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Inside Internal Controls

News and discussion on implementing risk management

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Competition Act update

The Competition Bureau must generally be given advance notice of proposed transactions when the acquired assets in Canada or revenues generated in or from Canada from such assets exceed C$92 million, and when the combined Canadian assets or revenues in, from or into Canada of the parties together with their respective affiliates exceed C$400 million.


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Directors’ liability for source deductions

An issue came up when a CRA auditor queried CRA rulings. She had a file where she intended to assess the directors of a not-for-profit corporation for its failure to remit trust funds. The directors had retained legal counsel, who was of the view that directors’ liability does not apply to directors of a not-for-profit corporation.


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It’s not about risk management – it’s about the achievement of objectives

I have said many times that it’s not about managing risks: it’s about managing the achievement of objectives. It’s about being successful. Success is measured through the achievement of specified objectives. We improve the likelihood and extent of success if we understand what might happen, both good and bad, as we strive to achieve our […]


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2018 Federal Budget proposals target private corporations earning investment income

As a consequence of the public’s concern with the overall thrust of the government’s tax law amendments, the 2018 Budget issued on February 27, 2018 has largely eliminated the implementation of the July 2017 proposals. Instead the 2018 Budget contains two specific measures to address the government’s concern with the tax deferral related to investment income in a private corporation.


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Supercash for superclusters: Government of Canada commits $950M in funding to five “superclusters” representing 450 Canadian entities

The ISI was launched on May 24, 2017, as part of the Government of Canada’s multi-year Innovation and Skills Plan in order to spark growth and help Canada realize its potential as a global leader in innovation. This was accomplished by encouraging the development of “superclusters”, which are industry-led, not-for-profit entities that have been formed to represent clusters of businesses, research institutions, and other innovators in regional and industry specific areas.


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Government sin of omission may lead to your sin of commission

In enacting changes to the regime which deals with donations to foreign universities Budget 2018 has created an immediate issue for anybody that donates to these schools. What is unknown is whether this was intentional.


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Canadian government publishes consultation paper proposing wide-ranging amendments to anti-money laundering legislation

Amendments might be coming to anti-money laundering legislation. The Canadian government recently published a consultation paper with proposals for wide-ranging amendments. On February 7, 2018, the Canadian federal government released a consultation paper for comments that has far-reaching implications for compliance with Canadian anti-money laundering requirements. The comment period on this paper ends on April […]


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The Quebec Court of Appeal comments on the role of class action representative and interactions with class counsel, in the context of abusive proceedings

Should the class representative fail to ensure the adequate conduct of the action, and more particularly in the context of abusive proceedings, the Court may take measures in order to ensure the orderly progress of the case, which could exceptionally go as far as making orders to replace the class representative.


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Vote deadline set for the Cannabis Act

A deal to set a timeline for the Senate to hold its final vote on the legalization of recreational use of cannabis comes as a response to indications that passage of the highly anticipated legislation could be delayed.


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How should you assess the effectiveness of risk management?

If an organization seeks to perform at world-class levels, it needs to have highly effective processes and practices for managing what might happen – risk.


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Ontario ban on door-to-door sales in effect as of March 1st

Door-to-door sales contracts have been among the top complaints received by the Ministry of Government and Consumer Services. Starting March 1, 2018, Ontario has banned unsolicited, door-to-door sales of certain household appliances to better protect consumers from aggressive and misleading contracting at home. This will bring about some changes for some companies business model and marketing strategies.


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Employee forfeits $115,000.00 in bonuses by resigning; active employment clause valid

A bonus policy may state that employees who are eligible for bonuses must also be actively employed to receive their bonus payments. That is, employers may institute an “active employment clause”. Courts will uphold valid active employment clauses, as demonstrated by Bois v. MD Physician Services Inc., 2017 ONCA 857 (CanLII). MD Physician Services Inc. […]


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Privacy damages awarded for commercial use of a person’s image in a public setting

Organizations which use images for commercial purposes would be wise to seek the consent of all persons appearing in such images, even where the images are made in a public setting.


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Liability waivers: If in doubt, get a new one

There is a need for entities wishing to rely on liability waivers to ensure that the waivers are expertly drafted, that the purpose and limitations of liability waiver are understood by such entities and that such entities routinely review their waivers to ensure that they apply to all activities that might be engaged in by the parties executing such waivers.


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Collaboration between the business risk and IT security teams

Take each of your business objectives and plans. Now, figure out what might result from a technology-related failure (noting that ‘technology’ extends beyond the IT function). Then, what are you going to do about it?


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