Toronto City Council approves New Apartment Bylaw to Further Protect Tenants The City of Toronto recently passed a new bylaw aimed at cracking down on “bad” landlords and providing tenants with more protections. The bylaw, which was passed by the city council with a 41-1 vote, imposes a series of new regulations on landlords that will come into effect on July 1, 2017. The new rules will address tenant service requests, pest management, building repairs, and cleaning. The bylaw also imposes fines for violating these new rules. Councillor Josh Matlow, who has been a major supporter of the bylaw, describes the new rules as “a landmark tenant protection bylaw that is not only being celebrated by tenants across the city … but is even being talked about (in other cities) as a signal of how to do things right.” The new bylaw will cover about 3,500 buildings in the city, which is roughly 350,000 apartments. It does not, however, apply to all landlords in the city—it is mainly aimed at landlords that oversee large residential properties. The bylaw is only applicable to owners and building operators of a residential property with three or more storeys, and ten or more dwelling units available for rent. The protections will apply to Toronto Community Housing buildings, but long-term residences, such as retirement homes, will not be covered by the bylaw. Under the new rules, building owners must register with the city within three to four months of the bylaw coming into effect, and must re-register every year. The annual registration fee will cost $10.60 per unit. However, the fees will only apply to private buildings—co-op and social housing providers, like Toronto Community Housing buildings, will be exempt from paying the fee (but not registration itself). The program will cost about $5 million a year to implement and will be funded through a combination of registration fees (53%), enforcement action (12%), and property taxes (35%). Prior to the launch of the program, city staff will conduct inspections of the buildings and order repairs. These inspections will serve as a baseline assessment for future inspections. Tenant Service Requests The new bylaws implement strict requirements on landlords in responding to service requests. Urgent service requests must be responded to within 24 hours and non-urgent requests within 7 days. A request is considered urgent if it is related to the following vital services: fuel, electricity, gas, heat, or hot or cold water. Landlords must also implement a system for handling and tracking service requests, and demonstrate compliance with their own system. The system must provide tenants with a copy of their service request submissions upon receipt by the landlord. Infestations and Pest Management Landlords are required to take certain steps to prevent and deal with infestations. As a preventative measure, landlords must inspect indoor and outdoor common areas for pests every 30 days. If notified about the presence of pests in any part of a building, a landlord must inspect the area where the pests were discovered within 72 hours. The landlord is then required to eliminate or exterminate the pests and take adequate measures to prevent the pests from spreading to other parts of the property. Pest treatment operations must be performed by licensed exterminators. The new rules also require landlords to notify tenants of the presence of pests and pest treatment information. The information must include the date of treatment, the name of the licensed pest management company, and the nature of the treatment. The information must be available for display on a central communication board in the building. While the specific location of the treatment won’t be made available, treatment records relating to common areas must be made available to tenants and prospective tenants upon their request. Landlords are also prohibited under the bylaws from renting units with pest problems. Repairs and Service Disruptions Tenants will have to be notified of planned or unplanned service disruptions—including those involving heat, water, electricity, elevators, and security. Notification of the disruption will have to be placed on a central notification board and include information regarding the nature of the disruption, duration of the disruption, and the units affected by the disruption. Landlords will also have to create a capital repair plan that lists building elements and when they are scheduled to be replaced or upgraded. The following capital elements are required to be included in the plan: roof, elevators, facade, windows, mechanical systems, underground garage, interior flooring, interior wall finish, balcony guards, and handrails. When performing major capital projects, landlords must provide tenants with information regarding the nature and duration of the project and the affected units. Cleaning Under the new bylaws, landlords will have to inspect common areas for cleanliness at least once a day. Landlords will also have to create a cleaning plan that contains a list of common areas and how often these areas will be cleaned. The list must include the following (if present): garbage storage area; walls; floors; laundry room and equipment. Enforcement and Violation The Municipal Licensing and Standards division will be responsible for implementing and enforcing the new bylaws. Landlords that do not register under the program will not be permitted to rent units to new tenants until registration is complete. If landlords fail to comply with the new rules, they may be responsible for paying the costs of inspection ($108 an hour) or audit ($1,800). Landlords and building operators found guilty of violating the new regulations could be fined up to $100,000. Charges would be laid through the provincial offences court. The Municipal Licensing and Standards Committee is also considering extended fines for repeat offenders and special fines for those in contempt of the bylaws for the sake of economic gain. Enforcement of the bylaw is expected to begin in July 2018. Concern Among City Councillors Despite a near-unanimous vote, a few city councillors took issue with the new bylaw as being overly oppressive to landlords. Apartment buildings already face municipal property tax rates that are almost three times as high as what home and condominium owners are charged. Councillor John Campbell is concerned that good landlords will lose money just because of the actions of a few “bad apples.” Councillor Giorgio Mammoliti doesn’t think the city should be involved in monitoring landlords. Mammoliti is also concerned that the new regulations will scare off developers hoping to build more rental units. This could be problematic since Toronto is already facing a shortage of available rental units. These councillors also expressed concern that fees associated with the new bylaw could be passed on to tenants. However, this may be limited to smaller fees (such as the registration fee) as landlords will not be able to pass along the cost of capital repairs ordered by the city. The Residential Tenancies Act has clear language that landlords must absorb those expenses associated with compliance orders. “This article is intended to inform and entertain. Its content does not constitute legal advice and should not be relied upon by readers as such. If you require legal assistance, please see a lawyer. Each case is unique and a lawyer with good training and sound judgment can provide you with advice tailored to your specific situation and needs.” By Fauzan SiddiquiBlog, Real EstateMarch 31, 2017June 19, 2020
The Future of Canada Revenue Agency Enforcement Activities As noted in an earlier blog post, we discussed the joint CBC / Toronto Star investigation and subsequent release of the Panama Papers. In a subsequent Toronto Star article, the CRA states its intention to act more aggressively in pursuing those who commit tax fraud and tax evasion. Notable in its new aggressive stance, the CRA states in the Toronto Star article that those suspected of “aggressive tax avoidance or tax evasion” will be subject to more “severe consequences”, including “a lot more criminal investigations” and the fingerprinting of anyone charged with tax evasion. In Budget 2016, the Federal Government announced almost $500 million in additional funds to the CRA to assist it in its enforcement efforts. This money appears to have been immediately put to use by the CRA. The Toronto Star notes that “230 people have been added to the compliance department and lawyers are now being embedded in investigating teams”. The 2017 Federal Budget pledged an additional $1 billion to assist the CRA in its tax compliance efforts. The funds are being earmarked for increased investigative work, particularly in the “underground” economy, including construction and hospitality sectors, as well as to continue to develop computer programs, systems and algorithms to monitor and track high-risk potentially abusive transactions, such as international electronic funds transfers. Future targets include high net worth individuals who may utilize tax loopholes to gain what the CRA perceives as unfair tax advantages. The CRA has updated its website to prominently feature its efforts in cracking down on international tax evasion and tax avoidance. As part of the CRA’s efforts, they note that they have many tools at their disposal to combat tax evasion including: Reviewing Electronic Funds Transfers over $10,000 as they cross borders to and from Canada and studying specific offshore locations and certain financial institutions. Collaborating and sharing information with international partners such as the OECD’s Forum on Tax Administration and the Joint International Taskforce on Shared Intelligence and Collaboration; Identifying promoters of aggressive tax schemes; Identifying international non-compliance and abuses through its treaty networks; Creation of the Offshore Compliance Advisory Committee (OCAC), an independent advisory committee of experts which, on December 5, 2016, presented the CRA with the OCAC’s report on the Voluntary Disclosures Program (VDP), with its recommendations to improve and enhance the VDP program; Combatting aggressive international tax avoidance strategies of multinational companies through the CRA’s participation in the Base Erosion and Profit Shifting (BEPS) Action Plan and the Multilateral Competent Authority Agreement; Encouraging Canadians to report tax avoidance through the Offshore Tax Informant Program; and Encouraging Canadians to use the VDP to voluntarily correct their tax reporting by correcting a previously filed return or reporting otherwise unreported income or property. We can help. Although most Canadian taxpayers are compliant, sometimes errors or omissions occur. It is still possible to take advantage of the CRA’s VDP to voluntarily report omitted or incorrectly reported tax filings while potentially avoiding penalties. Tax planning opportunities are available to assist Canadian taxpayers in optimizing their affairs to obtain a favourable tax outcome. Contact DSF’s Tax Planning Group for advice and assistance. “This article is intended to inform and entertain. Its content does not constitute legal advice and should not be relied upon by readers as such. If you require legal assistance, please see a lawyer. Each case is unique and a lawyer with good training and sound judgment can provide you with advice tailored to your specific situation and needs.” By Fauzan SiddiquiBlog, Planning and Development LawMarch 30, 2017June 19, 2020
Solving Ontario Court Delays: Is Limiting Preliminary Hearings The Answer? In the wake of the Supreme Court of Canada’s decision in R. v. Jordan, there have been various suggestions on how to deal with the issue of delay in the Ontario courts. One such idea is that of Ontario Attorney General Yasir Naqvi. It has been reported that the Attorney General recently wrote the Federal Justice Minister with a request to greatly limit the use of preliminary hearings in an attempt to speed up the justice system. For laypeople and those who do not practice criminal law this begs the questions – what is a preliminary hearing and what value does it provide the criminal justice system and those facing charges? The right to a preliminary hearing (or preliminary inquiry) and the procedure behind it arise out of Part XVIII of the Criminal Code. An accused can elect a preliminary inquiry but only in more serious cases where the charge(s) are proceeding by way of indictment. The main purpose of a preliminary inquiry is to determine whether there is enough evidence for an accused person to proceed to trial on those offences for which they have been charged. The preliminary inquiry itself is held before a Provincial Court Judge and the Crown (prosecutor) calls witnesses to testify along with any other evidence they require. In this respect, it is somewhat similar to a trial. However, rather than making a determination with respect to guilt or innocence, the Judge in a preliminary inquiry only has to determine whether there is sufficient evidence to proceed to a trial. The legal test is whether a properly instructed jury, acting reasonably, could return a verdict of guilt on the evidence presented. If the Judge is satisfied that there is sufficient evidence on any such charges then the accused is ordered to stand trial on those charges. If the Judge is not satisfied that the test has been met then the charges where there is insufficient evidence are dismissed. This legal test is a very easy test for the Crown to meet and as such most accused persons who elect a preliminary inquiry are ordered to stand trial. Despite the fact that most preliminary inquiries end with an accused headed towards trial, there are a number of reasons the prelim has value and is a useful tool in the criminal justice system. For all parties involved (prosecutor and defence), it helps to narrow the issues for criminal cases and in some cases, it gets rid of charges where there is insufficient evidence. From the perspective of criminal defence lawyers, a major value of the preliminary inquiry is that it provides those charged with serious offences a chance to fully discover the strength of the Crown’s case. While it has been argued that disclosure requirements on the Crown provide any and all needed discovery of the case, this disclosure cannot replace actually hearing from Crown witnesses and seeing the evidence in court. The preliminary inquiry provides a full opportunity for the accused to see how reliable and credible the evidence is against them. It also provides tactical opportunities such as obtaining possible admissions from witnesses or deciding whether there are legitimate grounds to proceed with a Charter argument. It is hard to see how limiting preliminary inquiries will significantly reduce any delay in the Ontario courts. One reason is that it appears they do not occur that often. A recent article in the Toronto Star dated March 20, 2017, quoted information from Stats Canada which outlined that preliminary inquiries were only requested or held in about 3 percent of completed adult criminal cases in 2014-2015. That statistic would seem to indicate that preliminary inquires are at most a small part of the delay problem. Fully addressing the delay in Ontario courts is likely going to require numerous changes, as well as the provision of resources in the form of more judges, prosecutors and other court staff. For more information on this matter, please review our previous blog post Delays in Our Ontario Civil Courts. If you require legal assistance, please contact our Criminal Law Lawyer David Schell, or call Devry Smith Frank LLP at 416-449-1400 today. “This article is intended to inform and entertain. Its content does not constitute legal advice and should not be relied upon by readers as such. If you require legal assistance, please see a lawyer. Each case is unique and a lawyer with good training and sound judgment can provide you with advice tailored to your specific situation and needs.” By Fauzan SiddiquiBlog, Criminal LawMarch 28, 2017June 19, 2020
Toronto Real Estate: Spring Update As the weather begins to get warmer and the daylight lasts longer, the real estate market will be getting busier. Since 2016, a number of cities in Canada have been dealing with an abundance of issues. For Toronto, it has been a shortage of supply, and the inability to afford what is available on the market as prices increase. Other cities around the country have been working on slowing price growth, while others are trying to recover from economic struggles in the housing sector. Each province has had to deal with their own economic and market-specific challenges through 2016 and the beginning of 2017. Focusing on the Golden Horseshoe (the Greater Toronto Area, Hamilton-Burlington, Oakville-Milton, Guelph, Kitchener-Waterloo, Cambridge, Branford, the Niagara Region, Barrie, and nearby cottage country), the current trends in the real estate market look like they are here to stay, with the double-digit price growth. As a result, it will continue to limit the affordability of homes as well as the sales, seeing as there is no rise in the supply of homes. The Canadian Real Estate Association (CREA) believes this will continue to be the case in the Spring season. Government Involvement The provincial government has become pressured to step in, in order to assist in fixing these issues in the real estate market. They have a number of options to address home affordability, which can help young families achieve the dream of owning a home: Fix the Growth Plan – Allow flexibility and more choices for municipalities such as family homes and townhomes to assist growing families and empty nesters. Improve Planning Approval Processes – Align priorities. For example, updated zoning. Address “Missing Middle” Housing Supply – Modernization of zoning laws for the housing supply in established communities. Create solutions like laneway housing, multi-unit homes (townhouses, stacked flats, mid-rise buildings). Target Infrastructure to Support New Housing Supply – Support new housing supply and targeted infrastructure investments, making houses available for consumers. The OHBA and OREA have said to both agree that sustainable, long term solutions are necessary to the affordability issue, and it starts with increasing the housing supply. Both associations are appealing to the provincial government to take stock of the supply problem and to design solutions that will improve the affordability for all Ontarians. (Source: OREA Press Release) Foreign Buyers in Toronto & Vancouver As the reports have been in the past, there has been a strong presence of critics stating that foreign buyers are not an issue in Toronto. In 2016 foreign buyers were seen to only makeup around 4 – 5 percent of transactions, stating the tax on foreign purchases will not provide a long-term solution to Toronto’s supply problem. To make matters worse, the National Housing Strategy is a federal initiative that will be released this year to address issues in provincial and regional economies, and housing markets and conditions. Add this to the current issues at hand, and it continues to get more complex. Until then, the public hopes the 2017 budget will be looking to address some of these issues. There is hope that they will address and modify the Home Buyers’ Plan, but it is not likely that they will address the affordability of homes for first-time homebuyers. If you require any real estate assistance, please contact one of our Toronto Real Estate Lawyers today, or give us a call at 416-449-1400. “This article is intended to inform and entertain. Its content does not constitute legal advice and should not be relied upon by readers as such. If you require legal assistance, please see a lawyer. Each case is unique and a lawyer with good training and sound judgment can provide you with advice tailored to your specific situation and needs.” By Fauzan SiddiquiBlog, Real EstateMarch 28, 2017June 19, 2020
Paying Attention to Detail in Planning Policy A new report from the Neptis Foundation is raising questions about Ontario’s planning and development policy for Greater Golden Horseshoe. The report states that 26,100 acres of green land, never intended for development, are being built on in contravention to the goals of the 2006 Provincial policy, Growth Plan for the Greater Golden Horseshoe (“GPGGH”). Saving money, helping the environment, and fostering more connected and better-funded communities – all were aims of GPGGH and its efforts to reduce sprawl and preserve green space in the Greater Golden Horseshoe. The GPGGH set out to ensure that at least 40% of new development in small municipalities in the Greater Golden Horseshoe is only built on lands allocated for density with pre-existing infrastructure. The GPGGH, which guides Ontario’s residential strategy for development and growth, draws a distinction between urban settlements, with full access to water and sewer systems, and isolated settlements that depend on communal wells and septic systems. The GPGGH made it a priority to concentrate growth in urban areas while limiting growth to isolated settlements without pre-existing infrastructure. The latest Neptis Foundation report demonstrates that due to what appears to be a drafting error, the GPGGH along with the 2008 Built Boundary document, has resulted in unintended consequences. As stated in the Neptis Foundation report: “The definition of the Designated Greenfield Area in the 2006 Growth Plan states, “Where a settlement area does not have a built boundary, the entire settlement area is considered designated greenfield area.” Meanwhile, Section 3 of the 2008 Built Boundary document states, “The built boundary consists of delineated and undelineated built-up areas.” This second definition allows for any development anywhere in a rural settlement, or UBUA [Undeliniated Build-Up Areas], to be counted as intensification, a stark contradiction of the definition in the 2006 Growth Plan.” Municipalities understood this to allow development anywhere in their jurisdiction under the criteria of intensification. In Simcoe County, for example, 65% of planned intensification took place in undelineated areas. As these new communities continue to grow, resources will need to be added such as community centres, schools etc., which will assist a limited number of people and divert resources away from the larger population. The Province wanted to increase development in areas that have room for density. This serves the purpose of establishing concentrated communities to better support both business initiatives in the area, while also facilitating greater access to transit, and community programs. A focus on denser urban development compared to rural growth is also substantially cheaper, as it is very costly to provide water and sanitation equipment to isolated settlements, far away from urban communities. Since the Neptis Foundation’s report, the Provincial government stated that they are aware of the issue, are in the process of reviewing the GPGGH, and further amendments are expected. If you need assistance navigating Ontario’s provincial policies regarding development and growth, are considering developing a piece of land, or have concerns about a development near you, Devry Smith Frank LLP’s Planning and Development Group can provide you with the guidance and support that you require. “This article is intended to inform and entertain. Its content does not constitute legal advice and should not be relied upon by readers as such. If you require legal assistance, please see a lawyer. Each case is unique and a lawyer with good training and sound judgment can provide you with advice tailored to your specific situation and needs.” By Fauzan SiddiquiBlog, Planning and Development LawMarch 27, 2017June 18, 2020
Internet and a Breakdown of Privacy: The New Era of Sexting and The Courts’ Response Technology undoubtedly has great power when a superpower nation’s diplomacy can be built on 15-second tweets. A one-second decision to share, send, or post can irreversibly release data within the rest of the world’s reach. That same one second can also change a person’s life forever in a terrifying and nightmarish way. In Jane Doe v N.D., a couple who formerly dated in high school and had broken up continued to communicate regularly by Internet, texting, and telephone, and continued to meet up occasionally. The defendant asked the plaintiff, who were both 18 at the time, repeatedly to make a sexually explicit video of herself to send to him. She refused, but he continued to probe and send her intimate pictures and videos of himself, pressuring her to do the same. Eventually, after the defendant promised that no one else would see the video, she relented and sent him an intimate video. Later that same day, the defendant posted the video on an internet pornography website and had shown it to mutual colleagues. The plaintiff sued under the tort of intentional infliction of mental distress, among other causes of action. There are three elements of the tort of intentional infliction of mental distress, as set out in Prinzo v Baycrest Centre for Geriatric Care: (i) conduct that is flagrant and outrageous, (ii) conduct that is calculated to produce harm, and (iii) conduct that results in a visible and provable injury. Under flagrant and outrageous conduct, the court considers whether the defendant’s act constituted reckless disregard by examining whether or not mental distress or suffering would ensue from the defendant’s conduct. The court in Jane Doe v N.D. found that core examples of “flagrant or outrageous” behaviour include clear violation of promises made, and a breach of trust – a malicious purpose to cause harm or a motive of spite is not required for a finding of flagrant and outrageous conduct. The requirement that the conduct is calculated to produce harm is satisfied if the court finds it was clearly foreseeable that the conduct in question would cause the plaintiff profound distress. This test is met when the consequences or kind of harm are known to be substantially certain to follow. Finally, the third element of visible and provable injury includes both actual physical harm and also significant psychological harm, which does not require a medical expert if the court can be convinced of the plaintiff’s harm otherwise. In the Jane Doe v N.D. case, Justice Stinson of the Superior Court found that among others, the tort of intentional infliction of mental distress was made out. As a result, the plaintiff was awarded more than $140,000 in damages. However, the case did not just end there. Upon Justice Stinson’s decision, the defendant, who previously had not retained counsel, decided to retain counsel to set aside the judgment for a “do-over”. The defendant alleges that he could not afford a lawyer and that the denial of a second chance at re-litigating the case would equate to a denial of access to justice and cause serious prejudice towards him. Justice Dow of the Superior Court set aside the damages ordered by Justice Stinson in a ruling that has still not been released to the public. The plaintiff is now appealing this decision; if she is unsuccessful, she would be back at square one to re-litigate the same matters. For more information or any other questions regarding the tort of intentional infliction of mental distress, please contact our lawyers at https://devrylaw.ca/civil-litigation/. “This article is intended to inform and entertain. Its content does not constitute legal advice and should not be relied upon by readers as such. If you require legal assistance, please see a lawyer. Each case is unique and a lawyer with good training and sound judgment can provide you with advice tailored to your specific situation and needs.” By Fauzan SiddiquiBlog, LitigationMarch 27, 2017June 18, 2020
Solving Toronto’s Housing Woes The Toronto real estate market has been a hot topic in the city for over a year now. Soaring house prices and limited supply has made it difficult for potential buyers to purchase a home within the Greater Toronto Area (GTA). Without a significant amount of money on reserve to look to for negotiations, you might as well count yourself out of the Toronto real estate market before you begin your search. Many homes in the GTA have gone for close $1 million over asking, due to realtors using a strategy where they list the home low in order to attract more buyers. Recently, a home in the Parkwoods-Donalda area of Don Mills was listed for $998,800 and sold after one weekend for $1.75 million, just over $750,000 above the asking price. Not too far away, another house located just off of the Bridle Path sold for $1.15 million over its asking price. Multiple research studies have been conducted and presented to the public to reinforce speculations of market experts. The consensus? Foreign investment is making the real estate market soar until new data was released stating foreign investment only made up approximately 4% of transactions in 2016. When Trump took over the oval office, everyone focused on how he could influence our markets, and as a result, there was a spike in residents of the United States searching for homes in Canada, with residents searching for family homes in the city of Toronto – rather than the typical search for a cottage out in Muskoka. Rising prices within the city means hopeful home buyers must look outside of the city if they want to get their hands on a home. Many cities surrounding Toronto have single family homes for hundreds of thousands of dollars less than those in the GTA, if you’re willing to commute to the city. Even if you decide to move out of Toronto, the prices may be cheaper, but their values are quickly rising as Toronto’s real estate increases in value. For example, moving as far as Brantford, ON you can currently find the average home price sitting around $400,000 (January 2017). However, Ryerson university recently released their opinion on the matter. An article by The Star titled “Foreign buyer tax alone won’t solve Toronto housing woes: report” discusses how Ryerson’s City Building Institute (RCBI) believes implementing just a foreign buyer tax will not be the thing that saves Toronto’s troubled housing market. They do support the tax on foreign investors, but outline there should be an additional tax. A tax they call a “progressive tax” on expensive homes, owned by people who aren’t paying income tax – including those with foreign capital. A different way to view this is, if you’re earning money in Canada and paying taxes, you are not subject to the tax. You may view Ryerson’s full report on the matter, “In High Demand” here. This report features many charts displaying income, home prices, supply elasticity, number of single-family homes built per year, etc. If you take a look at our previous blog “Affordable Single-Family Homes In Cities Other Than Toronto & Vancouver” there are a number of similarities with the comparisons made between Canadian cities which the RCBI explores in great depth. The soaring house prices has also meant many young adults have been forced to move back home. As a result, fewer houses are being put up for sale – as some people hold off selling because the prices are too high. If you sell your home, where will you go? What you sell your house for most likely will not land you in a bigger home, you may be forced to downgrade. In Toronto, people in their 20s are still living at home, a whopping 56.5 percent. With the high prices, many young adults are moving and/or living at home in order to save on some expenses, while saving up for a down payment on a home. There may be brighter days ahead, however. BMO says that Toronto is in a housing bubble and that desperate home buyers should take a two year break from their search, as prices will fall. With all of this speculation, data, research, and what has occurred with Toronto’s housing market – only time will tell. We’ll have to sit back, do what we believe is right and let it take course. There are too many factors out of one person’s control that can make a significant change and one action from one individual will influence the smallest percentage of change. If you are looking to sell or purchase a home and require a real estate lawyer, visit our Real Estate page to contact a lawyer today, or contact Devry Smith Frank LLP at (416) 449-1400. “This article is intended to inform and entertain. Its content does not constitute legal advice and should not be relied upon by readers as such. If you require legal assistance, please see a lawyer. Each case is unique and a lawyer with good training and sound judgment can provide you with advice tailored to your specific situation and needs.” By Fauzan SiddiquiBlog, Real EstateMarch 14, 2017June 18, 2020
The Panama Papers: Canadian Bank Begins Closing Client Accounts Toronto Tax Lawyer discusses a CBC/Toronto Star investigation that looks into Canada’s tax system, specifically the use of Canadian corporations and limited partnerships as part of a complex offshore money laundering and tax evasion scheme. Known as The Panama Papers, this leak exposed 11.5 million documents detailing global tax avoidance and evasion and identified customers of Canadian banks that are connected to this scheme. Recently, the Royal Bank of Canada jumped into action, recently closing a number of accounts. They are the first Canadian bank to publicly confirm it has severed ties with customers who were named in the leak. They closed “about 40” customer accounts. Making matters worse, they also found out from the leak that they had registered at least 429 offshore companies with the Panamanian law firm Mossack Fonseca. Other financial institutions such as TD, BMO, and CIBC have not provided any information regarding their customers, while National Bank and Scotiabank have investigated and found no links to the Papers, and did not close any accounts. In total, 85 Canadians are being investigated by the CRA, with 60 being audited. To learn more about the Panama Papers leak and its connection to Canada, read The Canada Papers series here: Part 1: Snow Washing Part 2: 9203-9619 Quebec Inc. Part 3: Signatures for sale Part 4: Lessons for Canada Also read our previous blog here: Oh Canada, Our Home and “Snow-washed” Tax Haven?? RBC provided The Star with parts of a letter that was sent to one of their clients named in the Panama Papers database, which read: “Due to the operation of your accounts, we feel that we cannot achieve the requisite level of comfort with you. Therefore, after careful consideration, we must advise you that we are not in a position to continue our banking relationship.” Additional communication in the letter advised the client that he had 30 days to close his accounts and repay loans, one of which is a mortgage close to one million dollars. Letters were also sent to the children of the client, stating that their “risk profile has changed substantially” and the bank would not maintain their accounts. The children are under the age of 19. RBC’s spokesperson issued a response to this action, stating that their “decision that an account is outside of their risk parameters or does not meet our own standards does not mean the clients have engaged in inappropriate activity.” If you are in need of a tax lawyer in Toronto, please contact any of our tax lawyers. For any other legal services, please visit our website for more information or call (416) 449-1400. “This article is intended to inform and entertain. Its content does not constitute legal advice and should not be relied upon by readers as such. If you require legal assistance, please see a lawyer. Each case is unique and a lawyer with good training and sound judgment can provide you with advice tailored to your specific situation and needs.” By Fauzan SiddiquiBlog, TaxMarch 10, 2017June 18, 2020
Help! Will My Foreign Divorce Be Recognized in Canada? DSF’s family lawyer was recently asked the following question: If someone gets divorced in Tennessee, is the divorce legal in Ontario if they haven’t registered their divorce in Canada? I am planning on getting married again in Ontario. In the 21st century, it is important that the law keeps pace with the realities of an increasingly globalized world, one of which is the increasing flow of people between countries. In the context of family law, the shifting of families, children and individuals across borders has created a host of challenges for family lawyers, judges and legislators alike. One of the areas that continue to be the subject of focus is the recognition of foreign marriages and divorce. While the traditions, ceremonies and requirements for marriage and divorce vary from country to country, when it comes to recognizing them in Canada, there is only one set of rules. Whether you are divorced in New York or New Delhi, the test is the same. If you want to get remarried in Ontario after obtaining a divorce in a foreign jurisdiction, you have to establish that the foreign divorce is recognizable in Canada. Under s.22(1) of the Divorce Act, a foreign divorce will be recognized where one of the spouses was ‘ordinarily resident’ in that country for at least a year immediately before obtaining the divorce. However, that is only the first step to being able to remarry in Ontario. Before the Ontario government will issue you a marriage license, you have to obtain an authorization from the Registrar-General. To do this, you have to provide the following documents to the Office of the Registrar-General, Marriage Office: A marriage license application completed by you and your new spouse; The original divorce order or notarized copy of the divorce order. If the divorce judgment was written in a language other than English or French, you will have to obtain a court-certified translation of the document; A completed Statement of Sole Responsibility, which is a document that attests that you and your new spouse understand that the granting of a new marriage license does not necessarily mean that the foreign divorce would be recognized by an Ontario Court. A legal opinion letter from a lawyer, addressed to you and your new spouse, giving an opinion that the foreign divorce would be recognized as valid in Ontario and giving the reasons for their opinion. Once you have submitted these documents, the Registrar General will provide an authorization allowing you to obtain a marriage license. Only then will you be free to remarry in Ontario. It is important that you speak to a lawyer before embarking on remarriage. There are a number of legal hurdles to get over, and you will need a lawyer to draft an opinion letter in any event. If you are planning to get remarried in Ontario and need some advice, assistance or an opinion letter, contact a member of our Family Law Team. “This article is intended to inform and entertain. Its content does not constitute legal advice and should not be relied upon by readers as such. If you require legal assistance, please see a lawyer. Each case is unique and a lawyer with good training and sound judgment can provide you with advice tailored to your specific situation and needs.” By Fauzan SiddiquiBlog, Family LawMarch 9, 2017June 18, 2020
Is My Acceptance of a Separation Agreement over E-Mail Valid, Even Without My Signature? DSF’s Family Lawyer John Schuman was recently asked the following question: My soon to be ex-wife proposed an agreement between us concerning business, property, child access etc. She sent me a draft via email for negotiation purposes and I agreed for the most part and sent along with the changes I wanted. She then went to her lawyer and had an agreement drawn up, with the changes I wanted to be omitted of course. She now says my acceptance via email is binding, without my signature! Please tell me this is not true. Domestic contracts of any type (marriage contract, cohabitation agreements and separation agreements) are subject to the same rules about the process that must be adhered to, to have a valid contract and the subject matter that the contracts are legally allowed to cover. While the question as to what subject matter a contract can cover is best left to another day, your question raises important points about executing domestic contracts. Do I Need One at All? A domestic contract is, in my view, the most time-efficient, cost-effective and civil means of addressing the issues arising from a breakdown in a relationship. It is the preferred way to bring predictability, certainty and finality into a situation that, most likely, has been lacking those for some time. The only other means to resolve family law issues is by going to court, which can cost tens of thousands of dollars and take years to resolve. If there is even a remote chance that spouses, with the assistance of competent counsel, can resolve matters without going to court, it is always preferable to work towards a domestic contract. Can’t My Spouse and I Just Write Up an Agreement or Use One We Find on a Website Like Law Depot? Spouses are free to write a domestic contract in any form- they can even use a quill and parchment to do so. As long as it says “Separation Agreement” and is signed and witnessed by both parties, it is technically a valid contract. However, the difference between a valid contract and a contract that will be enforced by a court is stark and, in reality, it is the latter one that matters. I have noticed an increase in the number of people approaching me regarding contracts they plan to make or have made on lawdepot.ca or other contract generators. Every one of these contracts has had provisions or lack of provisions that I (and a number of lawyers consulted) would never consider using. For instance, the provision for waiver of spousal support in a law depot contract is six lines long. Every spousal support waiver clause I have seen drafted by competent counsel has been upwards of a page and a half. Lawdepot agreements do not contain any of the standard references to the governing statutes, which is quite important. These are basic facets of drafting an enforceable agreement – It is clear that a practicing Ontario family lawyer did not write the law depot template. If you need an agreement drafted, retain competent counsel to do so. Investing a bit at the outset in a solid agreement may save you tens of thousands down the road if the agreement is ever challenged. Think of it as an insurance policy against a future disaster – you will want to be well protected. So How Is A Valid, Enforceable Agreement Concluded? For a domestic contract to be valid and enforceable, it must first comply with the general law of contract. This means: Both parties must agree as to the subject matter of the contract; The contract must be in writing; The contract must be signed and witnessed; The contract must not contain any illegal bargains or promises The contract must be made without undue influence or duress. In addition to these terms, s.56(4) of the Family Law Act lays out additional grounds on which a judge can set aside a domestic contract, such as if one party did not make full financial disclosure or if a party did not understand the nature or consequences of the agreement. To ensure that there has been proper financial disclosure, you need to speak to a lawyer. Only a lawyer will be able to accurately tell you what assets need to be disclosed and what is the best way to ensure that the financial information you provide is sufficient. The sufficiency of financial disclosure is a common reason why agreements are set aside, years after they are concluded. Most judges feel that for a party to understand the nature and consequences of an agreement, a layperson needs to hire a lawyer. It is not simply enough that they understand the meaning of the words and have a simple appreciation of the consequences. The case law is clear that the person must understand all the legal repercussions of their agreement, in a variety of circumstances. Once represented parties agree to the terms of the agreement, and each has made full disclosure of their debts and liabilities, they are in a position to execute the contract. At this stage, each party will meet with their lawyer who will explain the nature and consequences of the contract through a process known as Independent Legal Advice. Once ILA has been given, a party will sign the agreement and the lawyer will attest that they have explained the nature and consequences of the agreement to the party. Once all interested parties have signed off, there is a valid and enforceable agreement. If you are moving in together, getting married, separated or just have a question about domestic contracts, please contact one of our Family Law Team. “This article is intended to inform and entertain. Its content does not constitute legal advice and should not be relied upon by readers as such. If you require legal assistance, please see a lawyer. Each case is unique and a lawyer with good training and sound judgment can provide you with advice tailored to your specific situation and needs.” By Fauzan SiddiquiBlog, Family LawMarch 8, 2017July 5, 2023