CRA Roundtable Member Advisories
In the past Canada Revenue Agency (CRA) Roundtables were held, bringing together a number of CRA personnel and representatives from the CPA profession. Typically, two concurrent roundtable sessions are held with one focusing on GST issues and the other on income tax matters. The questions and answers arising from the Roundtables were compiled after the events, in order to share the discussion and information more broadly.
Steps are being taken to renew the roundtable discussions which had been suspended as a result of health restrictions
December 2021 Tax Roundtable Questions and Answers with the Canada Revenue Agency.
Note: No CRA Roundtables were held in 2018 or 2020
Note: Readers are reminded that these publications reflect the views of the CRA at the time of the roundtables and the release of the related written answers. As the underlying legislation and/or the interpretation of the issues by the CRA may have changed since the time of the responses, readers are urged to review any developments which may have occurred since publication.
Roundtables and advisories prior to 2014 were posted by the Institute of Chartered Accountants of Alberta.
If you have any questions about the Roundtables, contact CPA Alberta’s Director of Member Engagement and Technical Advisory Randy Nicholls CPA, CA at firstname.lastname@example.org or call 403.299.1309
CRA Tax Service Office Contact Lists
If, as a member of CPA Alberta, you have exhausted established communication protocols of CRA, Tax Service Office Contacts Lists for the Alberta Tax Service Office and Winnipeg Tax Centre are available to CPA Alberta Members.
Please login to your member portal to view these lists.
Practice Review Alert
Across Canada, a significant number of firms are not compliant in performing CSRS 4200, Compilation Engagements.
Over the last several months, practice reviews of compilation engagements across Canada have highlighted some significant deficiencies in the application of the new Canadian Standard on Related Services (CSRS) 4200, Compilation Engagements. Click here to read this important Practice Review Alert.
Common Practice Review Reportable Deficiencies
Each year, the findings of the practice review program are analyzed and common deficiencies across the country and province are identified and shared with CPAs in order to help them fulfill their professional responsibilities. Advisories outline the common deficiencies in the areas of financial statement presentation; documentation of audit, review and compilation engagements; and documentation of and implementation of quality control policies and procedures. Read more:
Commission and Other Compensation Arrangements
A revised Rule 216 of the CPA Rules of Professional Conduct came into effect in September 2020. A description of the changes can be found here.
Communication with Predecessors on Tax Engagements
It is important to be aware that letters to predecessor accountants are required on many types of engagements, including tax engagements. Rules and guidance on predecessor letters can be found in CPA Alberta’s Rules of Professional Conduct with Guidance. Per Rule 302.1:
A registrant (“successor”) shall not accept an engagement with respect to a professional or public accounting practice or the provision of a professional service not inconsistent therewith, where the successor is replacing another registrant or other professional (“predecessor”), without taking reasonable steps to communicate with such predecessor and enquire whether there are any circumstances that should be taken into account which might influence the decision whether or not to accept the engagement.
The definition of what is included in a professional or public accounting practice can be found in the Chartered Professional Accountants Act 1(ss) and (yy):
“professional accounting practice” means the providing of, or the offering to provide, one or more of the following services to the public:
(i) an assurance engagement;
(ii) a compilation engagement;
(iii) a specified auditing procedures engagement;
(iv) preparation of a tax return or other statutory information filing, if the return or filing is prepared in conjunction with any service referred to in subclauses (i) to (iii);
“public accounting practice” means the providing of, or the offering to provide, one or more of the following services to the public:
(i) accounting services;
(ii) forensic accounting, financial investigation or financial litigation support services;
(iii) advice about or interpretation of taxation matters;
(iv) preparation of a tax return or other statutory information filing, if the return or filing is prepared in conjunction with any service referred to in subclauses (i) to (iii);”
Tax engagements, in particular a personal tax return, would be a public accounting practice if tax advice is provided or if they involve more than just the entry of T-slips. Similarly, preparing a T2125 or similar summary of income would be accounting services. In these cases, a predecessor letter is required if the predecessor was a registrant (i.e. another CPA).
Predecessor letters are an important tool in your firm’s practice management - it’s too easy for an ongoing matter (i.e. an adjustment or dispute with CRA in progress) to be overlooked. Even if the predecessor was not a CPA, it may often be worthwhile to initiate this communication.
For additional clarification, contact Advisory Services by email at email@example.com.
Practitioner Alert - Agreed-upon Procedures Engagements and Obligations under the CPA Alberta Rules of Professional Conduct
In August 2020, the Canadian Auditing and Assurance Standards Board (AASB) approved CSRS 4400, Agreed-upon procedures (AUP) Engagements standard for issuance in the CPA Canada Handbook - Assurance. This new standard is effective for agreed -upon procedures engagements for which the terms of engagement are agreed on or after January 1, 2022. The new AUP standard introduces specific conditions for accepting or continuing the AUP engagement, and recognized that the practitioner may agree with the engagement party that compliance with independence requirements is appropriate for the purpose of the AUP engagement. The Alert can be found here.