Solicitor-client privilege is a constitutionally-entrenched right that protects communications between a lawyer and his or her client. The foundation of such privilege is to encourage full and frank disclosure between lawyers and their clients for the purpose of providing legal advice. A lawyer cannot be compelled to disclose information shared by his or her client and only the client can waive privilege. In the tax planning context, protecting the confidentiality of taxpayer information is important to ensure that a taxpayer’s tax position is not unfairly prejudiced by legal requirements to provide subjective analysis or information to taxing authorities where such analysis or information was communicated or created for purposes of providing tax advice. Further, to better ensure taxpayer compliance under a self-reporting tax system, the confidentiality of communications with one’s tax lawyer is protected to encourage full and complete disclosure of the facts necessary to provide tax advice.
Transfer pricing issues continue to be an important focus for multinational enterprises (“MNEs”) and tax authorities. This post summarizes some of the significant developments in Canada that have arisen so far in 2016 and what to look forward to in the coming months. In particular, we highlight a decision of the Federal Court of Appeal, Canada’s implementation of the OECD Base Erosion and Profit Shifting (BEPS) Action Plan and some significant transfer pricing cases that are working their way through the Tax Court of Canada. Continue Reading
After a four year investigation, the Canada Revenue Agency (CRA) has assessed more than 1,000 pharmacists for what it says are unreported benefits they received from generic drug companies, such as gift cards, travel vouchers, and pre-paid credit cards. These benefits were incentives given to pharmacists by generic drug companies to entice them to substitute their product for brand-name products when filling prescriptions.