Law Times

Law Times • march 5, 2018 Page 5 www.lawtimesnews.com Unified family courts get boost in budget BY JENNIFER BROWN Law Times F amily law lawyers say new funding for Unified Fam- ily Courts contained in the recent federal budget is welcome, but some are skep- tical as to whether it will have a huge impact in Ontario. The government proposes to provide $77.2 million over four years, starting in 2019–20, and $20.8 million per year ongo- ing, to support the expansion of UFCs, creating 39 new judicial positions in Alberta, Ontario, Nova Scotia and Newfoundland and Labrador. UFCs are considered a "one- stop shop" for family law issues — whether they fall under pro- vincial or federal jurisdiction — and aim to simplify procedures for people going through sepa- ration, divorce, support and cus- tody disputes. "A province-wide UFC is something that has been talked about my entire career," says family law specialist Cheryl Goldhart of Goldhart & Asso- ciates. "It is a momentous day for the family law bar and for families in Ontario. It's fantastic news." UFCs use judges familiar with the sensitive nature of fam- ily law issues and offer a range of programs and support services to families. The government also intends to introduce legislative amend- ments to create the new judicial positions to enhance UFCs. Ryan McNeil, a family law lawyer with Lerners LLP in To- ronto, says right now only about 40 per cent of Ontario's popula- tion is governed by a UFC sys- tem limited to 17 regions across the province. The first UFC pi- lot project started in Hamilton more than 40 years ago. "This increase in funding in the federal budget is critical to the expansion project because, while the province has been be- hind the initiative for some time now, the feds had to step in and cement their support given the intricacies of provincially ap- pointed judges on the one hand and federally appointed judges on the other," says McNeil. From an access to justice per- spective, he says, expanding the UFC system is "definitely a step in the right direction." The budget also provided for $41.9 million over five years to "ensure that Canada's federal courts, including the Tax Court of Canada, receive adequate sup- port." Again, lawyers familiar with the tax court system question the amount of the allocation when demand is continually ris- ing. In a note to Canadian Tax Foundation members the day after the budget, executive direc- tor Heather Evans commented that funding will be provided to the Courts Administration Ser- vice for new front-line registry and judicial staff and most will be allocated to the Tax Court. Tax litigator Pooja Mihailov- ich, a partner in the tax practice at Osler Hoskin & Harcourt LLP in Toronto, says the federal government has been "bolster- ing the capabilities of the CRA to raise more assessments, but without commensurately equip- ping the court to handle more disputes." "The Tax Court has for many years held the enviable position of being a court that resolves disputes in a timely way. The court manages its docket strictly and makes efforts to ensure that matters are brought to a conclu- sion as efficiently as possible," Mihailovich says. LT NEWS Ryan McNeil says right now only about 40 per cent of Ontario's population is governed by a UFC system limited to 17 regions across the province. Order # 804218-65203 $537 2 volume looseleaf supplemented book Anticipated upkeep cost – $480 per supplement 4-6 supplements per year Supplements invoiced separately 0-88804-218-3 Shipping and handling are extra. Price(s) subject to change without notice and subject to applicable taxes. Jurisdiction: Canada (National) Cited by the Supreme Court of Canada Canadian Employment Law Stacey Reginald Ball "The most comprehensive text on employment law in Canada. It is carefully constructed and accurate." 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Learn more about ProView eBooks at store.thomsonreuters.com/ProView * Thomson Reuters ProView options not applicable to bookstores, academic institutions, and students. 82 Scollard Street, Toronto, Canada, M5R 1G2 Excellence in Employment & Labour Law • Counsel in Leading Cases • • Author of Leading Treatise • Wrongful Dismissal Employment Law Human Rights Post Employment Competition Civil Litigation Appellate Advocacy Disability Ball Professional Corporation Referrals on behalf of employees and employers respected Contact Stacey Ball at web: www.staceyball.com (416) 921-7997 ext. 225 or srball@82scollard.com all_LT_Nov7_11.indd 1 11-11-08 11:44 AM Budget background Big news for lawyers in the recent federal budget include the government backing away from its July 17, 2017 proposal on how the taxation of passive in- vestment income for Ca- nadian-controlled private corporations would be taxed. Kim Moody of Moodys Gartner Tax Law LLP says the government deserves credit for listening to the concerns of the business community. However, he says a new rule will further restrict access to the small business deduction. Moody, director of the Canadian tax advisory group with the firm in Calgary, says the punitive tax rates/regime proposed that would have impacted lawyers have been "fully eliminated" with the in- tegration principle being maintained. "[The] budget appears to be a full-scale retreat by the government. Instead of following its approach as laid out in the July 18, 2017 and Oct. 18, 2017 releases, the budget will instead propose two new measures to limit deferral 'advan- tages' from holding passive assets in a CCPC," he says. "Instead, the govern- ment proposes to further restrict access to the small business deduction if the passive income of the cor- poration exceeds $50,000." Moody says the federal government "completely backed down on the pas- sive investment propos- als, with the exception of a proposal that will reduce access to the small business deduction to the extent that your passive income ex- ceeds $50,000 and it's a $5 reduction of the small busi- ness deduction for every $1 of excess passive income." Further technical amendments are being proposed to refine how a corporation will receive re- funds on the taxation of its investment income. "Tax practitioners and private business owners have been very concerned that the implementa- tion of this f lawed policy would dramatically impact CCPCs' (and their share- holders') ability to accu- mulate assets for a variety of reasons. In addition, valid concerns were raised as to why public corpora- tions and non-residents would not be subject to such a harmful new re- gime," Moody says. — Jennifer Brown

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