, Canada. Most recently, Garry completed a financial planning, and investments services. two-year term as board chair of the Jewish The original business has grown to encompass Federation of Greater Vancouver. three separate companies, all offering investment Garry received a Community Service Award advice and products, and employing about 60 from the ICABC in 2002, and as he told people. As president and CEO of ZLC since us then: “…the more you give, the more 1993, Garry has served as a leader, motivator, satisfaction you receive. And you also get to and manager. For the past 15 years, he has also meet really great people along the way.” been the company’s top producer. He and his wife Lisbeth have two children: Samantha (22) and David (19).

Our congratulations to the Institute’s newest FCAs!

Authors Deborah Folka, MA, APR, is an independent, Vancouver-based communications consultant providing services to the professions. Kerri Brkich is the ICABC’s manager of Public Affairs, and Ashley Hetherington is the Institute’s Recruiting and Communications Coordinator.

Photography Photo of Gary Chan by Dennis Houston of W. D. West Studios in Prince George. Photo of Nadir Mohamed by Dean MacDonell of MacDonell Photography in Toronto. Photo of Allan Neale by Deddeda Stemler of Photography by Deddeda in Victoria. Photo of Maria Pinelli by Jonathan Gayman of Ernst & Young LLP in New York. All other photos by Kent Kallberg of Kent Kallberg Studios Ltd. in Vancouver.

Feb/Mar 2010 ica.bc.ca 17 Three FCAs Recognized for Lifetime Achievement

By Michelle McRae, Editor

n celebrating the life’s work of an FCA, the ICABC Lifetime Achievement Award provides both recognition and inspira- tion—reminding us that one person can make a big impact on the world. That’s certainly the case with this year’s Irecipients: W. Randolph Clerihue, FCA; John R. V. Palmer, FCA; and David R. Sinclair, FCA.

W. Randolph Clerihue, FCA “I think the Lifetime Achievement Award is a good idea,” says Randolph (Ran) Clerihue, “because it shows young people what the average person can accomplish if he or she is dedicated enough.” True indeed, though it’s unlikely that anyone would use the word “average” to describe Ran. This is an individual whose business and people skills, combined with a knack for choosing the right roles and a willingness to take risks, enabled him to lead a remarkable career in the big leagues of business, while at the same time giving back to the business sector, the CA profession, and the community. Despite growing up during the Depression, Ran never lacked for opportunities. A member of the Air Cadets, an organization his father, Victor Clerihue, FCA, helped found, Ran excelled as a pilot and achieved a private rating while still a teenager. He employed these skills during the Second World War, serving as a pilot flying officer with the Royal Canadian Air Force (RCAF) overseas from 1942 to 1945. After the war, Ran remained in the RCAF reserves, and earned his commercial pilot’s licence and instrument rating. He received job offers from two national airlines, but chose to complete his education before embarking on a career. By the time he earned a bachelor of commerce from the University of BC in 1947, he’d set his sights on the CA designation. As an articling student with Peat Marwick Mitchell & Co. (now KPMG LLP) in Vancouver, Ran showed such promise that he received a job offer from the first client to which he was assigned: Port Edward Development Co., which later became Columbia Cellulose, a subsidiary of Celanese Corporation, New York. Intent on finishing his articles, he declined the offer, but it was not the last he would hear from Columbia

18 ica.bc.ca Feb/Mar 2010 Cellulose or its parent company. And they were—offering him the role of chair, In addition to his work with the CA profession After becoming a CA in 1951, he joined his president, and CEO of Celanese Canada Ltd. in and the FEI, Ran applied his leadership skills in father’s firm in Vancouver. While helping his 1972. Ran accepted, returned to Montreal, and the community by volunteering with St. Georges father modernize Clerihue & Clerihue CAs proceeded to make the Canadian company Anglican Church, the Royal St. Lawrence Yacht over the next four years, Ran volunteered with extremely profitable. His success did not go Club, and Junior Achievement in Quebec, and the ICABC as a member of the Education unnoticed, and in 1975, he was asked to serve as with the Country Club of Darien in Connecticut. Committee and as an instructor of CA students, a board member and executive VP of Celanese He also acted as vice-chair for the 60th anniversary and served as a lecturer and associate professor of Corporation in New York. of the class of 1947 at UBC. accounting and finance at UBC. “I was the chief of staff at a time when the And then there are his decades of service with By 1955, he was ready for a change. company had $15 billion in sales, 125 plants, the Air Force Officers Association and the Air “My father would have liked for me to stay on and 44,000 employees,” Ran recalls. “Running Cadet League of Canada. Ran has served as a as a partner,” Ran says, “but I wanted to work in big companies like Celanese and Bendix was director of the former in Vancouver since 1985, industry, with big companies.” very exciting. I had to make huge decisions.” having previously served as a director and Columbia Cellulose put out another offer, but In 1980, Ran left Celanese to join Wabasso president (one term) from 1946 to 1955. Ran again turned the company down, wanting Inc., a textiles manufacturer in Montreal, as During the 1950s, he also chaired the Sponsoring more experience in industry first. In 1955, he president and CEO. Over the next five years, Committee of the No. 1 Wing Air Cadets and joined one of Clerihue & Clerihue’s former he helped turn the struggling company into a taught an instructor course. clients at Peacock Brothers Ltd., an industrial profitable enterprise. After it was sold to For the Air Cadet League, he has served on the equipment manufacturer based out of Montreal. Dominion Textiles in 1985, he returned to provincial committees in Vancouver and After relocating to Quebec, he served as the Vancouver, where he worked as a consultant for Montreal, and on the Executive Committee company’s director and vice-president of finance First City Financial for the next ten years. He in Ottawa (including a term as president in for the next five years. During this time, he also resumed his activities with the ICABC, this 1987-1988). He continues to serve as a member also served as a Council member of the Ordre time serving on the board of governors of the of the League’s Ottawa-based Advisory Board. Comptables Agréés du Quebec, and as a member CA Education Foundation. Ran has received numerous awards for service, of the board of directors for the Financial “It’s a big risk in a career to move around so including a Director of the Year Award and Executives Institute (FEI). much,” Ran admits, “but in my case, it worked Medal of Honour from the Air Cadet League, a By this time, Ran had earned an impressive out.” Queen Elizabeth II Golden Jubilee Medal, and reputation—particularly for his skills as a It helped that his first wife, Gloria, who passed a Commemorative Medal for the 125th turnaround expert—and this reputation led to away in 1996, handled the many twists and Anniversary of Confederation. his next job offer. turns of his career with aplomb. Today, in addition to managing his invest- “My neighbour worked with Canron Ltd., a “Gloria was very supportive,” he says. “Growing ments, Ran enjoys spending time with his foundries and industrial equipment factory,” he up during the Depression was probably a second wife Lorraine. Together, they spend part recounts. “One day, he asked if I wanted to join motivating force for both of us. I saw how some of each year in Scottsdale, Arizona, where they the company as controller.” people made it through and others didn’t, and I enjoy playing golf. “Lorraine took up golf after Eager for more and different experiences in made it a point to always position myself where we met,” he says, “but she has already won industry, Ran accepted. He worked with I wanted to be.” championships at our clubs in Vancouver and Canron for the next four years. Ran offered similar advice to their daughter, Scottsdale.” Ran, too, has his fair share of In 1964, he became the president of the FEI’s Barbara Clerihue Carter, CA, OMM (profiled golfing trophies. His other hobbies include board of directors. That same year, Celanese in the May 2009 issue of Beyond Numbers for reading biographies and books on history. Corporation approached him again—this time her work as a commander in the Canadian To those who are contemplating a career in offering him the role of VP of finance for Cela- Navy): “I advised her to choose a profession industry, he offers the following advice: “You nese Canada Ltd. in Montreal. Ran accepted, she’d be comfortable with. You have to give have to be dedicated. You have to be supportive and proved so effective over the next three years people the opportunity to make decisions.” of the team. And you have to want to succeed.” that the company promoted him to VP and Ran followed this same philosophy both as an This recognition for his own success came as treasurer of Celanese Corporation in New York executive and as a director serving on the boards an unexpected surprise, Ran says, adding: “But in 1967. of numerous public companies, including the I’m very honoured.” Three years later, he was approached by the Royal Bank and Trust Company (New York), Ran became an FCA in BC in 1988. Bendix Corporation, a major aerospace and Tate Paper (Scotland), American Forest Prod- automotive company in Detroit. Their offer to ucts (San Francisco), Reunion Industries Photography serve as VP of finance and a board member was (Pittsburgh), Spartech Corp (St. Louis), which Photo of Ran Clerihue by Kent Kallberg of Kent one he couldn’t refuse. he chaired for several years, and Columbia Kallberg Studios Ltd. in Vancouver. “The Celanese executives understood the Cellulose (Vancouver)—among many others. move,” Ran says. “But they told me they’d be He also served on the boards of many of back.” Celanese Corporation’s subsidiaries around the world.

Feb/Mar 2010 ica.bc.ca 19 John R. V. Palmer, FCA 1969. Early in his career, John alternated his “Choosing to become a chartered accountant was the best career decision I could have made,” says focus between audit and tax. He also worked for John Palmer. “It gave me the framework, the analytical tools, and the discipline to tackle a series of a year in financial consultancy with Thorne career challenges. A lot of whatever success I have enjoyed can be attributed to my CA training.” Riddell’s UK affiliate, and for two years in John’s career choice has also proven highly beneficial to the CA profession. An advisor on financial Ottawa as a special assistant to two Ministers of and financial sector regulatory matters, he has distinguished himself internationally by driving National Revenue. initiatives related to financial regulation, and is highly respected for his numerous leadership roles in In 1978, John became the office managing public practice and in the private and public sectors. partner of Thorne Riddell in Vancouver and “I was fortunate to have some extraordinary mentors early in my career,” John says. “Chief among returned to audit, focusing on real estate and them were Denham Kelsey [FCA], Hugh Smith [FCA], and Roy Burrell [CA]. They helped turn a financial services. Five years later, while still in fuzzy-thinking English major into a disciplined professional.” his thirties, he was given the opportunity to The University of BC arts graduate articled with Helliwell MacLachlan, a predecessor to Thorne serve as national executive partner (CEO) of Riddell and KPMG LLP. He achieved the BC gold medal on the UFE, and became a CA in BC in Thorne Riddell in Toronto. He subsequently managed the firm through two national mergers, and became the deputy chair and managing partner of KPMG in 1989. In 1994, after being asked to serve as Super- intendent of Financial Institutions by then Minister of Finance Paul Martin, John left public practice. This new role had him oversee the regulation and supervision of all Canada’s banks, as well as other deposit-taking institutions, insurance companies, and pension plans under federal jurisdiction. “Canada was recovering from a deep recession in which many financial institutions failed or were forced to find stronger partners,” John recounts. “We took the opportunity to toughen up the supervisory process, and required the banks and insurance companies to strengthen their capital and provisions. These moves weren’t popular at the time, but they helped the financial sector ride out both the bursting of the high-tech bubble and the recent global financial crisis.” After his seven-year term as Superintendent ended, John undertook an assignment for the Australian Prudential Regulation Authority (APRA) to review APRA’s role in the 2001 failure of HIH Insurance, the second largest general insurer in Australia prior to its collapse. “It was a valuable learning experience that underscored the importance of good organiza- tional design, technical expertise, and effective supervisory methodologies in reducing the risk of failures,” John says. Nearly all of the changes he recommended to APRA were implemented. Early in 2002, he accepted an assignment as deputy managing director of the Monetary Authority of Singapore (the Central Bank of Singapore), overseeing the banks and insurance companies licensed in Singapore. During this time, he also served on Singapore’s Council for Corporate Disclosure and Governance and on the board of the Accounting and Corporate Regulatory Authority. For the latter organization, John chaired the Public Accountants Oversight Committee and helped set up the process by

20 ica.bc.ca Feb/Mar 2010 which the auditing profession in Singapore is Currently, he is a director of Manulife Financial Corporation in Canada and a board member and now regulated. Audit Committee chair for the Central Provident Fund in Singapore. After completing his work with the Monetary “I have hobbies awaiting my retirement,” John says, when asked about slowing down. “I enjoy my Authority in 2005, John served as a visiting cottage at Georgian Bay, where I canoe, kayak, cross-country ski, and do chores. I also read extensively senior fellow at the Lee Kuan Yew School of and eclectically, with a particular interest in biographies.” Public Policy at the National University of John also enjoys spending time with family. He and his wife Adelaide, to whom he has been married Singapore, lecturing on financial regulation and for more than 40 years, have three children—Nick, Meg, and Ned—and two grandchildren. financial sector development. He remains an As for the award for lifetime achievement, John says he was “stunned but delighted” when he received adjunct professor at the School. the news, adding: “It is an enormous honour to receive this kind of recognition from one’s peers.” It was also in 2005 that John took on his John became an FCA in Ontario in 1988, and an FCA in BC in 1990. current role as chair of the Toronto Centre for Leadership in Financial Supervision. Also one of Photography the Centre’s founding directors, John explains Photo of John Palmer by Lisa Lum of The Colourful Faces Studio in Singapore. that the focus of the Centre, which is funded by the Canada International Development Agency, the IMF, the World Bank, the Swedish Interna- tional Agency, and a number of regional development banks and supervisory bodies, is to help senior officials of financial supervisory CAEF – Helping future CAs agencies, particularly in developing countries, understand the weaknesses in their agencies, the Have you ever wondered how you could help students who are interested in changes that are needed, and how to go about becoming members of our proud profession? Consider donating to the CA making those changes. Education Foundation (CAEF). “The Centre was formed in 1998 following a series of regional financial crises, based on the The CAEF is a registered charity established by the BC Institute of CAs to realization that weak supervision had been an support the endeavours of current and future CAs. One of the Foundation’s important contributing factor to those crises,” important activities is to ensure that scholarships are available to students he explains. “Weak supervision in a number of at every university and college in BC. Currently there are 25 scholarships countries also contributed significantly to the available each year, all of which go to students who’ve indicated their global financial crisis, so it’s clear that the Centre intentions to become CAs. has more to do.” With these same goals in mind, John continues There are different ways to donate: to write and lecture on financial sector topics • General donations – Mail, fax, or drop off a donation at the ICABC’s offices and carry out assignments for international or- in downtown Vancouver. ganizations and national authorities such as the • Planned giving – Include the CAEF in your will. International Monetary Fund, the World Bank, • Giving in memoriam – Make a gift in honour of a colleague or family USAID, and the Asian Development Bank. member. Over the years, John has served on numerous • Matching Scholarship Program for CA firms and associations – Participate other boards and committees, both in Canada in the CAEF’s matching program. and internationally. These include the Basel Committee for Banking Supervision, the Please visit the CA Education Foundation’s website at www.caef.bc.ca for Financial Stability Forum, the Canadian Com- more information. prehensive Auditing Foundation, and the Panel of Senior Advisors to the Auditor General of Canada. Early in his career, he also lectured on tax matters for ICABC tax courses, and served as a member of the Institute’s Professional Conduct Enquiry and Government Legislation committees. He also co-chaired a CICA Task Force on the Attractiveness of the Accounting Profession. John has also served on the boards of numer- ous charitable and community organizations, including the Learning Partnership, the Cana- dian Council for Business and the Arts, the Canadian Stage Company, ParticipACTION, the Vancouver Institute, and Crofton House School.

Feb/Mar 2010 ica.bc.ca 21 recalls. “I had a certain amount of ambition, so I decided to broaden my horizons.” While looking through employment postings, David discovered that the Canadian Pacific Railway (CPR) was looking for “young Scottish accountants.” “The CPR was founded by Scotsmen,” he says, by way of explanation. “The job promised $300 a month, the excitement of moving abroad, and first-class passage by ship. I thought I’d died and gone to heaven.” “First-class passage” turned out to be a shared cabin for four in the bowels of the ship, but David didn’t mind—he was on his way. His new employers didn’t waste any time— within two hours of his ship’s arrival in Montreal, David was put to work. “Surely that’s a record,” he laughs. After just one month on the job, he was given an “all lines” pass for CPR trains and sent out West to Penticton, where CPR owned a small trucking company. Over the next few years, he travelled extensively across Canada, dealing with CPR’s many subsidiaries. “It was a marvellous experience for a young immigrant,” David says. “I had the opportunity to see the country, and I learned a lot.” Because of land grants that had been acquired to help build the railway, CPR owned substantial mineral rights in Western Canada at that time, and it was through David’s involvement with CPR’s department of natural resources in the early 1950s that he received a job offer to work in Calgary for Standard Oil of California. Although the new job provided a 50% salary increase, his tenure with the American company was brief. “I found working for big organizations like CPR and Standard Oil a bit confining,” he explains. “I liked the idea of the independence of public practice, and I also liked the idea of becoming a partner.” So in 1955, David changed tacks, joining the CA David R. Sinclair, FCA firm McDonald Currie (a predecessor of Coopers An FCA known for his dedication to the profession, the business sector, and the community— & Lybrand and PricewaterhouseCoopers LLP) in particularly in the field of healthcare, David Sinclair has made a real difference in British Columbia, his Vancouver. He became a partner with the firm adopted home. early in 1957. Born and raised in Glasgow, Scotland, David originally had his sights set on a career in medicine. But David led the firm’s recruiting efforts for the when the Second World War ended, the universities filled up with ex-servicemen, forcing David to put next ten years, and it was during this time that his enrolment on hold for a full year. Eager to start his professional life, he decided to interview with a he also began volunteering with the ICABC, CA firm instead. serving as a member of Council and the Bylaws David was just 17 when he began a five-year accounting program as a paid apprentice in 1946. In Committee. He later served for several years on addition to working a regular workweek and half-days on Saturdays, apprentices took classes five nights the Professional Conduct Enquiry and Public a week and completed weekly school assignments. The pay for the entire first year was just £30. Practice (Management Consulting) committees, “There was a lot of drudgery, but there were exciting moments too,” he says. “And the experience among others. certainly taught us discipline.” In 1973, David became the managing partner After passing the equivalent of the UFE in December 1951, David became a CA in Scotland in 1952. of Coopers & Lybrand in Vancouver—a position “The pay for CAs in Scotland at that time was abysmal, and the opportunities were limited,” he he held until his retirement from public practice

22 ica.bc.ca Feb/Mar 2010 in 1989. This 16-year period has since been with regard to senior and palliative care— making, plus his outgoing personality… made described as the firm’s most dramatic period of David’s contributions to BC’s healthcare sector him a popular and influential member of the internal growth, as it included the development also include serving on the board of the board.” of specialized professional services such as litiga- Children’s Foundation, a residential treatment So popular, in fact, that in 2001, Sinclair was tion support, business interruption insurance, centre for emotionally troubled children, and on asked to chair the Independent Committee of specialized taxation services, and insolvency. the board of the Parkinson’s Institute. The latter Directors of Cominco that recommended the David also served as the leader of his firm’s was a cause dear to his heart—David’s first wife, merger of Teck Corporation and Cominco. Western Canadian region and was a director of Rosemary, had Parkinson’s, and succumbed to After the merger, he served as a director of Teck its Management Committee for approximately her symptoms after a ten-year struggle with the Cominco until his retirement in 2005. 20 years. disease. Today, David is taking things a bit easier, Prior to his retirement, he was asked by He also served as a trustee of Vancouver spending time with his second wife Brenda then-Minister of Finance Mel Couvalier to serve General Hospital, and as chair of both the BC (a former editor of Hansard in the House of as the Interim Superintendent of Brokers, a Cancer Agency and the board of the BC Cancer Commons in Ottawa), with whom he vacations senior position at what is now the BC Securities Foundation. His work with the Foundation in Maui each year, and with his children and Commission. subsequently led to board work with Triumf, a grandchildren. His son Rob owns an athletic “The Commission was in a state of disarray at the nuclear research project conducted jointly by surfacing business, and his daughter Susan is a time,” David recounts. “It was a very interesting Simon Fraser University, the University of “professional mom” with three kids (the eldest three months, during which we dealt with the Alberta, the University of BC, and the University of whom is currently attending UVic, Susan’s insolvency of a major investment company.” of Victoria. alma mater). Both Rob and Susan are champion His reputation continued to garner him “I had the opportunity to work alongside a rowers. interesting offers. In 1990, for example, he was group of physicists and research scientists,” he David, himself, is a keen gardener, fisherman, asked to serve as one of six commissioners on says. “I couldn’t have asked to work with a more and golfer. He belongs to the Victoria Golf Club Justice Seaton’s Royal Commission on Health interesting group of people.” and is a proud member of the Royal & Ancient Care in BC. After holding public hearings in David later chaired the Finance Committee for Golf Club of St. Andrews in Scotland. approximately 50 communities and reviewing the University of Victoria’s board of governors, “With the support of outstanding colleagues, I over 2,000 written submissions, the Commission serving in the government-appointed position had a great career, so this Lifetime Achievement made extensive recommendations to address the for two three-year terms. He also served on the Award brought back some fond memories,” he healthcare needs of British Columbians, and board of the Commonwealth Games in Victoria says. “I take pride in being a CA, and I’m produced a lengthy report entitled Closer to in 1994. grateful for this recognition from my peers.” Home. In 1993, he joined the board of Cominco as David became an FCA in BC in 1974. “Our goal was to keep people out of the hospital a director. David A. Thompson, chair of the as much as possible,” David explains. “I visited a Vancouver Coastal Health Authority and former Photography lot of facilities and made recommendations CEO of Cominco and Teck Cominco, describes Photo of David Sinclair by Deddeda Stemler of based on the idea of providing more opportunities him as a “trusted advisor on a broad range of Photography by Deddeda in Victoria. for home support.” business matters,” adding: “His intense interest Passionate about healthcare issues—particularly in business strategy and investment decision-

Congratulations to our Lifetime Achievement Award winners!

Feb/Mar 2010 ica.bc.ca 23 Tax Traps & Tips Income tax implications of The death of the settlor results in a number of settling an AET taxable events. First, any income/losses and Generally, an individual settles an AET with capital gains/losses realized prior to death a contribution of property, such as cash, real attribute back to the settlor, and any income/ estate, an investment portfolio, or shares of a losses and capital gains/losses realized after death The Basics of Alter private corporation. Unlike a family trust, there are considered taxable income of the AET. Most is no requirement to settle an AET with importantly, at the end of the day of the settlor’s Ego Trusts non-income earning property like a gold coin, death, it is the AET that has the deemed disposi- By Brent Zazubek, CA because during the settlor’s lifetime, any income tion of any property owned by the AET for earned by the AET is attributed to the settlor. proceeds equal to fair market value.4 Therefore, Any property contributed to the AET is deemed it is the AET, and not the settlor, that will report What is an alter ego trust? to have been disposed of by the individual for the capital gain or loss resulting from the deemed One of many tools available to individuals in proceeds equal to their adjusted cost base in the disposition. their estate planning is the alter ego trust (AET).1 property, so no income taxes are triggered at The deemed disposition is reported in the T3 The Income Tax Act (Act) defines an AET as a the time of transfer, and the AET inherits the return of the AET for the calendar year that trust established after 1999 by an individual 65 individual’s adjusted cost base in the property includes the date of the settlor’s death. This can years of age or older. Under the terms of the contributed.2 cause the loss of some of the settlor’s positive AET, only the individual who established the tax attributes, such as charitable donation trust (the settlor) is entitled to receive the Income tax compliance for an credits, loss carry-forwards, or unused marginal income of the trust during their lifetime—no AET tax brackets, if the individual does not have other person can receive or otherwise obtain use Since the AET’s income/losses and capital gains/ sufficient income from other sources on their of any of the trust’s income or capital until the losses attribute back to the individual who final tax return to use up their positive tax settlor’s death. settled the property3 in the AET, one of the attributes. This being the case, careful consider- Since an AET is established during an ongoing issues with an AET is how to report the ation should be given as to how to use all of a individual’s lifetime, it is an inter-vivos trust attributed income/losses and capital gains/losses settlor’s positive tax attributes, either prior to with a taxation year ending on December 31st. for tax purposes every year. In the legal and their death or on their final tax return. In normal circumstances, an AET is not subject accounting communities, there is some confusion Second, some provisions of the Act that deal to the 21-year anniversary rule until the settlor about whether or not an AET is required to file with the death of an individual may not apply to passes away, at which time the 21-year time a T3 return during the settlor’s lifetime. From a an AET. For example, charitable donations frame begins. practical perspective, the AET should file an made through an individual’s will are deemed to An AET can have beneficiaries other than annual T3 return within 90 days of the end of have been made by the individual immediately the settlor, but these individuals can only be each calendar year, and issue a T3 supplementary before death.5 Therefore, if an individual leaves “residual” beneficiaries who are not allowed to slip to the individual for any income or capital a fixed dollar amount or certain percentage receive any of the trust’s income, or receive or gains realized in the calendar year that attribute of their estate to a charitable organization, a obtain use of any of the trust’s income or capital, back to the individual. It should be noted on donation credit can generally be claimed on the until after the settlor’s death. On the death of the T3 return that the T3 supplementary slips individual’s final tax return—assuming the the settlor, the terms of an AET can provide that include amounts that are being attributed. donation is made by their estate within a reason- the trust carries on as an inter-vivos trust or that The AET’s losses and capital losses also attribute able period of time. the balance of the AET’s property be divided back to the individual; however, these losses Because a donation made through an AET is among the residual beneficiaries. usually have to be disclosed as a footnote on the not considered to have been made through an Some potential benefits of using an AET T3 slip because, generally speaking, they cannot individual’s will, the AET does not benefit from include: reducing exposure to challenge under a be allocated by a trust. this deeming rule. This means that if a charitable provincial Wills Variation Act; maintaining donation is made by an AET with the intention privacy, because unlike the terms of a will, the Potential income tax traps of offsetting income taxes otherwise owing from terms of an AET are generally not available to A number of potential income tax traps can the deemed disposition of the AET’s property, the public; and reducing probate fees. One result from the use of an AET, and a few the donation actually has to be made by the AET major disadvantage is that an AET does not examples follow. in the same calendar year as the settlor’s death. benefit from the marginal tax rates of a testa- Third, when an individual owns shares of a mentary trust, because it is not created on the private corporation on death, it is common death of an individual.

1 Another planning tool is a joint partner trust (JPT), which essentially has the same terms as an AET, except that the individual and their spouse/partner are both entitled to receive the income of the JPT during their respective lifetimes, and no other person can receive or otherwise obtain use of any of the trust’s income or capital until the death of the later of the individual and their spouse/partner. For simplicity’s sake, this article focuses on AETs; note, however, that many of the comments herein also apply to JPTs. 2 Per subsection 73(1) of the Act. 3 Per subsection 75(2) of the Act. 4 Per subparagraph 104(4)(a)(iv) of the Act. 5 Per subsection 118.1(5) of the Act.

24 ica.bc.ca Feb/Mar 2010 for the estate to request redemption of these shares—which will result in taxable and/or capital dividends and a capital loss to the estate—and then apply that capital loss against the deemed capital gain on the individual’s final tax return if the capital loss was incurred in the estate’s first taxation year.6 Further, the Act provides individuals with relief from certain applicable stop loss rules that could otherwise restrict the loss7 in certain circumstances where shares of a private corporation are redeemed. As an AET is not subject to the one-year $60,000 – Accounting Manager deadline for triggering a capital loss, it can actually A newly designated individual is looking benefit from a capital loss triggered in any of its for a position as Accounting Manager or three subsequent taxation years and carry back $120,000 – CFO Assistant Controller with a growing Our candidate has current experience in company. This candidate has had that loss to the taxation year with the capital a mining environment and would like to exposure to supervision and experience continue their career in a similar industry. preparing financial statements, yearend gain. However, an AET does not qualify for the They are seeking an opportunity where working papers, budgets, etc. They are relief from the stop loss rules that is available to they will have the opportunity to oversee seeking a position with a dynamic and all of the financial functions for an progressive organization. individuals at their date of death, so these stop organization and act as a key resource loss rules would have to be taken into account. and integral part of the senior $50,000 – Intermediate Accountant management team. A candidate, who is motivated to forward Another important concern is raised if the in their career, has gained a majority of AET owned shares of a qualified small business $95,000 – Controller their experience in the hi-tech industry. Our candidate has gained a majority of They have experience in preparing corporation (QSBC) at the time of the settlor’s their experience in manufacturing and dis- balance sheet reconciliations, prepara- death. It is the AET that reports the deemed tribution industries and is looking for an tion of journal entries, processing hourly opportunity that will provide future growth payroll and assisting with month-end

disposition of the shares of a QSBC on the death potential. They have extensive reporting preparation. They are desirous of gaining of the settlor; therefore, any potential benefit experience and strong exposure to financial statement management skills. They are hoping to preparation. from the capital gains deduction may be lost, continue working in the financial services because only individuals—and not AETs—can area; however, they would also consider $38,000 – Accounts Payable working in a different industry. An Accounts Payable clerk has claim the capital gains deduction. This means experience in; coding invoices, following that any planned use of an individual’s remaining $75,000 – Public Practice up with vendors on adjusting invoices, A CA with 4 years experience is seeking and preparing bank reconciliations. This capital gains deduction must be triggered before a Management level opportunity where candidate is desirous of finding a position the AET becomes the beneficial owner of the future partnership potential exists. This with a stable organization that can offer candidate articled in a large firm and challenging full-cycle Accounts Payable 8 shares of a QSBC. moved to a medium sized firm to get duties. more involved in client relations, review and compilation engagements. They are Food for thought a motivated manager and team oriented An AET is a unique kind of trust that has some individual who enjoys a variety of challenges in their work. tax and non-tax benefits. However, using an AET, especially where the death of the settlor is involved, can lead to some complex and unex- pected tax consequences.

Brent Zazubek, CA, is a senior tax manager with Grant Thornton LLP in Vancouver.

6 Per subsection 164(6) of the Act. 7 Per subsection 40(3.61) of the Act. 8 For example, the planned use may be triggered by electing out of subsection 73(1) of the Act, so that the transfer of property to an AET occurs at fair market value, which will result in a capital gain to the settlor and the potential to use the settlor’s remaining capital gains deduction or unused capital losses carried forward.

Feb/Mar 2010 ica.bc.ca 25 IFRS on a Need-to-Know Basis Thinking Beyond the Box PD News This seminar is aimed at accountants and other This seminar will teach you how to challenge professionals who want a high-level overview conventional wisdom, reconcile paradoxes, focus of IFRS. It will approach the topic in a light- on what really matters, and create intelligent and hearted and non-technical manner. feasible solutions. Mar 10, 9am-12:30pm, Vancouver Mar 17, 9am-5pm, Vancouver

Introduction to IFRS 1 – First-Time Building Innovative, High-Performance Teams Adoption of IFRS To build and manage high-performance teams, This seminar will cover the main IFRS 1 optional you need to know what actually makes a team exemptions and mandatory exceptions for first- great. Learn the number one cause of low perfor- time adopters of IFRS. mance, what sustains low performance, and why Mar 23, 9am-5pm, Vancouver people leave their jobs—after all, retention is a lot less expensive than recruitment. Transitioning to International Auditing Mar 18, 9am-5pm, Vancouver Standards This seminar will provide an overview of current Taxation developments in the transition of Canadian audit Catching Up – 5 Years of Income Tax standards to international ones. The seminar Developments will be beneficial to members who practice This seminar will provide an opportunity for those public accounting. who haven’t regularly taken tax update seminars Mar 4, 9am-5pm, Vancouver to get caught up on notable income tax develop- Upcoming Professional ments and find out what they may have missed. NEW HANDLE, Development Transitioning to Private GAAP Mar 10, 9am-12:30pm, Vancouver For detailed course descriptions or a complete This seminar will provide participants with a schedule of upcoming PD seminars, consult review of all the changes occurring for non- HST: Planning for Harmonization SAME GRIP. your winter 2010 PD brochure or visit our publicly accountable enterprises in Canada, and BC plans to adopt the HST on July 1, 2010. website at www.icabc-pd.com. To register, call will explain how these changes will impact the This shift from the existing retail sales tax system the PD department at 604-681-3264. financial statements of private enterprises. will expand the tax base and impact most busi- Mar 5, 9am-5pm, Vancouver nesses, consumers, and non-profit organizations. Audit & Accounting While most businesses will benefit from this GAAP and IFRS – Business Combinations, Management shift, others will experience special challenges. Consolidations, and Non-Controlling Interests The Courage to Speak Without a Safety Net This course will review the HST rules and the This seminar will provide participants with The meeting is on, and suddenly the focus is on special transitional provisions related to this shift an understanding of business combinations, you. If you’d like to be one of those people who to better prepare businesses and organizations consolidations, and non-controlling interests in always seems to say the right thing, at just the for the impact of adopting the HST. the context of IFRS and Canadian GAAP, with right moment, consider taking this seminar. It Mar 19, 9am-12:30pm, Vancouver additional reference to variable interest entities will help you learn to respond to questions, (VIEs) and joint ventures under IFRS. speak up at meetings, and even feel more Income Tax Refresher: Corporate Tax Mar 26, 9am-5pm, Vancouver comfortable in social situations. This two-day seminar will go beyond corporate tax Mar 9, 9am-5pm, Vancouver preparation to review personal and corporate tax IFRS – Accounting for Financial Instruments planning opportunities that are available for corpo- WCASA is now CA Insurance Plans West. Although our name is new, This seminar will walk participants through the Documenting Your Organization’s Financial rate taxpayers. It will benefit individuals involved in our commitment to continually search the insurance market and provide accounting standards for financial instruments Processes corporate tax matters who wish to expand or update the CA community with the best coverage for home, auto and personal under IFRS. The session will expose you to the This seminar is designed to teach participants how their knowledge in the area of corporate tax. life and disability insurance remains our greatest strength. More than ever, differences between IFRS and Canadian GAAP, to document their financial work processes and Mar 12-13, 9am-5pm, Vancouver and will examine the impact of the differences prepare detailed, task-based procedure manuals. we stand for outstanding service and exceptional value for large and small on the balance sheet and income statement. Mar 10, 9am-5pm, Vancouver Executive Breakfasts CA firms and individuals. We’re proving that the more things change, the Mar 30, 9am-5pm, Vancouver Expert Testimony: The Old and the New more they stay the same. It’s in our nature. And in our name. How to Realize Your Vision of Success This presentation will acquaint members with IFRS – Mining Industry The objective of this seminar is to provide you the common law and professional obligations Visit caipw.ca or call 1.800.661.6430 This seminar will provide participants with an with the knowledge and skills needed to take facing a CA engaged as an expert witness in the understanding of the implications of IFRS for control of your time and create a more satisfac- Supreme Court of British Columbia. It will the mining industry. tory balance between your work and your review the practical implications of the new Mar 9, 9am-5pm, Vancouver personal life. Rules of Court as they directly apply to CAs who Mar 16, 9am-5pm, Vancouver prepare reports and give opinion evidence at court. This will include new deadlines, mandatory content, required documentary support, and more. Mar 29, 7:30-9:30am, Vancouver 26 ica.bc.ca Feb/Mar 2010 NEW HANDLE, SAME GRIP.

WCASA is now CA Insurance Plans West. Although our name is new, our commitment to continually search the insurance market and provide the CA community with the best coverage for home, auto and personal life and disability insurance remains our greatest strength. More than ever, we stand for outstanding service and exceptional value for large and small CA firms and individuals. We’re proving that the more things change, the more they stay the same. It’s in our nature. And in our name.

Visit caipw.ca or call 1.800.661.6430 Plugged In: News for and about members & students

Announcements

Congratulations! Donald Gee, CA, has joined the board of directors of Ocean Park Ventures Corp., and has been appointed president and CEO. Gee has 28 years of experience in private and public company financing, corporate/capital structuring, and management, and has served as a director and key executive of several public companies. In addition to the CA designation, he holds a bachelor of science (geology) and is a member of the Society of Economic Geologists and the Canadian Institute of Mining and Metallurgy.

Andrew Jackson, CA, of Trenholme & Company in Victoria, is now serving on the board of the Victoria Foundation.

Mervin Michaels, CA, has been designated a fellow of the Society of Management Accountants of Canada (FCMA). Michaels is one of just seven CMAs in BC to receive the award this year. He has held many positions in the accounting field, including academic posts at Kwantlen Polytechnic University and the University of Calgary, and was a research manager at CMA Canada. Michaels is currently a member of the board of governors of Capilano University. The FCMA is the highest honour granted by CMA Canada, and is awarded to those with a proven track record of excellence in management accounting and commitment to their profession and community.

Masato Oki, CA, has been appointed to the partnership of Wolrige Mahon LLP in Vancouver. Oki joined the firm in 1997. He provides accounting, assurance, and related tax services in a variety of industries, including automobile dealerships, real estate, construction, investments, and the medical field, as well as providing services to various non-profit and charitable organizations.

Doug Rogers, CA, manager of finance and administration at the Richmond Country Club, was elected president of Variety, the Children’s Charity of BC, in December 2009. Rogers has been active with Variety for more than 25 years. The charitable organization has more than 4,000 volunteers around the province.

As reported in the Vancouver Courier on December 4, 2009, Lunapads International, a company co-founded by Suzanne Siemens, CA, received a “Shining Light Award” at the San Francisco Green Festival this past November. Together with business partner Madeleine Shaw, Siemens co-founded the Vancouver-based business, a manufacturer of eco-friendly feminine hygiene products that are now sold in 40 countries. The company estimates that use of its products helps divert a million disposable products from landfills in North America every month. Organizers of the People’s Choice Green Business of the Year Award actually created a new award category for the niche business in response to the number of consumer votes.

Danley Yip, CA, a division director for Robert Half Management Resources, has been appointed chair of the 2010 Financial Executives International (FEI) Canada Conference, which will take place in Victoria this coming June. The Conference is expected to attract upwards of 450 delegates. Yip also currently serves as a board member of FEI Canada and as chair of the ICABC Membership Committee, and sits on the boards of two non-profit organizations.

Merger announcement A R Allibhai CA has merged with Rolfe, Benson.

28 ica.bc.ca Feb/Mar 2010 Notice from Member Services ICABC’s Benevolent Fund offers financial support Have you given us your most recent contact to members in need information?

Have you moved? Changed your name? Do you have a new email address?

Make sure your information is up to date In order for the Institute to keep you informed about important membership matters, we need you to let us know whenever your contact information changes.

Make changes online for added convenience Update your contact information online by visiting our secure website at: www.ica.bc.ca/ secure or by visiting the main website at www.ica.bc.ca and clicking “ICABC SECURE LOGIN” at the top of the page.

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AGM Advance Notice 2010 AGM and Members’ Recognition Dinner The ICABC’s 2010 annual general meeting (AGM) is scheduled to take place on the afternoon of June 23, 2010, in Vancouver. Directly following the AGM will be the tenth annual All information is held in the strictest confidence Members’ Recognition Dinner. So mark your calendars now, and join us To apply for financial assistance, contact: for both events! Details will be Amy Lam, CA provided in upcoming issues of Senior Director of Member Services & Fund Secretary Beyond Numbers. Phone: 604-488-2629 Toll Free: 1-800-663-2677 Email: [email protected]

Feb/Mar 2010 ica.bc.ca 29 ICABC Social Networking Group Event Recap

By Jennifer Tokarek, CA

n September 24, 2009, the ICABC Social Networking Group hosted a wine-tasting event that featured a sampling of six BC wines. The event took place at The Refinery, a restaurant in downtown Vancouver that showcases our province’s dynamic wines. O As CAs entered the venue, they were treated to a tasting of BC bubbly. Once we were all gathered, ICABC President Karen Keilty, FCA, welcomed attendees and thanked them for supporting the Group’s efforts to promote networking initiatives for the Institute. After Karen’s address, Lauren Mote, the restaurant’s general manager, informed us about the various wines we would be sampling throughout the evening. Chef Michael Carter also addressed the crowd, describing the BC-themed canapés that would be paired with each wine. We were pleased to see the membership well represented at the networking event, with CAs from both public practice and industry enjoying the opportunity to catch up with existing contacts and meet new people. The ICABC Social Networking Group Committee members are now gearing up for our first event in 2010, which will be a four-course fondue tasting early this month. You can expect a recap of the event in the April issue of the magazine.

ICABC President Karen Keilty, FCA, mingles Social Networking Group co-chairs Jennifer A sampling of BC wines with the crowd Tokarek, CA (far left) and Angeline Zioulas, CA (far right) catch up with former colleagues Julia Kwinter, CA.CBV, and Laura Morgan, CA.CBV

A thank you On an administrative note, the wine-tasting event marked a transition in the leadership of the ICABC Social Networking Group Committee, as John Mackenzie, CA, stepped down from the role of co-chair, and Angeline Zioulas, CA, stepped in. It was John’s vision over three years ago that helped ignite the BC Institute’s interest in forming a networking group for its members. Of this latest event, John said: “It’s wonderful to see the support of the ICABC membership. These events are truly first-class networking experiences.” On behalf of the members of the Networking Committee, we thank John for his dedication and support these past three years, and we look forward to seeing him at future networking events!

Jennifer Tokarek, CA, and Angeline Zioulas, CA, are the co-chairs of the ICABC Social Networking Group. Tokarek is the regional manager, Western Canada, Tax and Business Advisory Services, for TD Waterhouse Private Client Services, and Zioulas is a senior tax manager at Deloitte in Vancouver. John Mackenzie, CA, is a portfolio manager at Odlum Brown.

30 ica.bc.ca Feb/Mar 2010 In Memoriam: Derek R. Lukin Johnston, FCA

ormer ICABC and CICA spent the next seven years with Derek was elected to the ICABC president Derek R. Lukin Thomson McLintock & Co., the Fellowship in 1957. In addition to FJohnston, FCA, passed away London office of a large Scottish receiving the Institute’s Lifetime on December 16, 2009, at the age of firm. In 1937, he passed his final Achievement Award, he was also a 96. exam as a CA in Scotland. recipient of the Canadian Derek was profiled in the June/July The following year marked Derek’s government’s Centennial Medal 2001 issue of Beyond Numbers as return to BC, where he joined the (1967) and the Queen’s Silver one of the first recipients of the Vancouver office of Price Anniversary Medal (1977)—both Institute’s Lifetime Achievement Waterhouse. In 1941, he put his bestowed for service to the nation. Award. “I think I would prize such an career on hold to enlist in the His extensive contributions to the honour above any other,” he said at Second World War. He served for community included serving as the time, “because it is conferred by four years with the Royal Canadian president of the Men’s Canadian one’s professional colleagues who Naval Volunteer Reserve, and Club of Vancouver; president and a know what one has done better than survived being torpedoed in the long-time member of the board of anyone else outside one’s own North Atlantic. In later years, he was governors for the Leon and Thea family.” elected an Honorary Member of the Koerner Foundation; chair and a Being a chartered accountant Aconit Veterans’ Association. long-time member of the Vancouver meant a great deal to Derek, and he After the war, Derek resumed his Public Library Board; and governor made significant contributions to the career as a CA in BC. He joined the emeritus of the Vancouver Public profession, both at the provincial BC Institute in 1947, and became a Library Trust. He also served on the and national levels. During his career, partner with Price Waterhouse in boards of both the Columbia Coast he served as president of the ICABC Vancouver the following year, Mission and Shawnigan Lake School, (1954) and the CICA (1964), served working in the firm’s audit practice. and was a member of both the on the ICABC’s Education, Student He later became the firm’s senior Winston Churchill Society and the Recruitment, and Professional partner—a position he held until his Round Table. Conduct Enquiry committees, and retirement from public practice in Our sincere condolences go to was a trustee of the Memorial 1973. Derek’s family and friends. Scholarship Fund. He also wrote numerous articles for provincial and national CA publications. His professional endeavours extended outside of Canada as well. In 1962, Derek became the first permanent Canadian delegate to the Interamerican Accounting Association (IAA). In 1977, he brought the IAA’s annual conference to Canada for the first time, and received the Carmen Carvalho Medal of Honour of the Institute of Arts and Science of Brazil. At the IAA’s 1979 conference in Panama, he was elected a Contador Benemérito de las Américas (Accountant Emeritus of the Americas), and received a medal later described as one of his most treasured possessions. Born in Duncan in 1913, Derek attended Shawnigan Lake School in BC and Tonbridge School in England. In 1931, he earned a diploma in French from the University of Geneva, where he also studied Derek Lukin Johnston, FCA (left) takes the stage at the ICABC’s Member Recognition Spanish and German. He then Dinner in 2001. Shown here with Woody Hayes, FCA. returned to the United Kingdom and

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Feb/Mar 2010 ica.bc.ca 33 Ethical Dilemmas longstanding business relationship. In Beth’s place, Ross asked Wayne to prepare notice to reader statements, T4 slips, and corporate income tax returns for BR Holdings. Oblivious to much of the family drama, Wayne accepted the engagement. Bonnie felt betrayed by Ross’s actions, and mother and son began to engage in a bitter lawsuit over control of BR Holdings.

What happened In the midst of these legal battles, Bonnie received her first T4 slip prepared by Wayne. Since 1968, Bonnie had drawn annual advances from BR Holdings, leaving it to her accountant (most recently Beth) to determine her salary amount. Payroll deductions had then been made accordingly and remitted to the Receiver General. The 2008 T4 slip prepared by Wayne showed Bonnie’s income from BR Holdings as $80,000. No deductions had been made for CPP, EI, or income tax. Concerned about Treating the Public the lack of source deductions, Bonnie attempted to contact Wayne several times by mail. She did not receive a reply to her letters, and soon found herself being assessed by the CRA for unpaid taxes. with Courtesy Bonnie wrote to the ICABC, complaining about Wayne’s lack of communication. She noted that the By Chris Utley, CA T4 slip contained no deductions, and said she believed $11,000 of company funds had already been remitted to the CRA on her behalf, in anticipation of the income tax deduction. According to Bonnie, Director of Ethics the situation had become so stressful that she’d had to engage her own accountant and a lawyer. She explained that Wayne did finally speak to her accountant over the telephone, revealing that the $11,000 any accountants who work with the tax deduction had actually been allocated to Julia’s T4 slip, which showed $25,000 in gross income public are well aware of the necessity from BR Holdings. He also revealed that Julia had filed this slip with her personal income tax return, Mof maintaining good relationships and had received a substantial refund. Bonnie asked the Institute to investigate the matter. with their clients, and know that effective com- It was obvious to Institute staff that the $11,000 tax deduction should have been allocated to Bonnie’s munication is key to client service. However, salary and not Julia’s, so the PCEC launched an investigation to consider whether Wayne had breached when CAs are asked to respond to inquiries from Rule 201.1 (Maintenance of the Reputation of the Profession); Rule 202 (Integrity and Due Care); individuals who are connected to their clients and/or Rule 205 (False or Misleading Documents and Oral Representations). through business and/or family ties, challenges In his defence, Wayne argued that he had acted on the wishes of his client, as outlined in his letter of can arise. engagement. He produced the letter, which indicated that Ross was his only client among the Williams Let’s examine one such scenario. family, and said Ross had instructed him to apply the deduction to Julia’s income. Wayne said he hadn’t replied to any of Bonnie’s letters because he feared being dragged into the lawsuit between The situation mother and son. Further, he told the PCEC he’d forwarded Bonnie’s letters to Ross and had spoken to Wayne* is a sole-practitioner. One of his clients, Bonnie’s accountant after obtaining Ross’s consent. Ross, is also a close friend. Wayne began prepar- ing Ross’s personal income tax returns in 2005. The outcome Ross is the only child of Bonnie Williams, The PCEC has to consider whether actions constitute a breach of the Rules of Professional Conduct, an 84-year-old widow of considerable wealth. In which include the stipulation to “…maintain the good reputation of the profession and its ability to 2006, after graduating from university, Ross serve the public interest” (Rule 201.1). It is a tough judgment call based on the specific circumstances received an “advance inheritance” from his as to whether particular actions are matters of courtesy or cross the line into damaging the reputation mother: a 75% shareholding in the family of the profession. company, BR Holdings Ltd. The company had In this case, Wayne was fortunate in respect of the alleged breach of Rule 201.1 in that the PCEC several real estate holdings, including a substantial gave him the benefit of the doubt, resulting in a determination that there were insufficient grounds to commercial property in Langley worth several constitute a breach. million dollars. Bonnie remained a director of the company. The message In 2007, Ross married Julia. Bonnie did not Service providers, such as CAs in public practice, are often scrutinized by the public. It behoves approve of the union, believing her new daugh- members to think beyond the professional code. If in doubt, consider asking clients for consent to ter-in-law to be a “gold digger.” Shortly after the follow up on inquiries. In the event that your client does not provide permission, you can respond wedding, Ross exacerbated matters by making and explain the restrictions faced regarding confidentiality. Such acts of courtesy might well prevent Julia a third director of BR Holdings. He then situations such as this one from escalating into a disciplinary matter. Remember: CAs are professionals took control of the company’s management, and are expected to behave as such. squeezing his mother out of company affairs and refusing to have any financial discussions with Comments or questions? Contact me at [email protected]. her unless Julia was present. The only factor Ross couldn’t change was his mother’s status as *Please note: This fictionalized account is based loosely on an actual case before the PCEC (Professional the company’s other authorized signatory. Conduct Enquiry Committee). Names and circumstances have been changed to preserve anonymity. The Ross made numerous changes to the company’s contents of this article are only intended for the general guidance of readers. The PCEC deals with each case operations, including firing its accountant, Beth, individually, based on its specific facts and circumstances. an individual with whom his mother had a

34 ica.bc.ca Feb/Mar 2010 Left to Right: Chad Rutquist, Farida Sukhia, Chris Halsey-Brandt, Ron Parks, Spencer Cotton, Rosanne Terhart, Robert D. Mackay, Gary M. W. Mynett, Hugh G. Livingstone, Cheryl Shearer, Jeff P. Matthews, Kiu Ghanavizchian, Vern Blair.

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