Law Times

November 6, 2017

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Decision clarifies how limitations apply BY ALEX ROBINSON Law Times A n Ontario judge has awarded a $1.5-million judgment to a plaintiff in a decision that law- yers say clarifies how the prov- ince's statute of limitations applies to the Excise Tax Act. In National Money Mart v. 24 Gold Group Ltd, Superior Court Justice James Diamond granted a summary judgment motion to Money Mart, which was seeking the $1.5-million payment from 24 Gold Ltd. — a private precious metal refiner and dealer — for HST it had not paid when buying unrefined gold. Lawyers say the decision clari- fies that the clock starts to tick on the limitations period in such matters when the CRA assesses tax that is owed. "This case actually makes it very clear how an entity like Money Mart can assert a statu- tory cause of action that the Excise Tax Act gives them," says Marvin Huberman, the lawyer who repre- sented Money Mart in the action. Between 2010 and 2012, Mon- ey Mart sold unrefined gold to 24 Gold for a total sum of more than $12 million. According to the de- cision, 24 Gold never remitted $1.5 million in HST to the gov- ernment. Precious metals are generally exempt from HST, but because the gold was unrefined, it was not en- titled to the exemption. Money Mart started an action against 24 Gold after the CRA conducted an audit on the com- pany's HST returns in 2015. The CRA satisfied the unpaid debt out of Money Mart's 2016 corporate tax payments and 24 Gold refused to reimburse the fi- nancial services company. At issue in the proceeding was whether provisions of the Excise Tax Act gave Money Mart a statu- tory right of action. Section 224 holds that when a supplier or seller has made a tax- CONDO ACT Are changes benefiting tenants? P6 FOCUS ON Family Law P8 PM #40762529 $5.00 • Vol. 28, No. 35 November 6, 2017 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 POLICE TESTIMONY Alleged bias under scrutiny in legal battle P4 BY ALEX ROBINSON Law Times W hile the Law Society of Upper Canada has forged ahead with changing its name, some lawyers say they felt left out of the process. The regulator's governing board of benchers voted to change its name to the Law Society of On- tario at its November meeting in order to move away from a moni- ker critics had said was outdated. After benchers approved drop- ping 'Upper Canada' from the name in September, the law so- ciety launched surveys with the membership and public on four alternative names. Some lawyers have voiced con- cern over the speed at which the changes have been made and were disappointed that the old name was not even an option on the survey. "I was hoping one of the op- tions in the survey would be 'Don't change it,'" says Kathryn Marshall, a lawyer with Dolden Wallace Folick LLP, who partici- pated in the survey. "It was nice to have some input at least, but I'm definitely of the school of thought not to change it. I think a lot of lawyers in Ontario agree, too." In the surveys, respondents could choose from the Law Society of Ontario, Ontario Law Society, Legal Regulator of Ontario and Legal Professionals of Ontario. Marshall says she thinks there should have been a write-in op- tion on the survey. She adds she was surprised by the name change debate and that there were other things she thinks the law society should focus on if it wants to pro- mote public engagement. "For me it kind of came out of nowhere," she says. "I didn't even know this was broken. Why are we fixing it? Why is this a priority?" Of the more than 17,000 licens- ees who responded to the survey, 83 per cent preferred Law Society of Ontario to the other alternatives. Ontario Law Society was the sec- ond favourite option with the sup- port of 11 per cent of respondents. In another survey, the steering group found that 41 per cent of See Thousands, page 2 Benchers approve 'Law Society of Ontario' Law Society of Upper Canada adopts new name Marvin Huberman says a recent ruling makes it clear that an entity can use s. 224 of the Excise Tax Act to assert a statutory cause of action. See Ruling, page 2 Kathryn Marshall says she does not support the name change of the Law Society of Upper Canada. Photo: Robin Kuniski 9th Annual Dealing with the Lease: Specialty Leases JOIN OUR FULLY ACCREDITED PROGRAM | EXPAND YOUR NETWORK AND OBTAIN CPD HOURS Register online: • 416-609-5868 | 1-877-298-5868 *Discount applies to in-class only USE PROMO CODE EARLYBIRD2017 & SAVE $300* EARLY BIRD EXTENDED TO NOV. 8 Untitled-7 1 2017-10-31 12:28 PM AnyWhere. AnyTime. AnyDevice. ntitled-4 1 2017-10-31 11:55 AM & $#&!&jmmm$cYa[bbWh$Yec ntitled-4 1 12-03-20 10:44 AM

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