Friday, June 9, 2017


Multinationals hiding successes in failures, study finds

Multinational corporations are moving income from their profitable, high-tax subsidiaries into unprofitable ones to save money on taxes, a University of Waterloo study has found.

The study’s findings shed light on a tax planning strategy that is not currently focused on by governments, which tend to focus their efforts on firms who move their money from countries with higher taxes to lower tax-rate countries to save.

“Governments expend considerable effort to prevent their tax bases from being eroded by companies moving their money offshore,” said Ken Klassen, the study’s author and an accounting and finance professor at Waterloo. “This insight could help tax authorities better target their efforts,”.

Using theoretical models, the researchers examined income shifting by multinational firms and data from nearly 60,000 subsidiaries from 2003 to 2012 in Europe.

They found that firms that are in a country with a high tax rate are saving a significant amount of money by moving income to their unprofitable subsidiaries. The unprofitable subsidiaries are taxed at a lower rate than those that have higher profit margins.

The trend, said Klassen, is not unlike what he’s seeing in research focusing on Canadian and American companies.

“Analysts may not consider that a Canadian multinational would want to shift income into the U.S., where the tax rate is higher,” said Klassen. “These findings show us that North American companies can actually save a significant amount of money if they move income to an unprofitable affiliate in another jurisdiction.

“Determining if foreign affiliates are experiencing losses could benefit organizations such as the Canada Revenue Agency (CRA) in deciding which transactions to scrutinize.”

While changing income earning patterns to use the losses runs the risk of drawing attention from taxing authorities such as the CRA, said Klassen, the savings seem to outweigh the potential negatives for many.

If the subsidiary does become profitable again, however, the extra income would be taxed at a higher rate.

The study was recently published in The Accounting Review.

New site helps researchers find award opportunities

A new website has been developed to help researchers identify prestigious awards that recognize their contributions to research.

The Prestigious Awards website outlines dozens of award opportunities along with deadline information and eligibility requirements. It also showcases recent prestigious award recipients.

An initiative of the Waterloo Awards Committee, the site was developed to make it easier for researchers to find award opportunities and support the university-wide objective to increase international recognition for excellence and innovation in research and scholarship by strategically pursuing prestigious national and international awards for faculty.

That’s a wrap (on the Keystone Picnic)

A message from the Office of Advancement.

Participants in the Keystone Picnic.Thank you to everyone who came out to enjoy the sunshine and the 16th Annual Keystone Picnic last Friday. The event is our way of saying thanks to the more than 1,000 faculty, staff and retirees who support the university with their gift of time or money through the Keystone Campaign.  

Congratulations to Christine Goucher from Creative Services, who correctly answered all of the Keystone Trivia questions to win a PROOF Kitchen & Lounge gift certificate and a one-night stay at the new Delta Hotel in uptown Waterloo. 

Lots of other prizes were given out too. Here’s the complete list of prize winners and sponsors. And check out the great photos and video.

Thank you to everyone who contributed to making this year’s event a great success. If you aren’t already a Keystone donor, we’d love for you to join your colleagues in making a gift today!

Statistics and Actuarial Sciences hosts Datathon

Students participate in the first Datathon.

​This article was originally posted on the Statistics and Actuarial Science news website.

Over 550 Waterloo students applied for 100 spots at the first annual Waterloo Datathon, which was held on May 13.

Like a hackathon, students were given a set of materials and asked to solve a structured problem. It involved working with a dataset, predictive modeling, interpretation and presentation of results.

This event was sponsored by Citadel and powered by Correlation One in partnership with the Department of Statistics and Actuarial Science. The organizers awarded a top prize of $20,000 and second prize of $5,000 to the top two winning teams.

Congratulations to:

First place Waterloo Datathon winners.  

First place team winners

  • Christopher Warren
  • Ryan Kinnear
  •  Thomas Alexander
  • Richard Wu                                                        

Second place Waterloo Datathon team members.

2nd place team winners

  • Shouzhen Gu
  • Austin Tripp
  • Wuhan Zhou
  • Shun Dac Simon Suo                      

Photographs by Jon White.

Earth Sciences Museum celebrates 50 years; other notes

The Earth Sciences Museum logo featuring dinosaurs.

The Earth Sciences Museum will be hosting a 50th Anniversary Celebration Family Day on Saturday, June 10 from 11:00 a.m. to 3:00 p.m. Attendees are invited to bring a picnic lunch and enjoy the free kid's activities while celebrating with the Earth Sciences Museum staff in the Peter Russell Rock Garden.

Activities will include gold panning, fossil fish, fossil snowflakes, and "minerals in materials." Attendees will have an opportunity to learn more about the museum's indoor and outdoor exhibits with a Rock Garden tour at 11:30 and a museum tour at 1:00 p.m.

A panorama of the Earth Sciences Museum in CEIT.

Conceived as a Canada centennial project, the University of Waterloo Earth Sciences Museum was founded in 1967 as The Biology−Earth Sciences Museum, and opened to the public in 1968. A geological garden was opened in May 1987. In 1994, the Biology department withdrew its involvement and the museum became known as the Earth Sciences Museum. The museum remained in the original space until August 2003 when it was moved to the newly built EIT building.

Human Resources has announced the following retirees, effective June 1, 2017:

  • Beverly Hershey, who started at Waterloo in January 1998, retired as Associate Director of Advancement, Library in the Library;
  • Robert Newman, who joined the University in July 2005, retired as Stationary Engineer 2nd Class in Plant Operations;
  • Mary Kraehling, who began working at Waterloo in March 2014, retired as an Analyst in Co-operative Education and Career Action; and
  • Marguerite Greavette, who joined the University in April 1999, retired as Admin Co-ordinator/Advisor, Undergraduate Students, in the Chemistry department.

The Secretariat would like to remind the campus community that nomination forms for the Vice-President, Academic & Provost Nominating Committee are due by 3:00 p.m. today. Please see the Secretariat website for open positions on the committee and nomination forms. For positions with more than the required number of nominees, elections will open on Wednesday, June 14. More information about the committee elections will follow.

Renison University College’s Administrative Dean Judi Jewinski is retiring after more than 40 years of dedicated service to the College and the University of Waterloo. A retirement celebration will be held at University Club on Tuesday, June 13, at 4:00 p.m. To RSVP, contact Tracey Antonio by sending an email to tantonio@uwaterloo.ca.

Link of the day

Red Day for heart health

When and where

International Archives Day, Friday, June 9, 9:00 a.m. to 3:00 p.m., Doris Lewis Rare Book Room, Dana Porter Library.

PhD seminar, “Adding mutation to dependent object types,” Marianna Rapoport, PhD candidate, David R. Cheriton School of Computer Science, Friday, June 9, 11:00 a.m. to 12:00 p.m., DC 3126.

Information Systems and Science for Energy seminar, “Managing sensor data streams: Lessons learned from the WeBike Project,” Christian Gorenflo, David R. Cheriton School of Computer Science, Friday, June 9, 1:00 p.m. to 2:00 p.m., DC 1331.

Earth Sciences Museum 50th Celebration Family Day, Saturday, June 10, 11:00 a.m. to 3:00 p.m., Earth Science Museum, CEIT.

Velocity Fund $5K applications close, Monday, June 12.

Hand-on Workshop with ADF Modeling Suite for Chemistry & Materials ScienceMonday, June 12, 1:00 p.m. to 5:30 p.m., MC 3005.

Interviews: Preparing for Questions, Monday, June 12, 1:30 p.m., TC - William M. Tatham Centre room 1208

60th Anniversary Convocation Lecture featuring Roberta Jamieson, Monday, June 12, 7:00 p.m., Federation Hall.

Spring Convocation, Tuesday, June 13 to Saturday, June 17.

NEW - School of Planning Graduate Luncheon & Ceremony, Tuesday, June 13, 11:00 a.m., Federation Hall.

University Club Spring Convocation Luncheons, Tuesday, June 13 to Saturday, June 17, 11:30 a.m. to 2:00 p.m., University Club. 

Distinguished Lecture Series, “Algorand, a new public ledger,” Silvio Micali, MIT Computer Science and Artificial Intelligence Laboratory, Tuesday, June 13, 10:30 a.m. to 12:00 p.m., DC 1302.

Group Bike Ride & Picnic in the Park, Tuesday, June 13, 12:00 p.m. to 1:00 p.m., Bikeshare station at Dana Porter Library main entrance.

Get a Job using LinkedIn, Tuesday, June 13, 5:00 p.m., Dana Porter Library room 329

Banting postdoctoral fellowship preliminary applications due, Wednesday, June 14.

Interviews: Proving your Skills, Wednesday, June 14, 2:30 p.m., TC - William M. Tatham Centre room 1208

Biology presents a public lecture by Stephen Scherer, "Decoding 10,000 Whole Genome Sequences Towards Understanding Autism," Wednesday, June 14, 3:00 p.m., STC 0060.

Velocity Start: Do People Want Your Sh*t? Wednesday, June 14, 7:30 p.m., Velocity Start, SCH 2ndFloor.

Working Effectively in another Culture, Thursday, June 15, 1:30 p.m., TC - William M. Tatham Centre room 1208

Recognizing Excellence Discussion Series featuring Professor Efim Zelmanov, University of California, "Asymptotic Theory of Finite Groups," Thursday, June 15, 2:00 p.m., DC 1302. Register today.

50th Anniversary Celebration of the School of Architecture, Thursday, June 15, 6:00 p.m., School of Architecture.

Recognizing Excellence Discussion Series featuring Vicki Iverson, "My Journey from Student to Entrepreneur," Thursday, June 15, 3:15 p.m., DC 1302. Register today.

How to be an Exceptional Employee, Friday, June 16, 12:30 p.m., TC - William M. Tatham Centre room 1208

Cryptography, Security, and Privacy Colloquium, “Average-case fine-grained hardness, and what to do with it,” Prashant Nalini Vasudevan, PhD candidate, MIT, Friday, June 16, 2:00 p.m. to 3:00 p.m., DC 2585.

NEW - WaterTalk: Linking Eawag’s Research to Policy and Practice presented by Janet Hering, director of the Swiss Federal Institute of Aquatic Science & Technology (Eawag), Monday, June 19, 2:30 p.m. to 3:30 p.m., QNC 1501.

Senate meeting, Monday, June 19, 3:30 p.m., NH 3407.

Electrical and Computer Engineering Distinguished Lecture featuring Professor Göran Andersson, "Research Challenges of the Future Electric Power System," Monday, June 19, 2:00 p.m., EIT 3142. 

PhD seminarA biologically constrained model of semantic memory search,” Ivana Kajić, PhD candidate, David R. Cheriton School of Computer Science, Tuesday, June 20, 11:00 a.m.to 12:00 p.m., DC 2310. 

25, 35, and 45-Year Club Recognition Reception, Tuesday, June 20, 6:00 p.m., Physical Activities Complex.

Bike Day, Wednesday, June 21, 8:00 a.m. to 3:00 p.m., Arts Quad.

Community Dialogue event, “Uncomfortable is OK: How Truth and Reconciliation Shapes Us All,” Wednesday, June 21, 6:00 p.m., University of Waterloo Stratford Campus.

Velocity Start: How to Find Your Customers Online, “Using online platforms to find potential customers,” Wednesday, June 21, 7:30 p.m., Velocity Start, SCH 2ndFloor.

Velocity Fund $25K applications close, Saturday, June 24.

Network for Aging Research Spring 2017 Symposium, “Engagement in Innovation,” Monday, June 26, 8:00 a.m. to 1:15 p.m.

Algorithms and complexity seminar, “Settling the query complexity of non-adaptive junta testing,” Erik Waingarten, Columbia University, Wednesday, June 28, 1:30 p.m. to 2:30 p.m., DC 1304.

Velocity Start: Pitch Like A Pro, “Perfecting your pitch,” Wednesday, June 28, 7:30 p.m., Velocity Start, SCH 2nd Floor.

PhD oral defences

Computer Science. Stephen Melczer, "Analytic Combinatorics in Several Variables: Effective Asymptotics and Lattice Path Enumeration." Supervisor, George Labahn. Thesis available from MGO - mgo@uwaterloo.ca. Oral defence Tuesday, June 13, 10:00 a.m., DC 2310.

Recreation & Leisure Studies. Nadina Ayer, "Online Leisure Communities: The Case of Tennis Enthusiasts." Supervisor, Ronald McCarville. On display in the Faculty of Applied Health Sciences, BMH 3110. Oral defence Wednesday, June 14, 1:00 p.m., BMH 3119.

School of Pharmacy, Co-tutelle with Université de Bordeaux. Gregor Kemper, "Synthesis and Characterization of Chiral Nanomaterials and their influence on Stem Cell Differentiation." Supervisors, Shawn Wettig, Marie-Christine Durrieu, Reiko Oda. On deposit in the Faculty of Science graduate office, PHY 2013. Oral defence Friday, June 16, 8:00 a.m., University of Bordeaux.

Systems Design Engineering. Yasir Aljefri, "Incorporating Misperception into the Graph Model for Conflict Resolution." Supervisors, Keith Hipel, Liping Fang. On deposit in the Engineering graduate office, SWE 3520C. Oral defence Monday, June 19, 10:00 a.m., EC4 2101A.