Law Times

Page 6 June 26, 2017 • Law Times www.lawtimesnews.com COMMENT u EDITORIAL OBITER By Gabrielle Giroday Tax shakeup takes time Law Times reports this week about ongoing criticism around the federal government's proposal to nix billed-basis accounting, which lets lawyers and some other professionals exclude the value of work in progress from their income and allows lawyers to defer paying taxes on work until it is billed. This would come about by the repeal of s. 34 of the federal Income Tax Act. The change was announced earlier this year as part of the federal budget, and it recently came under fire by the Joint Committee on Taxation of the Canadian Bar Association and Chartered Profession- al Accountants of Canada. Issues could arise in firms both small and large, they say. "We understand that accountants and lawyers in small practices may have a materially different [work in progress] profile than do other small-practice professionals and other service businesses," said a recent submission by the joint committee. "In particular, it is not unusual for accountants and lawyers in small practices to 'carry' cli- ents for a significant period of time in respect of certain types of mat- ters, perhaps until the matter they are involved in (a divorce, a lawsuit, a consulting project) is substantially or completely resolved." True that. Or big firms. "Many firms must . . . consider how they will amend partnership agreements to ref lect the change in tax law. This will take some dis- cussion and consideration to establish what is acceptable for each partnership," said the submission. The committee has suggested a longer transi- tion period before the change comes into effect so that those affected can better implement the chan- ges and build them into their accounting systems. They've also proposed a de minimis exception for small practices. The federal government may wish to get it done right, not quickly — which means a longer rollout is advisable. LT ©2017 Thomson Reuters Canada Ltd. All rights reserved. No part of this publication may be reprinted or stored in a retrieval system without written per- mission. The opinions expressed in articles are not necessarily those of the publisher. Information presented is compiled from sources believed to be accurate, however, the publisher assumes no responsibility for errors or omissions. Law Times disclaims any warranty as to the accuracy, completeness or currency of the contents of this publication and disclaims all liability in respect of the results of any action taken or not taken in reli- ance upon information in this publication. Publications Mail Agreement Number 40762529 • ISSN 0847-5083 Law Times is published 40 times a year by Thomson Reuters Canada Ltd. LT.editor@thomsonreuters.com CIRCULATIONS & SUBSCRIPTIONS $205.00 + HST per year in Canada for print and online (HST Reg. #R121351134), $199 + HST per year for online only. Single copies are $5.00. Circulation inquiries, postal returns and address changes should include a copy of the mailing label(s) and should be sent to Law Times One Corporate Plaza, 2075 Kennedy Rd. Toronto ON, M1T 3V4. Return postage guaranteed. 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Karen Lorimer Managing Editor . . . . . . . . . . . . . . Jennifer Brown Editor . . . . . . . . . . . . . . . . . . . . . . Gabrielle Giroday Staff Writer . . . . . . . . . . . . . . . . . . . . .Alex Robinson Copy Editor . . . . . . . . . . . . . . . . . . Patricia Cancilla CaseLaw Editor . . . . . . . . . . . . . . . . . . Leah Craven Art Director . . . . . . . . . . . . . . . . . . . Phyllis Barone Production Co-ordinator . . . . . . . . .Catherine Giles Electronic Production Specialist . . . Derek Welford A shot of irony served on the rocks BY IAN HARVEY T here's a massive dark cloud on the horizon looming over Can- ada's 150 th birthday. Unhappy with the way col- lective bargaining is going, the 8,000 members of the Ontario Public Service Employees Union at the LCBO stores are threatening to put a cork in it and walk off the job June 26. Ouch. Not that you need booze to enjoy a long weekend on Canada's 150 th , but those of us who appreciate a few cold ones or a glass wine over dinner and a shot of smoky warmth around the fire pit are more than miffed. Threats of LCBO strikes, of course, are constant at bargaining time, but this year, there's a twist. For one, the landscape has changed somewhat and, secondly, there's a delicious sense of irony at play. The latter involves the tabling of Bill 148, the Fair Workplaces, Better Jobs Act, 2017, which is aimed at those in precari- ous work situations. It inserts amendments to the Employ- ment Standards Act, 2000 and there are also some ripple changes to the Employ- ment Protection for Foreign Nation- als Act, 2009 and to the Occupational Health and Safety Act. The irony is that in negotiating with OPSEU, the union charges, the government convenient- ly ignores its own political theme of "fairness." In a nod to WikiLeaks, OPSEU has set up LiqiLeaks. ca. The site compares the plight of the 84 per cent of LCBO workers stuck on part- time status, some getting as little as 20 hours a week, to that of LCBO president and chief executive officer George Soleas. OPSEU wants more full-time posi- tions, which come with better benefits and enhanced security, driving up costs. The LCBO is resisting. Soleas notes the LCBO is competing in a changed landscape, with beer and wine for sale in grocery stores. It's pretty clear this is what OPSEU feared when it decried the move to ex- pand beer and wine sales — more choice and less control. Still, it's a bit of a canard. Disruption is everywhere and with its monopoly eroding, all the LCBO is being asked to do is learn how to compete more effectively. It's not much to ask someone making close to $400,000 a year. You'd think Soleas would be capable. Meanwhile, the Ontario government, which gets $2 billion a year in dividends from the LCBO, ignores the irony as it tables Bill 148. While the headline on Bill 148 was increasing the minimum wage to $15 an hour by Jan. 1, 2019, there are a myriad other details. It also brings changes to the Labour Relations Act. For example, it would make it more difficult for employers to claim their employees are merely con- tractors and thus exempt from the ESA. It also restricts how and when employ- ees may change work schedules and locations, sets minimum shifts for part- timers and introduces bereavement and emergency leave standards. And despite the cries of imminent bankruptcy from employer associations and groups, these changes generally are about levelling the playing field and — there's that word you'll hear a lot from the Liberals — fairness. There is a viable quibble with raising the minimum wage, not that $15 an hour as of January 2019 isn't reasonable, but in the manner in which it was done, with- out consultation and without consider- ing the knock-on consequences. With only 23 per cent of voters lean- ing to the Liberals, it's blatant, dogmatic politics and nothing more than we've come to expect from a sinking govern- ment. It is targeting 11 per cent of Ontar- ians at minimum wage, many too young to vote, in an act of desperation. Still, that's a higher percentage than any other province, according to the Ca- nadian Labour Congress, whose cam- paign over the last two years has been a driving factor in this issue. Curiously, the report that preceded the amendments, "The Changing Workplaces Review," released scant days earlier, made no mention of raising the minimum wage, though its recommendation to dump the lower minimum wage for liquor servers and to remove barriers preventing farm workers, legal and medical professionals joining unions was quickly incorporated. "The Changing Workplaces Review" echoed much of what a similar "Law Re- form Commission" report on precarious work noted in 2012, so none of this is new. It just may be a little too late. LT uIan Harvey has been a journalist for more than 40 years writing about a diverse range of issues including legal and political affairs. His email address is ianharvey@rogers.com. Queen's Park Ian Harvey

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