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Inside Internal Controls

News and discussion on implementing risk management

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Financial Compliance / Planning / Management

It’s a whole new ball game for charities at the FCA

Many in the sector have, for many years, advocated that appeals from decisions to revoke and refusals to register be heard by the Tax Court for this exact reason. They are simply better suited for testing the facts. Unfortunately, for whatever reason, these pleas have not been heard by Parliament, now though, for strictly practical reasons, they may have no choice but to make changes. All around, Vavilov will have positive implications for the charity sector.

 

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FINTRAC updates guidance on verifying the identity of individuals and other entities

anti-money laundering

Following consultations with businesses and reporting entities, FINTRAC has updated its guidance on Methods to verify the identity of an individual and confirm the existence of a corporation or an entity other than a corporation (the “Guidance”) effective October 2019. The updated guidance reflects amendments to the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations that came into force on June 25, 2019.

 

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‘Green’ governance: CSA outlines expectations regarding governance disclosure and practices in the cannabis sector

Regulatory and legal risks abound in developing business areas, such as the recently legalized cannabis industry in Canada. One of the key challenges for industry participants that are reporting issuers relates to meeting disclosure obligations.

 

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Did risk management fail?

Every so often, something bad happens to an organization and people say that risk management, perhaps governance, failed.

 

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Charities in the waiting room

Most organizations that are pursuing charitable status are incorporated. Part of the requirement for achieving such status is that the corporation is organized to pursue charitable purposes. But that by itself is not enough for charitable registration and so prospective charities must apply to the CRA for registration. The question then arises about the tax status of those corporations that are not yet (and may never be) registered charities, and what are their responsibilities?

 

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Cryptocurrency taxation update

On May 17, 2019, the Department of Finance released proposals to amend the Excise Tax Act (Canada) to treat certain virtual currency as a financial instrument for GST/HST purposes.

 

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Question to CRA on alter ego trusts and whether transfers are a donation

STEP Canada had a CRA Roundtable on June 6-7, 2019 and they discussed a number of topics. One issue of interest to charities and philanthropists is Question 2 dealing with alter ego trusts and donations.

 

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Multilateral Instrument (MLI) will enter into force for Canada on December 1, 2019

Canada has announced that the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting [PDF] ― also known as the Multilateral Instrument or MLI ―will enter into force for Canada on December 1, 2019.

 

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Transfer pricing: What’s new in Canada (Part I)

Since 2012, there have been unprecedented developments in Canada and globally in the area of international tax. The sheer volume and complexity of these developments make it difficult for Canadian corporations to keep up on what changes actually impact transfer pricing.

 

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Competition Bureau reinforces its focus on non-notifiable transactions

In a recent news release, the Competition Bureau made official its intention to increase the resources it devotes to the identification and review of non-notifiable merger transactions.

 

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Ways to maintain proper books and records

A recent Tax Court of Canada (“TCC”) decision, Promised Land Ministries v. The Queen[1], serves as a reminder to charities of the importance of maintaining proper books and records.

 

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New B.C. Business Corporations Act transparency register requirements: A primer

Beginning on a date to be announced, privately-held B.C. Business Corporations Act (“BCA”) companies ‎will be required to maintain a “transparency register” of “significant individuals”, being individuals who:‎

 

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Alberta Court of Appeal confirms super-priority status of restructuring charges

There were conflicting decisions from Nova Scotia (Rosedale) and Alberta (Canada North) on whether it was possible for CCAA and BIA created super-priority claims to rank senior to the Crown’s deemed trust claims under the fiscal statutes.

 

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Recognizing tax implications for damage awards

THD Inc. c. Sa Majesté la Reine (2018 CCI 147), a recent Tax Court of Canada decision, provides a fresh reminder for lawyers to be mindful of potential tax implications of damage awards.

 

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FSRA targets efficient and streamlined regulation for Ontario credit unions, insurers, pension plans, and mortgage brokers

As previously reported, the Ontario government is moving ahead to support financial regulatory reform including by establishing the Financial Services Regulatory Authority (FSRA), the new Ontario provincial regulator for provincially regulated insurers, credit unions, loan and trust corporations, pension plans, mortgage brokers and certain auto insurance service providers.

 

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