According to the United States Census Bureau, Canada is the USA’s second largest trading partner, only slightly behind China, with over $500 billion in two-way trade goods annually.
The industrial economies of Canada and the USA are highly integrated, with manufacturing plants in each country sending millions of components back and forth over the boarder every day.
It is not surprising that there may be disputes between businesses that end up in courts south of the boarder that need to be enforced north of the boarder. On January 18, 2017, Ontario’s highest Court, the Ontario Court of Appeal, released a decision clarifying the limitation period that applies to enforcing an American Court judgment in Ontario and when that limitation period starts to run.
In Independence Plaza 1 Associates, L.L.C. v. Figliolini, 2017 ONCA 44 (“Independent Plaza”), the plaintiff (respondent) had obtained a judgment against the defendant (appellant) in the New Jersey Superior Court for a monetary judgment of just over $115,000 USD. The appeal to the Appellate Division was dismissed on July 17, 2014. On May 1, 2015, more than two years after the New Jersey judgement but less than two years after the dismissal of the appeal, the plaintiff brought a proceeding in Ontario to enforce its foreign judgment.
Continue reading 'Ontario Court of Appeal confirms Two-Year Limitation Period to Enforce American Judgments in Ontario'»
What happens when adult children still living at home refuse to leave? As the boomer generation ages and look to downsize, check this is a question that more and more parents might have to consider. While it may sound unlikely, prescription this scenario has the potential to cause some headaches for parents in the years ahead. According to the 2011 census, see there were 1,826,000 adults aged 20-29 still living in the family home in Canada. If reason does not prevail, there are a few legal options available for parents should they find themselves in a position where they need to evict their ‘tenant’.
Before deciding on the appropriate legal avenue for removing the child from the home, an assessment of the living arrangement needs to take place. If the child had his or her own private living space, as well as kitchen and bathroom facilities, for instance, living in a basement apartment, then Ontario’s Residential Tenancy Act (the “Act”) could apply. Continue reading 'It’s about time! Options for Removing an Adult Child From the Family Home'»
If there is one word that everyone in the residential rental market hates, purchase it is “bedbugs.” Over the past few years bedbug outbreaks have become more common as the pests are notoriously difficult to fully exterminate. Bedbugs can live for months, even up to a year, without food and they can hide in small crevasses in clothing or furniture to escape the chemicals exterminators use to kill them. For these reasons, bedbugs often become a long-term disruption for both the landlord and the tenants.
Sections 20 and 22 of the Residential Tenancies Act have been interpreted by the Courts as saying that the landlord is responsible for ensuring that the bedbugs are dealt with swiftly and properly. This means that the landlord is responsible for calling and paying for an exterminator. It also often means that the landlord is responsible for paying for any costs that the tenant incurs as a result of the extermination, such as laundry. Continue reading 'Call the exterminator – who’s responsible for ridding a rental property of bedbugs?'»
With the holidays just around the corner, salve many business owners and managers will be planning the annual company party. Whenever alcohol is involved there is the potential for a festive occasion to end in tragedy. The question of whether an employer owes a duty of care to employees or the public and, if a duty exists, what is necessary to satisfy the standard of care is unclear. While commercial hosts have been held liable for accidents involving their impaired patrons, to date social hosts have not been held liable. Whether an employer will be considered a commercial host, a social host or a hybrid class has not been determined by the courts. What is certain is that no employer wants to be the test case. Employers would be wise to assume there is a duty of care owed to employees and the public and act accordingly.
Continue reading '10 Steps for a Safe (and liability free) Staff Holiday Season Party'»
On January 1, abortion 2017, new rules affecting the taxation of life insurance will come into effect under the Income Tax Act. These rules were introduced in 2012 and received Royal Assent in December 2014, but were given a grace period for implementation due to their significant effects on life insurance policies. On January 1, 2017 this grace period will end and the rules will come into full force.
These new changes, however, will have only a minor effect on life insurance policies created prior to 2017. Policies enacted prior to 2017 will generally be grandfathered in under the old legislation. However, older insurance policies will lose their grandfathered status if fundamental changes to the policy occur. If you have any plans to change your life insurance coverage in the future, we highly recommend that you consult the team at Kelly Santini LLP to discuss how these changes may affect your policy and estate plans.
The Ministry of Finance has stated that these legislative changes are an attempt to modernize the tax consequences of life insurance because the factual realities behind life insurance assumptions, such as how long an individual will live, have changed dramatically since the law was last amended. Continue reading 'Changes to Taxation of Life Insurance Impacts Estate Planning'»
In October 2016, pill the federal Minister of Finance, ed the Honourable William Morneau, dosage announced two major changes to the Canadian housing market regulation. The first change affects which properties are eligible for the Principal Residence Exemption and the second change regards the mortgage stress test that has been imposed upon insured mortgages. Each of these changes is examined below.
The Principal Residence Exemption
A “Principal Residence” is a term in tax law that refers, in simplistic terms, to the primary home that the taxpayer or a member of the taxpayer’s immediate family owns. The home does not have to be the property where the taxpayer spends the most time, but it does have to be lived in by an owner or a member of the immediate family for some time during the tax year. As a result, taxpayers may designate their cottages or second homes as their Principal Residence.
The Principal Residence Exemption (the “PRE”) exempts the capital gains obtained at the time that the property is disposed of from capital gains tax. As such, taxpayers typically designate whichever property has had the largest capital gains as their Principal Residence. For instance, if the capital gains on the primary home is $100,000, but the capital gains on the cottage is $500,000, then it makes more sense to claim the PRE on the cottage. While this sounds simplistic, in reality the test to determine whether, and how much of, the capital gains are exempt is a complicated equation.
Continue reading 'Three New Government Rules & Tax Changes For Home Buyers and Sellers'»
Beginning on January 1, treat 2017, ask Canada’s current tax regime for eligible capital property (ECP) will be replaced by a new capital cost allowance (CCA) class. This change was proposed in the 2016 Federal Budget in an effort to simplify the existing tax rules related to ECP.
The new regime may have a significant impact on Canadian controlled private corporations (CCPCs) and the amount of tax they will pay with respect to ECP beginning January 1st. Before looking at the impact of the new ECP rules on CCPCs, malady it is helpful to first understand how the existing regime operates and how it will change in 2017.
The Current ECP Regime in Canada
Generally speaking, intangible assets that are connected to the business and are not depreciable property in a particular CCA class are considered ECP. This can include items like trademarks, client lists, licenses, franchise rights, and goodwill. The cost to acquire ECP is known as an eligible capital expenditure and the proceeds earned on the disposition of ECP are known as eligible capital receipts.
Under the current regime, 75% of all eligible capital expenditures are placed in a cumulative eligible capital (CEC) account. Similarly, 75% of all eligible capital receipts acquired on the sale of ECP will reduce the CEC account. Each year, the business can claim a 7% deduction (on a declining balance basis) on the present value of the CEC account. Continue reading 'Canada’s New Eligible Capital Property Tax Regime and What It Means for Canadian Controlled Private Corporations'»
The City of Ottawa may be loosening the rules regarding “Coach Houses”, symptoms a type of secondary dwelling unit (SDU). Coach Houses are essentially small apartments or suites in the backyard of a home or along a laneway. Generally speaking, sickness these types of SDUs are used to infill and support urban intensification goals by providing opportunities to introduce more dwellings in established neighbourhoods and broaden affordable housing options. The City of Ottawa defines SDUs as:
a separate dwelling unit subsidiary to and located in the same building as an associated principal dwelling unit; and its creation does not result in the creation of a semi-detached dwelling, and duplex dwelling, three-unit dwelling or converted dwelling.
The province of Ontario, through the Strong Communities through Affordable Housing Act, 2011 requires municipalities to authorize second units in detached, semi–detached and row houses, as well as in ancillary structures. The current restrictions and limitations for all SDUs are set out in the City’s Bylaw found here. The City of Ottawa currently permits SDUs within primary residential buildings in all residential zones, but not as accessory structures as-of-right, like a detached garage.
Continue reading 'City of Ottawa Nears Completion of Coach House Consultation'»
On June 1, prostate 2016, the Ontario government introduced changes to automobile insurance coverage intended to help make insurance premiums more flexible and affordable. All owners of vehicles in Ontario must purchase a standard auto insurance policy (AIP). Generally the content of these AIPs is governed by the Insurance Act, which defines the benefit amounts required in standard policies sold in the province of Ontario. The changes, which apply to all AIPs with an effective date or renewal date of June 1, 2016 or later, allow policies to become more tailored to an individual’s needs.
What is the same?
All AIPs will continue to include coverage regarding Third Party liability, uninsured automobiles, direct compensation-property damage and accident benefits. However, if you have previously chosen to purchase optional benefits, check your policy. Depending on the benefit, the amount of that benefit may have changed to reflect amounts available in the new options. Continue reading 'Recent Changes to Your Auto Insurance Policy'»
When a testator is preparing their estate plan, viagra sale specifically their last will and testament, diagnosis one of the most important decisions is who will be responsible for the administration of the estate, namely who will be the executor. In considering such an important selection the testator should be picking someone who the testator trusts, someone who is good with money, someone who is organized, someone who is reliable, and someone who is willing and able to commit their time and energy. Another important factor to consider is the residency of the executor.
The residency of the executor has both practical implications as well as legal and tax implications. An executor who resides in a different province or country to where the assets of the estate are held will need to devote more time and, likely, more in terms of expenses in order to administer the estate. As a matter of practicality, being in close vicinity to the assets can be beneficial.
It is important to note that where an executor has been appointed under the will and resides in Ontario there is no need to post a bond during the administration of the estate. However, there are statutory requirements, especially under the Estates Act, RSO 1990, C.E.21, for the posting of a bond. This Act states that letters probate shall not be granted to a person who is a non-resident of Ontario or elsewhere in the Commonwealth unless the person has given security, as is required from an administrator in case of intestacy.
Continue reading 'Legal & Tax Implications of Out of Province Estate Trustees'»