Law Times

January 8, 2018

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BY ALEX ROBINSON Law Times D espite the federal gov- ernment's scaling back of some of its proposed tax reforms for profes- sional corporations, tax lawyers say the revised changes could still have unfavourable effects on law- yers and their clients. In July, the government an- nounced three proposals, which included restricting income sprin- kling for business owners, bar- ring the practice of transforming dividend income into capital gains and closing a loophole that allows business owners to pay lower taxes on passive investment income held in a corporation. After facing criticism from lawyers and other profession- als concerned that their wallets would be unfairly targeted by the changes, federal Finance Minister Bill Morneau altered the propos- als and abandoned the capital gains reform. The draft legislation the gov- ernment recently unveiled in mid- December will curtail income sprinkling, except for a number of exemptions. Those family mem- bers who would be exempt would include spouses, as long as they had "meaningfully contributed" to the business and if the owner is 65 or older. Others who would qualify would be members of the business owner's family who are adults over the age of 18 who have worked at the corporation for at least 20 hours a week during any of the previous five years and those over 25 who own at least 10 per cent of the company that is not a profes- sional corporation and earns less than 90 per cent of its income from the provision of its services. If none of the exceptions ap- ply, family members who are 25 and older will have to undergo a subjective "reasonableness test" to determine how much income can be subject to income sprinkling. While the revised changes were more palatable than the original proposal to some business owners, tax lawyers say practitioners who are incorporated could still be im- pacted. "The changes which are ben- eficial are not available to lawyers," says David Rotf leisch, a tax lawyer at Rotf leisch & Samulovitch PC. "So the new rules will ad- Ruling focuses on limitation period BY ALEX ROBINSON Law Times T he Court of Appeal has determined that the limi- tation period for an exces- sive force claim against the police started running at the end of the underlying criminal proceeding. Some lawyers say the decision in Winmill v. Woodstock (Police Services Board) is a big shift in this area of the law, as it changes when the limitation period starts for battery claims against the po- lice in certain circumstances. The limitation period for this cause of action has often started when the alleged injury occurred, where- as with negligent investigation claims, it kicks off when criminal proceedings wrap up. The plaintiff and appellant, Robert Winmill, brought a bat- tery claim against the Woodstock Police Service after an altercation at his home on June 1, 2014, when the police allegedly assaulted him. He was arrested and charged with assaulting an officer and resisting arrest, but he was later acquitted of both charges in February 2016. He didn't bring a notice of action until June 2, 2016, which was two years and one day after he suffered the alleged battery. He sought damages for negligent in- vestigation and assault. A motions judge dismissed his claim for battery. Winmill's appeal revolved around when he found out that such a legal proceeding would be an appropriate way to seek remedy for the allegations. In a 2-1 decision, the Court of Appeal found that Winmill's claims for negligent investigation, which was proceeding, and that for battery were "inextricably inter- twined" and that the limitation period started at the end of the criminal proceedings. Lawyers who represent police in civil claims say the decision is problematic as it moves away from established case law on the issue AFTER #METOO What lawyers can do to stop harassment P7 FOCUS ON Insurance Law P9 PM #40762529 $5.00 • Vol. 29, No. 1 January 8, 2018 L AW TIMES C O V E R I N G O N T A R I O ' S L E G A L S C E N E • W W W . L A W T I M E S N E W S . C O M ANTI-SPAM LAW Changes advised to improve clarity P5 See New, page 4 Kevin Egan says he does not think a recent Ontario Court of Appeal decision will result in an 'opening of the floodgates' of battery claims against police. See Decision, page 4 Lingering concerns remain over tax changes David Rotfleisch says proposed federal tax changes will still adversely affect lawyers who have incorporated their practices. Photo: Robin Kuniski Legal News at Your Fingertips Sign up for the Canadian Legal Newswire today for free and enjoy great content from the publishers of Canadian Lawyer, Law Times, Canadian Lawyer InHouse and Lexpert. Visit www.canadianlawyermag.com/newswire-subscribe THE LATEST NEWS THE BEST COMMENTARY DELIVERED WEEKLY FOR READING ON ANY DEVICE Untitled-2 1 2018-01-03 10:12 AM www.twitter.com/lawtimes Follow & $#&!&jmmm$cYa[bbWh$Yec ntitled-4 1 12-03-20 10:44 AM

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