Karma Group’s founder and chairman John Spence explains how and why he plans to double the size of his business

Save the stint in music, Spence’s entire career has been the hospitality business, focused on timeshares. Aged 24, he started selling property in Tenerife for Global Group. “I was drafted into them in the early 80s. The early 90s were the time – the only time – when I thought ‘I want to be an entrepreneur’. And that was because I could see an opportunity to do a better job.” Spence was speaking at a conference in Goa when he spotted the opportunity: to develop resorts on India’s west coast.Off Piste“The original plan was to sell [fractional ownership] to foreigners, but there’s a huge amount of wealth in India that hadn’t been tapped into.” In 1993, Spence started the Royal Group, selling timeshares to the domestic market. He opened offices in Mumbai, Bangalore and Delhi, then started selling to non-resident Indians working in the likes of Dubai and Kuwait. “It was difficult to physically keep up with demand – it was incredibly popular. People in the industry had assumed all Indians had no money, and that wasn’t the case.”Four years later, and Spence had 70 offices around the world. Now, under The Karma Group, he has 27 luxury resorts and an arsenal of brands, including Royal Resorts, Karma Estates and the soon-to-be-launched Karma Ski. Locations range from Bali to France, from Australia to the Scillies.When I meet Spence, he’s just landed from Singapore via Goa and Munich. Via Monaco and London, he’s off to the States and Australia, before taking a holiday himself with his family in Antigua. Timeshares, says Spence, are increasingly popular – even among younger people. “A lot of what you’re seeing in our market is a change of definition. Timeshare is still the biggest thing to do, but we call it membership. Airbnb – you could say timeshare. It’s just a different spin on the same commodity.”At the helmWhen he’s talking about his company, Spence repeatedly says “we” – “we know it’s increasingly about providing an experiential package”; “we had 33,000 people sign up to our pay-as-you-go package in the first year [2016]”. But he says this is a royal “we”– he just means him. Spence has never borrowed any money, or given away equity, to build Karma – he owns 100 per cent of the business. Granted, he was able to sell $1m luxury properties during the 2000s, but, save mortgaging his flat to get started, this is a firm expanded on its own success. Karma Group’s founder and chairman John Spence explains how and why he plans to double the size of his business I cleaned toilets in Gatwick Airport for a bit, but that’s the only real job I’ve ever had,” says John Spence, founder and chairman of The Karma Group.A university drop-out, the hotelier and resort-owner originally became a tea boy for a music agency. Before long, he was representing bands like Culture Club, Bananarama and the Eurythmics. “Going into the music business was always my plan, but I don’t think I would’ve liked to have stayed. When I was a kid, I was into archaeology. I wanted to be Indiana Jones, brandishing a whip. I’m still passionate about ancient history – I’m just still trying to follow that one up!” whatsapp Harriet Green whatsapp With fellowships at Yale University and UCLA, Spence has honed a way of describing what makes an entrepreneur: “most of the successful entrepreneurs I know are under-educated chancers who have had a passion to make it work. It’s about risk-embracement – everyone will make mistakes but knowing what to do after and doing it quickly is vital. I am the board of my company, so if a decision needs to be made, it will be made now. Taking decisions in a corporate environment is like turning a tanker. In an entrepreneurial company, it’s a speed boat. That sends up a lot of spray, but it can manoeuvre fast.”At Yale, he teaches a course on “anti-entrepreneurship”. “They’re taught that you can learn how to be an entrepreneur, applying it to any industry. That’s bulls***. Entrepreneurs are passionate about something, then they find a way to monetise that passion. Malcolm Gladwell, one of the few businesspeople I respect, says 10,000 hours of practice will make you an expert, and it’s the same with entrepreneurship. People are working on the same thing for 24 hours a day – it’s what you love. You have to love it, then you become good at it.”Spence’s entrepreneurship has always gone further than business, though. “I’ve also always had a passion for CSR, and I find others’ lack appalling. When I first flew to India, Thailand, Bali, I was immersed in the more appalling poverty. I chose ‘Karma’ as a name because I wanted a firm that was morally good.”The Karma Community Care programme funds at-risk children and rising talented sportspeople. Spence built and pays for a school for 900 in India, and has an orphanage in Bali. “The fact we do so much has huge commercial value. The staff love it, our members love it, local communities can see us as different, and that means we have a symbiotic relationship. In life, it is a case of there by the grace of God go I.”Sea changeNow, Spence knows he’s about to take radical decisions for his firm. “Our problem is that we’ve gone from a small company to a huge one. We’ve brought in experts and chief executives… it’s incredibly hard personally. I don’t want to be presiding over some evil empire – a corporate giant. But our five-year plan (we do have one!) is to get to 60 resorts. We’ve always had a very tight policy (i.e. not done it) on borrowing money, entering joint ventures, split equity deals. That means we’ve grown, in the main, at a modest rate of 15-20 per cent a year. A lot of people in the market would’ve gone down a different route, but I’m comfortable with ours.” Monday 6 February 2017 4:11 am Share Be that as it may, Spence is now planning how to accelerate growth via a new route. “I don’t know what the answer it yet, but I am conscious that taking on debt means this business will have to become more corporate.”These might be uncharted waters for Spence, but he comes at them with experience and an open mind. “I want to explore ideas. I’m open to listing, open to a trade sale. I want Karma to be a global business and double the size, and I’ve got five years in which to do it.” by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeStructural Foundation | Search AdsStructural Foundation Repair Cost In Scottsdale May Surprise YouStructural Foundation | Search AdsHealth & Human ResearchWhat Happens If You Sleep on Your Left Side?Health & Human ResearchAmyloidosis | Search AdsAmyloidosis Symptoms You May Not Have KnownAmyloidosis | Search AdsUllaThis Device Is A Must-Have For Anyone With Fitness GoalsUllaBasement Repair | Search AdsLooking For Cheap Foundation Fix? Scottsdale Residents Could Benefit From 2021 PricesBasement Repair | Search AdsEveryday WellnessWhat Happens To Your Body When You Eat Two Bananas A DayEveryday WellnessPaws ZillaTry Not To Cringe At These 40 Awful Ellen EpisodesPaws ZillaHappy Pumpkin10 Delicious Freezer Meal Recipes to Dump into the Slow Cooker – Happy PumpkinHappy PumpkinGraber Blinds2021’s Must-Have Window Treatments for HomeownersGraber Blinds read more

Ranked: Britain’s best bank accounts

first_imgBritain’s best current account providers Read more: TSB branch closures: Where all 82 bank branches will close But if the choice at times seems overwhelming, a new league table has revealed which banks score highly for customer service and communication – and which leave a lot to be desired. ProviderCustomer score (%)First Direct84Starling Bank83Monzo Bank82Nationwide Building Society78M&S Bank76Metro Bank75The Co-operative Bank73Barclays Bank70Halifax70Santander70Lloyds Bank69Natwest69Yorkshire Bank69Danske Bank66HSBC66TSB65Bank of Scotland64Clydesdale Bank63Royal Bank of Scotland62Tesco Bank60Ulster Bank55 Leeds-based First Direct bagged a customer score of 84 per cent. Starling, which was featured in the survey for the first time this year, followed close behind with 83 per cent. Monzo received the third-highest score of 82 per cent. James Warrington whatsapp Read more: Natwest and RBS down: Outages hit online banking and mobile apps on Black Friday Saturday 30 November 2019 3:03 pm Brits now enjoy a larger choice of bank accounts than ever before, with rival offerings from time-honoured high street stalwarts to exciting new fintech upstarts. Show Comments ▼ Ranked: Britain’s best and worst bank accounts Monzo said it will sign up to the code within the first three months of 2020. “Traditional high street banks would do well to learn from their rivals challenging the status quo at the top of our survey. It seems they need to up their game to ensure they’re giving customers what they want when it comes to customer service, communication and transparency.”center_img Share Nationwide and M&S Bank also won recommended provider status after securing customer scores in the high seventies. A survey carried out by consumer magazine Which revealed that a trio of challenger banks are the most popular among UK customers. (Getty Images) Ad Unmute by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeDaily FunnyFemale Athlete Fails You Can’t Look Away FromDaily FunnyUndoDefinition24 Of The Most Hilarious Yard Signs Ever WrittenDefinitionUndoBleacherBreaker4 Sisters Take The Same Picture For 40 Years. Don’t Cry When You See The Last One!BleacherBreakerUndoMisterStoryWoman files for divorce after seeing this photoMisterStoryUndobonvoyaged.comThese Celebs Are Complete Jerks In Real Life.bonvoyaged.comUndoPost Fun25 Worst Movies Ever, According To Rotten TomatoesPost FunUndozenherald.comDolly Finally Took Off Her Wig, Fans Gaspedzenherald.comUndoNoteableyJulia Robert’s Daughter Turns 16 And Looks Just Like Her MomNoteableyUndoBetterBe20 Stunning Female AthletesBetterBeUndo “It’s clear that consumers value great customer service and easily accessible banking – and that applies whether they prefer to bank with a mobile app or a brick-and-mortar branch,” said Gareth Shaw, head of money at Which. whatsapp Which has granted First Direct and Starling so-called recommended provider status. Monzo has not been given the same status, as it has not yet signed up to a voluntary industry code on bank transfer fraud. It was followed by Tesco Bank with a customer score of 60 per cent and RBS with 62 per cent. First Direct topped the table in the rankings of current account providers, followed by rival fintech firms Starling Bank and Monzo, which came in second and third place respectively. By contrast, the table was propped up Ulster Bank, which recorded the lowest customer score of just 55 per cent. It received just two stars for service in branch and handling of complaints, and three stars for customer service, communication, and transparency.last_img read more

AG: Juneau officer and others were under imminent threat, shooting was justified

first_imgCrime & Courts | Juneau | Local Government | Public Safety | State GovernmentAG: Juneau officer and others were under imminent threat, shooting was justifiedJanuary 9, 2017 by Matt Miller, KTOO Share:Juneau Police Chief Bryce Johnson demonstrates how officers saw Jeremie Tinney hold an object that appeared to be a rifle during an officer-involved shooting on Dec. 3, 2016. (Photo by Matt Miller/KTOO)A Juneau police officer is returning to full duty after the Attorney General’s office says they will not file criminal charges against him for using deadly force against an intoxicated suspect who previously threatened to commit “suicide by officer.”The nine-page report was issued Jan. 5 by the Alaska Department of Law’s Office of Special Prosecutions and released to the public in partially-redacted form by the Juneau Police Department during a press conference on Friday. The report is largely based on work by the Alaska State Troopers’ Alaska Bureau of Investigations. Its detectives handled the shooting investigation.Juneau Police Sgt. Chris Gifford and Officer Darin Schultz were investigating an accident on Ocean View Drive early in the morning of Dec. 3, 2016, when Gifford fired one round at Jeremie Shaun Tinney in the vehicle. Tinney, 38, was medevaced to Seattle for medical treatment, but he was not seriously injured in the incident.JPD said they investigated 26 incidents since 2009 involving Tinney’s use of guns, reports of domestic violence, and threats of suicide or harming others. Tinney also threatened to shoot officers or commit “suicide by officer,” or provoke an incident in which he would be shot and killed himself.“You don’t have to wait until you’re being fired on,” said Juneau Police Chief Bryce Johnson. “If you wait until you’re being fired on, it’s too late and you will be dead. And, that is a bad outcome. So, in order to use deadly force, you have to reasonably believe that your life is in imminent danger, or the life of someone else is in imminent danger or threat of death.”Jeremie Tinney’s vehicle as it appeared in the ditch off Ocean View Drive on Dec. 3, 2016. (Photo courtesy Juneau Police Department)Police officers and members of Capital City/Fire Rescue respond to a vehicle accident and officer-involved shooting on Ocean View Drive on Dec. 3, 2016. (Photo courtesy Juneau Police Department)Juneau Police Department says this vehicle axle shaft with interior rifle boring was aimed by Jeremie Tinney at others before the officer-involved shooting on Ocean View Drive on Dec. 3, 2016. (Photo courtesy Juneau Police Department)Juneau Police Department says this vehicle axle shaft with interior rifle boring was aimed by Jeremie Tinney at others before the officer-involved shooting on Ocean View Drive on Dec. 3, 2016. (Photo courtesy Juneau Police Department)1234 read more

Special session puts 30 Kenai Peninsula teaching jobs in limbo

first_imgEconomy | Education | Politics | Southcentral | State GovernmentSpecial session puts 30 Kenai Peninsula teaching jobs in limboMay 28, 2017 by Aaron Bolton, KBBI Share:About 200 Anchorage teachers received pink slips Wednesday after the Alaska’s Legislature missed its 90-day deadline to solidify the budget. As uncertainty over teachers’ job security around the state grows, teaching staff on Kenai Peninsula are retaining theirs. But, 30 unfilled positions are still in limbo.As the Legislature goes into a special session, school districts hope they predicted as close as possible as to where the budget will land. Both the House and Senate have individually passed operating budgets, but have not agreed on a fiscal plan. Among several disagreements, education funding remains a sticking point.The House wants flat funding while the Senate aims to cut education by 5 percent. That could leave the Kenai Peninsula Borough School District with a $5 million shortfall, something the district’s budget didn’t account for.“The problem is we moved a budget forward based on status quo funding from the state,” Assistant Superintendent Dave Jones explained.The district has already backfilled a $3.7 million budget gap, using about $1 million in reserves. About $2.6 million in cuts were doled out to fill the rest, eliminating about 30 positions. About 17 of those were teachers and tutors.Unlike Anchorage and other districts, Jones explains the school board awarded contracts to remaining tenured and non-tenured teachers this spring, but 30 unfilled teaching positions remain in question due to a hiring freeze. Those jobs will remain unfilled to absorb any possible cuts coming out of the Legislature.“We’re trading the certainty of knowing that we have our non-tenured staff coming back with the uncertainty of knowing if we’re going to have to move teachers around in buildings,” Jones added.The open positions aren’t evenly distributed across the peninsula. Jones notes the district will try to keep teachers in their communities, but can’t guarantee anything. He declined to say which schools have the most openings.The state accounts for about two-thirds of the district’s budget and the borough picks up the remaining third but is only allowed to contribute so much. The district has requested the maximum amount, about $3 million over last year.As it waits for the numbers to roll in from the borough and state, Jones explains that qualified teachers won’t wait around.“That’s the frustrating part of it is we work to attract the highest quality teachers, and we’d like to retain the highest quality teachers, but we can’t do that without a solid fiscal plan,” Jones said frustratingly.The Kenai Borough Assembly is set to revisit its budget on June 6.Share this story:last_img read more

The Lego Movie’s blockbuster gift lifts toy maker

first_img The Lego Movie’s blockbuster gift lifts toy maker Wednesday 25 February 2015 9:05 pm More From Our Partners Astounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgFans call out hypocrisy as Tebow returns to NFL while Kaepernick is still outthegrio.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgColin Kaepernick to publish book on abolishing the policethegrio.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgKansas coach fired for using N-word toward Black playerthegrio.comRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comFort Bragg soldier accused of killing another servicewoman over exthegrio.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.org Express KCS by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailMaternity WeekA Letter From The Devil Written By A Possessed Nun In 1676 Has Been TranslatedMaternity WeekMoguldom NationFather Of 2 Sues Los Angeles Hospital After Wife Dies During ChildbirthMoguldom Nationzenherald.com20 Rules Genghis Khan’s Army Had To Live Byzenherald.comForbesThese 10 Colleges Have Produced The Most Billionaire AlumniForbesDiscovery29+ Fascinating U.S. Navy WarshipsDiscoveryMagellan TimesThis Is Why The Roy Rogers Museum Has Been Closed For GoodMagellan TimesComedyAbandoned Submarines Floating Around the WorldComedyGameday NewsNBA Wife Turns Heads Wherever She GoesGameday News whatsappcenter_img whatsapp LEGO is aiming to build upon the success of the summer hit The Lego Movie and close the gap between it and the world’s number one toy maker Mattel.Lego’s bid for a larger chunk of the market was helped by it outperforming rivals last year and a stronger sales of toys aimed at girls, once a pillar of Mattel’s dominance through its Barbie dolls. Lego said its Friends series, widely targeted at girls, was one of its top sellers in 2014, although traditional Lego lines still dominate sales.The Danish toy-maker yesterday said revenues for 2014 grew 13 per cent to 28.6bn Danish crowns (£2.8bn) while Mattel’s sales fell seven percent to $6bn (£3.8bn).The Lego Movie drew $450m at the box office globally and added to exposure for the children’s brand.Lego said sales grew by more than 10 per cent in the US, the UK, Russia and China.Lego’s 2014 profit rose 15 percent to 7bn Danish crowns. Share Show Comments ▼ Tags: NULLlast_img read more

News / Cambodia the new hot-spot for air freight providers as rival Bangladesh falters

first_img© Maxsaf While Cambodia is primarily seen as a garment manufacturer, serving the US and EU, it also is exporting mangos and electrical goods, and importing leather.The slew of airlines now offering capacity comes as no surprise in a global market which is seeing little growth elsewhere. But Cambodia Airports has reported a significant increase in volumes in Phnom Penh, which appears to be sustaining the carriers.Last year, the country saw air freight shipments, to and from Phnom Penh, rise 14%, year-on-year. The first five months of this year have seen almost 17% growth over 2015, with March up 24% and April up 21%.International exports make up 47% of the total air freight market, while imports account for 33%.Cambodia has succeeded in attracting increasing numbers of brands to source from the country. Its growth could come as a blow to rival Bangladesh, with market observers expecting a shift away from the sub-continent over security concerns.Bangladesh’s garment industry is expected to see a slowdown in demand following the tragic weekend attack in Dhaka. Several foreign apparel company workers were killed, including seven Japanese, which led to Japan’s Fast Retailing Co, owner of Uniqlo, to suspended all non-critical travel to Bangladesh.Shovon Islam, head of Sparrow Group, which supplies garments to major global brands, told Reuters there was a lot of concern and companies would likely be altering their plans. Some apparel executives are now refusing to go to Bangladesh, where greater security measures have been imposed on its airports and air freight exports in recent months.While no brand has yet signalled it would leave the country and its $26bn garment industry, major retailer H&M said in a statement it was “following developments closely”.Bangladesh has struggled with security for some time and, in a further blow to exporters, has also suffered severe port congestion. In addition, Australia and the UK have banned direct air freight exports, while Germany has implemented additional screening from the airport in Dhaka. By Alex Lennane 05/07/2016center_img Cambodia is the hot new destination in air freight, with numerous carriers taking advantage of its growth in volumes by adding freighter flights.Two airlines announced new operations yesterday: both AirBridgeCargo (ABC) and Thailand’s K Mile adding services into Phnom Pehn.ABC is flying out of Singapore and back to Moscow, while K-Mile is operating on behalf of DHL.Malaysia’s Raya Airways started a Phnom Penh operation in April, as did Emirates, while Turkish launched a freighter flight in May with an A330F.last_img read more

Fire gets out of control in Charlotte County

first_imgFlames tear through home, cause brush fire in Punta Gorda May 21, 2021 RELATEDTOPICS CHARLOTTE COUNTY, Fla. – Charlotte County firefighters said a controlled fire got out of control Thursday afternoon. Two citrus piles were being burned when the fire got away and burned nearly four acres, according to Charlotte County Fire and EMS.Crews that responded were able to stop the fire before it damaged any structure or homes. Firefighters are urging residents to be extra careful this time of year with open flames and heat sources. AdvertisementRecommended ArticlesBrie Larson Reportedly Replacing Robert Downey Jr. As The Face Of The MCURead more81 commentsGal Gadot Reportedly Being Recast As Wonder Woman For The FlashRead more29 commentsDC Young Fly knocks out heckler (video) – Rolling OutRead more6 comments’Mortal Kombat’ Exceeded Expectations Says WarnerMedia ExecutiveRead more2 commentsDo You Remember Bob’s Big Boy?Read more1 commentsKISS Front Man Paul Stanley Reveals This Is The End Of KISS As A Touring Band, For RealRead more1 comments AdvertisementTags: Charlotte County Fire Trailer hauling hay bales catches fire in Charlotte County April 30, 2021 Firefighters respond to car fire in Punta Gorda May 29, 2021 Power strip ignites Charlotte County home April 24, 2021 AdvertisementThey said it doesn’t take much fora brush fire to quickly spread out of control. last_img read more

SEC charges Canadian promoters in ‘pump-and-dump’ scheme

SEC warns about rise in investment scams Facebook LinkedIn Twitter The SEC alleges that the promoters sent investors false and misleading emails about two publicly traded U.S. companies, Pacific Blue Energy Corporation and Tradeshow Marketing Company Ltd., through two websites they controlled, Skymark Research and Emerging Stock Report; and, it says they used ‘boiler room’ sales calls to tout the stocks, falsely claiming that the recommendations were based on independent research by Skymark and Emerging Stock Report. It says they generated at least $11 million with the scheme. The Alberta Securities Commission (ASC) filed charges in provincial court against the Kirks and Boyle in August 2011, alleging 10 counts of breaching Alberta securities laws with the ‘pump and dump’ scheme. The allegations have not been proven. A trial is slated for June. ASC files charges in alleged ‘pump and dump’ scheme On Friday, the SEC also charged two San Diego-based attorneys, Luis Carrillo and Wade Huettel, who it says were central participants in the scheme, “who helped the promoters conceal their ownership interests in the companies, drafted misleading public filings, and provided misleading legal opinions.” It claims their law firm, Carrillo Huettel LLP, secretly received proceeds of stock sales in the form of a sham loan. The SEC also says Gibraltar Global Securities, a Bahamian broker-dealer, provided false affidavits and misleading statements that allowed Benjamin Kirk to secretly sell shares of the companies he was promoting. It claims Luniel de Beer, who was president of Tradeshow and chairman of Pacific Blue, also received more than $330,000 in kickbacks for his part in the scheme; and, it alleged that de Beer and Pacific Blue president, Joel Franklin, made misleading representations and facilitated the promoters’ stock sales. Without admitting or denying the SEC’s allegations, Franklin agreed to settle the regulator’s charges and consented to certain injunctive relief. The allegations against the others have not been proven. The SEC’s complaint, which was filed in a Manhattan federal court today, charges the Kirks, Boyle, Hinto, Carrillo Huettel, Carrillo Huettel LLP, Gibraltar Global Securities, de Beer, Franklin, Pacific Blue, and Tradeshow with violations of U.S. anti-fraud laws and rules, and for distributing unregistered shares, in violation of U.S. securities laws. The SEC is seeking to have the defendants return their allegedly ill-gotten gains, with interest, and to bar them from participating in penny stock offerings and from serving as public company officers or directors. It is also seeking civil monetary penalties from the attorneys, their law firm, and from de Beer. “Microcap fraud is a scourge on our markets and we will continue to aggressively pursue individuals who engage in it, whether they are unscrupulous stock promoters who prey on investors or unethical attorneys who enable these pernicious schemes. Moreover, as this action demonstrates, the SEC is working closely with foreign authorities to root out this conduct in the international arena,” said Andrew Calamari, director of the SEC’s New York regional office. The SEC noted that both the ASC and the B.C. Securities Commission (BCSC) assisted the investigation, along with the Financial Industry Regulatory Authority, the Bahamas Securities Commission, the National Banking and Securities Commission of Mexico, and the Turks and Caicos Islands Financial Services Commission. Keywords Investment scamsCompanies Securities and Exchange Commission James Langton Don’t believe the hype: BCSC proposes new rules for stock promoters U.S. securities regulators Friday charged a group of Canadian stock promoters, along with a couple of U.S. lawyers, and a Bahamas-based broker-dealer, with carrying out an international ‘pump-and-dump’ scheme. According to a complaint from the U.S. Securities and Exchange Commission (SEC), Canadian stock promoters, John Kirk, Benjamin Kirk, Dylan Boyle, James Hinton, and their associates, “used false and misleading promotions to pump up trading in the stock of the two microcap companies and made millions when they secretly dumped their own shares.” Share this article and your comments with peers on social media FCA tackles flurry of investment scams Related news read more

C.D. Howe report recommends improvements to the CRA’s audit process

first_img The CRA currently reports overall metrics of its audits, including “tax earned by audit” and the percentage of audits that lead to assessment, but does not actually report how much is ultimately paid by taxpayers, Klassen says. “The main way that the CRA currently assesses the audit process is it will do quality control checks — the CRA will review the audit and look through what was done — as opposed to calibrating based on what ultimately happens with that particular taxpayer,” Klassen says. Evaluating the performance of audits is inherently problematic because it is difficult to determine the correct amount of taxes that should be assessed, given the complexity of tax law and corporate tax arrangements, the report argues. “The real problem is that nobody knows, and, in fact, there isn’t really a right answer,” Klassen says. “And so, when you start with a situation in which you don’t know what the right answer is, then it becomes difficult to calibrate how close we’re getting. [Auditors] are in some cases overshooting [the amount of taxes that should be assessed] because the correct application of the tax law is ambiguous.” Klassen stresses that the CRA does not evaluate its individual auditors based on what assessments they produce. “That’s not the function of auditing,” he says. However, a move to reporting the ultimate taxes that are paid, after all appeals are exhausted, would counteract any indirect incentive to overassess and ultimately reduce costs for taxpayers, Klassen says. “It would potentially avoid the need [for taxpayers] to appeal assessments following the audit and potentially go to court,” Klassen says. “Both of these processes are expensive for the taxpayer to engage in.” CRA, RQ should be held liable for auditor mistakes, CFIB says Rudy Mezzetta Crypto firm strikes client disclosure deal with CRA The Canada Revenue Agency (CRA) could improve its corporate and small business audit process by tracking and reporting the amount of taxes that are ultimately paid to the government after all taxpayer appeals and any court challenges are exhausted, suggests a new report from the Toronto-based C.D. Howe Institute. “This [change] would further strengthen confidence in the system’s equity and tilt it toward minimizing unnecessary costs to taxpayers,” concludes the report, entitled Auditing the Auditors: Tax Auditors’ Assessments and Incentives and authored by Kenneth J. Klassen, professor in the School of Accounting and Finance at the University of Waterloo. Share this article and your comments with peers on social mediacenter_img Related news Keywords Tax auditsCompanies Canada Revenue Agency O’Toole calls for pause on CRA audits for businesses struggling due to Covid-19 Facebook LinkedIn Twitterlast_img read more

IIAC updates guidance on U.S. temporary resident exemptions

first_img U.S. congressman introduces residency-based tax bill Keywords Cross-border financial planning,  SnowbirdsCompanies Investment Industry Association of Canada The Investment Industry Association of Canada (IIAC) has revised its guidance for investment dealers serving Canadian clients that are temporarily living in the United States, the industry trade group announced Monday.The IIAC has revised its guidance, which was first issued in 2012, on U.S. states that have adopted regulatory relief for Canadian dealers when they are serving holders of Canadian self-directed retirement plans and Canadian clients who are temporarily living in a particular state. Related news canadian and usa flags mg7/123RF CI acquires another RIA, applies for NYSE listing Share this article and your comments with peers on social media The update includes a new document and spreadsheet with references to state statutes and other notes.The original guidance plus these two newly created documents should be read in conjunction with one another to determine the appropriate requirements for each state, the IIAC says.The revised guidance is available through the IIAC’s members-only website. James Langton Facebook LinkedIn Twitter Snowbirds fighting Ontario health insurance cutslast_img read more