by Marc Weisman & Alison Ronson of Torkin Manes LLP
Viewers of detective dramas know that accused persons refuse to speak without their lawyer present. A visit from a Canada Revenue Agency (“CRA”) auditor may not be quite as dramatic but the consequences can be drastic. Let’s create our own fictional case to see why.
Imagine a client of mine, who we will call “Bart,” owns all of the shares of a corporation that builds and sells condominiums. Ever since his mother “Marge” kicked his father “Homer” out of the house, Bart has been letting his dad stay in one of the unsold, unoccupied condominiums in his newest development. Since Marge has the family car, Bart also gave Homer a company vehicle to keep.
It seems like an ideal situation for all parties: Bart is doing a good deed for his father, Marge has the house to herself and Homer has a free place to stay and free transportation. Unfortunately, one day the CRA calls Bart to tell him that they will be auditing his corporation. Regrettably, Bart fails to inform me of the upcoming audit.
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One of my clients is paying top dollar for the assets of MFDA and IIROC member firms.
Please contact me directly with referrals.
Successful sales will be rewarded with a generous contribution to your favorite charity.
Eric Grossman, CGA
Email: eric.grossman@grossmancga.com
Tel: 647.333.7229
LinkedIn profile: http://ca.linkedin.com/in/ericgrossmancga
Do your or a client need capital or debt?
See: Available: Funds
Join the LinkedIn Canadian Commercial Lenders Group,
the Canadian Securities Group,
or the Canadian Accountants Group!
On January 9, the Investment Industry Regulatory Organization of Canada (IIROC) published guidance regarding the procedures to be followed by a Participant (dealer) wishing to guarantee a trade price for a client order that outperforms a benchmark price.
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In October 2009, the British Columbia Securities Commission imposed conditions of registration for all British Columbia investment dealers that trade in securities of OTC issuers through an office in British Columbia. These conditions were to expire December 31, 2011.
The conditions, specified here, are now extended to December 31, 2014.
By Blair Keefe, Dan Logan, Peter Aziz and Eli Monas of Torys LLP
The Financial Consumer Agency of Canada (FCAC) issued several guidance notes and decisions affecting the payments and card business of federally regulated financial institutions (FRFIs) and others in 2011. In this bulletin, we highlight some of the FCAC’s more important pronouncements.
Background
In January 2010, the Canadian government introduced the Credit Business Practices Regulations1 (CBP Regs) and amended the Cost of Borrowing Regulations (CoB Regs) under the Bank Act, Trust and Loan Companies Act and the Insurance Companies Act to enhance the protection of consumers of financial products and to better ensure that consumers have access to credit on terms that are fair and transparent. In addition, in August 2010, the government introduced a Code of Conduct for the Credit and Debit Card Industry in Canada (the Code) to promote greater transparency for business owners and consumers who use credit and debit cards. In addition to monitoring various other consumer provisions applicable to FRFIs, the FCAC monitors compliance with, and provides guidance on the interpretation of, these regulatory requirements.
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by Leslie McCallum of Torys LLP
Investors that beneficially own more than 5% of a class of voting equity securities of an SEC-registered issuer may need to file a report with the SEC by February 14, 2012. This annual reporting deadline applies in certain circumstances to regulated institutional investors, passive investors and other categories of investors described below. Reporting is required in respect of investments in any SEC-registered issuer, including foreign private issuers and those under the Multijurisdictional Disclosure System.
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By Daniel L. Kiselbach and Cheryl Teron of Miller Thompson LLP
British Columbia is the first Canadian province to allow individual real estate licencees to form personal real estate corporations (PREC). Under the Real Estate Services Act and the Real Estate Services Regulation, Realtors can take advantage of the benefits of incorporation in a manner similar to dentists, accountants and lawyers.
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by Rene R. Sorell of McCarthy Tétrault LLP
I. Overview
1. Late in September 2011, the Ontario Securities Commission (OSC) released a decision in which it analyzes in detail, deficient disclosure judgments made by Coventree Inc. (Coventree), a public company, and its officers, in relation to the market disruption that occurred in the asset-backed commercial paper (ABCP) market in 2006-7. A sanctions hearing will be held later this month. Long delays have occurred in addressing the ABCP disruption. At the end of 2009, various participants in the ABCP market agreed to settle enforcement proceedings by paying significant monetary penalties. The current decision follows an exceptionally long 45-day hearing.
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I have created a new LinkedIn group, Canadian Securities, because I could not find a similar group that provides a forum for members of Canada’s securities community and their professional advisors to connect and help one another, and to discuss industry news, common problems, and job opportunities.
Members work in member firms of the MFDA, IIROC, and EMDA, as well as at securities commissions and other government bodies, in banks, credit unions, retail, wholesale, and institutional investment dealers and traders, financial planning, wealth management, mutual funds, exempt market dealers, accounting and law firms, and other advisers and suppliers to the industry.
Members have the option of receiving updates either daily, weekly, or never. No spam is permitted.
Go here to join the group: http://www.linkedin.com/groups?about=&gid=4243407
I am grateful to Greg Barber of Rotman Information Solutions for his kind words in the January/February 2012 issue of CGA Ontario’s Statements magazine, found here:
http://grossmancga.com/site/download/Statements,%20Jan-Feb%202012%20-%20Net%20Assets.pdf
And please do take advantage of the Rotman Information Solutions research services for CGAs which are described in the ad in the middle of the column. This is a free service for CGAs in Ontario.
Do your or a client need capital or debt?
See: Available: Funds
Join the LinkedIn Canadian Commercial Lenders Group
or the Canadian Accountants Group!
by Marc Weisman of Torkin Manes LLP
As part of my tax and estates practice, I frequently advise executors on tax and estates matters. The recent decision of the Federal Court of Canada in Rosenberg Estate v. Canada (National Revenue) 2011 DTC 5075 highlights the importance of filing final tax returns on time to avoid penalties to the estate.
This was not a simple estate. Mr. Rosenberg passed away on June 14, 2003 without a Will and therefore without an executor. The court appointed a liquidator (Quebec term for estate trustee) on November 3, 2003. The heirs were in dispute. There was also an undeclared offshore bank account that ultimately resulted in a voluntary disclosure. The liquidator had instructed Mr. Rosenberg’s accountant to prepare and file the terminal return and remit a payment on account of the tax owing. The accountant failed to file the terminal return on time and the liquidator appointed a new accountant. Neither the liquidator nor the accountant had sufficient information to determine the precise amount of tax owing by the filing deadline of the terminal return. Further, the liquidator had to deal with all of the complications of an intestacy and disputes between the heirs.
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by Marc Weisman of Torkin Manes LLP
In the last two or three years, the Canada Revenue Agency (“CRA”) has been aggressive in its pursuit of corporate taxpayers and their directors for unremitted payroll withholding taxes and goods and services taxes. As part of our tax practice, we have acted for more than 200 corporate and individual taxpayers in these situations, so we take careful note of court decisions that have a bearing on this field.
In a recent case (Dupont Roofing & Sheet Metal Inc. 2011 DTC 5031), the Federal Court of Canada surprisingly ruled that the CRA is not required to issue a notice of assessment before it enforces collection on unremitted payroll withholding taxes.
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