First Reference company logo

Inside Internal Controls

News and discussion on implementing risk management

machine cogs image

Federal Court of Appeal

Supreme Court of Canada issues landmark merger and efficiencies decision

The Supreme Court of Canada released its long awaited decision in Tervita Corporation et al v. Commissioner of Competition. In a 6-1 decision, the SCC allowed Tervita’s appeal and set aside the divestiture order made by the Competition Tribunal and upheld by the Federal Court of Appeal (FCA). The SCC agreed with the FCA’s conclusion that the merger would likely result in a substantial prevention of competition, but overruled the conclusions of the Tribunal and the FCA that the merger was not saved by the efficiencies defence.

 

, , , , , , , , , ,

Court confirms that religious charities must actively promote a religion

Earlier this month, the Federal Court of Appeal was asked to consider whether the Minister of National Revenue had erred in confirming the decision of the Canada Revenue Agency (CRA) to deny the Humanics Institute’s application for charitable status. CRA denied the application on the basis that: 1) The Humanics Institute’s purposes were too broad; 2) the activities stated in support of its purposes were not charitable; and 3) it did not demonstrate that it would have direction and control over certain of its resources, as its proposed funding of a foreign scholarship could not be considered to be the organization’s “own activities” or the funding of a qualified donee.

 

, , , , , , , , ,

Stay of execution: A precedential win for a charity at the Federal Court of Appeal

The charities community is well aware that the Canada Revenue Agency (CRA) works to shut down charities it feels are deserving of such a punishment. In some circumstances, notably, but not exclusively, with respect to charities involved in tax shelters, the CRA works to finalize the charity’s revocation within thirty days of its Notice of Intention to do so.

 

, , , , , , , , , , , , , , , , , , , , , , , ,

Arrangement did not constitute an employee profit-sharing plan: CPP payments required

The Federal Court of Appeal just decided that an accountant who received payments from a professional corporation he created did not properly create an arrangement that constituted a true employee profit-sharing plan. It was necessary for the professional corporation to make an election that payments would be based on profits; failing that, it was necessary for the professional corporation to have a set formula stating an amount to be computed by reference to profits so the employer was obligated to pay that amount to the trustees under the arrangement.

 

, , , , , , , , , , , ,