The practice of law is changing every day, and the effect of changing legislature on businesses is significant. We write about recent developments in the world of tax & business law, keeping a watchful eye on the changing landscape for our clients. See what we’re thinking about, and what your business should be looking out for.
- Business LawTime to Move On… But at What Cost? Does an employer have to pay relocation costs after an employee has been terminated?
Terminating an employee can be costly. It is well known that employers are required to provide the employee with notice of termination, or pay in lieu of that notice. When an employee is terminated, they must mitigate any damage resulting from their loss of employment. Where an employee fails to mitigate, or secures comparable employment during the notice period, their severance payment amount is reduced accordingly. However, added costs to the employer can result from the employee’s duty to mitigate.Read More
- LitigationBusiness Owners: Beware One-Sided Contracts with Service Providers
In the course of doing business, your business will likely enter into many standard-form contracts with service providers. These contracts are commonly used by providers of garbage collection, cleaning services or any number of other services. While some terms, such as the specific services provided, their price and when they will be provided, may be negotiable, typically the bulk of the contract is offered on a take it or leave it basis. The terms and conditions may be appended to the contract and typed in small, hard-to-read print. You may feel you do not have the time to review those terms and conditions, and you may be concerned about the expense of having a lawyer review them.Read More
- Tax LawGST Double Tax Problem when importing goods into Canada
In a previous article, GST on Imports into Canada, we discussed the GST registration issues faced by importers that are not resident in Canada. Resident or non-resident importers in the supply chain may believe that their GST issues have been laid to rest simply by registering for GST. However, this is not always the case.Read More
- Tax LawDividend Tax
Dividends themselves can be either eligible or non-eligible. An eligible dividend is subject to a 38% gross-up. The dividend is generated by the active business income of a Canadian controlled private corporation, which isn’t eligible for the small business deduction, and dividends from other Canadian public and private corporations resident in Canada that are subject to the general corporate income tax rate (27% in Alberta). Non-eligible dividends are subject to a 17% gross-up and are generally dividends from the active business income of a Canadian controlled private corporation that is eligible for the small business deduction and dividends from investment income of Canadian controlled private corporation.Read More
- Business LawDefensive tactics to defend against an unsolicited take-over bid
Recent changes to Canadian securities laws (as of May, 2016) have created longer time frames and higher tender bid thresholds, amongst other things, in respect of take-over bids. These changes have been implemented to improve the integrity of the take-over bid regime. However, the receipt of an unsolicited take-over bid is still something that a target’s board of directors is often unprepared for. Thus, a target may be left scrambling for possible alternatives to combat or defeat such a bid, with little time to do so. Therefore, evaluating some of the tactics available to an issuer defending against an unsolicited bid still warrants discussion and consideration.Read More
- LitigationShareholder Right to Call Meeting Must Not Be Unreasonably Refused by Board Directors
A group of shareholders with a stake of 5% or more in a corporation may, under Alberta’s Business Corporations Act (section 142), requisition the corporation’s directors to call a shareholders meeting. The written requisition must state the business that the group seeks to have transacted at the meeting and must be sent to all directors as well as the corporation’s registered office.Read More