by Nick Miller of Clarity Advantage
In which we are reminded: Like great movie writers and directors, our clients and prospects sometimes spin stories that are not completely connected to the truths they purport to represent. We can be entertained, and we should verify before contracting.
by Charles E. Hurdon and Richard J. Charney of Ogilvy Renault LLP
Employers in Ontario may see a reduction in the number of claims filed with the Ministry of Labour (MOL) alleging that they have breached the Employment Standards Act, 2000 (“ESA”). Effective January 19, 2011, new guidelines are in place to address recent ESA amendments that now require employees to contact their employers before filing complaints with the MOL.
The Open for Business Act, which received Royal Assent on October 25, 2010, included procedural amendments to the ESA that impose new obligations on employees before their complaints will be processed and/or pursued by the MOL. Specifically, the new amendments require the employee to demonstrate to the MOL that he or she has:
The Ontario Minister of Finance announced in the 2010 Budget that the government was considering providing additional temporary solvency funding relief for public sector and broader public sector pension plans. Further details were provided through separate announcements on August 5, 2010 and August 24, 2010. On February 10, 2011, the government released a description of the proposed regulation and said that comments on the proposals were due by March 28, 2011. It is not clear that draft regulations with respect to the proposals will be published for comment. Accordingly, comments should be made on the proposal by the March 28, 2011 deadline. The new regulations are expected to come into effect mid-May 2011.
by Jacquie El-Chammas of Borden Ladner Gervais LLP
Determining who falls under the legal definition of “manager” involves a complex analysis of facts and can affect the outcome of claims with respect to overtime pay entitlements and the right to file a complaint under the Canada Labour Code1. Recently, in Canadian Imperial Bank of Commerce v. Torre2, the Federal Court held that an employee who was a branch manager was not actually a manager at law, but was an employee under the Canada Labour Code. This conclusion meant that that person could file a complaint under the Canada Labour Code, under which only employees (and not managers) can complain of unjust dismissal.
by Evan Howard of Ogilvy Renault LLP
Most employers with defined benefit (“DB”) plans are looking to contain their pension costs. Accordingly, many are switching to defined contribution (“DC”) plans in an effort to achieve more predictable funding costs.
However, making such a switch can be complex and does not immediately eliminate the funding obligations associated with the DB pensions already accrued or in pay. As part of switching to a DC formula for future service, employers will need
by Nick Miller of Clarity Advantage
In which we are reminded that, if we want to gain entry to a new account, we may need to present an idea that can be implemented fast.
In Manhattan at the end of a day-long meeting last week, another meeting participant and I fled to Lexington Avenue to grab a cab for the run to LaGuardia Airport. After a quick arm raise, a cab appeared. We stuffed our suitcases into the opened trunk. My colleague went left to slide into the curb side of the cab behind the driver. A few seconds later, watching for passing traffic hurtling down Lex, I opened the street side rear passenger door and began sliding, somewhat stiffly, into the cab. With my left leg in and left butt cheek on the rear seat , I paused for a moment to swing my brief case around. As I raised the case, the cab driver took off down Lexington Avenue toward La Guardia.
“Whoa, whoa, WHOA!” I shouted.
by Mark McElheran of Stikeman Elliott LLP
It remains to be seen whether the reform fever that is presently sweeping through the US securitization market will continue unabated across the 49th parallel but there is no question that these monumental reforms have given rise to a considerable amount of discussion and debate over the appropriateness of similar reforms in Canada. This was perhaps inevitable given the degree of economic integration between the two countries and the fact that both have recently suffered through significant ABS-induced crises (albeit on entirely different scales).
In Spring our hearts are turned toward love,
Unless we are Accountants.
Our clients’ slips are pouring in
Like coins into a fountain.
Now some old slips we bring back out
From where they were put by.
We sort them out, new slips we add,
and the oldest we then shred.
But these vision, dental, and drug receipts
bring a mix of hope and dread,
For each slip calls a silent cry:
“Line 332 is a cruel place!
A vacant space where all clients face
a question that may horrify:
‘When a year of us is added up,
were you sick enough to qualify?’”
But there is a stream of smiling clients
Who bypass round the Line.
They’re self-employed or a business owner
With a Private Health Services Plan.
It softens the sting of the harsh taxman
And leaves Line 332 to founder.
All health receipts – one hundred percent –
Are a deductible business expense.
Each one of these can
Set up their own Plan
By calling Aquilian!
Click here for a tool that will tell you whether an Aquilian plan will reduce taxes or not: http://bit.ly/PHSP_Tool_Ont
www.aquilian.ca
(647) 333-7229
[Ed. note: Line 332 of Schedule 1 of Canada's personal income tax return provides a very small non-refundable credit only against taxes otherwise owing. For 2010 the first $2,024 of medical expenses are not eligible (so many people aren't "sick enough to qualify") and the credit given for anything over that amount is usually much lower than the taxes on the income used to pay for those medical expenses in the first place. An Aquilian Plan for corporations or the self-employed turns 100% of medical expenses into fully-deductible business expenses.]
by Nick Miller of Clarity Advantage
In which we are reminded that good negotiating outcomes begin with and depend on value-oriented discovery and selling.
Last Saturday, I felt the urge to cook some salmon for dinner. Since I was at the office Saturday afternoon, I thought I’d go across the street to the fish market to buy a pound to take home. At about 5:15, mouth watering with anticipation, I closed up shop and walked over. There before me in their cases lay the orangeish filleted objects of my desire. No prices marked.
“I’d like to buy some salmon for dinner,” I piped up.
“Sure,” says the man behind the cases. “And how much would you like?”
“A pound,” says I.
He cut the fish. “That’ll be …” And he quoted a price that was, literally, three times the price per pound of salmon at the supermarket about a ten minute drive away.
by Lidiya Nychyk and Maureen De Lisser, Ernst & Young LLP, Toronto
In two recent technical interpretations, the Canada Revenue Agency (CRA) provided administrative guidance on certain tax aspects of gifts by will, including how to report and value a delayed gift. While the positions expressed may not come as a surprise to tax practitioners, they do provide useful guidance to executors and tax advisors on how to report and claim the charitable donation tax credit on certain gifts made by will.
