BWray@blg.com
Senior Associate
Benedict S. Wray
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LLevine@blg.com
Partner
Laura Levine
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FJolicoeur@blg.com
Partner
François Joli-Coeur
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LGoldbach@blg.com
T 403.232.9707
Partner
Laurie Goldbach
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PCross@blg.com
Partner
Pamela L. Cross
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GPereira@blg.com
Partner
Grace Pereira
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Canada’s Artificial Intelligence and Data Act: Impact for businesses
Solicitor-client privilege & new CRA reporting requirements
Read now
Canada’s Artificial Intelligence and Data Act: Impact for businesses
New trust reporting rules
are now in effect
Read now
Bill C-47: Mandatory tax disclosure requirements for taxpayers, promoters and advisors
Read now
Familiarize yourself with the new trust
reporting rules and talk to your lawyer.
1
Consider the issue of solicitor-client privilege in tax matters before a tax audit starts.
2
Conduct a cost-benefit review with your lawyer before
waiving privilege.
3
How to protect your solicitor-client
privilege and your information:
Hold any property
in trust
Hold property for a
relative on their behalf
Are the beneficiary of a trust
Have an arrangement where someone is acting as a beneficiary e.g., private family trust that holds private company shares
Are a beneficiary of tax
or estate planning
Protect your interests. Understand
the new trust reporting rules if you:
Submitting a 10-page report approved by your board or other governing body
2
Answering an online questionnaire
1
What is required?
During a tax audit, the Canada Revenue Agency (CRA) frequently requests information from a taxpayer or their advisors, which is subject to solicitor-client privilege. Typically, the taxpayer may choose to waive privilege and disclose such information or may resist disclosure based on privilege and on the advice of their lawyer. Unresolved privilege disputes with the CRA can end up in the courts to determine what, if anything, must be disclosed.
New tax reporting requirements for trusts have recently come into effect in Canada. The new trust reporting obligations require information that may otherwise be subject to privilege to be disclosed regardless of whether a CRA audit has been commenced. This means that taxpayers will need
to consider asserting privilege over any of the information that may otherwise be reportable
without context for the risks of waiving privilege. The trust reporting requirements are
broad and may impact many common commercial arrangements.
Trust reporting requirements and solicitor-client privilege
Solicitor-client privilege protects the client and ensures the communications between lawyer and client are held in confidence. It is distinct from confidentiality and is a fundamental component of the legal system. There are some occasions where a client may choose to waive solicitor-client privilege, on the advice of their lawyer, depending on what is requested to be disclosed. New trust reporting rules may put solicitor-client privilege at risk.
Are you prepared to protect your
solicitor-client privilege?
TALK TO OUR TEAM
MORE FOOD FOR THOUGHT
TALK TO OUR TEAM
MORE FOOD FOR THOUGHT
Solicitor-client privilege