Are we at a technology crossroads? A glimpse of the future ahead

Vol. 40 / No. 1 • SPRING 2013

A PUBLICATION OF THE CERTIFIED GENERAL ACCOUNTANTS ASSOCIATION OF BRITISH COLUMBIA Gazing into Canada’s Political Crystal Ball: Coyne, Hébert and Hanomansing headline Conference 2013 Essential Tax Planning Information for 2013 Three Myths about Retirement

Eric Gounder, CGA Controller, . See page 26

40069088

91.7% YES

8.3% NO

06 34 42

Vol. 40 / No. 1 • SPRING 2013

features views spotlight

06 Association update 07 taxmatters 29 keepingTabs Member survey shows strong support for Ed Kroft explores the impact CGAs in the news and CGA-BC renewing merger discussions with of provincial and federal members on the move CAs and CMAs budgets on tax-planning strategies 40 currentAssets A roundup of all the latest 11 techview gadgets, tech gear and apps A review of the 2013 contents Consumer Electronics Show 42 snapShots Photos from CGA-BC events 18 The Whistler scrum 13 periscope A preview of what to expect at the annual Executive coach Lesley-Ann 44 partingShot conference when leading political Marriott outlines a five-step Meet Karen Ross, CGA, commentators Andrew Coyne and Chantal process for managing conflict owner of Pemberton’s Hébert take to the stage for the keynote Esso station and Chair of ethics in focus CGA-BC’s 2013 Conference presentation 16 Evaluating an ethical Committee dilemma A career home run 26 46 morethanNumbers Eric Gounder, CGA, finds his calling as the 38 publicpractice Letting the data tell the Controller for the Vancouver Canadians Edifier story CGA-BC’s Practitioner 30 What’s next? Turning Counselling Program offers retirement into a fulfilling CGAs confidential short-term re-engagement counselling Isabelle St-Jean offers practical advice for those making the transition to retirement 34 Running in the green Case studies of three B.C. companies show the value of investing in energy efficiency

Cover photo (and related story photos) by Ron Sangha. 30

outlook 03 editor’smessage outlook

2013 executive committee Chair: Candace Nancke, FCGA Past-Chair/Treasurer: Cindy Choi, FCGA First Vice-Chair: David Sale, FCGA Second Vice-Chair: Brian Friedrich, FCGA > Hit it out of the ballpark is a common moderated by Ian Hanomansing. Chief Executive Officer and Secretary: Gordon Ruth, FCGA phrase when we want to encourage After last year’s session by veteran executive staff our colleagues to do something well. B.C. journalists Keith Baldrey, Vaughn Chief Executive Officer: Gordon Ruth, FCGA It’s a mantra that Eric Gounder, CGA, Palmer and Bill Good, we had lots of Director, Administration, HR & IT: Dan Cheetham, CGA the Controller at the Vancouver Cana- questions from pleased conference- Director of Marketing & Communications: dians, lives by every day. In this issue, goers as to how we could do even Edward Downing, MA (Journalism) he demonstrates that while baseball better next year. Well, the Whistler Director of Education & Student Services: is often a game of statistics, there also Scrum is our conference team and W. D. (Bill) Johnson, FCIS, PAdm, FCGA needs to be a good numbers person committee’s answer. Read Hébert and Director, Executive and Corporate Affairs: Juliana Laing, BA Director of Member Services & Public Practice: Pamela Skinner, BSc, CFP, CGA A home run issue! outlook staff Managing Editor: Edward Downing (604) 730-6208 Communications Manager: Patrick Schryburt (604) 730-6238 behind the team. Coyne’s words now to get a flavour of Communications Officer: David Ferman (604) 730-6206 Outlook also features an interview what you can expect at the opening Production Co-ordinator: Trevor Hargreaves (604) 730-6226 with CGA-BC Chair Candace Nancke, plenary on Wednesday, September Advertising Co-ordinator: Pardeep Clair (604) 730-6228 FCGA, who provides an important 18. And then circle the date on your Graphic Design: update on the Association’s initia- calendar! Core Associates Communication Design Inc. tive with the other two professional Speaking of the 2013 Confer- Regular Contributors: Ed Kroft, QC, LLB, LLM, CGA (Hon.); Dr. Michael McDonald, accounting bodies to create the new ence, take a look at our Parting Shot CGA (Hon.); Alan Salmon Chartered Professional Accountant interview with Karen Ross, CGA, this designation in B.C. She gives an year’s Conference Chair. She’s active in advertising overview of the focus of discussions. business in Pemberton and provides For advertising rates, contact Pardeep Clair at Remember, you can always get late- some insights into living and working (604) 730-6228 or visit our website at www.cga-bc.org. breaking details on this important in the Whistler region, host city of Outlook is the premier way to contact B.C.’s CGAs. subject via CGA Update and online at the CGA Conference. Again, she un- Advertising in Outlook magazine does not indicate an endorsement of any business, organization, service or www.cga-bc.org. derlines what CGAs have known for product by CGA-BC. We also feature commentary many years – that the success of the by award-winning journalists and conference is about the people you Outlook is published four times a year by the Certified pundits Chantal Hébert and Andrew meet and the connections you make General Accountants Association of British Columbia and is Coyne with their thoughts on Cana- as a delegate. sent to more than 15,000 CGA members and CGA students. dian politics through their words and Our editorial team at Outlook has Opinions expressed are not necessarily endorsed by CGA-BC. tweets. If you haven’t already heard, created a great issue for you. In fact, Copyright CGA-BC 2013. they will be our headline speakers I’d say we hit it out of the ballpark! articles, enquiries and letters at Conference 2013’s Whistler Scrum Happy reading. Articles, enquiries and letters should be sent to Outlook: CGA-BC, 300-1867 West Broadway, Vancouver, BC, V6J 5L4 (604) 732-1211 or (800) 565-1211 ISSN 1488-2337 Outlook - Certified General Accountants Association of British Columbia CGA on the web Members and students, you can find all of your most important CGA-BC services online at www.cga-bc.org.

Edward Downing is CGA-BC’s Director of Communications [email protected]

Agreement no. 40069088 Return undeliverable Canadian addresses to: CGA-BC, 300-1867 West Broadway, Vancouver, BC, V6J 5L4 Printed in Canada

04 outlook outlook associationnews

Planning on Volunteering during the May 2013 B.C. Elections?

If you intend to volunteer ac- the services to be provided require Practice Division, by emailing counting services for the next B.C. registration in public practice. [email protected] or phoning election, which takes place May For further information, contact (604) 629-8363 or toll free 14, 2013, determine first whether Brigitte Ilk, CGA, in the Public 1 (800) 565-1211 extension 363.

Blair Mackay Mynett Valuations Inc. is the leading independent business valuation and litigation support practice in British Columbia. Our practice focus is on business valuations, mergers and acquisitions, economic loss claims, forensic accounting and other litigation accounting matters. We can be part of your team, providing you with the experience your clients require.

Suite 1100 Left to Right: 1177 West Hastings Street Vern Blair, Cheryl Shearer, Robert D. Mackay, Vancouver, BC, V6E 4T5 Kiu Ghanavizchian, Chad Rutquist, Telephone: 604.687.4544 Gary M. W. Mynett, Chris Halsey-Brandt, Facsimile: 604.687.4577 Andy Shaw, Jeff P. Matthews, Farida Sukhia www.bmmvaluations.com

outlook 05 91.7% associationupdate YES

8.3% NO Some say that the relation- voted to merge or in merger the Board as it moves forward, ship among the three discussions. considering both the risks and bodies is different in B.C. opportunities of a merger. And More than 40 per cent of Is that the case? How would you assess the though the Board is respon- B.C.’s CGAs responded to the Absolutely. The three bodies level of engagement that sible for making any merger survey, which was conducted have had a long history of CGA members have in this decision, openness to ongoing between March 8 and 15. working together. The ICABC process? feedback and input from the The question: “Recogniz- actually supported CGA when CGA members have been very membership is a guiding prin- ing that the original merger it established its founding act in engaged. This was clear from ciple of that decision-making principles still apply and that the 1951. We have also had regular the 40 per cent participation in process. CGA-BC Board is committed to meetings of the leadership of our member survey, with some protecting the rights of all of its the CGAs, CAs, and CMAs over nine out of ten voting in favour The new CPA program will members and students, do you the years and have worked of the merger (see the graphic be available in September support a merger between CGA- together on key issues. CGA is above). Prior to that, we had 2013. What transition BC, the ICABC and CMABC to also a very large group in B.C. consulted with the member- strategies are available for create the Chartered Professional and has a very well-defined ship over the last 18 months CGA students? Accountant designation?” brand and recognition. We through regular e-updates, Should CGA-BC move forward town hall meetings, chapter to merge with the two other meetings and one-on-one accounting bodies, a transi- emails from members and tion period will be put in place students. We had heard their that will provide existing CGA Interview with Candace Nancke, FCGA, questions, which were very students the opportunity to Chair, CGA-BC much our concerns too, and are complete the requirements for raising these issues in our dis- and receive the CGA designa- Merger Update cussions. I would like to thank tion. At this time we are not all members for participating certain of the details or duration > Candace, the Association would bring a lot of strength to and providing their feedback. of this transition period. Should has been back in merger the new organization. Remember, you can email any a CGA student not be able to talks for just over a month. questions or comments to complete the CGA require- Can you tell us how the dis- Was there a single factor in [email protected]. We try and ments within the given transi- cussions are proceeding? helping the Board make a answer as many as possible and tion period, reasonable means In the several weeks that decision to return to talks? monitor them for any concerns to bridge into the requirements CGA has been back in talks, CGA-BC has always supported that we feel should be raised. of the CPA Program will be we have made progress and unification. We withdrew from provided. continue to work collabora- discussions last May largely The survey question men- We suggest that prospec- tively and amicably with the since CPA wasn’t moving tioned that the Board would tive CGA students interested two other accounting bodies. forward, especially in Ontario. be protecting the rights of in completing the current CGA I believe that we have a great Almost all of CGA did the same. its members and students. program requirements enrol rapport and are finding out Since that time, we have seen How are you doing that? before our next application just how much each of our the continued growth of CPA. The Board has a merger task deadline, which is July 8, 2013. organizations has in com- Quebec merged, in Alberta all force that is working with the Studies commence in Sep- mon. One challenge is that three parties are back in discus- other two bodies through tember. This will ensure access many of the details regarding sions, in Ontario CPA now exists the details of an agreement. to the existing CGA program the Chartered Professional and the CMAs there are going We have raised specific issues requirements during the transi- Accounting (CPA) profession back into discussions. We have designed to protect the rights tion period. Again, reasonable continue to evolve, and not also seen several other CGA af- of our members – in fact all means to bridge into the new everything can be addressed filiates re-enter. Looking at the three sets of legacy members CPA program will be made in the short term. However, progress nationally, and frankly, – which we expect would be available to CGA students not this is a shared challenge, in review of the CPA program included as part of any merger able to complete all require- and we are working together itself, which does draw heav- agreement and also in new ments during the transition with the CMAs and CAs in this ily from all three professional bylaws or legislation governing period. evolving landscape. It is very programs, our Board felt it was the CPA organization. Rest assured that the Associa- positive. We are also exploring in the interest of CGA-BC to tion is committed to supporting how we might allow mem- re-enter the discussions. The Will members have a its students and ensuring their bers to use the CPA designa- majority of CGA members further say in the decision? success in the future. We will tion prior to legislation being nationally are now either in Well, the survey results pro- communicate details once they changed. a province that has merged, vided a very clear course for are available.

06 outlook Ed Kroft, QC, LLB, LLM, CGA (Hon.) and Soraya Jamal, LLB, LLM taxmatters

t’s that time of year again. to provide an additional $327 “When the cur- the combined top mar- As you are working your million of government rev- ginal rate for B.C. residents way through this busy enue for 2013-14, which will rent tax bracket increasing from 43.7 per Itax-filing season, federal help the government achieve cent to 45.8 per cent. This and provincial governments a balanced budget. structure was measure will be effec- across the country are releas- Some of the more signifi- tive starting on January ing their respective budgets. cant tax measures pertain to introduced over 1, 2014 and is scheduled And, as always, it is important changes in tax rates, both for to expire on December to keep abreast of the new corporations and individuals, two decades ago, 31, 2015. At this stage, measures announced in the as summarized below: it is anticipated that the budgets since these changes • The general corporate the top marginal combined top marginal may lead to new tax-plan- income tax rate will be rate in B.C. will revert back ning opportunities. increased from 10 per cent tax rate was ap- to 43.7 per cent for 2016 In this article, we highlight to 11 per cent, effective and subsequent years. some of the more interesting April 1, 2013 (this rate plied to income Even with this change, B.C. tax measures from the 2013 increase will also result in will continue to have the British Columbia budget a one per cent increase over $55,000. lowest provincial personal income taxes in Canada for This threshold for individuals earning up to A summary of important changes for your $122,000 a year. tax-planning toolkit the highest mar- These tax rate increases are Essential Tax-Planning ginal bracket has somewhat surprising given that it is an election year in Information for 2013 now more than B.C.; however, it is estimated that the rate hikes will gener- that may be relevant to your to the manufacturing and doubled, with the ate over $250 million of current tax-planning strategy. processing tax rate for revenue for the government. We also summarize the new corporations). The rate top tax rate ap- From a tax-planning perspec- federal indexed amounts and increase was perhaps tive, consideration should be automobile deduction fig- surprising given that the plying to income given to timing when trans- ures for 2013, since these are 2012 B.C. Budget had over $135,054 for actions are implemented to fundamentals for your tax- announced a potential take advantage of the lower planning toolkit. And as we one per cent increase to 2013.” tax rates. For example, since are in the midst of the tax- the general corporate tax the personal tax rate increase filing season, we thought it rate that would come into will take effect in 2014, it would be fitting to conclude effect on April 1, 2014 if may be more tax-efficient this article with a summary ’s fiscal situ- to implement transactions of some new legislative and ation had worsened. The resulting in taxable income administrative developments small business tax rate will for affected individuals to consider when preparing remain at 2.5 per cent, with Ed Kroft, QC, LLB, LLM, before the end of 2013. The and filing 2012 income tax no change to the $500,000 CGA (Hon.), is a partner tax-planning window for and benefit returns. small business limit. De- with Blake, Cassels & corporations is comparatively spite this rate increase, the Graydon LLP. He is a smaller since the corporate general corporate income member of the firm’s Tax income tax rate increase will Tax Measures in the take effect on April 1. tax rate will still be 33 per Group and leader of its 2013 B.C. Budget cent lower than it was in In addition to the corpo- Tax Controversy & Litiga- On February 19, 2013, 2001, and B.C. will con- rate and personal tax rate tion Group. Finance Minister Michael tinue to have among the increases, other tax measures de Jong introduced the lowest corporate income introduced in the 2013 B.C. 2013 B.C. Budget. The 2013 tax rates in Canada. Soraya Jamal, LLB, LLM, Budget include: Budget delivers on the B.C. • The personal income tax is an associate with • The introduction of the government’s commitment rate for individuals earning Blake, Cassels & Graydon B.C. Early Childhood Tax to balance the budget while more than $150,000 will LLP, where she provides Benefit, beginning on April investing in families. The tax be increased from 14.7 tax advice on domestic 1, 2015, which will provide measures introduced in the per cent to 16.8 per cent and international corpo- eligible families a maxi- 2013 Budget are estimated for two years, resulting in rate taxation matters. mum of $660 annually for

outlook 07 each child that is under on the impending return The indexation of the income through a range of six years old; to the provincial sales tax tax bracket thresholds is a investment products. The • An extension of the B.C. (PST), which is slated to key factor to consider for following is a summary of Seniors’ Home Renovation take effect on April 1, 2013. planning purposes as it some of the salient features Tax Credit, the Children’s However, approximately may result in a change in of a TFSA that are useful for Fitness Credit and the two weeks after it tabled the applicable tax rate for a tax-planning purposes: Children’s Arts Credit; the budget, the govern- particular individual, even • A TFSA is available to all • The introduction of a 3 ment released the much in a year when the govern- Canadians 18 years and per cent minimum royalty anticipated regulations for ment does not legislate a older; for all natural gas wells the PST regime on March 1. change to the actual tax • Any interest, dividends that qualify for the Deep rates. That is, an individual and capital gains earned Well Royalty Credit Pro- who is on the border be- in a TFSA are not subject gram and the termination Indexed Amounts tween tax brackets may be to tax; of the Summer Drilling for 2013 pushed into a different tax • Unused TFSA contribution Credit Program; On December 12, 2012, the bracket and therefore sub- room is carried forward • The introduction of a one- Canada Revenue Agency ject to a different tax rate as and accumulates for time $1,200 grant to a (CRA) released the indexed a result of the indexation of future years; registered education sav- federal 2013 personal tax the bracket thresholds. The • Funds available in a TFSA ings plan under the B.C. bracket thresholds and indexed bracket thresh- can be withdrawn tax-free Training and Education amounts and thresholds olds for a particular year at any time for any pur- Savings Grant; pertaining to personal tax are t