Are you aware of the recent relationship split between CPA Canada and Ontario and Quebec? On Tuesday, June 20th, the Quebec and Ontario provincial bodies decided to cut ties with CPA Canada, the national governing body.
The good news is that this split doesn’t impact general taxpayers, but instead alters policies and procedures for practitioners active in Quebec and Ontario.
Who is CPA Canada?
Chartered Professional Accountants (CPA) Canada was created in 2013 to unify professional organizations throughout the country. Historically, provincial organizations are tasked with regulating and enforcing the profession’s standards, while CPA Canada is responsible for coordinating education and exam items.
CPA Canada announced plans to revamp the Canadian Sustainability Standards Board, which is expected to cost $10 million. Funds for this project come directly from stiff membership fees, which is one of the primary reasons for the departing of CPA Ontario and CPA Quebec from CPA Canada.
What is the Current Situation?
The severing of ties between CPA Canada and CPA Quebec and CPA Ontario comes following disagreements about annual fees and governance structure. The withdrawal is expected to go into effect over an 18-month period.
CPA Ontario is the largest provincial accounting body, with members making up the Big Four accounting firms and numerous powerful business interests. In a statement, CPA Ontario described the change will allow the organization to better “protect the public, service members and students, and advance the profession by being more nimble and innovative.”
CPA Quebec had similar thoughts, outlining that the break would allow the organization to run “more efficiently within a governance framework better suited to its organization.” The severed relationship comes as a shock to CPA Canada leaders, who urge CPA Quebec and CPA Ontario to rejoin the national group.
How Does this Impact Taxpayers?
Taxpayers won’t see any direct impact from CPA Ontario and CPA Quebec parting ways with CPA Canada. However, you may notice adjusted standards and processes followed by professionals working in Ontario and Quebec as regulators alter requirements and policies.
Professionals will feel the brunt of this change, which may be for the better. In a statement released by CPA Ontario, members were told to expect a reduction in annual membership dues, with CPA Canada fees being eliminated.
Traditionally, provincial accounting bodies have strayed away from combining regulatory powers with advocacy initiatives. Ultimately, only time will tell how CPA Ontario and CPA Quebec handle parting ways.
Summary
The leaving of the national organization comes after a mere ten years of partnership. Changes in the way accounting and tax services are provided may be on the horizon, with Quebec and Ontario acting as regulators for practicing professionals.
For more information on the latest tax and accounting news, check out our other blog posts. If you are still unsure of how this breakup impacts you this upcoming filing season, reach out to one of our team members at NRK Accounting today.