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International Restructuring Newswire
Welcome to the Q2 2024 edition of the Norton Rose Fulbright International Restructuring Newswire.
Canada | Publication | April 6, 2020 – 3 PM ET
The fraud triangle is a well-known tool in understanding fraud. The three sides – opportunity, incentive, and rationalization – offer an explanation to a person’s decision to commit fraud. Similarly, they offer guides to preventing fraud: by addressing the three sides of the triangle, an organization can reduce its risk of fraud.
In a financial crisis, such as we are seeing during the COVID-19 pandemic, all three sides of the fraud triangle indicate an organization is at heightened risk of fraud. Individuals and companies facing serious financial pressure have incentive to commit fraud. Where there are staff reductions, employees working from home, or management focused on critical functions only, unique opportunities arise for committing fraud. Finally, the extreme stress of the pandemic offers ample rationalizations. It is the perfect storm for fraud. As such, companies need to pay more attention than ever to appropriate controls and procedures to prevent and detect instances of fraud.
An organization should consider the following as part of its fraud prevention controls:
Fraud risk management is an important business function in these uncertain times. Companies that fail to enforce strong controls will face the consequences in the months and years to come.
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Welcome to the Q2 2024 edition of the Norton Rose Fulbright International Restructuring Newswire.
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The Canadian Federal Budget 2024 proposes to broaden the scope of certain powers allowing CRA to request information from taxpayers, and sets out new consequences for non-compliant taxpayers.
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The alternative minimum tax is an additional income tax imposed under the Income Tax Act on individuals and certain trusts who would otherwise be able to reduce their ordinary Canadian federal income tax through the use of certain deductions, exemptions or credits.
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