News and views

New and noteworthy information you can use

Report forecasts top online threats for 2008

A security report released by CA — a U.S.-based independent software company, forewarns that online gamers, social networks and high-profile events, like the U.S. presidential election and the Beijing Olympics, are among the top potential targets for online attacks in 2008. The study, based on data compiled by CA’s global security advisor researchers, features Internet security predictions for 2008 and also reports on trends from 2007.

“Cyber-criminals go where opportunity lies and take advantage of any and all vulnerabilities,” Brian Grayek, the vice-president of product management for CA’s Internet security business unit, says. “While security protection is becoming better at detecting malware, online thieves are getting smarter and stealthier in the way they attack our computers.”

Other online security predictions for 2008 include:

1. The number of computers infected by botnets will increase. In an effort to become harder to detect, bot-herders are changing their tactics and decentralizing via peer-to-peer architectures. They are increasing using instant messaging as their main vehicle for spreading botnets.
2. Social networking sites will become more vulnerable. The large number of aggregated potential victims and relatively small concern for computer security make these sites a windfall for cyber thieves.
3. Despite rumours of malware, mobile devices will still be safe. Smart phones and other mobile devices will not be a real opportunity for criminals in 2008.

“The digital footprints that are collected and stored when- ever we use the Internet are incredibly valuable to marketers and to online criminals,” Grayek adds. “We’ve seen malware evolve from a cottage industry to a full-fledged fraud business. Shockingly, it is now operating with business practices and development similar to legitimate software organizations. Our attitude about protecting our Internet privacy and the subsequent actions we take — whether at work or at play — can dramatically alter our online safety.”

For the full CA 2008 Internet Security report, visit www.ca.com/securityadvisor.

Reader friendly

Global paper consumption is on the rise and more demand is being placed on the pulp and paper industry to offer more environmentally-friendly paper options. Starting with this issue of CMA Management, the magazine will be printed on FSC-certified paper. The paper contains FSC-certified wood fibre from well-managed forests, post consumer recycled content, or a combination of FSC-certified wood fibre, recycled content and other controlled forest-friendly sources. As stated on the FSC website, “controlled fibre means that it has been verified and cannot come from areas of social conflict and illegal logging, genetically modified trees, high-conservation value forests, and large scale conversions which replace native tree species with faster growing non-native species.” FSC-certified forests protect wildlife habitat and endangered species, ensure clean water by respecting rivers and waterways, are not planted with genetically modified (GM) trees, or converted into plantations. To become certified, companies must also involve local communities and Aboriginal Peoples in the development of forest management plans, and respect their rights and beliefs. FSC is the only forest certification standard supported by organizations such as the World Wildlife Fund of Canada, Sierra Club of Canada and Greenpeace.

Increased tax incentive key to stimulate more R&D

Eighty-six per cent of respondents to a survey by KPMG LLP say that increased scientific research and experimental development (SR&ED) tax incentives would influence their company’s decisions to support further research and development (R&D) investments in Canada.

Yet, on the other hand, 36 per cent stated that the availability of R&D tax incentives does not factor into the decision-making process when selecting a geographic location for their R&D activity.

KPMG commissioned the survey between Nov 5 - 26,  2007, and received 345 respondents, with 67 per cent having spent more than 100 hours involved in the R&D tax incentive program. Members of more than 20 trade organizations participated in the survey.

KPMG submitted its survey findings to the Department of Finance and the Canada Revenue Agency on how to make Canada’s R&D tax incentive program more effective.

KPMG suggests that a lack of certainty in outcome and a lack of knowledge, experience and understanding are key factors in why the SR&ED tax incentive is not more top of mind for some Canadian businesses. As well, some have tried to use the program before, have become frustrated with the process, and just can’t be bothered to factor it into their decision-making process.

“Canadian companies are telling us they think the R&D tax incentive program is a positive one for R&D in Canada,” Alan Katiya, FCA, national leader and partner, KPMG’s SR&ED tax services group, says. “However, there is room for improvement in the process; the program needs to be administered in a more effective way to ensure that companies are able to access the benefits available to them.”

Improving the R&D program is not just about providing more money to organizations — it’s also about making the process more relevant to more organizations. When making their investment decisions, organizations are putting more emphasis on the availability of qualified labour (84 per cent), corporate tax rates (69 per cent), and labour rates (66 per cent).

“Relative to any other country in the world, this program is generous and already very lucrative for Canadian businesses,” David Regan, CA, partner-in-charge of KPMG’s SR&ED tax services group in Toronto, says. “But a greater focus needs to be put on making the program more accessible to companies so they are more likely to use the incentives.”

Poll finds tax cuts won’t add funds to retirement

A poll sponsored by Edward Jones suggests Canadians are likely to spend their personal tax cuts — introduced by the federal government — on paying down debt (38 per cent) and on miscellaneous spending (37 per cent).

“What we are seeing is two critical elements of financial planning competing for priority amongst Canadians,” Mary Chan, a partner at Edward Jones, says. “We face unavoidable expenses everyday and debt is an unfortunate reality for many, so it’s not a huge surprise that these two factors struck home with Canadians.”

Approximately 1,500 respondents were asked to choose two options on how they would spend their tax cuts. Other options selected included retirement savings (13 per cent), saving for a vacation/travel (13 per cent) and investing (11 per cent). Only 5 per cent of Canadians plan to save for a home and only 3 per cent for their children’s education.

“While paying off debt is an important first step, it’s disheartening to see that many Canadians do not plan to use their tax savings for retirement or to invest,” Chan says. “The first step should be managing debt but Canadians should then think about strategies to put this money to its best use. In the end, every little bit counts towards a brighter, more financially secure future.”

Top