COMMENTS · 2019. 4. 1. · Comments Spring 2012 – 2 > p. 2 The many faces of fraud (Continued from page 1) Important dates to remember April 30 • Deadline for filing 2011 individual

In this issue:

The many faces of fraud

Important dates to remember

The Digital Detective

Soberman news...

Something smells fishy

Corporate restructuring is not the end of the road

It is law: Safeguard yourworkplace by complyingwith Bill 168

Did you know?

2012 Readership Survey

Befriend Soberman and join our online community

COMMENTS SPRING 2012 – 2

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(Continued on page 2)

The many faces of fraud Kristin Matthews, BA, DIFA, Senior Manager and Jim Muccilli, MBA, CA•CBV/IFA, ASA, CFE, Partner — Due Diligence & Forensic Investigation

We can formally define fraud as a form of intentional deceit or a breach of

confidence, perpetrated to gain profit or dishonest advantage. This definition would seem clear. However, the legal interpretation and the general public’s more subjective interpretation are more often measured in shades of grey.

How do you confirm intent? What’s a dishonest advantage? Is a lie by omission fraud? Determining what falls into the category of fraudulent activity proves an interesting exercise. The role that a forensic accountant plays in ascertaining the relevant facts is as varied as the interpretations of fraud.

As members of the Due Diligence & Forensic Investigation Group, the psychology of fraud

intrigues us. What’s more, understanding the psychology is essential in our training. The diverse and sometimes subjective boundaries of fraud are not only relevant in determining who likely may commit a fraudulent act but equally relevant, if not more so, in identifying potential fraud victims.

While you may personally believe that taking work supplies home is occupational fraud, your colleagues or employees may think that “shopping” from the work supply cabinet for their families’ “trivial” needs is a job perk. Office supplies bandits generally define fraud outside of their actions. They think of fraudsters as persons who have bilked a large amount of money from investors.

Comments Spring 2012 – 2 > p. 2

The many faces of fraud(Continued from page 1)

Important dates to remember

April 30

• Deadline for filing 2011 individual income

tax returns if you or your spouse do not

have self-employment income.

• Deadline for paying any income tax

balance owing for 2011

often called after the fact to determine the mechanisms and quantum of fraud, and/or to assist in recovering losses or prosecuting alleged fraudsters.

As a business owner or manager, it is important to think proactively about the quantitative and qualitative impacts of fraud on your business. You might begin by answering the following broad questions:

• What activities does your business define as fraud? How do you effectively communicate these definitions to employees?

• What are the major areas of your business that are susceptible to fraud occurring? Why do these vulnerabilities exist?

• What is your risk tolerance toward fraud, and what defines this tolerance level?

• How can the presence of fraud and how it is dealt with affect your relationship with employees, customers and your brand?

• Do you actively seek to detect and respond to fraudulent activity?

• How do you communicate your fraud controls and response policies?

• Should your company insure itself against certain types of fraudulent activity?

Whether you own a business, are part of management for a public company or sit on the audit committee for an organization’s board of directors, it is important to proactively consider your position on fraud and understand it within the framework of your business. The firm’s Due Diligence & Forensic Investigation Group and Assurance & Advisory Group have the necessary experience to provide clients with specific risk assessments that will assist in the development of a comprehensive and individualized fraud protection plan for your business. Save your company money and be proactive about fraud in the workplace.

KRISTIN MATTHEWS

Kristin Matthews has worked in forensic

accounting for over 10 years and specializes in

the preparation of economic loss calculations for

insurance and litigation claims.

Connect with Kristin at:

416 963 7239 or [email protected].

http://ca.linkedin.com/pub/kristin-mat-

thews/25/a65/531

JIM MUCCILLI

Jim Muccilli has worked in business valuation

and litigation-related accounting for over 20

years. He brings with him vast knowledge in the

areas of business valuation, loss quantification

and forensic investigations.

Connect with Jim at:


http://ca.linkedin.com/in/jimmuccilli

June 15

• Second personal income tax instalment

for 2012 is due.

• Deadline for filing 2011 individual income

tax return if you or your spouse has self-

employment income. However, any tax

balance owing must be paid by April 30,

2012.

June 15

• Deadline for taxpayers in the construction

business reporting on a calendar basis to file

information return T5018 to report all

payments greater than $500 paid or credited

to contractors for construction services.

Do you see the shades of grey? How many paper clips does it take to commit fraud? For most of us, the line is drawn somewhere between the inadvertent way company pens find their way into our kitchen drawers and the cash kickback a purchasing agent receives for awarding a large supply contract.

The interpretations of fraud vary, as does its tolerance, but not in direct proportion. For example, Business A may have a broader definition of fraud than Business B and consequently has a greater tolerance of fraud. Essentially, Business A may knowingly have persons committing fraudulent activity but place a lower threshold for certain deceitful acts, therefore, implicitly tolerating their existence.

But what if it was discovered that many employees were committing that same fraud, which was deemed individually insignificant? Would that mean a change in the threshold from any one misdeed to the accumulation of acts?

There are many considerations when assessing how to define, control, detect, measure, mitigate and respond to these threats in your workplace. It is not one size fits all. The Assurance & Advisory practice is requested to assess and recommend internal controls, sometimes in specific engagements to reduce the possibility of fraud. In our Forensics Group, we are

in

in

The Digital Detective Jerrard Gaertner, CA•CISA/IT, CGEIT, CISSP, CFI, CIA, I.S.P., ITCP Director — Technology Assurance Services


to non-technical judges and juries;

• The DFS must be appropriately trained and certified and, ideally previously qualified as an expert by the court; and

• The DFS must attest (as do other experts) that his/her report is impartial and accurate.

One of the most difficult aspects of an examination is insightfully limiting the scope. Decisions of this nature, because of their importance, are often made jointly by the professional team. Too detailed an examination can be prohibitively expensive; too superficial an examination may overlook critical evidence upon which the case may turn.

Reference:1 Recent American case law supports the proposition that one can be compelled to disclose an encryption password to law enforcement officials, but this has not yet been tested in Canada, nor thoroughly litigated in the U.S.

JERRARD GAERTNER

Jerrard is director of Soberman Technology

Assurance Services and president of the

Canadian Information Processing Society (CIPS).

He also serves on the Board of the Association

of Certified Forensic Investigators of Canada

(ACFI).

Connect with Jerrard at:

416 963 7147 (office) or 416 505 0307 (cell)

or [email protected].

www.linkedin.com/pub/jerrard-gaertner/3/

b68/211

using an Anton Piller order (civil search warrant). The forensic accountant provides a theory of the crime and helps to narrow the search parameters (e.g., time frame, key words and accomplices). The DFS then proceeds to electronically search the hard drives, smart phones, tablets, USB keys and even cloud-based storage of the suspect using specialized software and utilities. This is not a “Google” search. It requires a high degree of technical proficiency with operating systems, application software, file structures, malware and custom-built electronic equipment designed to recover every last bit of information.

A legally valid digital forensics examination and expert report should (at minimum) address the following:

• The computer, hard drive, etc., was obtained legally, or if “hacked,” done with court permission;

• A documented chain of custody was maintained to ensure that items were not lost or tampered with;

• A forensic copy (exact duplicate made with special equipment) of all hard drives, etc., was made prior to the commencement of any work that can serve as a reference and prove that the electronic records were not modified;

• The software tools used to search and analyze the hard drives must be recognized and accepted by the court (e.g., EnCase® software), or their validity must otherwise be established;

• There must be a detailed record of all the scans and searches run by the DFS, and the results must be reproducible;

• The report must set out the findingsin an objective and impartial way, preferably in a way that is understandable

They got Al Capone for tax evasion; not for any one of the hundred or so other

crimes he allegedly committed. Apparently, it was testimony of his accountant and the discovery of a mysterious “second set of books” that finally put Capone away. The books were well hidden. Fortunately, the accountant knew where to find them.

Had it been today, Capone might well have gotten away with it. Nowadays, it is trivial to keep one, two or three sets of books based on the same transactions - one for the tax auditor, one for the police and one for real. All three copies can be saved on a USB key the size of a stick of gum. Moreover, the accounting files can be encrypted so that no one, with the possible exception of the National Security Agency, can read them1.

The Digital Detective (or more accurately, the digital forensics specialist (DFS) now enters the scene. He or she is a modern-day sleuth capable of tracking down electronic evidence, recovering deleted files, reconstructing Internet transactions, finding oh-so-carefully hidden emails, sifting through huge masses of data and finding “the smoking gun.” In the last decade, digital forensics has grown from an esoteric subspecialty to a full-blown profession. Training is extensive and includes college or university degree programs, postgraduate training, mandatory work experience and professional certification (e.g., Certified Computer Examiner designation – CCE). Most importantly, the DFS earns widespread recognition and acceptance by police forces and the courts as a valid (even preferred) source of evidence and amicus curia (friend of the court) in criminal and civil matters.

The DFS often works with lawyers, forensic accountants and law enforcement as part of an integrated investigation team. The lawyer may obtain physical evidence by

in

Keep in touchGeneral line 416 964 7633

Fax 416 964 6454

[email protected]

Our senior professionals

Assurance & Advisory

Jonathan Biderman 416 963 7170

Eric Bornstein 416 963 7100

Donald E. Borts 416 963 7101

Steve Brown 416 963 7134

Jordan Caplan 416 963 7191

Alex Carswell 416 963 7208

John Colomby 416 963 7102

Jerry Cukier 416 963 7104

Chandor Gauthier 416 963 7220

Larry Goldstein 416 963 7197

Cecily Huang 416 963 7228

Omosalewa Iaboni 416 963 7125

C. Dirk Joustra 416 963 7110

Sam Kaner 416 963 7111

Desmond Levin 416 963 7115

Ethan Manes 416 963 7213

Linh Nguyen 416 963 7158

Eli Palachi 416 963 7123

Joel Podbere 416 963 7155

Lorne Rapkin 416 963 7201

Paul Rhodes 416 963 7217

Sheldon Rotenberg 416 963 7177

Talia Rubin 416 963 7126

Jordan Sacks 416 963 7215

Jeffrey Steinberg 416 963 7105

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Alan Wainer 416 963 7121

Deborah Teplinsky 416 644 3306

Harpreet Wadehra 416 644 3396

Howard Zerker 416 963 7231

Sam Zuk 416 963 7122


Soberman news...

Congratulations!

We wish to recognize the following individuals on their recent achievements. We wish all of them continued success as they move forward in their careers.

Congratulations to Danish Baig, Amanda Giardino, Michael Herberman and Alisa Zorina, who successfully completed the Core Knowledge Examination (CKE) administered by the Canadian Institute of Chartered Accountants.

We are pleased to announce that Henry Korenblum passed the International Qualification Examination (IQEX exam). By passing the exam, the reciprocity exam required to earn the U.S. CPA designation, Henry can effectively add CPA to his qualifications.

Nyla Roopnarinesingh recently passed her Paralegal Licensing Exam issued by the Law Society of Upper Canada.

Etelvina Perdigao has attained her Registered BIA Insolvency Counsellor designation.

WelcomeSoberman LLP welcomes the following new members to our team:

Assurance & AdvisoryAnna Alano – Audit AssistantArgen Elezi – Staff AccountantJustin Hakimi – Co-op StudentHanna Lee – Co-op StudentAndrew Milne – Co-op Student

Finance Denise Dillon – Assistant

Office ServicesStephanie Amaral – AssistantMalgorzata Walicka – Assistant

TaxationDenise Batac – SpecialistAntonina Wasowska – Specialist

IN THE NEWS

Ali Spinner delivered a TED-style talk on succession planning, entitled “Transferring Your Business: Exploring Some Tax Issues in Succession Planning,” at The Family Business EVENT hosted by CAFÉ GTA. The Canadian Association of Family Enterprise GTA Chapter hosted 10 high-impact educational sessions on various topics. Jordan Caplan, Heather Macdonald-Santiago and Alan Wainer attended the event.

On Mar. 16, Jerry Cukier and Alan Wainer gave a presentation to account managers at the Business Development Bank of Canada (BDC). The presentation covered: understanding financial statements – what to look for, tax optimization strategies and estate planning.

Silvia Jacinto, of our Taxation Group, was quoted in the March issue of the Canadian Real Estate Wealth magazine. In the article, written by Sarah Megginson, Silvia discusses the tax implications for Canadians interested in investing in properties overseas.

Karen Slezak was quoted in the Q&A section of the April 2012 issue of Cottage Life. Karen answered a question about “Transferring ownership of the cottage to the kids.”

Silvia Jacinto provided detailed tax analysis for a retirement rescue plan, designed by Globe and Mail columnist Rob Carrick, and was featured in “A retirement plan if you missed the bulletin to save.”

Jerry Gaertner was invited to reprise his presentation “The Future of Professions – How Technology Is Changing the Face of Medicine, Law and Accounting” as part of the University of Toronto Subscription Lecture Series, on Feb. 17, at the St. George campus.

Jerry Gaertner gave a presentation to the estates and trusts law group at Pallette Valo LLP on Feb. 13. The presentation was entitled “Digital Legacy and Digital Assets – the New Frontier.”

Comments Summer 2010 — 3 > p. 5

Our senior professionals, cont’d:

Business Valuation & Litigation

Support

Neil Maisel 416 963 7116

Jim Muccilli 416 963 7132

Heidi Surkis-Eisen 416 963 7146

Claims Valuation & Litigation

Support

Daniel Edwards 416 963 7221

Kristin Matthews 416 963 7239

Corporate Recovery &

Insolvency

Frances Doria 416 963 7144

Todd Howell 416 963 7198

Hans Rizarri 416 963 7175

Due Diligence & Forensic

Investigation

Daniel Edwards 416 963 7221

Sam Kaner 416 963 7111

Neil Maisel 416 963 7116

Jim Muccilli 416 963 7132

Hans Rizarri 416 963 7175

Media Services

Ram Ganesh 416 963 7139


Operations

Susan Hodkinson 416 963 7172


Adam Scherer and Henry Korenblum’s article was published in the March edition of the Ontario Medical Review, which goes to the Ontario Medical Association. Their article is called “How to pay more taxes and sooner: A practical guide for medical professionals on maximizing and prepaying your tax liability.”

Jordan Caplan’s article “Estate administration tax – A new chapter begins” will be featured in the April issue of Money Matters and on www.tinatehranchian.net. The Money Matters newsletter and blog are presented by Tina Tehranchian of Assante Wealth Management.

Alan Wainer, a long-time Holocaust Education Week member, has been named chair of the newly created Liaison/Greeters Subcommittee. Alan will ensure that members of this subcommittee understand and fulfill their liaison/greeter responsibilities and follow the newly established guidelines and procedures. Alan currently acts as a member at large, Steering Committee member and chair of the Liaison/Greeters Subcommittee for the Holocaust Education Centre.

Susan Hodkinson was honoured with the position as “BE A 10 – Honorary Chair 2012” for The Shoppers Drug Mart® Weekend to End Women’s Cancers,™ which celebrated National Wear It Pink Day on Jan. 25. Visit www.endcancer.ca for more information.

Jerry Gaertner was editor and a contributor to the Society of Trust and Estate Planners national magazine article series on digital assets and digital legacy issues. Jerry is a nationally recognized expert in this emerging area and has provided professional training to all five major Canadian banks on the topic.

Jerry Gaertner was Matt Galloway’s guest on Metro Morning (CBC Radio) on Jan. 10. Jerry was invited to discuss recent problems with the debit card network and ways the public can protect itself from debit card fraud.

IN THE COMMUNITY

On Feb. 17, Alan Wainer and Lorne Rapkin attended a special luncheon with the U.S. ambassador to Canada, David Jacobson. During the lunch, Mr. Jacobson discussed his opinions on the status and future of Canada-U.S. relations.

Cristina Barillari, a staff accountant in our Assurance & Advisory Group, was asked to join the panel at the Women in Accounting event, held jointly by the Rotman Commerce Women in Business Society and Rotman Commerce Accounting Society. The event took place on Feb. 15 at the Waters Lounge. The evening included a panel discussion among women leaders in the accounting field and networking.

Photographed here: Kristin Matthews (third to

the left from the centre in the front row).

Kristin Matthews, senior manager with Soberman’s Claims Valuation & Litigation Support Group, had the opportunity to open the Toronto Stock Exchange with Princess Margaret’s Ride to Conquer Cancer. Afterwards, Kristin said, “It was a unique experience” and quipped, “Don’t blame me if the markets crash today, but you can thank me if your stocks do well!”

The Israel Cancer Research Fund (ICRF) hosted its second annual Revolving Tables networking event. The event gives an estimated 250 young professionals a chance to rub shoulders and engage with CEOs and other Canadian executives. The event also raises awareness and funds for the work of the ICRF. Joel Podbere, Adam Scherer, Ali Spinner and Travor Tran attended the event.

Our senior professionals, cont’d:

Sports & Entertainment

Ram Ganesh 416 963 7139

Adam Scherer 416 963 7174


Taxation

Charlotte Haber 416 963 7108

Jingchan Hu 416 963 7124

Silvia Jacinto 416 963 7163

Gary Kopstick 416 963 7113

Karyn Lipman 416 963 7159

Frederic Pansieri 416 963 7237

Rachel Rolnick 416 963 7171

Adam Rubinoff 416 963 7178

Adam Scherer 416 963 7174

David Silber 416 963 7196

Frances Sin 416 963 7214

Karen Slezak 416 963 7109

Ali Spinner 416 963 7129

Technology Assurance

Jerry Gaertner 416 963 7192


SPONSORSHIPS

Soberman takes a genuine interest in community initiatives, and community involvement is an important component of our firm’s core values. We are pleased to sponsor a number of events throughout the year. Below is a list of recent events Soberman was proud to support.

Soberman LLP was a groovy sponsor of Disco Days & Boogie Nights in support of the Princess Margaret Hospital Foundation. The four-hour disco-a-thon featured a performance by Gloria Gaynor and dance routines led by Richard Simmons, CP24’s Ann Rohmer and So You Think You Can Dance Canada judge Blake McGrath. Susan Hodkinson and Gordon Sweetzer attended the event.

Soberman LLP was reception sponsor of the UJA’s Bay St. Cabinet/Fashion Division Event, “Tailor-Made in Canada Success Stories,” featuring Canada Goose and Harry Rosen CEOs Dani Reiss and Larry Rosen, who delivered keynotes. Adam Rubinoff, Adam Scherer, Ali Spinner and Julie Zylberlicht attended the event.

Lorne Rapkin and Paul Rhodes attended REACH THE TOP Executive Night hosted by the Ryerson University Accounting Society. They were able to interact with students and share their own best practices.

Soberman LLP is once again an ACTION sponsor of the Canadian Jewish Political Affairs Committee-ACTION Party. Henry Korenblum, Lorne Rapkin, Lauren Schreiber and Ali Spinner attended the event. The ACTION Party brings together Toronto’s most plugged in Jewish and pro-Israel young professionals to celebrate political engagement with politicians and political insiders from across the political spectrum and every level of government.

Diana Chan, Daniel Edwards, Kristin Matthews, Tamara Sieuraj, Ray Ward and Julie Zylberlicht participated in the Law Firm Bowling Challenge. It is a fundraiser for the Toronto Lawyers Feed The Hungry Program.

What lies ahead...Your annual update on tax and financial reporting

SAVE THE DATE: May 15, 2012

This year, we will review major tax changes from the federal and provincial budgets and provide tax planning tips. Plus, we will revisit newly adopted accounting reporting frameworks and highlight current transition issues.

RSVP by May 4, 2012Email: [email protected] phone: 416 644 3302

On Tuesday, May 15, 2012, join us for an informative breakfast seminar.

May

15

from year to year? Has the gross margin fluctuated from year to year? • Reviewing salaries and wages paid during the year for payments made to relatives; and

• Reviewing transactions made with related parties: What was the nature and number of transactions? Were they at market value? Do large payables exist on the balance sheet? Have all related parties been disclosed?

The above list is far from complete, especially in those cases in which we suspect significant inaccuracy. However, most of the time, we are simply assessing whether financial statements are reasonably reliable. In our line of work, we are trained to look for anything that looks unusual. If you think your financial statements look too good to be true, chances are we’ll think so too.

DIANA CHAN

Diana is a specialist in Soberman’s Claims

Valuation & Litigation Support Group. Diana

performs loss quantification calculations and

analysis for insurance and litigation claims.

Connect with Diana at:



Something smells fishyDiana Chan, CA•CBV, Specialist — Claims Valuation and Litigation Support

In the Claims Valuation and Litigation Support Group, we provide expertise on

loss calculations for personal injury claims, business interruptions and other claims that may give rise to earnings loss. What is often required is an analysis of the financial statements and business records of sole proprietorships or corporations. We may need to ensure that the financial statements are a reasonable representation of the financial position of the business and that financial statements are accurate and reliable testaments to what would have happened (from a financial point of view). Occasionally, we come across statements where you can’t help but think that there’s something fishy going on.

While the opportunity for misstatement exists on each line of the financial statements, unreliable financial reporting may be achieved in the following ways:

• Manipulation of accounting records or documents from which the financial statements are prepared; or

• Omission of events, transactions or other significant information from the financial statements.

Unless specifically asked to determine whether fraud has occurred, we are seldom able to check every transaction to ensure that the possibility of misstatement is eliminated. Therefore, we focus on areas that are considered “risky,” while considering whether the financial statements have been prepared with the intention of reflecting a higher net income (for the purposes of our calculations, this is a more likely scenario for a higher loss) or a lower net income (to minimize taxes paid). The most common ones are as follows:

1) Revenues – Methods to misstate revenues include:

• Adjusting the timing of sales to improve the financial position before the loss occurred; and

• Failing to record sales, especially with cash transactions, and not issuing invoices.

Our analyses may include:

• Comparing sales amounts on the books with actual invoices and/or bank statements: Were all invoices sequentially numbered? Have the invoices been altered? Have cash transactions been recorded?

• Comparing the accounts receivable to sales: Have the accounts receivable increased from year to year? Is the balance in line with sales?

• Comparing sales levels, by month and by year, to similar companies and to the overall industry: Do sales regularly fluctuate monthly or yearly? Does the sales trend follow that of competitors or the overall industry?

2) Expenses – Some methods to misstate expenses include:

• Adjusting the timing to improve the financial position before the loss occurred; and

• Creating false expenses or paying unreasonable expenses to lower net income (e.g., paying wages to, or personal expenses on behalf of, family members who do not work for the company).

Our analyses may include:

• Comparing balances by year: Were there large fluctuations between years? Does the total expense appear reasonable in comparison to the level of sales reported?

• Comparing the level of inventory to cost of sales and calculating gross margin ratios: Has there been an increase in the amount of inventory held

With the receiver having dealt with the immediate problems, the company is able to continue with the day-to-day operations under the receiver’s guidance. While this is happening, the receiver works toward a more finite solution to assist the company for the long term. The solutions normally available to a company are:

• Conducting a formal sales process under the receivership to source new investors or ownership;

• Performing a formal reconstruction, during which Corporation A is wound down via a bankruptcy filing, and Corporation B is opened to continue the operations; or

• Filing a proposal to settle all outstanding liabilities.

GRAEME HAMILTON

Graeme is an analyst with Soberman’s

Corporate Recovery & Insolvency Group.

Connect with Graeme at:


ALUMNI

Alumni keep in touch!Soberman LLP has always been committed

to hiring bright and talented people. Although

life sometimes takes us in other directions, we

still value those relationships and invite you to

reconnect by dropping us a line at:

[email protected].

typing our group name — Soberman LLP,

Chartered Accountants, or Soberman LLP

Alumni Group.

Soberman LLP and Soberman

Alumni are now online at LinkedIn.

Search for our group by simplyinThe benefits of keeping in touch include

opportunities for networking, sharing news,

keeping on top of professional developments,

and simply rekindling old friendships.


Analysts are predicting a challenging year for many business owners. So

what does this mean for you?

Picture that you are running a business. You’ve just had your worst quarter in 10 years; you’ve lost a top client to a rival firm. Key staff members have resigned, and your other employees are suffering from a general malaise. On top of that, the Canada Revenue Agency reassessed you for outstanding back taxes.

But you know that you can make this business work. If only you could stop the clock and give yourself time.

For many, the phrase corporate restructuring conjures up images of mass layoffs and elimination of departments. However, ‘restructuring’ should actually be viewed as a careful cutting and pasting rather than a massive gutting. Restructuring presents business owners with the opportunity to reorganize operational and legal structures, and sometimes ownership, for the sake of the company’s future.

In fact, many corporate restructurings involve no staff or department terminations. The key notion toward any restructuring plan implies the continuation of the company, regardless of size. Essentially, a restructuring plan buys a company time to

re-evaluate processes and recover.

Our group has assisted companies ranging from five to 500 employees. Most clients experience common problems for which there are easy solutions. Our analysts review each aspect of the company and suggest a ‘turnaround’ or ‘workout’ plan that is tailored to the company’s specific needs.

Once a plan is agreed upon, a receiver needs to be appointed by either the directors of the corporation or one of its major creditors. The receiver is an equivalent to a legal guardian for the company. Once the court approves the appointment, the company is now in the legal care and oversight of the receiver.

Appointing a receiver protects the company. The receiver oversees the commencement of any legal proceedings and service cancellations, such as telephone numbers or electricity. In addition, vendors and suppliers are prohibited from discontinuing their services to the company.

Furthermore, the receiver is empowered to collect all funds owed and to employ all existing employees. But most importantly, all the pre-receivership debts are placed on hold until the receivership has been finalized.

Corporate restructuring is not the end of the roadGraeme Hamilton, BA (Hons), B.Ed., O.C.T., Analyst — Corporate Recovery & Insolvency


It is law: Safeguard your workplace by complying with Bill 168Susan Hodkinson, BA, Chief Operating Officer — Operations

Bill 168, an addition to the Ontario Health and Safety Act (“OHSA”),

became law on June 15, 2010. Bill 168 requires all employers, regardless of size, to implement programs and policies that deal with workplace violence, bullying, harassment and even domestic violence that might occur in the workplace.

It’s been years since business owners and operators were first asked to address harassment in the workplace. High profile cases involving executives, media personalities and politicians (LOTS of politicians…) have created a heightened awareness of the importance of creating and maintaining a workplace that is free of harassment and discrimination for everyone.

Canadian businesses are required to implement policies that do not tolerate discriminatory attitudes. Ontario laws, as well as the moral and ethical requirements inherent in these issues, have entrenched safety in Ontario workplaces, making it the highest priority.

It would seem that Bill 168 and its requirements should prompt, at most, a cursory look at policies. Perhaps it would spur discussion with company leaders and managers reinforcing the importance of these issues. After all, everyone in your company treats each other with respect and dignity because that’s the example you set. No one would ever feel threatened or discriminated against in your company, right?

Not so fast. While the great majority of business owners and managers do indeed lead their companies in an exemplary fashion, that’s not enough.

It is highly significant that Bill 168 was an addition to the Ontario Health and Safety Act. Among other things, the OHSA states that employers may face inspections on a regular and unscheduled basis. Inspections can occur at any time.

Therefore, it is important to make sure that your workplace is safe and that the required committees and infrastructure are in place. As it relates to Bill 168, this means that employers must be able to demonstrate that all staff members have been trained on what Bill 168 means and that the appropriate risk assessments have been done.

On a nice summer day in 2011, Soberman’s Human Resources Manager arrived at our offices to find a friendly, but very business-like, inspector from the Ministry waiting for her in our lobby. We had been selected for a random inspection for Bill 168 compliance.

Where were our records with respect to Bill 168 training? Who had attended? What was the content of the training? Where was the risk assessment document that we had prepared and circulated? And where were the results?

The good news was that we had trained all firm members, beginning with our partners. Our policy was in our firm procedures, accessible both in hard copy and on our intranet. We circulated a risk assessment document, asking specifically whether anyone had ever felt unsafe or uncomfortable while working at the firm, and the results of the survey were readily available for the inspector.

And if we had not done all of these things? We could face penalties for not complying with Bill 168 that can cost up to $25,000

for individuals and up to $500,000 for corporations. The human cost of not paying attention to the crucial issues of workplace harassment, bullying and violence is incalculable.

If you would like to discuss what your business can do to ensure that it is Bill 168 compliant, contact your Labour and Employment counsel or a consultant experienced in this area. If you have any questions relating to this article, contact the author at the information listed below.

SUSAN HODKINSON

Susan Hodkinson is the Chief Operating Officer

at Soberman LLP, where she has management

responsibility for the operations of the firm,

including finance, information technology,

human resources, facilities and marketing.

Connect with Susan at:


http://ca.linkedin.com/in/susanhodkinsonin

Did you know?

The typical organization loses five percent of its annual revenues to occupational fraud.

(2010 Report to the Nation on Occupational Fraud and Abuse, p. 4)


2012 Readership Survey

We are committed to ensuring that our publications provide informative, timely and relevant content and invite you to participate in a readership survey. In consideration of your time, we will enter you into a draw for a $500 Apple Store Gift Card! Winners will be announced in the summer issue of Comments.

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7. Comments is distributed on a quarterly basis; what doyou think of the frequency of the newsletter?

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8. The content of the newsletter generally interests me.

Strongly agree Somewhat agree Slightly disagree Strongly disagree

9. Overall, I find Comments to be an enjoyable read.

Strongly agree Somewhat agree Slightly disagree Strongly disagree

10. Are there any topics you would like to see covered in future issues?

Yes No

If yes: ______________________________________

11. To what extent have you requested additional serviceor information from the firm because of something you read?

Often Occasionally Rarely Never

1 2 3 4 5


12. Has reading our articles improved your understanding of:

a. Canadian business matters? Yes / No

b. Your financial situation and potential? Yes / No

13. To what extent has reading our newsletter changed the way you do business?

Significantly Slightly Not at all

14. Have you shared or discussed our articles with your colleagues, employees, or family/friends?

Frequently Occasionally Rarely Never

15. To what extent has your impressions of the firm improved as a result of reading our newsletter?

Greatly Slightly Not at all

16. List the top three news, business and/or lifestyle magazines you read most:

1. ______________________________________

2. ______________________________________

3. ______________________________________

17. Do you use social media for work?

Yes / No

18. If yes, which social media technologies do you use?

Please check all that apply. If you’d like to stay connected with us, please provide your username where applicable.

Social Media Sites Username

LinkedIn

Twitter

Facebook

YouTube

Google +

Foursquare

Pinterest

Instagram

19. Below is a list of publications that our firm produces; please confirm which of the publications you would like to receive.

General Interest

Comments Newsletter

Tax Tips

Federal Budget Letter

Provincial (ON) Budget Letter

Important Tax Reporting Deadlines (T4/T5 Letter)

Personal Income Tax Organizer (T1 Checklist)

Global Corporate Advisor

Firm Events, News & Updates

20. Please confirm your email address below, by writing it in the space below.

Email address:

Thank you for your feedback.

Submit your responses by faxing the completed survey to the attention of marketing at 416 964 6454.


Soberman LLP, Chartered Accountants2 St. Clair Avenue East Suite 1100Toronto ON M4T 2T5

Publications Mail Agreement Number 40010965

Comments was prepared for the general information of our clients and other friends of Soberman. Specific professional advice should be obtained prior to the implementation of any suggestion contained in this publication.

OUR PRIVACY POLICYAt Soberman LLP, we have always recognized our responsibility for protecting the privacy of your personal information. Canada’s Personal Information Protection & Electronics Documents Act (PIPEDA) has made privacy an even greater priority.

If you have any questions, comments or concerns about our administration of your personal information, please visit our website for our complete privacy policy or contact us at [email protected].

We are pleased to announce that Soberman LLP has gone social! We have now made it easier for our clients, colleagues and alumni to stay connected with us throughout the year.

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f

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Facebook.com/Sobermanllp

Facebook is a household name and

might have already won its place in

your social calendar. It is a great way to

stay in the loop with family, friends and

acquaintances alike. Now, you can see

what is going on at Soberman – view

event pictures, take surveys or just

comment on our wall – we want to hear

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