AFCA NL Spring-2007 - Association of Filipino Canadian Accountants
AFCA NL Spring-2007 - Association of Filipino Canadian Accountants
AFCA NL Spring-2007 - Association of Filipino Canadian Accountants
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NEWSLETTER OF THE ASSOCIATION OF FILIPINO CANADIAN ACCOUNTANTS<br />
Volume 29<br />
Issue 2<br />
SPRING <strong>2007</strong><br />
<strong>AFCA</strong> RUNS 9 TAX CLINICS<br />
FROM TORONTO TO BARRIE<br />
The March 4 <strong>AFCA</strong> Barrie-Simcoe tax clinic. L-R: <strong>AFCA</strong> Director Rene Cabrera,<br />
Barrie MP, Pres. Elmore Cudanin, VP Rod Bacani and Sec. Susan Barcenas.<br />
The KCCC tax clinic on March 10 was staffed by Past Pres. Marlo Mallari, Past<br />
Pres. Resty del Rosario, Arlene Martirez, Arnel Vicente and Eden Sambile.<br />
The Kababayan Centre tax clinic in Toronto on March 17 attracted a large crowd<br />
<strong>of</strong> clients for Leader Mercy Gonzales and her team to manage.<br />
In the frenzy <strong>of</strong> the tax season, Al Tupe and<br />
Mercy Gonzales, the chair and co-chair <strong>of</strong><br />
<strong>AFCA</strong>’s Tax Clinic <strong>2007</strong> campaign launched<br />
an ambitious schedule <strong>of</strong> 9 tax clinics all over<br />
the Greater Toronto Area and all the way<br />
north on Highway 400 to the site <strong>of</strong> the<br />
<strong>AFCA</strong>-Barrie-Simcoe chapter.<br />
The free tax preparation service has been a<br />
landmark annual project for low income tax<br />
filers, namely those with incomes up to<br />
$30,000. Anyone showing up at the clinic sites<br />
with slightly higher incomes were assessed a<br />
contribution.<br />
The sites and teams are as follows: Team 1—<br />
Gateway Centre in Mississauga on March 31:<br />
Leader Jezz Garvez, Members Rene Cabrera,<br />
Yolly Manalo, Agnes Gajonera, Edna Bondoc,<br />
Felix Maceda, Ted Dayno, Al Tupe. Team 2—<br />
KCCC in Mississauga Northeast on March 10:<br />
Leader Marlo Mallari, Members Rene<br />
Cabrera, Lani Kennedy, Edna Bondoc, Eden<br />
Sambile, Arlene Martirez, Ted Dayno, Resty<br />
del Rosario. Team 3– Silayan Seniors in Mississauga<br />
Square 1 on March 10: Leader Demi<br />
Padilla, Members Yolly Manalo, Agnes Gajonera,<br />
Antonio Mandrique, Cynthia Mandrique,<br />
Carlos Padilla, Al Tupe. Team 4—<br />
Federation <strong>of</strong> <strong>Filipino</strong> <strong>Canadian</strong>s in Brampton<br />
on March 10: Leader Joe Ragual, Members<br />
Felix Maceda, Jezz Garvez, Jaen Perez,<br />
Rodolfo Perez, Alex Palmero, Al Tupe, Ted<br />
Dayno, Carlos Padilla, Demi Padilla. Team<br />
5—Kababayan Community Centre in Toronto<br />
on March 17: Leader Mercy Gonzales, Members<br />
Lani Kennedy, Jezz Garvez, Rene<br />
Cabrera, Zeny Aguinaldo, Lynn Suero,<br />
Gloria Dy, Nancy Gonzales, Beth Gabriel,<br />
Antonio Mandrique, Cynthia Mandrique, Alex<br />
(Continued on page 12)<br />
IN THIS ISSUE:<br />
<strong>AFCA</strong> Runs 9 Tax Clinics from Toronto to Barrie 1<br />
President’s Message—Ted Dayno 2<br />
Pr<strong>of</strong>essional Notes: Ballroom Dancing and Taxes 2<br />
Foto Galleries, <strong>AFCA</strong> Toastmasters F/S 4, 6, 7<br />
47 New Members Admitted , <strong>AFCA</strong> to Study Bill 124 8<br />
NCPACA Convention Registration and Forms 9-11<br />
<strong>AFCA</strong> Toastmasters Club, Stretch and Grow 12,13
Ted Dayno, <strong>AFCA</strong> President 2006-<strong>2007</strong><br />
MESSAGE FROM<br />
THE PRESIDENT—<br />
TED DAYNO<br />
These past few months have seen a<br />
tremendous burst <strong>of</strong> energy on the<br />
part <strong>of</strong> <strong>AFCA</strong> members, <strong>of</strong>ficers and<br />
past presidents. I certainly consider<br />
myself to be fortunate in that my<br />
presidency is basking in this supernova<br />
<strong>of</strong> activity that exhibits in no less<br />
fashion the power <strong>of</strong> the <strong>AFCA</strong> reactor.<br />
Without the clasp <strong>of</strong> all those talented<br />
hands on the <strong>AFCA</strong> atom, I<br />
could not have done it alone. But, the<br />
fusion, when all those hands provide<br />
each their grip <strong>of</strong> power, is tremendous—let’s<br />
look at the 9 tax clinics<br />
that have just swept through the<br />
Greater Toronto Area all the way<br />
north to Barrie/Simcoe, the Community<br />
Outreach program under past<br />
president Carlos Padilla that is just<br />
about to blast out, the <strong>AFCA</strong> Toastmasters<br />
that has waxed strong<br />
through the years, the career options<br />
sessions, the tax seminars and s<strong>of</strong>tware<br />
training, the <strong>2007</strong> NCPACA convention<br />
under past president Marlo<br />
Mallari, the 2008 NCPACA Philippine<br />
convention by past president Buddy<br />
Ibe and now the Bill 124 initiative by<br />
past president Pempe Saavedra’s<br />
committee.<br />
I can only say Thank You All for the<br />
dedication and enthusuasm for <strong>AFCA</strong>!<br />
Pr<strong>of</strong>essional notes -<br />
BALLROOM DANC-<br />
ING AND TAXES<br />
Are You a Dance-Pro or D. I.?<br />
A DJ or Independent Dance<br />
Teacher or in the Party Business?<br />
In the last ten years, the ballroom dancing<br />
craze has swept through the <strong>Filipino</strong>-<br />
<strong>Canadian</strong> communities across Canada. This<br />
has lately been fuelled further by TV programs<br />
that focus on dancing abilities and the<br />
accompanying movies like “Shall We<br />
Dance” and many others. You’ve probably<br />
heard someone say, “If Emmett, the football<br />
player, can do it, how about me?” referring to<br />
a recent TV dance contest, where the championship<br />
trophy went to an MVP <strong>of</strong> the Dallas<br />
Cowboys and his partner, who I understand<br />
is a mestiza Filipina.<br />
Just as in any craze, opportunities arise to<br />
make money out <strong>of</strong> the interest in dancing.<br />
For example, one could acquire a ballroom<br />
and let it out to <strong>Filipino</strong> groups for dance parties<br />
or balls with catering included, a person<br />
or couple could invest a few thousand dollars<br />
in some expensive sound system and computer<br />
to provide DJ services for these groups,<br />
or a person who has developed some expertise<br />
in ballroom dancing could teach dance in<br />
their homes or rented halls, or a person could<br />
simply organize a dance and make money<br />
from the sales <strong>of</strong> tickets minus the costs <strong>of</strong><br />
the hall, catering and advertisements, and<br />
finally we have the individual who decides to<br />
project himself or herself as a knowledgeable<br />
dance pr<strong>of</strong>essional or “D.I.” (dance instructor)<br />
for a fee, gratuity or gift (there is really<br />
no difference in the words for tax purposes).<br />
Only the <strong>Filipino</strong> group or association, as<br />
long as it follows the rules to maintain its<br />
non-pr<strong>of</strong>it status, may be tax exempt in these<br />
scenarios, but all the rest are considered to be<br />
in the business, pr<strong>of</strong>ession or trade that is<br />
taxable within the Income Tax Act.<br />
Now that it’s tax time, just like the adage<br />
“death and taxes” we should, therefore, take<br />
a hard look at the “ballroom and taxes” angle.<br />
In it’s recent Sunday edition, the Toronto<br />
Star (February 4, <strong>2007</strong>) featured an article<br />
about how <strong>Filipino</strong>s in Toronto have caught<br />
on to the passion. During an interview, a 35year<br />
old <strong>Filipino</strong> pr<strong>of</strong>essional dancer from<br />
the Philippines, let’s refer to him as Jo<br />
C, works as a cook in a Toronto hotel<br />
but moonlights as a D.I. Because <strong>of</strong> his<br />
dance expertise, he hires himself out as<br />
a D.I. for an average <strong>of</strong> three to four<br />
events a week. A Canada Revenue<br />
Agency tax auditor can easily extrapolate<br />
this to mean 3 x 52 x $100 fee or<br />
gratuity = $15,600 pr<strong>of</strong>essional or business<br />
income for the year, even if only<br />
based on his lower estimate <strong>of</strong> 3 rather<br />
than 4 times a week. Chances are Jo C<br />
may “forget” to include this in his 2006<br />
and prior year income tax returns depending<br />
on when he started being a D.I.<br />
Just like a tennis pro or a golf pro, the<br />
dance pro or D.I. as he is known in the<br />
<strong>Filipino</strong> community is a person engaged<br />
in a “pr<strong>of</strong>essional” business and is,<br />
therefore, engaged in a taxable activity.<br />
The same goes with the dance teacher,<br />
who teaches dance to a few couples in<br />
the basement <strong>of</strong> his or her home or even<br />
rents a hall for this purpose, or the DJ<br />
who provides music services to <strong>Filipino</strong><br />
associations. Such DJ, who charges an<br />
average <strong>of</strong> $500 per party and does 20<br />
parties a year could easily make<br />
$10,000 taxable income a year at a<br />
minimum.<br />
The fact that engaging in the business<br />
<strong>of</strong> providing dance instruction or the<br />
business <strong>of</strong> conducting dance parties is,<br />
in effect, conducting a business, means<br />
that the service provider is entitled to<br />
expenses specifically related to the income<br />
earned. In effect, if the business<br />
<strong>of</strong> dance instruction is conducted in the<br />
basement <strong>of</strong> one’s home, one should be<br />
able to deduct a proportionate share <strong>of</strong><br />
the costs <strong>of</strong> owning that home, which<br />
includes such expenditures as mortgage<br />
interest, property taxes and maintenance<br />
costs. The D.I., in the meantime, may<br />
incur transportation expenses, e.g. the<br />
costs <strong>of</strong> owning and maintaining a car,<br />
laid out for running to and from dance<br />
parties. The dance party organizer, on<br />
the other hand, would have expenses<br />
comprised <strong>of</strong> hall rental, advertisement,<br />
food catering, printing <strong>of</strong> tickets, and<br />
wages <strong>of</strong> waiters. The criteria for deductibility<br />
<strong>of</strong> expenses is laid out in<br />
what tax jurisprudence refers to as the<br />
“business purpose” test, being that for<br />
an expense to be deductible, it must<br />
have been “laid out for the purpose <strong>of</strong><br />
(Continued on page 12)<br />
Page 2 SPREADSHEET
ASSOCATION OF FILIPINO<br />
CANADIAN ACCOUNTANTS<br />
4800 Sheppard Avenue East, Unit 123<br />
Scarborough, ON, Canada M1S 4N5<br />
Tel. (416) 609-8912, (416) 738-8912<br />
Fax (416) 609-3843<br />
Website: www.afcatoronto.org<br />
EXECUTIVE OFFICERS<br />
President Ted Dayno<br />
Executive Vice<br />
President Joe Ragual<br />
Vice President<br />
-External Edgardo Gonzales<br />
Vice President<br />
-Internal Frank Aquino<br />
Secretary Roselie Apo<br />
Assistant<br />
Secretary Janessa Javier<br />
Treasurer Connie Celino<br />
Assistant<br />
Treasurer Cecile Barrameda<br />
Auditor Al Tupe<br />
P. R. O. Jess Carlos<br />
Immediate Past<br />
President Julito Longkines<br />
Directors Renato Cabrera<br />
Minerva Garcia<br />
Mercy Gonzales<br />
Jaric Justo<br />
Lani Kennedy<br />
Maria Evelyn Marquez<br />
Juliet Perez<br />
Maria Corazon Santos<br />
Chair , Auxiliary Minda Longkines<br />
PAST PRESIDENTS<br />
Marlo Mallari (2002-2003)<br />
Nestor Perez (2001)<br />
Librado Ibe Jr. (2000)<br />
Jose Saavedra Jr. (1998-99)<br />
Beato Amiel dela Cruz (1995-97)<br />
Enrico Falco (1994)<br />
Demie Padilla (1992-93)<br />
Resty del Rosario (1990-91)<br />
Elmar Sabundayo, dec. (1989-90)<br />
Dan Palis (1988-89)<br />
Carlos Padilla (1986-87)<br />
Roger Calabio (1983-85)<br />
Winston Lim (1978-82)<br />
<strong>AFCA</strong> is affiliated with the<br />
National Council <strong>of</strong><br />
Philippine American<br />
<strong>Canadian</strong> <strong>Accountants</strong><br />
(NCPACA)<br />
VOLUME 29<br />
tHERE<br />
Commentary...<br />
Tell Your Friend<br />
About <strong>AFCA</strong><br />
by W. Lim, Founding President<br />
If you have a friend who is a <strong>Filipino</strong> accountant but has<br />
not yet joined the <strong>AFCA</strong>, why not invite him or her to join<br />
Winston Lim, CGA up? There are benefits to joining the association, namely<br />
the ASSOCIATE pr<strong>of</strong>essional EDITOR sessions, career options seminars, the sharing <strong>of</strong> information about<br />
career opportunities, the leadership training, camaraderie and social functions. There<br />
is the opportunity to improve one’s public speaking skills through the <strong>AFCA</strong> Toastmasters<br />
Club, which adheres to the rigorous standards <strong>of</strong> Toastmasters International.<br />
If you were involved this season, you must have participated in one <strong>of</strong> <strong>AFCA</strong>’s community<br />
tax clinics with the accompanying income tax theory and s<strong>of</strong>tware training<br />
provided by experienced members. So, why not share <strong>AFCA</strong> with your friends!<br />
IN RECOGNITION—TED DAYNO<br />
Worthy <strong>of</strong> mention is Ted Dayno’s recent appointment to Board Member <strong>of</strong> the<br />
Community Care Access Centre <strong>of</strong> the Ministry <strong>of</strong> Health for Central East, which<br />
covers the area <strong>of</strong> Durham, Peterborough and part <strong>of</strong> Scarborough. This high pr<strong>of</strong>ile<br />
appointment puts Ted in a position to help oversee the huge budget for the program<br />
that will be <strong>of</strong> benefit to the most vulnerable members <strong>of</strong> our community.<br />
THANKS FOR THE PHOTO CONTRIBUTIONS<br />
To Connie Celino, Rene Cabrera and on the last issue, Jess Carlos.<br />
Invitation to<br />
INFORMATION SESSION ON<br />
ACCOUNTING DESIGNATIONS<br />
(CGA, CMA, CA, US CPA, CIA, CISA)<br />
Friday, May 4, <strong>2007</strong><br />
6:00pm<br />
DAYS HOTEL & CONFERENCE CENTRE<br />
30 Carlton Street<br />
Toronto, Ontario<br />
(East <strong>of</strong> Yonge beside the old Maple Leaf Gardens,<br />
close to College Subway Station)<br />
A minimal fee <strong>of</strong> $10 will be charged at the door to cover the cost <strong>of</strong> facility and<br />
light refreshments. Please confirm attendance so we can advise the hotel on the<br />
number <strong>of</strong> participants.<br />
For further details and confirmation <strong>of</strong> attendance, please call:<br />
Ted Dayno, <strong>AFCA</strong> president—(416) 738-8912<br />
Juliet Perez, <strong>AFCA</strong> Director, Event Chair—(905) 896-3106<br />
Page 3
Page 4<br />
Foto Gallery-Member’s Induction<br />
Ladies at the Registration Desk. New members getting sworn in.<br />
Elmore Cudanin, Princess Lim, Carolyn Mallari and Cristina Gamo. The members were sworn in by President Ted Dayno.<br />
President Ted Dayno presenting service awards. More <strong>of</strong> the new members getting sworn in.<br />
SPREADSHEET
Employee v.<br />
Self-Employed<br />
A CRA Audit Nightmare<br />
By Ed Sarmiento, <strong>AFCA</strong> co-founder and First<br />
Treasurer, retired Senior Tax Auditor and<br />
Appeals Officer, Canada Revenue Agency<br />
You hired workers as independents or<br />
self-employed individuals. CRA payroll<br />
auditor examines your working relationship.<br />
Problems? That may be an<br />
understatement if CRA decides to assess<br />
you for failure to deduct CPP, EI<br />
and income tax from the workers earnings.<br />
You, HRDC, CEIC and even<br />
CRA will have problems. How about<br />
the worker?<br />
Problems because the auditor will tell<br />
you the assessment is payable immediately.<br />
It is not fair (contrary to Spirit <strong>of</strong><br />
the Law, double collection <strong>of</strong> tax and<br />
CPP), contrary to case law (higher<br />
court decisions) and the CPP, EI and<br />
Income Tax law, but you will need to<br />
appeal. Fighting such an assessment is<br />
usually very costly. You may even be<br />
unfairly forced into bankruptcy.<br />
CRA has problems because the Income<br />
Tax, CPP and EI laws require<br />
issuance <strong>of</strong> amended T4’s and reassessment<br />
<strong>of</strong> all the workers. Pensionable<br />
earnings will change and CPP law requires<br />
this to be reported to HRDC to<br />
amend records necessary to properly<br />
calculate future CPP benefits. CEIC<br />
also requires the change in Insurable<br />
Earnings. And if you appeal and win,<br />
CRA, HRDC and CEIC will need to<br />
reverse all the amendments. Of course,<br />
nobody likes messed records.<br />
How about the worker? He/she may<br />
be pleased because the tax and CPP<br />
premiums assessed from you will be<br />
credited/refunded to him/her. The<br />
VOLUME 29<br />
Ed Sarmiento, <strong>AFCA</strong> co-founder and<br />
First Treasurer<br />
worker effectively gets paid unfairly<br />
more than agreed. But may only be<br />
temporary. If you appeal and win, he/<br />
she would be reassessed again to pay<br />
back.<br />
For a corporation that cannot pay,<br />
CRA has authority to assess the directors<br />
under the Directors Liability provisions.<br />
If CRA’s Collection Officer is<br />
not happy, they can garnish your bank<br />
account and/or seize corporate assets.<br />
What defences are available? Many,<br />
if you and/or your representative have<br />
the “know how”. CRA collection action<br />
can be stopped under the Fairness<br />
provisions <strong>of</strong> the law. Also the director’s<br />
liability because you have very<br />
good “due dilligence” defence. The<br />
assessment can also be reversed. Not<br />
easy and will usually take lots <strong>of</strong> time,<br />
effort and representation cost.<br />
Your position against the assessment<br />
is very strong, contrary to a couple <strong>of</strong><br />
legal opinions received by one client.<br />
Case law (court decisions) on “EE v.<br />
SE” (Employee versus Self-Employed)<br />
says that unless CRA has conclusive<br />
evidence <strong>of</strong> sham, the agreed upon<br />
working relationship between the parties<br />
should be respected in law by third<br />
parties (CRA <strong>of</strong> course). The higher<br />
court also ruled that the parties’ agreement<br />
outweigh the traditional “4-in-1<br />
Tests” <strong>of</strong> Degree <strong>of</strong> Control, Ownership<br />
<strong>of</strong> Tools, Financial Risk <strong>of</strong> Pr<strong>of</strong>it,<br />
and Integration. The leading cases are<br />
Federal Court <strong>of</strong> Appeal decisions that<br />
clearly recognize the importance <strong>of</strong><br />
Taxpayer Right to Freedom <strong>of</strong> Contract.<br />
“Let the Parties Decide”, wrote<br />
one prominent lawyer in his legal commentaries<br />
on one <strong>of</strong> the FCA decisions.<br />
In fairness to CRA payroll auditors, my<br />
experience shows they are not equipped<br />
with the training and experience necessary<br />
to deal with the question <strong>of</strong> fact on<br />
“EE v. SE”, i.e., gathering the audit<br />
evidence necessary to prove the existence<br />
<strong>of</strong> sham and sustain it in Court.<br />
With an “SE” or Self-Employed finding,<br />
the Court rules that CRA made an<br />
erroneous application <strong>of</strong> the law to the<br />
facts.<br />
Even if the Court finds in favour <strong>of</strong><br />
“EE”, there are specific provisions in<br />
the law (Tax, CPP and EI) that say you<br />
are not liable for the alleged failure to<br />
deduct and remit. Here is where understanding<br />
the Spirit <strong>of</strong> the Law is useful.<br />
For income tax, the law used reverse<br />
logic in the provision because it is not<br />
necessary to be specific. The logic is<br />
that any tax shortfall will be payable by<br />
the individual come tax time. CPP and<br />
EI laws also logically do not give absolute<br />
authority to CRA on CPP/EI rulings,<br />
apparently to discourage payroll<br />
auditors from arbitrarily reviewing and<br />
changing employment relationships.<br />
Tax loss, if any, would be insignificant<br />
and not worth the administrative problems.<br />
Putting together the CPP and EI provisions<br />
can make you win, even if you<br />
lose on “EE v. SE”.<br />
We acknowledge<br />
Our Corporate<br />
Sponsors<br />
ADRIATIC INSURANCE<br />
BROKERS LTD.<br />
BECKER-CONVISER<br />
BELLE OPTICAL<br />
Page 5
Page 6<br />
Foto Gallery—<br />
Members’ Induction & Tax Clinics<br />
The Kababayan Tax Clinic Team doing an interview. The large crowd <strong>of</strong> clients at the Kababayan Tax Clinic.<br />
Team members <strong>of</strong> the Kababayan Tax Clinic take a break. Ladies having fun during the dance at Members’ Induction.<br />
Kababayan Clinic Leader Mercy Gonzales and some members.<br />
Lining up at the food table at Members’ Induction Night.<br />
SPREADSHEET
Marlo Mallari, Treasurer<br />
<strong>AFCA</strong> Toastmasters Club<br />
<strong>AFCA</strong> Toastmasters Club treasurer<br />
Marlo Mallari submitted the following<br />
Financial Statements. Details may be obtained<br />
by contacting Marlo Mallari or<br />
president Maria Santos.<br />
<strong>AFCA</strong> Treasurer Connie Celino and<br />
Auditor Al Tupe have indicated they<br />
should be ready with the <strong>AFCA</strong> Financial<br />
Statements by next issue <strong>of</strong> the<br />
newsletter.<br />
VOLUME 29<br />
ISSUE 2<br />
Upcoming<br />
Events <strong>2007</strong><br />
Mar. 20—Release <strong>of</strong> Spreadsheet.<br />
Apr. 20—Executive Council Meeting,<br />
location TBA, chair R. Apo, co-chair<br />
J. Javier.<br />
May 4—Career Option Seminar, location<br />
TBA, chair J. Perez, co-chair L.<br />
Kennedy.<br />
May 6—Fund Raising-Casino Rama,<br />
chair F. Aquino, co-chair J. Carlos.<br />
May 18—Executive Council Meeting,<br />
location TBA, chair R. Apo, co-chair<br />
J. Javier.<br />
May 26—Pr<strong>of</strong>essional Development<br />
Seminar, details TBA, chair M Santos,<br />
co-chair L. Kennedy.<br />
June 1—Release <strong>of</strong> Spreadsheet.<br />
June 10—Tennis Tournament, location<br />
TBA, chair A. Bacarro, co-chair<br />
R. Cabrera.<br />
June 15—Executive Council Meeting,<br />
location TBA, chair R. Apo, cochair<br />
J. Javier.<br />
CURRENT ASSETS REVENUES<br />
June 30—Summer Picnic, details TBA,<br />
chair E. Gonzales, co-chair M. Garcia.<br />
July 20—Executive Council Meeting,<br />
location TBA, chair M. Mallari, co-chair<br />
J. Longkines.<br />
Aug. 26—Golf Tournament, details<br />
TBA, chair C. Padilla, co-chair J. Longkines.<br />
Aug. 17—Executive Council Meeting,<br />
location TBA, chair M. Mallari, co-chair<br />
J. Longkines.<br />
Aug. 31—Release <strong>of</strong> Spreadsheet.<br />
Aug. 31—NCPACA Convention, Toronto—see<br />
pages 9, 10 and 11, chair M.<br />
Mallari, co-chair J. Longkines.<br />
Sep. 21—Executive Council Meeting,<br />
location TBA, chair R. Apo, co-chair J.<br />
Javier.<br />
Sep. 22—Annual General Meeting and<br />
Elections, chair D. Palis, co-chair Resty<br />
del Rosario.<br />
Oct. 19—Executive Council Meeting,<br />
location TBA, chair R. Apo, co-chair J.<br />
Javier.<br />
Oct. 28—Caroling Group formation,<br />
details TBA, chair M. Santos, co-chair<br />
F. Aquino.<br />
Dec. 7—Christmas Party, chair M.<br />
Santos.<br />
No date yet—Bowling Tournament,<br />
Cash in Bank $ 2,625 Membership Fees $ 3,330<br />
Accts. Receivable 180 Collections—Snacks 607<br />
Total Current Assets $ 2,805 “Ah” count 18<br />
LIABILITIES<br />
<strong>AFCA</strong> TOASTMASTERS CLUB<br />
As <strong>of</strong> February 28, <strong>2007</strong> (Unaudited)<br />
Balance Sheet Statement <strong>of</strong> Operations<br />
Unearned Income $ 225 EXPENSES<br />
Total Revenues $ 3,955<br />
Accounts Payable 350 Membership Dues $ 966<br />
Total Current Liabilities $ 575 Rent Expense 750<br />
FUND BALANCE Foods & Snacks 565<br />
Unrestricted Fund Balance $ 2,230 Trophies & Awards 149<br />
Total Liabilities & Funds $ 2,805 Advertising &Other 254 $ 2,684<br />
$ 1,271<br />
CUMULATIVE EXCESS $ 959<br />
UNRESTRICTED FUND BAL. $ 2,230<br />
Page 7
47 NEW MEMBERS<br />
ADMITTED INTO<br />
MEMBERSHIP IN<br />
JANUARY <strong>2007</strong><br />
President Ted Dayno <strong>of</strong> the <strong>Association</strong><br />
<strong>of</strong> <strong>Filipino</strong> <strong>Canadian</strong> <strong>Accountants</strong> <strong>of</strong>ficially<br />
accepted into membership fortyseven<br />
(47) <strong>Filipino</strong> accountants at the<br />
January 27 <strong>AFCA</strong> Membership Induction<br />
Dance held at the Kalayaan Cultural<br />
Community Centre, 5225 Orbitor Drive,<br />
Mississauga.<br />
About one hundred fifty people attended<br />
the annual acceptance <strong>of</strong> membership<br />
event. According to executive vice<br />
president Joe Ragual and internal VP<br />
Frank Aquino, the record number <strong>of</strong> new<br />
members accepted this year highlights<br />
the dynamic growth <strong>of</strong> the association as<br />
it continues its programs <strong>of</strong> pr<strong>of</strong>essional<br />
development and community outreach.<br />
External VP Edgardo Gonzales pointed<br />
out that the continued increase in membership<br />
reflects the continued interest <strong>of</strong><br />
the association membership as well as<br />
the exemplary reputation it projects as its<br />
leaders pursue a course true to the ideals<br />
and objectives laid out in its mission in<br />
the <strong>Filipino</strong> <strong>Canadian</strong> community.<br />
Carlos Padilla, a past president <strong>of</strong> the<br />
association, who now heads its Community<br />
Outreach Committee spearheads<br />
<strong>AFCA</strong>’s program <strong>of</strong> <strong>of</strong>fering to other<br />
<strong>Filipino</strong> <strong>Canadian</strong> non-pr<strong>of</strong>it community<br />
organizations a management accounting<br />
and internal audit assistance service to<br />
assist them in achieving organizational<br />
fiscal transparency, assistance in laying<br />
out a firm foundation in accounting recordkeeping<br />
and maintaining an effective<br />
program <strong>of</strong> financial control. Mr. Padilla<br />
is a Certified Public Accountant who recently<br />
retired from his executive position<br />
as controller <strong>of</strong> the <strong>Canadian</strong> subsidiary<br />
<strong>of</strong> a large U.S. corporation specializing<br />
in industrial movement equipment. <strong>Filipino</strong>-<strong>Canadian</strong><br />
associations in the<br />
Greater Toronto Area wishing to explore<br />
how this service may improve its fiscal<br />
transparency and management are invited<br />
to contact either Past president Carlos<br />
Padilla at cpadilla@ sympatico.ca or<br />
President Ted Dayno at tedayno@rogers.<br />
com. End<br />
VOLUME 29<br />
ISSUE 2<br />
<strong>AFCA</strong> to Study BILL<br />
124, Fair Access to<br />
the Regulated<br />
Pr<strong>of</strong>essions Act<br />
The March 13 issue <strong>of</strong> the Toronto Star<br />
reported on its front page the appointment<br />
<strong>of</strong> former Liberal MP Jean Augustine to<br />
be Ontario’s first “Fairness Commissioner”<br />
to address the problem <strong>of</strong> recognition<br />
<strong>of</strong> overseas credentials <strong>of</strong> foreigntrained<br />
pr<strong>of</strong>essionals. In terms <strong>of</strong> <strong>AFCA</strong>,<br />
this means the Philippine (1) Bachelors<br />
degree in accounting, and (2) Certified<br />
Public Accountant designation. Obviously,<br />
on the other side <strong>of</strong> the spectrum<br />
are (1) Ontario’s Ministry <strong>of</strong> Education<br />
(or body responsible for foreign degree<br />
evaluations), (2) CGA association, (3)<br />
CMA association) (4) CICA and (5) to a<br />
certain extent, the Public Accountancy<br />
Council.<br />
Discussed over the latest emails are the<br />
need for <strong>AFCA</strong> to form an Ad Hoc committee<br />
to:<br />
(1) Study and research the relevance <strong>of</strong><br />
the new Ontario Fair Access to the Regulated<br />
Pr<strong>of</strong>essions Act,<br />
(2) Review the evaluation criteria used<br />
by the Ministry <strong>of</strong> Education and accounting<br />
bodies on foreign degrees,<br />
(3)Write a letter addressed to the new<br />
Fairness Commissioner as to <strong>AFCA</strong>’s<br />
concerns and interests with respect to<br />
Bill 124, and<br />
(4)Prepare and submit a formal presentation<br />
brief (from the research undertaken)<br />
outlining <strong>AFCA</strong>’s recommendations for<br />
better recognition <strong>of</strong> Philippine bachelor<br />
degrees in accounting and the Philippine<br />
CPA designation with a request that<br />
<strong>AFCA</strong> be invited to formally address the<br />
Fairness Commissioner and her fellow<br />
commissioners as to <strong>AFCA</strong>’s recommendations<br />
for improved levels <strong>of</strong> recognition<br />
<strong>of</strong> the Philippine bachelors degree<br />
in accounting and the CPA designation.<br />
End<br />
During the New Members Induction Night event, President Ted Dayno presented<br />
recognition awards to various <strong>of</strong>ficers, members and past-presidents.<br />
Page 8
Page 9 SPREADSHEET
Page 10<br />
VOLUME 29<br />
REGISTRATION FORM
Page 11<br />
PPPage<br />
Page<br />
Page<br />
11<br />
11
<strong>AFCA</strong> runs 9 clinics<br />
(continued from page 1)<br />
Palmero, Julito Longkines, Buddy Ibe,<br />
Bryan Ganaba. Team 6—INTERCEDE<br />
in Toronto on April 15: Leader Lani<br />
Kennedy, Members Mercy Gonzales,<br />
Rene Cabrera, Nancy Gonzales, Zeny<br />
Aguinaldo, Lynn Suero, Eva Boliver,<br />
Eden Sambile, Arlene Martirez, Beth<br />
Gabriel, Agnes Gajonera,Irene Jovellano,<br />
Jaen Perez, Rodolfo Perez, Jezz<br />
Garvez, Jess Carlos, Buddy Ibe, Joe<br />
Ragual. Team 7—St. Jamestown Safety<br />
Committee in Toronto on March 25:<br />
Leader Jezz Garvez, Rene Cabrera, Antonio<br />
Mandrique, Cynthia Mandrique,<br />
Edna Bondoc, Felix Maceda, Ted<br />
Dayno, Al Tupe, Arlene Martirez, Jess<br />
Carlos, Buddy Ibe, Julito Longkines,<br />
Jorege Gonzaga. Team 8—Richmond<br />
<strong>Filipino</strong> Group in Richmond Hill on<br />
March 18: Leader Jess Carlos, Members<br />
Jezz Garvez, Rene Cabrera, Gloria<br />
Dy, Bing Eola, Irene Jovellano, Al<br />
Tupe, Ted Dayno, Buddy Ibe, Joe Ragual,<br />
Eva Boliver. Team 9—<strong>AFCA</strong><br />
Barrie-Simcoe in Barrie on March 4:<br />
Leader Elmore Cudanin, Members Joe<br />
Ragual, Ted Dayno, Rene Cabrera, Jess<br />
Carlos, Buddy Ibe, Julito Longkines,<br />
Carlos Padilla, Demi Padilla.<br />
End<br />
Pr<strong>of</strong>essional notes:<br />
Ballroom dancing...<br />
Continued from page 2<br />
earning income from business or property.”<br />
Because <strong>of</strong> the severity <strong>of</strong> penalties to<br />
those who forget to include this activity<br />
and the income therefrom in the tax<br />
return, it is advisable to seek the advice<br />
<strong>of</strong> a good public accountant in this regard.<br />
The lesser penalty <strong>of</strong> subsection<br />
163(2) <strong>of</strong> the Income Tax Act for misrepresentation<br />
and gross negligence is<br />
still a stiff addition <strong>of</strong> 50% <strong>of</strong> the income<br />
tax not reported to the tax that<br />
should have been paid on the unreported<br />
income.<br />
Where the non-compliance has the<br />
underpinnings <strong>of</strong> fraud, the penalties<br />
are much more severe, as charges will<br />
be laid not only under the Income Tax<br />
Page 12<br />
Act but also the Criminal Code. Something<br />
to consider, also, is that once your<br />
gross income from the above mentioned<br />
activities go beyond $30,000 in<br />
the year, you will also have to register<br />
for the Goods and Services Tax and<br />
include the 6% sales tax on your gross<br />
fee or “gratuity,” otherwise the money<br />
received for your services will be<br />
deemed to be GST-included. In any<br />
case, you will have to remit the net<br />
GST collected or deemed collected to<br />
the government.<br />
End<br />
<strong>AFCA</strong><br />
TOASTMASTERS<br />
CLUB<br />
OPEN TO <strong>AFCA</strong> MEMBERS AND<br />
NON-ACCOUNTANT FRIENDS<br />
To attend a free demo session email<br />
maria.c.santos@sympatico.ca<br />
limeagle@rogers.com<br />
Maria Santos, President<br />
<strong>AFCA</strong> Toastmasters Club<br />
<strong>AFCA</strong><br />
TOASTMASTERS<br />
CLUB<br />
GOING STRONG<br />
Improve Your<br />
Public Speaking Skills!!!<br />
By Ken Lim<br />
The power <strong>of</strong> the spoken word can be<br />
measured by its results. Therefore, for the<br />
results-oriented person, mastery <strong>of</strong> the<br />
spoken word is invaluable. Think <strong>of</strong> the<br />
relationships broken, deals bungled and<br />
opportunities missed by one’s inability to<br />
convey an idea clearly, persuasively and<br />
sincerely.<br />
To get ahead in this highly competitive<br />
world, one can never be too fluent,<br />
too insightful, too prepared to express<br />
oneself to others. Clear communication is<br />
like hitting all the right notes in a song –<br />
it could have a pr<strong>of</strong>ound effect on the<br />
listener. On the other hand, a mediocre<br />
speaker <strong>of</strong>ten gets a mediocre response<br />
characterized by puzzlement, boredom or<br />
outright rejection.<br />
My point is that the better speaker is<br />
inside you and waiting to be freed, so let<br />
him/her out already! You don’t have to<br />
submit yourself to some .rigorous crash<br />
course to achieve verbal liberation. There<br />
is an easier, friendlier way to go about<br />
it - you can join <strong>AFCA</strong> Toastmasters<br />
Club.<br />
The club was formed in 2002 by members<br />
<strong>of</strong> the <strong>Association</strong> <strong>of</strong> <strong>Filipino</strong>-<br />
<strong>Canadian</strong> <strong>Accountants</strong>, primarily those<br />
who’d experienced Toastmasters in Riyadh,<br />
Saudi Arabia and wanted to share this interest<br />
with others. Although started as a project<br />
by the <strong>AFCA</strong> pr<strong>of</strong>essional development<br />
committee, <strong>AFCA</strong> Toastmasters is not<br />
governed by <strong>AFCA</strong>, but is distinct and<br />
separate, under the auspices <strong>of</strong> Toastmasters<br />
International, U.S.A. In its evolution<br />
over time, <strong>AFCA</strong> Toastmasters has become<br />
a healthy mix <strong>of</strong> pr<strong>of</strong>essionals, not<br />
just accountants.<br />
Members learn to speak individually<br />
in a group setting and pleasantly find<br />
themselves being nurtured in a caring,<br />
supportive environment. Everyone is encouraged<br />
to play a role in club sessions,<br />
be it as a meeting <strong>of</strong>ficial, an impromptu<br />
speaker, a presenter <strong>of</strong> a prepared speech<br />
or as a speech evaluator. A new member<br />
is started <strong>of</strong>f with manuals and appointed<br />
SPREADSHEET
a mentor from among the experienced<br />
members. With twenty-six active members<br />
as a driving force, <strong>AFCA</strong> Toastmasters is<br />
currently conducting a recruiting drive for<br />
the spring, after a winter hiatus. New members<br />
will be greeted with welcoming smiles,<br />
encouragement and all the help they will<br />
need.<br />
New members will not only learn to<br />
speak well but will also develop leadership<br />
skills by helping to conduct meetings,<br />
plan programs and run club business.<br />
They will learn to abide by parliamentary<br />
procedure, be able to give and<br />
receive constructive criticism and observe<br />
proper decorum at all times.<br />
Meetings are held at 6:30 p.m. on the<br />
second and fourth Friday <strong>of</strong> each month,<br />
at the Don Vale Medical Centre, basement<br />
level, 597 Parliament Street (at<br />
Wellesley), Toronto.<br />
So what are you waiting for? Just<br />
show up at the meeting, and we will do<br />
the rest. End<br />
STRETCH AND<br />
GROW!<br />
By Maria C. Santos, President<br />
<strong>AFCA</strong> Toastmasters Club<br />
Here’s the million dollar question,<br />
Why join Toastmasters Club?<br />
The mission <strong>of</strong> Toastmasters Club is to<br />
provide a mutually supportive and positive<br />
learning environment in which every<br />
member has the opportunity to develop<br />
communication and leadership skills, to<br />
foster self confidence and personal<br />
growth. Toastmaster Club is the most<br />
inexpensive place to acquire quality self<br />
development and it is proven globally.<br />
The most valuable investment is your<br />
time, supposedly to be spent with your<br />
family and friends therefore, make sure to<br />
achieve the returns <strong>of</strong> your time investment<br />
and challenge yourself to STRETCH<br />
beyond your comfort zone.<br />
Let me share with you the “Rubber Band<br />
Principle” which I learned from the numerous<br />
Conventions I have attended.<br />
“We are engineered to meet challenges,<br />
we are made to stretch. We can be compared<br />
to a rubber band. When it is not<br />
being stretched, it is small and relaxed<br />
and not doing what it was made to do. It<br />
is only by stretching that you can improve<br />
and grow, in the process we are<br />
VOLUME 29<br />
<strong>AFCA</strong> Toastmasters Club <strong>of</strong>ficers, members and mentors for 2006-<strong>2007</strong>: Back<br />
row: Maria Santos, Marianne Romano-Lim, Claudia Mio, Agnes Acoba, Myrna de<br />
Leon, Minerva Garcia. Front row: Alan Devine, Ken Lim, Daniel Clariet, George<br />
Tabucan, and Nestor Ang. Not in the picture: Marlo Mallari, Arnel Vicente, Arlene<br />
Babaran, and Sarah Uy. Past presidents: 2002-2003 Allen Bacarro, 2003-<br />
2004 Minda Longkines, 2004-2005 Minerva Garcia.<br />
tempted to compare ourselves to those<br />
around us. You cannot afford to compare<br />
yourself to any other person. The question<br />
is NOT “Are you better than someone<br />
else?” The question is, “Are you<br />
stretching? Reaching? Growing? Any<br />
goal that you reach without stretching is<br />
set too low. Know what you are capable<br />
<strong>of</strong>, it is only your personal evaluations<br />
that matters.<br />
We must be always hungry, hungry to<br />
set a better example, give more support to<br />
the causes, people and organizations we<br />
strongly care about and believe in. Like a<br />
rubber band when not stretched it is more<br />
relaxed and in its comfortable state, however,<br />
it is also unproductive. To constantly<br />
strive produces tension, it has discomforts.”<br />
To enhance your communication<br />
and leadership skills, Toastmasters<br />
Club is the perfect place to be. Stretch<br />
beyond those fears and discover it yourself<br />
that you have everything to gain<br />
nothing to lose at all.<br />
In Toastmasters Club it’s a two-way<br />
learning process, you share your time ,<br />
talent, yourself, and you will be<br />
amazed on what you receive in return,<br />
the fun, friendship, the confidence that<br />
you run away with, that you apply in<br />
your daily lives, at home with your<br />
family, in your workplace, Priceless!<br />
FEATURE VOLUNTEER<br />
MEMBER<br />
Rene Cabrera, Director<br />
On March 4, Rene Cabrera drove all the<br />
way north on Highway 400 amid a snowstorm<br />
to join the <strong>AFCA</strong>-Barrie/Simcoe<br />
members with their tax clinic. Rene works<br />
for Bombardier Transportation Willowbrook<br />
Facility as Buyer/Inventory Clerk. His wife<br />
Ruby is a Philippine-trained dentist currently<br />
working as a dental assistant. The<br />
couple has a 5-year-old daughter named<br />
Alexa. They are soon moving to a new<br />
home they bought in Stouffville, Ontario.<br />
Page 13
<strong>AFCA</strong> MARKS 3 FEBRUARY TAX SEMINARS<br />
February <strong>2007</strong>, was a banner month for<br />
<strong>AFCA</strong> with three income tax seminars in<br />
one month alone.<br />
On February 3, the tax seminar held at<br />
the Townshend College on a Saturday<br />
afternoon turned out to be well-attended<br />
with the room literally packed with attendees.<br />
This event featured a seminar on<br />
income tax theory basics covering updates<br />
for 2006-<strong>2007</strong> as well as principles<br />
to know with respect to individuals and<br />
tax return related subjects. This was followed<br />
by a hands-on workshop on income<br />
tax s<strong>of</strong>tware by Ted Dayno with the<br />
assistance <strong>of</strong> Al Tupe. Maria Santos and<br />
Lani Kennedy who were in-charge <strong>of</strong><br />
Page 14<br />
pr<strong>of</strong>essional development managed the<br />
event with the assistance <strong>of</strong> Connie Celino,<br />
Sol and Frank Aquino.<br />
The February 18 event was held in<br />
Barrie at the City Library under the sponsorship<br />
<strong>of</strong> the <strong>AFCA</strong>-Barrie-Simcoe<br />
group led by Elmore Cudanin. A delegation<br />
from <strong>AFCA</strong> Toronto participated,<br />
namely: Ted Dayno, Carlos Padilla, and<br />
Winston Lim.<br />
On February 25, the afternoon tax<br />
seminar was held at the auditorium <strong>of</strong> the<br />
Golden Valley Foods at Principal Road in<br />
Scarborough with a sizable attendance.<br />
The event featured an income tax theory<br />
as a start followed by s<strong>of</strong>tware applications.<br />
The <strong>AFCA</strong> holds such seminars in anticipation<br />
<strong>of</strong> the tax clinics, particularly<br />
for volunteers who staff the clinics all<br />
over the Greater Toronto Area.<br />
President Ted Dayno has also recently<br />
received a request from the Philippine<br />
Chamber <strong>of</strong> Commerce Toronto for<br />
<strong>AFCA</strong> to present a Tax Seminar on Small<br />
Business Taxation to its members, who<br />
comprise <strong>Filipino</strong>-<strong>Canadian</strong> businesses in<br />
the Greater Toronto Area. According to<br />
Mr. Dayno, the seminar will likely be<br />
later in March or mid-April. End<br />
Lani Kennedy, Al Tupe, Maria Santos opening the seminar. The tax seminar team during the refreshment break.<br />
Al Tupe delivering his opening remarks on the seminar. Seminar attendees at the Golden Valley hall.<br />
SPREADSHEET
VOLUME 29<br />
Dr. Shirley Salazar<br />
OFFICE CONVENIENCES & HIGHLIGHTS<br />
Page 15