Tax Court of Canada Finds in Favour of Russell Martin and Joshua Donaldson
Dec. 12, 2024 – Davies recently acted for former Toronto Blue Jays players Russell Martin and Joshua Donaldson in a tax dispute. The case centered on the correct computation of their income earned in Canada under the Income Tax Act , specifically the proper allocation of employer contributions to Retirement...
Federal Court of Appeal Confirms CRA Can Collect Arrears Interest Despite Absence of a Tax Debt
Dec. 04, 2024 – The Federal Court of Appeal (FCA) recently dismissed the Bank of Nova Scotia’s (BNS) appeal and upheld the Canada Revenue Agency’s (CRA) practice of charging arrears interest on a non-existent tax debt where audit adjustments increase taxable income that is offset by the carryback of a loss...
Lexpert Rising Stars Recognizes Three Davies Partners
Nov. 20, 2024 – Marie-France Dompierre, Jennifer Prieto and Élisabeth Robichaud each received the Lexpert Rising Star: Leading Lawyers 40 and Under award at last night’s gala at the Liberty Grand in Toronto. These awards are a testament to their dedication to excellence and their reputations as leaders in their...
Bit Digital, Inc. Acquires Enovum Data Centers Corp.
Oct. 23, 2024 – Davies acted for Nasdaq-listed Bit Digital, Inc., a large-scale digital asset miner and AI infrastructure provider focused on sustainability, in its acquisition of Enovum Data Centers Corp., a Montreal-based owner, operator and developer of high-performance computing data centers. This acquisition...
Chambers Canada Ranks Davies as a Leading Law Firm Across Multiple Practice Areas
Sept. 26, 2024 – In its 2025 edition, Chambers Canada recognizes Davies as a top-tier law firm spanning 27 practice areas. Some of our achievements include: Highest percentage of Band 1 lawyer rankings 93 individual lawyers and 27 practices ranked 114 lawyer rankings 13 Band 1 practices ...
GSK / BELLUS Health Is Named Impact Deal of the Year
Sept. 06, 2024 – The 2024 LMG Life Sciences Awards has named BELLUS Health’s US$2-billion sale to GSK as an Impact Deal of the Year (for the Americas). LMG Life Sciences nominates key legal players in the life sciences industry and recognizes their most outstanding work in this field. We appreciate this...
Best Lawyers in Canada Recognizes 140 Davies Partners in Their 2025 Edition
Aug. 29, 2024 – The 2025 edition of Best Lawyers in Canada has once again recognized the high level of service we provide our clients by naming 140 partners as Best Lawyers across 49 practice areas. Seven partners were also awarded Best Lawyer of the Year, including: Sarbjit S. Basra , Venture Capital...
ITR World Tax Recognizes Davies as a Top-Tier Firm
Aug. 28, 2024 – International Tax Review’s ITR World Tax guide once again ranks Davies as a Tier 1 firm in the areas of Tax, Tax Controversy and Transactional Tax for 2025. We are grateful to our clients who trust us with their most important tax matters. In addition to these rankings, the following 13 of...
Davies Secures Judgment Quashing Discretionary Decisions by the Minister of National Revenue
Aug. 15, 2024 – Acting for Onex Corporation and related entities (Onex), Davies secured a favourable judgment from the Federal Court . The Court granted Onex’s application for judicial review and set aside two discretionary decisions made by the Canada Revenue Agency (CRA) on behalf of the Minister of National...
U.S. Supreme Court Upends 40 Years of Judicial Deference to Regulations
July 25, 2024 – In a historical opinion in Loper Bright Enterprises v. Raimondo, Secretary of Commerce , released at the end of June, the U.S. Supreme Court overturned the “Chevron” doctrine, which for so long had controlled judicial review of U.S. federal regulations. Chevron , decided in 1984, created a...
Canada Finally Enacts the Digital Services Tax (Maybe)
July 09, 2024 – The new Digital Services Tax Act came into force with an order-in-council on June 28, 2024, imposing a 3% digital services tax (DST) on certain Canadian-source digital services revenue of large entities. The DST would first be payable in 2025, with the initial payments retroactively covering...
IRS Proposes to Limit Application of Funding Rule on Stock Buyback Excise Tax
June 20, 2024 – In prior bulletins from February 2023 and December 2022 , we described a notice from the Internal Revenue Service (IRS) that outlined the rules that the IRS intended to issue with respect to the 1% stock buyback excise tax. This tax generally applies to the repurchase of stock of a public U.S. ...
IRS Relaxes Rules for Domestically Controlled REITs
June 19, 2024 – Non-U.S. investors are generally subject to U.S. federal income tax on gains from investments in private U.S. real estate investment trusts (REITs). Two exceptions (among others) are for investments in “domestically controlled” REITs and for investors that are “qualified foreign pension funds....
The Proposed Enhancement of CRA’s Audit Powers, Part Two: Unpacking the New Non-Compliance Regime
May 24, 2024 – The following article was originally published in Law360 Canada. In part one of this series, we discussed how Budget 2024 marks a significant turning point for the Canada Revenue Agency (CRA), introducing measures that substantially bolster its audit powers. In this part, we discuss the...
The Proposed Enhancement of the CRA’s Audit Powers, Part One: Under Penalty of Perjury
May 03, 2024 – The following article was originally published in Law360 Canada . Budget 2024 proposes to substantially bolster the Canada Revenue Agency’s (CRA) audit powers, underscoring the increasing burden on taxpayers to comply with information requests and the consequences of non-compliance. The...
Christopher Anderson on Recent Budget Announcements in Canadian Lawyer Magazine
Apr. 30, 2024 – In an interview with Canadian Lawyer Magazine , Christopher Anderson discusses some of the potential implications of the 2024 federal budget, including the effect the rise in capital gains tax may have on investments in Canada and the financial impact on Canadian doctors who incorporate their...
Federal Budget 2024: How It Impacts You and Your Business
Apr. 16, 2024 – The Honourable Chrystia Freeland, Deputy Prime Minister of Canada and Minister of Finance, delivered the Liberal Party’s federal budget (Budget 2024) on April 16, 2024. Budget 2024 included a number of proposed changes to the Income Tax Act (ITA) and other tax legislation. The most significant...
Peter Glicklich Appointed President of the International Fiscal Association (USA Branch)
Mar. 25, 2024 – Peter Glicklich has been appointed president of the USA Branch of the International Fiscal Association (IFA). The USA Branch has close to 1,000 tax professionals as members and is one of the largest branches of the 14,000-member worldwide organization. Peter is known for his innovative and...
Davies Welcomes Jacob Yau to the Tax Group in Toronto
Feb. 12, 2024 – We are pleased to welcome Jacob Yau as a partner in our Toronto office Tax group. Jacob has extensive experience in tax litigation, having argued before the Tax Court of Canada and the Federal Court of Appeal on matters including income tax, excise tax and the general anti-avoidance rule (GAAR)....
Governance Insights: 10 Trends that GCs and Boards Need to Know
Jan. 24, 2024 – The latest edition of Davies’ Governance Insights is now available. In this issue, we explore 10 important trends that will help general counsel and boards navigate the year ahead. In order to help you with your strategic and compliance planning, we discuss issues including the re-emergence of...
Michael Kandev Appointed President of the International Fiscal Association, Canadian Branch
Jan. 22, 2024 – Michael Kandev has been appointed president of the Canadian branch of the International Fiscal Association (IFA). The IFA’s Canadian branch is comprised of over 650 members, including taxpayers, advisers, government officials, members of the judiciary and university professors. It is the only...
Marc André Gaudreau Duval Assumes Chair of the Young IFA Network Canada Committee
Jan. 22, 2024 – This month, Marc André Gaudreau Duval assumes the role of Chair of the Young IFA Network (YIN) Canada Committee. An innovative and business-oriented tax lawyer, Marc André will head the committee as it develops, proposes and implements various activities at the branch, regional and global levels...
Dec. 20, 2023 – The federal government has set January 22, 2024, as the effective date for new rules that will require non-exempt private corporations existing under the Canada Business Corporations Act (CBCA) to regularly report to Corporations Canada information regarding individuals who have significant...
Davies Lawyers Author Bloomberg Tax Article on Canada’s Digital Services Tax
Dec. 14, 2023 – Nathan Boidman , Michael Kandev and Ian Caines have co-authored an article for Bloomberg Tax about the controversy between Canada and the United States over Canada’s proposed digital services tax (DST). The Canadian government first proposed the DST in 2020, calling for a 3% tax on certain...
Lexpert Rising Stars Recognizes Two Davies Partners with Leading Lawyers Under 40 Award
Nov. 24, 2023 – Pawel Mielcarek and Sharon Ford are named as 2023 Lexpert Rising Stars: Leading Lawyers Under 40 in recognition of their exceptional achievements as legal professionals and as members of the community. Pawel is known for his efficiency and strong business sense. He provides detailed and...
IFA Appoints Marc André Gaudreau Duval to the Young IFA Network Committee
Nov. 21, 2023 – The International Fiscal Association appoints Davies partner Marc André Gaudreau Duval to the Young IFA Network (YIN) Committee, making him the only Canadian member. His appointment was announced recently at the general assembly in Cancun. Marc André is an innovative and business-oriented tax...
Davies Featured in Bloomberg Tax on U.S. Corporate Alternative Minimum Tax
Nov. 20, 2023 – An article co-authored by Jennifer Lee , Zachary Kling , Jonathan Rhein , Zaira Cortes Rivero and Peter Glicklich is published in Bloomberg Tax . The article, focused on the U.S. Corporate Alternative Minimum Tax (CAMT), warns that the application of certain aggregation rules as described...
New GST Rebate for Purpose-Built Rental Property
Sept. 26, 2023 – As an incentive to builders to create more rental housing units, the federal government has announced the effective elimination of the goods and services tax (GST) payable on newly constructed rental housing, such as apartment buildings, student housing and senior residences built specifically for...
Davies Earns Top-Tier Rankings in ITR World Tax 2024
Aug. 30, 2023 – International Tax Review (ITR) World Tax guide once again ranks Davies as a Tier 1 firm in the areas of Tax, Tax Controversy and Transactional Tax. In addition to these rankings, 11 of our lawyers are recognized as leaders in their respective fields: Neal Armstrong Nathan Boidman...
Government of Canada Releases Package of Proposed Domestic and International Tax Legislation
Aug. 16, 2023 – The Department of Finance (Finance) released draft tax legislation for public consultation on August 4, 2023, with a stated focus on promoting tax fairness and a clean economy. The most significant item released is the draft of a major new statute, the Global Minimum Tax Act , spanning almost...
Two Percent Tax on Share Buybacks by Public Companies
Apr. 18, 2023 – As part of the 2023 federal budget, tabled on March 28, 2023, the government has introduced draft legislation to implement a new 2% tax on share buybacks that was first announced in November 2022 as part of the government’s Fall Economic Statement. This tax (referred to below as the “Buyback Tax”)...
Federal Budget 2023 – Major Changes for Business and High Net Worth Individuals
Mar. 28, 2023 – On March 28, 2023 (Budget Day), the Honourable Chrystia Freeland, Deputy Prime Minister of Canada and Minister of Finance, delivered the Liberal Party’s federal budget (Budget 2023). Budget 2023 does not change the corporate and personal tax rates under the Income Tax Act (Act). Instead it...
Federal Courts Weigh in on the FBAR: Providing Relief from Outrageous Penalties
Mar. 22, 2023 – In this bulletin, we highlight two recent federal court cases in which U.S. taxpayers won major victories against the United States with respect to their obligations to report non-U.S. accounts on FinCEN Form 114 – Report of Foreign Bank and Financial Accounts , more commonly referred to as the...
U.S. Tax Laws: A Review of 2022 and a Look Ahead to 2023
Feb. 21, 2023 – As we settle into the new year, let’s take a moment to first consider last year’s tax developments and then take a look ahead to what 2023 might have in store for us. Review of U.S. Tax Developments in 2022 In 2022 we finally saw some movement on President Biden’s tax policy with the Inflation...
Québec’s Enterprise Transparency Regime Is Coming Into Force
Feb. 15, 2023 – Amendments to the Act respecting the legal publicity of enterprises (LPA), which require registrants (described below) to declare their “ultimate beneficiaries,” will come into force on March 31, 2023. Corporate ownership transparency requirements are being mandated across Canada to promote...
The CRA’s New Power to Compel Oral Interviews
Jan. 17, 2023 – The Canada Revenue Agency (CRA) can now require taxpayers or any other person to answer “all proper questions” and provide all reasonable assistance for any purpose relating to the administration or enforcement of the Income Tax Act (ITA), including by submitting to oral questioning at a place...
Davies Earns Top Marks in 2023 Lexpert/ALM 500
Jan. 16, 2023 – The 2023 Lexpert/American Lawyer Guide to the Leading 500 Lawyers in Canada recognizes 36 of our partners with 59 rankings across 18 practice areas. Additionally, the guide’s Who's Who in Canadian Law Firms ranks us #1 for Corporate Transactions in Toronto, relative to firm size, and #1 for Tax...
Upcoming Proposed Regulatory Changes to Stock Buyback Excise Tax
Dec. 29, 2022 – With another new year nearly upon us, we call attention to regulatory changes to the Stock Buyback Excise Tax that will be proposed to take effect on January 1 and the implications on more non-U.S. corporations. Specifically, we address exceptions for (i) a broad new per se funding rule and...
New Rules and Reporting Requirements Coming for the Real Estate Sector
Dec. 23, 2022 – As 2022 comes to a close, we draw your attention to certain new and proposed legislation that the Canadian federal government has introduced and that will have important implications for Canadian residential real estate and the Canadian real estate sector more broadly. Specifically, we offer...
Canada Releases Revised Draft Legislation on New Interest Deductibility Rules
Dec. 08, 2022 – The Department of Finance (Canada) (Finance) has released revised draft legislation on the proposed rules regarding excessive interest and financing expenses limitation (EIFEL). The revised draft legislation, released on November 3, 2022, contains several significant updates to Finance’s initial...
Nov. 01, 2022 – Tax litigation partner Marie-France Dompierre is named in the National Law Journal ’s (NLJ) 2022 list of Sports, Gaming and Entertainment Law Trailblazers, recognizing her tax work on behalf of non-resident athletes playing in Canada. Marie-France has particular expertise helping non-resident...
Davies Wins “Canada Tax Firm of the Year” at ITR Americas Tax Awards
Sept. 27, 2022 – The International Tax Review (ITR) named Davies “Canada Tax Firm of the Year” at the 2022 ITR Americas Tax Awards, recognizing our work on several groundbreaking transactions over the past year. We were also highlighted for our role as Canadian counsel to Kansas City Southern in its...
Davies Earns Top Tier Rankings in World Tax 2023
Sept. 08, 2022 – International Tax Review (ITR) has once again ranked Davies as Tier 1 in the areas of Tax, Tax Controversy, and Transactional Tax in its 2023 World Tax guide. Some of our notable tax work over the past year includes advising: Kansas City Southern as Canadian counsel in its transformative...
Highlights of Canada’s Latest Legislative Tax Proposals
Aug. 23, 2022 – The Department of Finance recently released a package of materials containing potential changes to the Canadian tax system (Tax Proposals). The materials, released on August 9, 2022, include draft amendments to the Income Tax Act (Tax Act) to implement certain measures from the 2022 Canadian...
U.S. Climate Change and Healthcare Bill Moves Democrats’ Tax Policy Forward
Aug. 18, 2022 – The Inflation Reduction Act of 2022 (Act), which was signed into law on August 16, is intended to fight inflation and address climate change. The Act provides for over $360 billion in energy- and climate-related investments, including the expansion, extension and creation of numerous tax...
Umicore to Build First-of-Its-Kind Factory for EV Battery Components in Ontario
July 20, 2022 – Davies is acting for Umicore SA/NV, a circular materials technology company headquartered in Belgium, in the development and construction of a manufacturing plant for electric vehicle battery materials. The facility will be the first of its kind in North America to produce both precursor and...
Corporate Transparency: What’s Happening Across Canada?
July 12, 2022 – Recent amendments to the Canada Business Corporations Act (CBCA) will require private corporations to report information regarding individuals with significant control to Corporations Canada. These amendments form part of the federal government’s long-term corporate transparency objective to...
Canada's Top Court Decides Against Equitable Rescission in Collins Family Trust
June 21, 2022 – “Equity has no place here,” held the Supreme Court of Canada in its 8-1 decision in Canada (Attorney General) v Collins Family Trust (Collins) , 2022 SCC 26 , on June 17. Reversing the decisions of the British Columbia courts below, Collins holds that the equitable remedy of rescission –...
Canada Confirms Intention to Institute New Interest and Deductibility Rules
June 07, 2022 – Overview The Department of Finance (Canada) (Finance) released draft legislation on February 4, 2022 that would limit the deduction of “interest and financing expenses” to a fixed percentage of earnings before interest, taxes, depreciation and amortization (EBITDA) for Canadian income tax purposes...
Federal Budget 2022: Tax Highlights
Apr. 08, 2022 – On April 7, 2022 (Budget Day), the Honourable Chrystia Freeland, Deputy Prime Minister of Canada and Minister of Finance, delivered the Liberal Party’s federal budget (Budget 2022), the second budget since the start of the COVID-19 pandemic. As part of the Trudeau government’s plan to “grow our...
Ian Caines Joins Davies Tax Group in Toronto
Mar. 14, 2022 – We are pleased to welcome Ian Caines as a tax partner in our Toronto office. Ian brings nearly 15 years of experience advising clients on domestic and international tax law, including mergers and acquisitions, financings, reorganizations, restructurings and investment products. With a...
U.S. Tax Laws: A Review of 2021 and a Look Ahead to 2022
Mar. 03, 2022 – Review of U.S. Tax Developments in 2021 Last year, we predicted that the biggest U.S. tax news in 2021 would be revenue-raising legislation that the Democrats would put forward after the election of Joe Biden as the 46th president of the United States. As we went to press last year, runoff...
Jan. 07, 2022 – The 2022 Lexpert/American Lawyer Guide to the Leading 500 Lawyers in Canada ranks us the #1 firm for Corporate Transactions in Toronto, relative to firm size, and #1 for Tax in Montréal. We are tied for the top spot for Commercial Litigation in Montréal. The guide has also recognized 39 of our...
Top Court Blesses Treaty-Shopping Arrangement: The Alta Energy Decision
Dec. 14, 2021 – The Supreme Court of Canada (SCC) recently rendered its eagerly awaited decision in Canada v Alta Energy Luxembourg S.A.R.L. , 2021 SCC 49 ( Alta Energy ). Six of the nine justices held that the Canadian statutory general anti-avoidance rule (GAAR) did not apply to deny treaty benefits under the ...
CP and Kansas City Southern Merge into First U.S.-Mexico-Canada Railroad
Dec. 14, 2021 – Kansas City Southern (KCS) completed its transformative US$31-billion merger with Canadian Pacific Railway (CP) on December 14, 2021, creating the first U.S. -Mexico-Canada rail network. Davies acted as Canadian counsel to KCS on the deal – the biggest Canadian M&A transaction launched in 2021 –...
Davies Welcomes New Tax Partner Jennifer Lee
Nov. 18, 2021 – We are pleased to welcome Jennifer Lee as a partner in the Tax practice of our New York office. A cross-border lawyer with a decade of experience, Jennifer will be a valuable asset to our clients seeking guidance on U.S. federal income tax treatment of cross-border and domestic transactions and...
Revised U.S. Tax Proposals Will Affect Foreign Investment
Nov. 08, 2021 – The U.S. House Committee on Rules recently released an updated version of the Build Back Better Act (Act) to reflect the White House’s Build Back Better framework (Framework) announced on the same day (October 28, 2021). The Framework reflects a significant reduction in the scope of the Biden...
Taxpayers Must Pay Interest on Non-Existent Tax Debts
Oct. 26, 2021 – In The Bank of Nova Scotia v The Queen , the Tax Court of Canada (TCC) considered how to calculate arrears interest on an audit adjustment that is offset by a loss carryback. The Court endorsed the Canada Revenue Agency’s (CRA’s) practice of charging arrears interest on the adjustment through...
Cominar to Be Sold to Iris Acquisition for $5.7 Billion
Oct. 25, 2021 – Davies is acting as counsel to Cominar REIT, one of Canada’s largest diversified real estate investment trusts and the largest commercial property owner in Québec, in its $5.7-billion sale to Iris Acquisition II LP, an entity created by a consortium led by Canderel Real Estate Property Inc., one of...
Davies Scores Top Tier Rankings in World Tax 2022
Sept. 30, 2021 – International Tax Review (ITR) has ranked Davies as Tier 1 in the areas of Tax, Tax Controversy, and Transactional Tax in its 2022 World Tax guide. Some of our notable tax work over the past year includes advising: Apotex Inc. in several highly complex cross-border sales, including all...
House Democrats Release Details on Proposed Tax Increases
Sept. 16, 2021 – Democrats on the House Ways and Means Committee have released a package of tax provisions (Ways and Means Proposal) that, if enacted, would provide funding for the infrastructure legislation that has been making headlines all summer (Infrastructure Legislation). The changes to the current tax laws...
Parliament Votes to Facilitate Intergenerational Business Transfers
July 23, 2021 – Bill C-208, An Act to amend the Income Tax Act ( transfer of small business or family farm or fishing corporation ), which aims to amend section 84.1 of the Income Tax Act (Act) received royal assent on June 29, 2021. A majority of the House of Commons had voted in May on third reading in...
June 03, 2021 – As expected, President Biden’s administration released a $6-trillion budget proposal for the coming fiscal year (Budget), including $3.6 trillion of tax increases over 10 years and generous tax credits to incentivize clean energy and certain infrastructure projects. The Treasury Department...
Canadian Mergers & Acquisitions: A Guide for Foreign Investment Banks and Bidders, 9th Edition
June 01, 2021 – Davies’ Canadian Mergers & Acquisitions draws on our multijurisdictional M&A experience to offer clear guidance on both the legal framework and the practical aspects of Canadian mergers and acquisitions, including critical tax and regulatory considerations. The recently updated guide is a...
Be Prepared: Audits of Canada Emergency Wage Subsidy Claims Underway
Apr. 28, 2021 – A key part of the Canadian government’s response to the COVID-19 pandemic has been the Canada Emergency Wage Subsidy (CEWS). Although the CEWS has undergone a number of changes over the past year, its basic framework has remained the same: a wage subsidy of up to 75% of eligible remuneration...
Apr. 28, 2021 – In an article (available to subscribers) published on April 27 in The Globe and Mail , Davies partner Patricia Olasker shared her insights on how the Biden administration’s proposed hikes to corporate and capital gains taxes may affect cross-border M&A activity. Patricia expects companies to...
2021 Federal Budget: Tax Highlights
Apr. 20, 2021 – The Honourable Chrystia Freeland, Canada’s Deputy Prime Minister and Minister of Finance, delivered the Liberal Party’s first federal budget (Budget 2021) in over two years and the first since the start of the global COVID-19 pandemic. As part of a recovery plan for “jobs, growth and resilience,”...
CRA Turns Its Focus to Cryptocurrency Transactions
Apr. 13, 2021 – The Federal Court (FC) recently authorized the Canada Revenue Agency (CRA) to issue an “unnamed persons requirement” (UPR) to Coinsquare Ltd. for information and documentation relating to users of Coinsquare, a cryptocurrency exchange operating in Canada. This UPR is part of an on-going CRA...
Biden Administration Unveils Tax Plan to Boost Investments in Infrastructure
Apr. 06, 2021 – President Biden and his administration recently released the American Jobs Plan, which provides additional detail on policies that were discussed throughout President Biden’s campaign and the early days of his administration. Through the American Jobs Plan, which was released on March 31, 2021,...
The First Specified Transactions to Be Disclosed to Revenu Québec Announced
Mar. 24, 2021 – The Québec government announced in its March 21, 2019 budget a series of measures aimed at protecting the integrity and equity of Québec’s tax system. These measures include the mandatory disclosure of certain transactions 1 ‒ those that are significantly similar to so-called determined...
Villa Ste-Rose: FCA Confirms Interest and Penalties Apply After GST Rebates Are Deducted
Mar. 02, 2021 – In Canada v Villa Ste-Rose Inc. (2021 FCA 35), the Federal Court of Appeal (FCA) confirmed the decision of the Tax Court of Canada (TCC) that interest and penalties on the late filing and remittance of goods and services tax (GST) must take into account offsetting rebates to which the taxpayer...
Montréal: North America’s Video Gaming Studio Metropolis
Feb. 17, 2021 – In this article originally published in Tax Notes International , Davies lawyers Michael Kandev and Olivia Khazam review Montréal’s generous provincial tax incentives for video game industry developers and investors, as well as some of the principal tax issues related to mergers and...
Agnico Eagle Acquires TMAC Resources After Shandong Gold Deal Denied
Feb. 12, 2021 – Toronto-based Agnico Eagle Mines Limited completed its acquisition last week of TMAC Resources Inc., just weeks after the federal government denied China’s Shandong Gold Mining Co. Ltd.’s deal on national security grounds. Davies acted for Agnico Eagle in the all-cash acquisition, which was...
Is a Green New (Tax) Deal Coming to Canada?
Feb. 02, 2021 – In this article originally published in Tax Notes International , Davies lawyers Gregg Benson, Michael Kandev and James Trougakos review Canadian tax incentives for green energy and juxtapose them with those offered by the United States. Download the article .
Alstom Acquires Bombardier Transportation to Become Leader in Global Mobility Market
Feb. 01, 2021 – French train manufacturer Alstom S.A. completed its acquisition last week of Bombardier Transportation, strengthening its position in the global market amid greater demand for greener transportation worldwide. Davies acted as Canadian counsel to Alstom in the €4.4-billion strategic acquisition,...
Canadian and U.S. Tax Laws: A Review of 2020 and a Look Ahead to 2021
Jan. 28, 2021 – In our annual Tax Review and Outlook report, we outline significant tax developments that shaped the Canadian and U.S. tax landscapes over the past year and consider what to watch for in the year ahead. Key Canadian Developments in 2020 The federal government deferred its annual budget in...
Canadian Tax Laws: A Review of 2020 and a Look Ahead to 2021
Jan. 28, 2021 – Review of Canadian Tax Developments in 2020 The year 2020 was anything but normal with the global COVID-19 pandemic creating both human and fiscal challenges in Canada and abroad. The federal government’s attention was fixed firmly on the pandemic for most of the year, and it was only in November...
U.S. Tax Laws: A Review of 2020 and a Look Ahead to 2021
Jan. 28, 2021 – Review of U.S. Tax Developments in 2020 At the end of 2019, most U.S. tax practitioners expected that the most important U.S. tax developments in 2020 would cluster around two topics. First, the IRS was expected to continue issuing guidance under the monumental tax reform legislation enacted...
Davies Welcomes New Partner Marie-France Dompierre to Tax Disputes Group
Jan. 22, 2021 – We are pleased to announce that Marie-France Dompierre has joined Davies as a partner in our Tax Disputes group in Montréal. Marie-France has over a decade of experience working with corporations and individuals to avoid, manage and successfully resolve all manner of tax disputes. Having worked...
Canada’s Fall Economic Statement: Tax Highlights
Dec. 01, 2020 – The Honourable Chrystia Freeland, Deputy Prime Minister of Canada and Minister of Finance, has released the Liberal Party’s first economic statement (Fall Economic Statement) since the start of the global COVID-19 pandemic. A record deficit of over $381 billion is projected for 2020-2021. This...
Nov. 19, 2020 – In a recent decision, 1 the Court of Québec permanently stayed the prosecution of tax fraud charges made against a corporation and two related individuals after finding "serious, multiple and systemic" 2 violations of constitutional rights. The Court held that the violations revealed "a..."
Davies Earns Top Tier Rankings in World Tax 2021
Oct. 13, 2020 – International Tax Review (ITR) has affirmed Davies’ reputation as a leading global tax adviser, ranking our firm as Tier 1 in Tax, Tax Controversy and Transactional Tax in its 2021 World Tax guide. The recognition caps off a year of outstanding work on behalf of our clients, both domestically...
Disclosure Rules for Nominee Contracts Come into Force in Québec
Oct. 02, 2020 – Bill 42, An Act to give effect to fiscal measures announced in the Budget Speech delivered on 21 March 2019 and to various other measures was assented to on September 24, 2020, bringing into force the new rules respecting the disclosure of nominee contracts to Revenu Québec (RQ ). The purpose of...
IRS Issues New Proposed Regulations Under the Section 1061 Carried Interest Rules
Sept. 29, 2020 – The U.S. Internal Revenue Service (IRS) published proposed regulations (the Proposed Regulations) on August 14, 2020, providing much-needed guidance on the implementation of the carried interest rules under Section 1061. 1 These rules will be of great interest to investment fund managers as well...
Deadlines Under Federal Legislation Temporarily Extended Due to COVID-19
Sept. 24, 2020 – Introduction Parliament passed on July 27, 2020, the Time Limits and Other Periods Act (COVID-19) (Time Limits Act), which we summarized in a previous bulletin . Briefly, the Time Limits Act automatically suspends statutory time limits for federal civil proceedings for six months and grants...
120 Davies Lawyers Named by Best Lawyers in Canada
Aug. 27, 2020 – Best Lawyers in Canada has recognized our unrivalled expertise and commitment to excellence in its annual ranking of the country’s top practitioners. The 2021 edition has named 120 Davies partners across 44 practice areas among Canada’s best. Davies also earned the title of “Tax Law Firm of...
Canada Emergency Wage Subsidy: An Updated Guide for Businesses
Aug. 25, 2020 – The federal government passed legislation on July 27, 2020, extending the Canada Emergency Wage Subsidy (CEWS) and significantly broadening its reach. In this guide, we provide a comprehensive review and analysis of the CEWS program, including details of the latest updates and key considerations...
IRS Releases Final Regulations on Deductibility of Business Interest Expense
Aug. 05, 2020 – The IRS recently released long-awaited final regulations (Final Regulations) on the limitation on the deductibility of interest expenses under section 163(j), along with new proposed regulations (New Proposed Regulations) that address a variety of highly technical issues that are not covered by the...
IRS Finalizes High-Tax Exception to GILTI
July 22, 2020 – The U.S. Treasury Department and the IRS have released final regulations (2020 Final Regulations) allowing certain domestic shareholders of a “controlled foreign corporation” (CFC) to elect under a high-tax exception to opt out of the tax imposed on the CFC’s “global intangible low-taxed income”...
CRA Provides Relief from International Income Tax Issues Raised by COVID-19 Travel Restrictions
June 30, 2020 – The COVID-19 pandemic has resulted in the imposition of safety measures by governments around the world, including that in Canada, to protect the health of their citizens. Similarly, businesses have imposed safety measures to protect their employees. These measures include restrictions on travel...
CEWS Update: Review of New Rules and CRA Guidance
June 09, 2020 – Introduction Earlier this year, Parliament enacted legislation adopting the Canada Emergency Wage Subsidy (CEWS) through amendments to the Income Tax Act (Canada) (Act). We previously reviewed the initial legislation in detail. Read our earlier analysis . In a press release issued on May 15,...
Final U.S. Treasury Regulations Disappoint by Retaining Broad Debt-Equity Recharacterization Rules
May 28, 2020 – The U.S. Treasury Department has issued regulations for debt-equity recharacterization under section 385 of the Internal Revenue Code (the Final Regulations) that finalize without substantive change proposed regulations promulgated in October 2016 (the 2016 Proposed Regulations). Section 385...
Canadian Government’s Proposed Extension of Time Limits Due to COVID-19
May 27, 2020 – As part of the federal government’s response to the COVID-19 pandemic, the Department of Finance recently published a draft legislative proposal , the Time Limits and Other Periods Act (COVID-19) (Proposal), that, if implemented, would provide for an automatic six-month suspension of time limits...
U.S. Treasury Issues Guidance on Applying Tax Treaties After USMCA Supersedes NAFTA
May 21, 2020 – The U.S. Department of the Treasury and the IRS released Announcement 2020-6, which indicates that references to the North American Free Trade Agreement (NAFTA) in U.S. tax treaties will be interpreted as references to the Agreement between the United States of America, the United Mexican States,...
May 20, 2020 – In The Toronto-Dominion Bank v Queen (2020 FCA 80), the Federal Court of Appeal (FCA) confirmed a Federal Court (FC) decision and ruled that a secured creditor had a statutory obligation to pay the Canada Revenue Agency (CRA) for a tax debt of an arm’s-length borrower because the secured...
Estate Planning in Turbulent Times
Apr. 29, 2020 – With more than two-thirds of all Canadians self-isolating in a collective effort to flatten the COVID-19 curve of infection, estate planning is one of a number of planning considerations that are top of mind. Regardless of whether individuals already have a plan in place or have yet to commence...
IRS Proposes Regulations for U.S. Tax-Exempt Organizations with Multiple Unrelated Businesses
Apr. 27, 2020 – The IRS has proposed regulations (Proposed Regulations) on how a tax-exempt organization should classify multiple business and investment activities for the purpose of determining its unrelated business taxable income (UBTI). The Proposed Regulations are based on previous guidance issued by the...
IRS Provides COVID-19 Relief for Stranded “Snowbirds” and Other International Travellers
Apr. 24, 2020 – The emergence of COVID-19 in early 2020 has created significant global challenges, not the least of which include restrictions on the ability to travel between countries. In particular, these restrictions sometimes have made it difficult for “snowbirds” – Canadian residents who seek refuge from...
The Canada Emergency Wage Subsidy: A Guide for Businesses
Apr. 23, 2020 – Introduction Parliament has enacted legislation adopting the Canada Emergency Wage Subsidy (CEWS) through amendments to the Income Tax Act (ITA). Although the CEWS program is not tax legislation, by implementing the CEWS through the ITA, the government sought to leverage existing income tax...
IRS Issues Final and Proposed Regulations on Hybrid Entities and Transactions
Apr. 15, 2020 – U.S. tax practitioners were the first to use hybrid instruments and entities in international tax planning. It is therefore neither surprising nor inappropriate that the United States was the first country (in 1997) to enact an anti-hybrid rule (in section 894(c) of the U.S. Internal Revenue...
Tax Issues for Distressed Corporations
Apr. 08, 2020 – The restrictions on social and commercial activity necessitated by the COVID-19 pandemic have resulted in unprecedented economic strain. Although governments have enacted equally unprecedented fiscal and monetary stimuli, businesses will be affected and some will need to restructure debts or take...
Elie Roth and Stephen Ruby Discuss Tax Ruling with Canadian Lawyer and The Lawyer’s Daily
Apr. 01, 2020 – Following the Supreme Court of Canada‘s recent ruling in MacDonald v Canada that a taxpayer’s forward contract was a hedge for income tax purposes, Canadian Lawyer and The Lawyer’s Daily spoke to Davies partners Elie Roth and Stephen Ruby , counsel for the appellants, for their...
U.S. Congress Provides COVID-19 Relief by Passing CARES Act
Mar. 30, 2020 – The emergence of COVID-19 has sent a shock wave through the world economy, resulting in significant disruption to the financial markets, the shuttering of entire industries and the lockdown of major cities across the globe. As a result, many national governments are applying every policy tool at...
Canadian Tax and Other Measures Implemented in Response to COVID-19 Pandemic
Mar. 27, 2020 – Starting on March 18, 2020, the Canadian government has announced a series of emergency measures intended to help stabilize the economy in response to the COVID-19 pandemic. These include tax and economic measures aimed at providing financial support for individuals and businesses, and alleviating...
A Penalty Under GAAR Will Cause Ineligibility for Public Contracts in Québec
Mar. 23, 2020 – The Act mainly to establish the Centre d'acquisitions gouvernementales and Infrastructures technologiques Québec (Act) was assented to on February 21, 2020, by the National Assembly of Québec. The Act incorporates new provisions in the government procurement rules to combat abusive tax avoidance...
Canadian and U.S. Tax Laws: A Review of 2019 and a Look Ahead to 2020
Jan. 30, 2020 – In our annual Tax Review and Outlook report, we look back at significant developments that shaped the Canadian and U.S. tax landscapes in 2019 and offer our predictions on what to expect in the year ahead. Key Canadian Developments in 2019 Proposed changes to the employee stock option rules...
Canadian Tax Laws: A Review of 2019 and a Look Ahead to 2020
Jan. 30, 2020 – Each year at this time we look back at some of the more significant income tax developments in Canada affecting domestic and international business over the past year and look ahead to possible Canadian tax developments in the coming year. Review of Canadian Tax Developments in 2019 Tax...
U.S. Tax Laws: A Review of 2019 and a Look Ahead to 2020
Jan. 30, 2020 – Review of U.S. Tax Developments in 2019 In 2019, the U.S. tax world continued to be primarily concerned with developing guidance under the monumental Tax Cuts and Jobs Act (TCJA), which was enacted at the end of 2017. Major regulatory projects were proposed beginning in 2018, including...
New Era, New Disclosure Obligations
Dec. 17, 2019 – In a case argued by Davies, the Court of Québec rendered a judgment on December 10 setting out, for the first time, the conditions that must be met for the electronic disclosure of evidence by the Crown to be “reasonably accessible”, respectful of the accused’s fundamental rights and consistent...
Increase of Transfer Duties in Montréal
Dec. 17, 2019 – The City of Montréal has adopted a bylaw that will increase the transfer duties payable in Montréal for transactions exceeding $2 million, starting on January 1, 2020. The City is adding a new bracket for the basis of imposition for transfers of immovables exceeding $2 million and has set the...
IRS Issues New Final and Proposed Regulations Under the U.S. Base Erosion and Anti-Abuse Tax
Dec. 10, 2019 – Summary The IRS released final and proposed regulations providing further guidance and addressing certain open issues under the base erosion and anti-abuse tax (BEAT). The final regulations, based partly on the IRS’s response to comments received, clarify previously proposed regulations, such as...
Hostess Brands Acquiring Voortman Cookies
Dec. 03, 2019 – Davies acted as Canadian counsel to Hostess Brands Inc. in its $425-million acquisition of Voortman Cookies Limited, a leading North American wafer and cookie company, from Swander Pace Capital. The acquisition diversifies and expands Hostess’s product offerings, providing it with a unique...
Barrick to Sell Interest in Australian Super Pit for $750 Million
Nov. 19, 2019 – Davies acted for Barrick Gold Corporation (Barrick) in the sale of its 50% interest in Kalgoorlie Consolidated Gold Mines (KCGM) in Western Australia to Saracen Mineral Holdings Limited (Saracen) for total consideration of US$750 million in cash. KCGM, a 50-50 joint venture with Newmont Goldcorp...
Davies Recognized as a “Pre-eminent” Law Firm in The Legal 500 Canada
Nov. 14, 2019 – The Legal 500 Canada 2020 has reaffirmed our standing as a leader among our peers, with clients and industry experts commending the firm for its “incredible depth and consistency” and “flawless execution and exceptional service. ” This year’s directory recognized 45 of our lawyers, including 27...
Not Whether but When and How: U.S. Response to Unilateral Digital Taxation
Nov. 07, 2019 – A version of this article was originally published on Bloomberg Tax . It is reproduced with permission from © 2019 The Bureau of National Affairs, Inc. (800-372-1033) www. bna.com . Given the disruption in world order evidenced by recent elections, civil wars, mass protests and Brexit, perhaps...
Davies Recognized as Top-Tier Firm in World Tax 2020
Oct. 24, 2019 – International Tax Review (ITR) has once again affirmed Davies’ reputation as a leading global tax adviser, ranking our firm as Tier 1 in its 2020 World Tax guide. In its profile of Davies, ITR notes that the firm “maintains a dominant position in Canada” in the areas of transactional tax, tax...
Federal Court of Appeal Says Funding Services Not Subject to GST/HST
Oct. 04, 2019 – In SLFI Group v Canada (2019 FCA 217), the Federal Court of Appeal (FCA) overturned a Tax Court of Canada (TCC) decision and ruled that a group of Canadian mutual funds (Funds) was not required to self-assess GST/HST on funding services provided by a U.S. entity, because these services were...
Davies Named Canadian Tax Firm of the Year by International Tax Review
Sept. 20, 2019 – Recognizing our outstanding transactional tax work over the past year, International Tax Review presented Davies with the award for Canadian Tax Firm of the Year at the 2019 ITR Americas Tax Awards held on September 19 in New York. The award highlighted our involvement in several groundbreaking...
Barrick Gold Acquires Acacia Mining
Sept. 19, 2019 – Davies acted as Canadian counsel in the acquisition by Barrick Gold Corporation (Barrick) of all of the outstanding shares of Acacia Mining plc (Acacia) not already owned by Barrick. The acquisition was completed by way of a court-sanctioned scheme of arrangement under Part 26 of the Companies...
Blackstone Acquires Dream Global
Sept. 18, 2019 – Davies, together with Simpson Thacher & Bartlett LLP in London and New York, Hengeler Mueller in Germany, and various other local counsel, acted for Blackstone, one of the world’s leading investment firms, in its all-cash acquisition of Dream Global Real Estate Investment Trust (Dream Global). The...
Extended Deadline for Québec Nominee Agreement Disclosure
Aug. 22, 2019 – As outlined in our e-communications of May 21, 2019, and August 12, 2019, Québec’s Ministry of Finance has introduced new rules regarding the disclosure of nominee agreements. The new disclosure requirement is relevant to nominee agreements involving one or more parties that are subject to Québec...
Julie Colden Joins Davies Tax Practice
Aug. 12, 2019 – We are pleased to announce that Julie Colden has joined Davies as a partner in our Tax practice. Julie’s unique blend of experience and perspective makes her ideally placed to help our clients navigate the complexities of an ever-changing tax landscape. She is well versed in the issues faced by...
July 09, 2019 – The Supreme Court of Canada has dismissed the appeal of 1068754 Alberta Ltd. (Alberta Ltd.) against a judgment rendered by the Court of Appeal of Québec, which in turn had upheld the decision rendered by the Superior Court. The appeal originated from Alberta Ltd.’s contestation of a formal demand...
U.S. Issues Taxpayer-Favourable Regulations Under GILTI and Subpart F Regimes
July 03, 2019 – The U.S. Treasury Department and the IRS have issued guidance relating to the new tax on the “global intangible low-taxed income” (GILTI) of a “controlled foreign corporation” (CFC). Generally, GILTI is the portion of a CFC’s earnings that exceeds a specified return on the CFC’s foreign assets. ...
Canada Enacts the OECD-Sponsored Multilateral Instrument
June 26, 2019 – Canada has enacted into law the OECD-sponsored Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI). The enactment of June 21, 2019 represents the penultimate step in the domestic ratification of the MLI in Canada, which will be...
CRA’s Audit Powers Have Limits: Challenging Excessive Requests for Information
June 25, 2019 – In three recent decisions, the courts have curtailed the Canada Revenue Agency’s (CRA’s) broad interpretation of its audit powers and, in so doing, have armed taxpayers with the legal means to push back against excessive or unreasonable requests for information (RFIs) by the CRA. First, in Canada...
Draft Legislation on the Taxation of Stock Options
June 19, 2019 – The federal government has released much anticipated draft legislation proposing changes to the rules relating to the taxation of stock options. The legislative proposals are expected to come into force on January 1, 2020, and to apply to option agreements entered into after 2019. The release, on...
Thirty Davies Partners Named Leaders in Cross-Border Law
June 14, 2019 – In recognition of our reputation for excellence in advising on cross-border issues, the 2019 Lexpert Guide to US/Canada Cross-Border Lawyers in Canada has named 30 of our partners as leaders in the field. The guide highlights our lawyers’ expertise across eight key areas, including Business...
June 07, 2019 – The IRS recently released long-awaited proposed regulations to implement an exemption from U.S. federal taxes on the disposition of interests in U.S. real estate by certain foreign pension funds known as “qualified foreign pension funds” (QFPFs). Background Under the Foreign Investment in Real...
Proposed Amendments to the GST/HST Treatment of Cryptocurrencies
May 27, 2019 – The Department of Finance (Canada) (Finance Canada) has released, for public comment, draft legislative proposals (Draft Proposals) to amend the Excise Tax Act (ETA) in order to address certain issues regarding the treatment of virtual currencies for the purposes of the goods and services...
IRS Proposes New Rules for Withholding on Interest Transfers in Certain Partnerships
May 13, 2019 – The landmark U.S. tax reform legislation that was enacted at the end of 2017 contained a new federal income tax on gain realized by a foreign seller on the transfer of an interest in a partnership that is engaged in a U.S. trade or business. This measure reversed a court decision that had...
The CRA Cannot Compel Oral Interviews During an Audit
Apr. 10, 2019 – In Minister of National Revenue v Cameco Corporation , the Federal Court of Appeal (FCA) dismissed the Minister of National Revenue’s appeal and held that the Canada Revenue Agency’s (CRA’s) audit powers under the Income Tax Act (ITA) do not extend to compelling taxpayers to be subjected to oral...
2019 Federal Budget: Tax Highlights
Mar. 19, 2019 – Budget 2019 is the last federal budget of the current Liberal government before the upcoming federal election in October 2019. Tax-related measures are intended to advance the government’s stated priority of creating a fair tax system. Proposals include changes to the employee stock option rules,...
Court of Appeal Expands the Range of Fundamental Rights of Legal Persons
Mar. 18, 2019 – In a judgment rendered on March 4, 2019 in 9147-0732 Québec Inc. c. Directeur des poursuites criminelles , 2019 QCCA 373, the Court of Appeal of Québec ruled for the first time on whether legal persons can avail themselves of the right not to be subjected to any cruel and unusual treatment or...
Private Federal Corporations Must Track Controlling Shareholders Beginning in June 2019
Feb. 22, 2019 – Bill C-86 introduces significant changes to the Canada Business Corporations Act (CBCA) that will come into effect on June 13, 2019. Corporations governed by the CBCA (excluding corporations that are reporting issuers or are listed on a “designated stock exchange” as defined in the Income Tax...
Davies Lawyers Unrivalled in Chambers Global 2019
Feb. 19, 2019 – Chambers and Partners has once again recognized Davies as a top Canadian law firm in the 2019 edition of Chambers Global: The World’s Leading Lawyers for Business . This year’s guide recognizes 39 Davies lawyers with 45 rankings, including 16 lawyers ranked Band 1 – more than any other law firm...
Fortis Selling Its Stake in Waneta Expansion for $991 Million
Feb. 01, 2019 – Fortis Inc. has signed a deal with Columbia Basin Trust and Columbia Power Corporation to sell its 51% interest in the 335 MW Waneta Expansion Hydroelectric Project in British Columbia for approximately $1 billion. The transaction closed on April 16, 2019. The Davies team working on this...
Canadian and U.S. Tax Laws: A Review of 2018 and a Look Ahead to 2019
Jan. 31, 2019 – In our annual Tax Review and Outlook report, we look back at significant developments in the Canadian and U.S. tax landscapes in 2018 and offer our predictions on what to expect in 2019. Key Canadian Developments in 2018 Budget 2018 scaled back controversial initiative on taxation of...
Canadian Tax Laws: A Review of 2018 and a Look Ahead to 2019
Jan. 31, 2019 – Each year at this time we offer a look back at some of the more significant income tax developments in Canada affecting domestic and international business over the past year and a look ahead to possible Canadian tax developments in the coming year. Legislative Developments in 2018 Budget 2018 ...
U.S. Tax Laws: A Review of 2018 and a Look Ahead to 2019
Jan. 31, 2019 – Review of U.S. Tax Developments in 2018 U.S. taxpayers will remember 2018 as the year spent coming to terms with the tax reform legislation enacted at the end of 2017, known as the Tax Cuts and Jobs Act (TCJA). The TCJA included a surprisingly large number of new tax rules that have...
Descartes Systems Group Acquires Visual Compliance for $330 Million
Jan. 31, 2019 – Davies acted for Management Systems Resources Inc. in the sale of its Visual Compliance and eCustoms business to Descartes Systems Group for $330 million. Based in Toronto, Visual Compliance is a leading provider of automated global trade compliance software solutions, with a focus on denied and...
U.S. Proposed Regulations Target Hybrid Structures and Instruments Retroactively
Jan. 03, 2019 – The United States was initially reluctant to adopt the recommendations of the base erosion and profit shifting (BEPS) initiative spearheaded by the OECD and the G20 group of nations. However, the major tax reform legislation known as the Tax Cuts and Jobs Act includes several provisions dealing...
IRS Proposes Regulations Under the Base Erosion and Anti-Abuse Tax
Dec. 18, 2018 – The Tax Cuts and Jobs Act replaced the U.S. federal corporate alternative minimum tax with the base erosion and anti-abuse tax (BEAT), which targets deductible payments made after 2017 by certain large corporations to foreign related parties. 1 This week, the IRS issued proposed regulations to...
Davies Recognized as Top-Tier Firm in World Tax 2019
Dec. 04, 2018 – International Tax Review (ITR) has listed Davies as a Tier 1 firm in the 2019 edition of its World Tax guide. In its profile of Davies, ITR commends the firm’s transactional and litigation tax practices, noting that it had “an impressive run of cases” during the research period. Notable recent...
Davies Recognized as “Top of the Class” in The Legal 500 Canada
Dec. 03, 2018 – The 2019 edition of The Legal 500 Canada has recognized Davies as being “consistently top tier in both service and expertise” and the “best representation at the table,” with Tier 1 rankings in the following practice areas: Competition and Antitrust Corporate and M&A Dispute...
Proposed Regulations Would Implement U.S. Interest Stripping Rules After Tax Reform
Nov. 29, 2018 – As we have noted previously , the Tax Cuts and Jobs Act of 2017 dramatically changed the limitation on the deductibility of interest expense under section 163(j). 1 Under the revised provision, the limitation applies to all taxpayers (not just to corporations) and to business interest paid to...
Nov. 27, 2018 – In Canada (National Revenue) v Atlas Tube Canada ULC , the Federal Court (FC) held that the Canada Revenue Agency (CRA), in the course of an ongoing audit, was entitled to a draft tax due diligence report (Report) prepared by the accounting firm Ernst & Young (EY). The Report was commissioned,...
Callidus Capital Corporation v HMQ: Last Word Goes to the Secured Creditor
Nov. 14, 2018 – The Supreme Court of Canada (the SCC) has overturned the decision rendered by a majority of the Federal Court of Appeal (the FCA) in Callidus Capital Corporation v Her Majesty the Queen . The case originated out of a motion filed in the Federal Court (the FC) by Callidus Capital Corporation...
Chris Anderson and Anthony Arquin Named 2018 Lexpert Rising Stars
Nov. 09, 2018 – Davies partners Chris Anderson and Anthony Arquin have been named among 2018’s Lexpert Rising Stars: Leading Lawyers Under 40 . Presented at Lexpert’s annual gala event on November 8 in Toronto, the prestigious awards honour lawyers and in-house counsel, aged 40 or under, who have made a...
Peter Glicklich Speaks to Lexpert About Landmark U.S. Tax Ruling
Oct. 05, 2018 – In an article published recently in Lexpert , Davies partner Peter Glicklich speaks about the implications of the Supreme Court of the United States’ decision in South Dakota v Wayfair Inc. , which held that states can require online retailers to collect sales taxes even if the seller does...
Davies Receives Highest Percentage of Band 1 Rankings in Chambers Canada 2019
Sept. 26, 2018 – Davies has once again been recognized as one of Canada’s top law firms in Chambers Canada 2019 , with 26 of our lawyers receiving Band 1 rankings – the highest percentage among all firms relative to firm size. The firm also received the highest percentage of lawyer rankings relative to firm size,...
Stephen Ruby Speaks to Bloomberg BNA About Tax Court’s Ruling on Tax Avoidance
Sept. 20, 2018 – In an article published this week in Bloomberg BNA, Davies partner Stephen Ruby speaks about the Tax Court of Canada’s latest ruling on the government’s use of general anti-avoidance (GAAR) rules. In Loblaw Financial Holdings Inc. v The Queen , the Court rejected the Canada Revenue Agency’s...
Michael Kandev Speaks to AFP on Repercussions of U.S. Corporate Tax Reform
Aug. 09, 2018 – Davies partner Michael Kandev spoke recently to the Association for Financial Professionals about the impact of significantly reduced U.S. corporate tax rates on global businesses. Michael believes it would be unwise for companies to make rash moves based on U.S. tax reform, and he doesn’t...
Neal Armstrong Named an Indirect Tax Leader by International Tax Review
July 19, 2018 – Davies partner Neal Armstrong has been recognized as an Indirect Tax Leader: Canada in the International Tax Review ’s 2018 Indirect Tax Leaders guide. Neal has over 30 years of experience in domestic and international tax matters, with particular expertise in REITs, GST/HST, financings, and...
Michelin to Acquire Camso for US$1.7 Billion
July 13, 2018 – Davies acted for Groupe Michelin in its agreement to acquire Camso Inc., a Québec-based off-the-road (OTR) tire maker, for US$1.7 billion. The two companies will combine their OTR operations into a new division that will be run from Camso’s headquarters in Magog, Québec. The transaction will...
June 26, 2018 – The U.S. Supreme Court has released a much-anticipated decision in South Dakota v Wayfair, Inc. , which overturned the Court’s decades-old limitation on states’ power to assert sales tax jurisdiction over out-of-state sellers. In this strongly worded opinion, released on June 21, 2018, the Court...
Twenty-nine Davies Partners Named Leaders in Cross-Border Law
June 22, 2018 – The 2018 Lexpert Guide to US/Canada Cross-Border Lawyers in Canada features 29 Davies lawyers, across seven practice areas, who are recognized for their industry-leading cross-border practices. The new publication from Lexpert is a single all-encompassing cross-border guide, featuring lawyers...
Tax Court Finds That Broker Fees on a Private Company Sale Were GST/HST-Taxable
May 10, 2018 – The Tax Court of Canada recently released its decision in Barr v. The Queen , 2018 TCC 86, which considered whether share-sale commissions were exempt from HST. The taxpayer was the sole shareholder of a Canadian company. He had retained two brokers for the sale of his company or its assets....
SEC Rulemaking Developments in 2017
Apr. 12, 2018 – Within the first hundred days of taking office, President Trump reiterated his commitment to scaling back existing financial regulations. In February 2017, President Trump signed into law Congress’s repeal of the extractive industry transparency rules adopted by the U.S. Securities and Exchange...
FAST Act Modernization and Simplification of Regulation S-K
Apr. 12, 2018 – Securities disclosure requirements in the United States are complex, and compliance can be a challenge. Compliance with Regulation S-K, which contains requirements applicable to the content of the non-financial statement portions of certain registration statements, annual reports and other ...
SEC Filings Must Include Hyperlinks to Exhibits and Be in HTML Format
Apr. 12, 2018 – New rules of the U.S. Securities and Exchange Commission (SEC) that require exhibits to be hyperlinked in most SEC filings became effective on September 1, 2017. Under the new rules, registrants that are filing a registration statement or current report that is subject to the exhibit...
Inline XBRL Filing of Tagged Data
Apr. 12, 2018 – A company that prepares its financial statements in accordance with U.S. generally accepted accounting principles (GAAP) or International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board and files with the U.S. Securities and Exchange Commission (SEC)...
SEC Guidance on Pay Ratio Disclosure
Apr. 12, 2018 – On September 21, 2017, the U.S. Securities and Exchange Commission (SEC) adopted interpretive guidance to assist domestic reporting companies in their efforts to comply with the pay ratio disclosure required by item 402 of Regulation S-K under the Securities Act of 1933 , as amended. On the same...
SEC Approves an NYSE Rule Amendment Prohibiting Release of Material News After Market Close
Apr. 12, 2018 – On December 4, 2017, the U.S. Securities and Exchange Commission (SEC) approved a New York Stock Exchange (NYSE) rule amendment – revised Rule 202. 06 – prohibiting NYSE-listed companies from releasing material news after the NYSE’s official trading closing time (NYSE Closing Time) until the...
Michael Kandev Speaks to Canadian Lawyer About Impact of U.S. Tax Reforms on Canadian Tax Planning
Apr. 05, 2018 – Davies partner Michael Kandev was interviewed this month by Canadian Lawyer (available to subscribers) about the effect of the U.S. Tax Cuts and Jobs Act on Canadian tax planning. One impact of the new legislation has been on the estates of Canadian parents who die in Canada but leave...
Mar. 13, 2018 – Every day, across Canada, business and tax lawyers rely on the judge-made doctrine of “transactional common interest privilege” to facilitate the due diligence process and to ensure the efficient structuring and negotiation of commercial transactions. This beneficial common law doctrine allows a...
2018 Federal Budget: Tax Highlights
Feb. 27, 2018 – As anticipated, today’s federal budget (Budget 2018) focuses on a few targeted areas, including the taxation of passive investments made by private corporations, and does not contain any measures in response to the enactment of tax reform in the United States or relating to the OECD BEPS...
Ian Crosbie Reacts to Federal Court of Appeal Decision in Lawyer’s Daily
Feb. 23, 2018 – In a recent article (available to subscribers) published in The Lawyer’s Daily , Davies partner Ian Crosbie commented on the decision of the Federal Court of Appeal (FCA) in Canada v. Oxford Properties Group Inc. The case centred on a number of transactions undertaken by Oxford Properties...
Davies Lawyers Peerless in Chambers Global 2018
Feb. 16, 2018 – Davies’ status as a leading Canadian law firm has once again been confirmed by Chambers and Partners in its annual publication Chambers Global: The World’s Leading Lawyers for Business . The 2018 edition of the guide recognizes 40 Davies lawyers with 46 rankings, including 15 lawyers ranked Band...
The U.S.’s Illusionary Turn to Territoriality
Feb. 12, 2018 – In this article from Tax Notes International , Davies partner Nathan Boidman contends that the sponsors of the Tax Cuts and Jobs Act not only failed to deliver on their promise of a territorial system for controlled foreign corporations, but also expanded the pre-existing quasi-worldwide...
U.S. Tax Laws: A Review of 2017 and a Look Ahead to 2018
Jan. 11, 2018 – Each year at this time, we offer a look back at some of the more significant income tax developments in the United States affecting domestic and international business over the past year and a look ahead to possible U.S. tax developments in the coming year. Tax Developments in 2017 As we...
Canadian Tax Laws: A Review of 2017 and a Look Ahead to 2018
Jan. 11, 2018 – Each year at this time we offer a look back at some of the more significant income tax developments in Canada affecting domestic and international business over the past year and a look ahead to possible Canadian tax developments in the coming year. Developments in 2017 1. Legislative...
Partnership Exemption from Québec Transfer Duties
Dec. 21, 2017 – Québec’s Minister of Finance has published Information Bulletin 2017-14 (Bulletin), which addresses the legislative gaps in the Act respecting duties on transfers of immovables (Act) – namely, the absence of an exemption from transfer duties when partnerships take part in transfers of immovables....
Republicans Poised to Enact Transformative U.S. Federal Tax Reform
Dec. 19, 2017 – Congressional Republicans are on the cusp of enacting transformative U.S. federal tax reform and getting a bill on President Trump’s desk for signature, likely by the end of this week. U.S. tax reform of the type described below can have significant U.S. tax consequences for businesses and...
Department of Finance Releases Revised Income Splitting Rules
Dec. 13, 2017 – Earlier this year, the Department of Finance released a set of far-reaching proposals affecting the taxation of private businesses and their shareholders. Only Rip Van Winkle missed the firestorm reaction to these proposals from a broad range of affected parties. Ultimately, the Government...
Davies Recognized as “Truly Outstanding” in The Legal 500 Canada
Nov. 30, 2017 – The 2018 edition of The Legal 500 Canada has recognized Davies for its “vast and valuable experience” and “peerless market knowledge,” with rankings in 13 categories, including Tier 1 rankings in the following: Capital Markets Competition and Antitrust Corporate and M&A ...
Nov. 24, 2017 – We are pleased to announce that Bobby Sood has joined Davies as a partner in our Tax Litigation practice. Based in our Toronto office, Bobby brings a wealth of specialized knowledge and experience to the firm that stem from his 19 years in the Tax Services Division at the Department of Justice. ...
House Republicans Moving Forward on U.S. Tax Reform
Nov. 03, 2017 – After many promises and surprising secrecy, House Republicans took a significant step toward enacting transformative federal tax legislation on November 2, 2017. The House Republicans released a bill titled the “Tax Cuts and Jobs Act” (Act), which adopts many of the principles set forth in the...
The Univar Appeal: A Pyrrhic Victory For Indirect Acquisitions in Canada
Oct. 30, 2017 – In this article published in Tax Notes International , Davies partner Nathan Boidman reviews the decision by the Federal Court of Appeal in Univar Holdco Canada ULC v. The Queen , particularly in the context of the 2016 Income Tax Act amendments concerning surplus stripping rules and the...
Forty-nine Davies Lawyers Recognized in Who’s Who Legal: Canada
Oct. 24, 2017 – Law Business Research’s Who’s Who Legal: Canada 2017 names 49 Davies partners as leading lawyers, including eight Most Highly Regarded practitioners, across 18 different practice areas. Who’s Who Legal nominees are selected on the basis of comprehensive, independent surveys conducted among...
U.S. Treasury Will Scale Back Debt-Equity and Certain Other Regulations
Oct. 10, 2017 – On the basis of an executive order by President Trump to reduce the burden of tax regulations, the Secretary of the Treasury (Secretary) identified on June 22, 2017, eight regulations from January 1, 2016, to be reviewed (June Report). The Secretary has now provided final recommendations (October...
Chambers Canada 2018 Recognizes Davies as a Leader in 23 Practice Areas
Oct. 04, 2017 – Davies has once again been recognized as one of Canada’s top law firms by Chambers & Partners in Chambers Canada: Canada’s Leading Lawyers for Business . The 2018 edition of the guide reaffirms our position as a leader in the industry, with 62 of our lawyers ranked 79 times, including 25 Band 1...
Davies Tax Team Wins an ITR Americas Tax Award
Sept. 15, 2017 – Davies’ leadership in the area of tax law has been recognized by International Tax Review with the 2017 award for Americas Real Estate Tax Deal of the Year. This award recognizes our innovative tax work representing Ivanhoé Cambridge in its joint effort with Hines to develop Bay Park Centre, an...
Peter Glicklich Honoured as International Tax Contributor of the Year by Bloomberg BNA
Sept. 11, 2017 – Bloomberg BNA has honoured Davies partner Peter Glicklich with a 2017 Author Award for his thought leadership in international taxation. Peter was named International Tax Contributor of the Year in recognition of his outstanding authorship and numerous contributions to the Tax Management...
Unexpected Canadian Private Company Tax Proposals: A Critique And International Comparative
Sept. 04, 2017 – In this article from Tax Notes International , Davies partners Nathan Boidman and Michael Kandev examine proposed plans by the Canadian government for radical changes to the Income Tax Act ostensibly aimed at curbing tax planning using private corporations. Download this article .
Davies Earns High Marks in Best Lawyers 2018
Aug. 22, 2017 – The 2018 edition of The Best Lawyers in Canada recognizes 97 Davies partners as leading lawyers across 34 areas of specialization. Our firm is also recognized as Law Firm of the Year in Tax Law. Additionally, 13 Davies partners are named Lawyer of the Year in 14 categories. This recognition is...
Tax Proposals Target Canadian Business Owners
Aug. 04, 2017 – Although Canadian individuals are already subject to some of the highest tax rates in the world, the Canadian federal government released a discussion paper for consultation on July 18, 2017 which includes proposals that would substantially increase taxes paid by Canadians who carry on business ...
Ontario Proposes Changes to Land Transfer Tax for Certain Trusts and Partnerships
July 19, 2017 – The Ontario Ministry of Finance considers partnerships and most trusts to be transparent for Ontario land transfer tax (LTT) purposes. This means that if a unit trust or limited partnership with a large number of unitholders purchases a beneficial interest in Ontario real estate, technically each...
Canadian Government Proposes Major Changes to the Taxation of Private Corporations
July 18, 2017 – The Canadian Department of Finance released a discussion paper earlier today on tax planning using private corporations. Included with the paper is draft legislation for a couple of the matters discussed in the paper. Finance has requested comments on the discussion paper by October 2, 2017. ...
U.S. Tax Court Exempts Gain on Sale of Interests in ECI-Generating Partnerships
July 18, 2017 – The Tax Court in Grecian Magnesite Mining, Industrial & Shipping Co., SA (149 TC No. 3 (2017)) ( Grecian Magnesite ) has determined that gain from a non-U.S. corporation’s sale of an interest in a U.S. partnership that was engaged in a U.S. trade or business did not give rise to income...
PSP Investments Announces Strategic Initiatives with Pattern Energy
July 04, 2017 – Davies represented the Public Sector Pension Investment Board (PSP Investments), one of Canada’s largest pension investment managers, in a series of transactions with Pattern Energy Group Inc. (PEGI). PEGI is an independent power company, listed on the Nasdaq Global Select Market and Toronto Stock...
Canada’s Limited Approach to the OECD’s MLI
July 03, 2017 – In this article published in Tax Notes International , Davies partners Nathan Boidman and Michael Kandev discuss Canada’s signing of the OECD multilateral instrument to adopt many of the anti-BEPS tax treaty rules. Download this article .
Barrick Gold Completes Strategic Divestiture and Partnership with Shandong Gold
June 30, 2017 – Davies acted for Barrick Gold Corporation in its transaction with Shandong Gold that included the following: sale of a 50% interest in the Veladero gold mine for US$960 million; the negotiation of a 50/50 joint venture arrangement in respect of the Veladero gold mine; the...
Canada Expands Back-to-Back Regime: Examining the Character Substitution Rules
June 19, 2017 – In this article from Tax Notes International , Davies partner Michael Kandev explains Canada’s latest attempt to fight treaty shopping through an expanded back-to-back regime, focusing on the regime’s complex and sometimes mysterious character substitution rules. Download this article .
Canada’s Enhanced Transitional Rules for U.S. LLPs and LLLPs
June 15, 2017 – In this article from Tax Notes International , Davies partner Nathan Boidman provides updates about the Canada Revenue Agency’s May 26, 2016, non-binding administrative decision to treat certain U.S. limited liability partnerships (LLPs) and limited liability limited partnerships (LLLPs) as...
Five Davies Partners Named Best of the Best
May 19, 2017 – The 2017 edition of Expert Guides’ Best of the Best recognizes five Davies partners as leading lawyers in their fields: Guy Du Pont Greg Howard Carol Pennycook Stephen Ruby Kent Thomson The guide profiles the top 30 practitioners in 18 areas of law. Our lawyers were recognized...
Davies Earns Top Marks in The Canadian Legal Lexpert Directory 2017
May 05, 2017 – The Canadian Legal Lexpert Directory 2017 has recognized 91 Davies lawyers as leading practitioners, with 33 achieving the highest ranking of Most Frequently Recommended in at least one area of specialization. Our firm is also recognized as Most Frequently Recommended in 16 practice areas. ...
Ontario Unveils a New 15% Land Transfer Tax and Expanded Rent Controls
Apr. 20, 2017 – On April 20, 2017 the Ontario government announced a set of measures, dubbed the Fair Housing Plan, intended to “help more people find an affordable place to call home, while bringing stability to the real estate market and protecting the investment of homeowners.” The plan includes a proposed 15%...
Lessons from Canada and the WTO: The U.S. Should Embrace a VAT
Apr. 17, 2017 – The current Republican government in the United States campaigned on a promise of comprehensive tax reform. As a result, many commentators believe big changes – including a consumption tax like a value-added tax (VAT) – may now be possible. In this article, originally published in Bloomberg BNA’s...
Barrick Gold Announces Three-Way Transaction with Goldcorp and Kinross
Apr. 07, 2017 – Davies acted for Barrick Gold in its announced, highly complex three-way transaction with Goldcorp and Kinross Gold. This transaction involved Barrick’s sale of its 25% stake in the Cerro Casale Project to Goldcorp and Goldcorp’s acquisition of Kinross’s entire 25% interest in the Cerro Casale...
Davies Lawyers Unmatched in Chambers Global 2017
Mar. 27, 2017 – Davies’ status as a leading Canadian law firm has once again been confirmed by Chambers and Partners in its annual publication Chambers Global: The World’s Leading Lawyers for Business . Davies has the highest percentage of Band 1 lawyer rankings as well as the highest percentage of overall...
2017 Federal Budget: Tax Highlights
Mar. 22, 2017 – The Liberal government’s second budget (Budget 2017) comes during a period of exceptional global political and economic uncertainty. Of particular importance from a Canadian economic and tax policy perspective is the uncertainty about how the Trump administration’s agenda will unfold in the coming...
Fintech TIO Networks to Be Acquired by PayPal for C$304 Million
Mar. 09, 2017 – Davies advised the Special Committee of the board of directors of TIO Networks Corp., a leading North American cloud-based multi-channel bill payment processor, in its acquisition by PayPal Holdings, Inc. TIO accelerated PayPal’s entry into bill payments with 14 million consumer bill pay accounts,...
Québec Announces Tax Relief for Individuals Holding Interests in Public Corporations
Feb. 24, 2017 – On February 21, 2017, Québec’s Ministère des Finances released Information Bulletin 2017-3 announcing tax measures (i) to increase the deduction for stock options of publicly traded large businesses; (ii) to extend, to all sectors of activity, tax relief for the transfer of family businesses; and...
SEC Rulemaking Developments 2016
Feb. 16, 2017 – The U.S. Securities and Exchange Commission (SEC) had a busy rulemaking year in 2016. As part of its Disclosure Effectiveness Initiative launched at the end of 2013, the SEC continued to propose and adopt rules that are intended to improve and modernize the disclosure requirements for reporting...
Davies Acted in Six of Lexpert Magazine’s Top 10 Deals of 2016, Including Deal of the Year
Feb. 06, 2017 – Davies was recognized as a significant player in six of the top 10 Canadian corporate deals of 2016 in Lexpert Magazine ’s January/February 2017 issue. Most notably, Davies acted in Lexpert’s Deal of the Year – Fortis Inc.’s acquisition of ITC Holdings Corp. Davies was profiled for acting in...
Canadian and U.S. Tax Laws: A Review of 2016 and a Look Ahead to 2017
Jan. 13, 2017 – The year 2016 was eventful from a Canadian tax perspective, with the current Liberal government introducing its first federal budget and important judicial developments that included two decisions in tax cases by the Supreme Court of Canada. Conversely, while U.S. tax developments in 2016 were...
Jan. 11, 2017 – Family wealth and business planning often gives rise to structures that come with burdensome reporting obligations for minority US shareholders. In this Canadian Tax Journal article, Davies partners Peter Glicklich and Gregg Benson point out some of the cases where the burden is much larger...
Federal Court Refuses to Recognize Common Interest Privilege in the Transactional Context
Dec. 23, 2016 – The doctrine of “common interest privilege” ensures that a document or communication that is already protected by solicitor-client or litigation privilege does not lose that protection when it is shared between two parties sharing a “common interest” in either litigation or a transaction. In a...
IRS Should Allow QCIV Self-Designation Under FIRPTA
Dec. 16, 2016 – As part of the Protecting Americans from Tax Hikes Act of 2016 (PATH Act), Congress enacted a new exemption from the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA) for foreign entities that are “qualified shareholders” of certain publicly traded real estate investment trusts...
IRS Issues Broad Disclosure Rules for Foreign-Owned Disregarded U.S. Entities
Dec. 15, 2016 – In the flood of guidance being issued in the waning days of the Obama administration, the IRS and Treasury Department have finalized regulations that require foreign owners of single-member U.S. LLCs to file an information return on IRS Form 5472, “Information Return of a 25% Foreign-Owned U.S. ...
How Is BEPS Reflected in Canada’s Newest Treaties?
Dec. 12, 2016 – In this article published in Tax Notes International , the authors examine the extent to which Canada’s new treaties with Taiwan and Israel reflect its involvement and concern. Download this article.
Davies Partners Author Tax Book for the Canadian Tax Foundation
Dec. 05, 2016 – Davies congratulates partners Elie Roth , Tim Youdan, Chris Anderson and Kim Brown on the release of their new book, Canadian Taxation of Trusts , published by the Canadian Tax Foundation. The book documents and clarifies recent legislative, judicial and administrative developments in the...
Nov. 29, 2016 – On November 25, 2016, the Supreme Court of Canada rendered two decisions confirming that express, clear legislative language is required to compel production of solicitor-client- or litigation-privileged documents, and reaffirming the wide protection afforded these privileges. Alberta...
Upcoming Changes to Ontario Land Transfer Tax Rates
Nov. 25, 2016 – The province of Ontario is proposing to increase land transfer tax rates with effect from January 1, 2017. The Building Ontario Up for Everyone Act (Budget Measures) , 2016 received first reading on November 16, 2016 and is expected to come into force before the end of the year. For acquisitions...
Québec Bill 112: Significant Changes to Duties on Transfers of Immovables
Nov. 22, 2016 – The Québec 2016-2017 Budget tabled by Finance Minister Carlos Leitão on March 17, 2016, announced significant changes to the Act respecting duties on transfers of immovables applicable to all transfers of immovables in the province of Québec as of March 18, 2016. On November 15, 2016, Bill 112:...
Davies Recognized as “Simply Elite” in The Legal 500 Canada
Nov. 11, 2016 – The 2017 edition of The Legal 500 Canada has recognized Davies for its “simply elite” lawyers and “client-focused team players” with rankings in 14 categories, including Tier 1 rankings in the following: Capital Markets Competition and Antitrust Corporate and M&A Dispute...
Final U.S. Debt-Equity Regulations Are Not as Sweeping as Feared
Oct. 17, 2016 – On October 13, 2016, the Treasury Department released final regulations (and related temporary regulations) under section 385 (Final Regulations). 1 The Final Regulations recharacterize certain issuances of related-party debt as equity for U.S. federal tax purposes. The Final Regulations...
Fortis Completes Acquisition of ITC for US$11.3 Billion
Oct. 14, 2016 – Davies advised Fortis Inc. in its US$11.3-billion acquisition of ITC Holdings Corp., the largest independent electric transmission company in the United States. This transformative transaction, structured as a cash and share exchange merger, made Fortis a top-15 North American utility. In...
Chambers Canada 2017 Recognizes Davies as a Leader in 24 Practice Areas
Oct. 12, 2016 – Davies was recognized as one of Canada’s top law firms by Chambers & Partners in Chambers Canada: Canada’s Leading Lawyers for Business . Once again, Davies leads Canada’s 30 largest law firms with the highest percentage of lawyer rankings, as well as the highest percentage of lawyers ranked and...
Judicial and Legislative Developments Threaten Indirect Canadian Acquisitions
Oct. 10, 2016 – Originally published in Tax Notes International , this article examines new obstacles to the recovery by foreign parties of funds that were invested to indirectly acquire, through foreign companies, Canadian targets, raised by the recent decision in Univar and related proposed amendments to...
BEPS Cash Box Inconsistent with Canadian Tax Rules
Oct. 03, 2016 – Originally published in Canadian Tax Highlights , this article examines the BEPS project’s new transfer-pricing notion of “cash box,” which appears to be inconsistent both with commercial reality and with longstanding Canadian outbound international tax policy. Download this article.
Davies Honoured as Canadian Tax Firm of the Year at ITR Americas Tax Awards 2016
Sept. 16, 2016 – Last night at the International Tax Review (ITR) Americas Tax Awards, Davies was presented with the Canadian Tax Firm of the Year award. This award recognizes Davies’ work on matters including Fortis’ transformative proposed acquisition of Michigan-based ITC Holdings Corp. for approximately...
Foreign Banks and Canada’s CFC System
Aug. 15, 2016 – Originally published in Tax Notes International , this article examines the Tax Court of Canada’s CIT judgment, as well as two pending companion cases, and sheds light on how the simple notion underlying controlled foreign corporation attribution rules— that CFCs’ undistributed passive income...
FinCen Extends Required Disclosures of High-End Real Estate Transactions to New Jurisdictions
Aug. 03, 2016 – In an e-communication dated February 4, 2016 ( New Disclosures Required in High-End Residential Real Estate Transactions in Manhattan and Miami ), we reported that the Financial Crimes Enforcement Network (FinCen) of the U.S. Treasury Department had established a temporary program that...
United States Proposes Further Limits on Spinoffs
July 19, 2016 – Spinoffs or split-offs are commonly sought by shareholder activists of public companies to increase shareholder value. Such proposals assume the tax-free nature of the transaction, because a taxable transaction could involve tax to both the distributing corporation (Distributing) and its...
The Federal Court of Appeal Permits Use of Mark-To-Market Tax Accounting
June 24, 2016 – The Federal Court of Appeal has held in the Kruger Inc. v. Canada decision published yesterday, that Kruger Inc. was entitled to use the mark-to-market method in computing its income for federal income tax purposes. As a result, for income tax purposes it was entitled to recognize an accrued...
Davies and 84 of the Firm’s Lawyers Highly Ranked in The Canadian Legal Lexpert Directory 2016
June 23, 2016 – The Canadian Legal Lexpert Directory 2016 has profiled 84 Davies lawyers as leading practitioners, with 32 achieving the highest ranking of Most Frequently Recommended in at least one area of specialization. The firm is also recognized as Most Frequently Recommended in the following eight...
To Go or Not to Go? The 30% Rule for Canadian Pension Funds
June 06, 2016 – Canadian pension funds and their subsidiaries are subject to a rule that prohibits them from investing in shares of a corporation having more than 30% of the votes for the election of directors, except in the case of qualifying real estate, resource and investment subsidiaries (the so-called 30%...
Interest Deductibility in Canada: The TDL Group Co. Decisions
May 26, 2016 – Originally published in Tax Notes International , this article examines the conclusions reached by both the Tax Court of Canada denying an interest deduction and by the Federal Court of Appeal subsequently allowing the deduction in an effort to identify a more unified theory on the proper...
BEPS: Canada Takes First BEPS Steps
May 24, 2016 – Originally published in Tax Notes International , this article examines provisions in Canada’s 2016 budget inspired by the OECD’s final reports on its base erosion and profit shifting project. Download this article.
Will Canadian Pension Plans Feast on U.S. Infrastructure (Without FIRPTA)?
May 17, 2016 – This column, which was originally published in Tax Management International Journal , considers whether changes to U.S. tax law made by the Protecting Americans from Tax Hikes Act of 2015 (the PATH Act) are likely to increase investment by Canadian pension plans in U.S. infrastructure. After...
What the U.S. Presidential Hopefuls Are Saying on Tax Reform – International Tax Review
May 05, 2016 – Davies partner Peter Glicklich spoke with International Tax Review for its article examining the corporate tax reform proposals of the U.S. presidential candidates, offering his insights on the platforms of aspiring Democratic and Republican nominees. Download the article .
Dealmakers adapt to U.S. tax-inversion restrictions – Lexpert
Apr. 29, 2016 – In a Lexpert article exploring how advance knowledge of the U.S. Treasury Department ’ s anti-inversion regulations has lessened their impact , Davies partner Hillel Rosen discusses the M&A boom in life sciences. “ We ’ re reading about inversion, but the real story is that M&A is the...
IRS Issues Tough New Anti-Inversion Regulations
Apr. 11, 2016 – The U.S. Treasury Department and the Internal Revenue Service (IRS) recently took a major step forward in their fight against inversion transactions by releasing an extensive package of new temporary regulations under section 7874 of the Internal Revenue Code. The new rules will affect pending...
IRS Proposes Broad Limit on Intercompany Debt
Apr. 08, 2016 – The Internal Revenue Service has proposed new regulations that would generally treat intercompany indebtedness in corporate groups with 80% common ownership as equity for U.S. tax purposes. The new restrictions are proposed to be effective for any indebtedness issued on or after April 4, 2016,...
Withholding Relief for Nonresident Employees in Canada
Apr. 05, 2016 – Originally published in Tax Notes International , this article examines Canada’s 2015 federal budget amendments to allow qualifying nonresident employers to apply for an exemption on withholding obligations for remuneration paid to all qualifying nonresident employees. Download this article.
Apr. 01, 2016 – As part of Canada’s Federal Budget that was presented on March 22, 2016, Finance Minister Bill Morneau announced the repeal, effective January 1, 2017, of the existing eligible capital property ( ECP ) tax regime and its merger into the existing depreciable capital property rules. While the new...
Davies Lawyers Continue to Lead in Chambers Global 2016
Mar. 23, 2016 – Davies’ status as a leading Canadian law firm has once again been confirmed by Chambers and Partners in its annual publication, Chambers Global: The World ’ s Leading Lawyers for Business . Davies has the highest percentage of Band 1 lawyer rankings of any Canadian law firm. The 2016 edition...
2016 Federal Budget: Tax Highlights
Mar. 22, 2016 – The new Liberal government ’ s first budget (Budget 2016) has been the subject of anticipation and speculation, much of it apprehensive. Unusually, Budget 2016 is noteworthy for what it does not contain. Budget 2016 does not introduce changes to increase the tax rate on employee stock option...
Québec Budget 2016-2017: Significant Changes to Duties on Transfers of Immovables
Mar. 18, 2016 – The 2016-2017 Budget tabled by Finance Minister Carlos Leitão on March 17, 2016, announced significant changes to the Act respecting duties on transfers of immovables (the Act). Although these changes apply to the transfer of an immovable in Québec as of March 18, 2016, no bill has yet been...
Mar. 09, 2016 – Davies acted for Alimentation Couche-Tard Inc. (Couche-Tard), the leader in the Canadian convenience store industry, in connection with its $1. 68-billion acquisition of 279 Esso-branded fuel and convenience sites; 229 of which were located in Ontario and 50 were located in Québec. The acquisition...
McKesson Enters into Agreement to Acquire Rexall for $3 Billion
Mar. 02, 2016 – Davies acted for McKesson Corporation, a leading international healthcare services and information technology company, in connection with its $3-billion acquisition of Rexall and Rexall Pharma Plus, which operate approximately 470 pharmacies in Canada, from Katz Group, one of Canada’s largest...
Canadian Transfer Pricing Decision in Marzen: Points of Interest
Feb. 15, 2016 – In this article from Tax Notes International , Davies partner Nathan Boidman reviews Marzen Artistic Aluminum , a Canadian transfer pricing case involving sales of Canadian products into U.S. markets. Nathan focuses on novel issues raised by the parties’ use of a Barbados subsidiary in the...
Fortis Enters into Agreement to Acquire ITC for US$11.3 Billion
Feb. 09, 2016 – Davies acted for Fortis Inc. in connection with its US$11.3-billion acquisition of ITC Holdings Corp., the largest independent electric transmission company in the United States. Fortis is a leader in the North American electric and gas utility business, serving more than three million customers...
Fund Management Fee Waivers Under Attack
Jan. 21, 2016 – In this article published in the International Tax Journal , Davies partners Peter Glicklich and Heath Martin examine the proposed regulations issued by the IRS concerning disguised payments for services between partners and partnerships. The regulations are aimed at curtailing the practice of...
Canadian and U.S. Tax Laws: A Review of 2015 and a Look Ahead to 2016
Jan. 20, 2016 – Each year at this time, we offer a look back at some of the more significant business and international tax developments in Canada and the United States over the past year and a look ahead to possible Canadian and U.S. tax developments in the coming year. Canadian Tax Review and Outlook ...
Shaw Communications Enters into Agreement to Sell Shaw Media to Corus Entertainment
Jan. 13, 2016 – Davies acted for Shaw Communications in connection with its sale of Shaw Media to Corus Entertainment for $2. 65 billion. Shaw Media owns Global Television Network and 19 specialty channels including HGTV Canada, Food Network Canada and Showcase. This transaction firmly positioned Shaw as a...
U.S. Tax Extenders Make Major Revisions to FIRPTA and REIT Rules
Dec. 21, 2015 – With the end of the year looming, both houses of the U.S. Congress approved, and President Obama signed, the Protecting Americans from Tax Hikes Act of 2015 (PATH Act). Nestled among the PATH Act’s numerous “extenders” – provisions that extend favourable tax provisions that would otherwise...
WIND Mobile Enters into Agreement to Be Acquired by Shaw Communications
Dec. 17, 2015 – Davies acted for WIND Mobile Corp. (WIND) and its shareholders including West Face Capital in connection with Shaw Communications Inc.’s acquisition, by plan of arrangement, of a 100% interest in Mid-Bowline Group Corp. and its wholly owned subsidiary, WIND, for an enterprise value of...
Dec. 17, 2015 – The 2016 Lexpert/American Lawyer Guide to the Leading 500 Lawyers in Canada has placed Davies at the centre of the bull’s eye for corporate transactions relative to firm size in Toronto and Montréal, and for tax in Montréal. Thirty Davies partners are profiled, and the firm has the highest...
Inversion Transactions: IRS Says More Regulations Are Coming
Nov. 25, 2015 – The IRS, in continuing to respond to pressures from Congress and President Obama, issued Notice 2015-79 (Notice) on November 19, 2015, which further restricts so-called inversion transactions under Section 7874 of the Internal Revenue Code. According to the Notice, regulations will be issued...
New IRS Partnership Audit Procedures Coming to the United States
Nov. 18, 2015 – The recently enacted Bipartisan Budget Act of 2015 1 contains major changes to future IRS partnership-level audit procedures. The Act replaces the existing rules for partnership taxable years beginning in 2018. Though the effective date is still two years away, the rules contain a number of...
Peter Glicklich Inducted into the American College of Tax Counsel
Nov. 09, 2015 – Davies partner Peter Glicklich has been inducted as a Fellow of the American College of Tax Counsel, a rare and prestigious honour bestowed upon Tax counsel in the United States. Membership in the College is reserved for those at the top of their profession. Fellows are recognized for their...
Davies Recognized as “Simply the Best” in The Legal 500 Canada
Oct. 21, 2015 – The 2016 edition of The Legal 500 Canada has recognized Davies for its “world-class lawyers” and “excellent service levels” with rankings in 14 categories, including Tier 1 rankings in the following: Capital markets Competition and antitrust Corporate and M&A Dispute...
Davies Recognized as a Top-Tier Firm in ITR’s World Tax 2016
Oct. 16, 2015 – International Tax Review (ITR) has listed Davies as a Tier 1 firm in the 2016 edition of its World Tax guide. In its profile of Davies, ITR notes that the firm’s tax lawyers “have taken the lead on some of the most significant cross-border transactions over the last two years.” World Tax ...
Davies Recognized as a Leader in Chambers Canada 2016
Oct. 13, 2015 – Davies Ward Phillips & Vineberg LLP has been recognized as one of Canada’s top law firms by Chambers & Partners in the first edition of Chambers Canada: Canada’s Leading Lawyers for Business . Davies has the highest percentage of lawyer rankings as well as the highest percentage of Band 1...
Davies Honoured at The American Lawyer’s 2015 Global Legal Awards Gala
Sept. 29, 2015 – Last night, at The American Lawyer ’s 2015 Global Legal Awards gala in New York City, Davies was honoured for the firm’s role in the acquisition of Tim Hortons Inc. by Burger King Worldwide, Inc. and the creation of Restaurant Brands International, which was recognized as Global M&A Deal of the...
Davies Honoured for Americas M&A Tax Deal of the Year at ITR Americas Tax Awards 2015
Sept. 18, 2015 – Last night at the International Tax Review ’s (ITR’s) Americas Tax Awards, Davies was a recipient of the Americas M&A Tax Deal of the Year award in recognition of its work on Burger King Worldwide, Inc.’s acquisition of Tim Hortons Inc. and the creation of Restaurant Brands International. The...
IRS Announces Expanded “No-Rule” Area for Spinoffs
Sept. 16, 2015 – On January 27, 2015, Yahoo Inc. announced its intention to seek an IRS private ruling that would confirm its view that the inclusion of a relatively small active business along with its stake in Alibaba Group Holding Ltd. would meet the “ active business requirement ” for a tax-deferred spinoff...
Art of the Deal: A Whopper of a Deal – Lexpert
Sept. 08, 2015 – In a Lexpert article offering a behind-the-scenes look at Burger King ’ s acquisition of Tim Hortons and the creation of Restaurant Brands International , Davies partners Patricia Olasker and George Addy reveal the long hours and innovative work that went into securing the regulatory...
Ninety-one Davies Lawyers Recognized by The Best Lawyers in Canada 2016
Aug. 24, 2015 – Ninety-one lawyers from Davies Ward Phillips & Vineberg LLP were selected by their peers for inclusion in The Best Lawyers in Canada 2016 across 33 areas of specialization, with five lawyers named Lawyer of the Year and seven practitioners newly recognized. Best Lawyers awards the Lawyer of the...
Barrick Enters into a Gold and Silver Streaming Agreement with Royal Gold
Aug. 06, 2015 – Davies acted for Barrick Gold Corporation in connection with its gold and silver streaming agreement with RGLD Gold AG, a wholly owned subsidiary of Royal Gold, Inc., for production linked to Barrick’s 60% interest in the Pueblo Viejo mine. In return, Royal Gold agreed to make an upfront cash...
Barrick Enters into an Agreement to Sell 50% of Zaldívar Mine to Antofagasta Plc
July 31, 2015 – Davies acted for Barrick Gold Corporation in connection with its $1. 005-billion sale of a 50% interest in the Zaldívar copper mine in Chile to Chile-based Antofagasta Plc. With this agreement, Barrick formed a new joint venture partnership with Antofagasta, one of the world’s leading copper...
Stericycle, Inc., to Acquire Shred-it International for US$2.3 Billion
July 23, 2015 – Davies acted as Canadian counsel for Stericycle, Inc., in its acquisition of Shred-it International, a Canadian-based global secure information destruction services provider, for US$2.3 billion in cash. Stericycle, Inc., a U.S. -based company operating in 13 countries, focuses on compliance and...
Davies and 81 of the Firm’s Lawyers Highly Ranked in The Canadian Legal Lexpert Directory 2015
June 26, 2015 – The Canadian Legal Lexpert Directory 2015 profiled 81 Davies lawyers as leading practitioners, with 29 achieving the highest ranking of Most Frequently Recommended in at least one area of specialization. The firm was also recognized as Most Frequently Recommended in the following eight...
“Publish What You Pay” Standards Now in Force for Canada’s Extractive Industries
June 02, 2015 – On June 1, 2015, the federal government declared into force the Extractive Sector Transparency Measures Act . This Act is the long-promised legislation to establish mandatory reporting standards for payments that Canadian extractive companies make to governments worldwide (commonly known as ...
U.S. Treasury Proposes Significant Changes to the Model Tax Treaty and Requests Comments
June 02, 2015 – On May 20, 2015, the U.S. Treasury Department released proposed changes to the U.S. model tax treaty, which has not been updated since 2006. The Treasury Department has departed from its usual process for revising the U.S. model tax treaty by publishing drafts of certain of the more meaningful...
Barrick Divests Cowal Mine and Partners with China’s Zijin Mining Group
May 26, 2015 – Davies acted for Barrick Gold Corporation in connection with a strategic divestiture and a landmark strategic partnership: US$550-million sale of Barrick’s 100% interest in the Cowal gold mine in New South Wales, Australia, to Evolution Mining Limited; and US$298-million sale to China’s...
2015 Federal Budget: Tax Highlights
Apr. 21, 2015 – As has been widely predicted, today’s federal budget (Budget 2015) delivered a handful of tax “ goodies ” in the lead-up to the coming election. It also includes a number of important proposed changes to the corporate tax rules. They are noteworthy, although not as extensive as the corporate...
Davies Continues as a Leader in Chambers Global 2015
Mar. 18, 2015 – Davies Ward Phillips & Vineberg LLP has again been recognized as one of Canada’s leading law firms by Chambers and Partners in its 2015 annual publication, Chambers Global: The World’s Leading Lawyers for Business . Davies has the highest percentage of lawyer rankings as well as the highest...
Favourable Tax Measures Announced for Mining Investors
Mar. 04, 2015 – On March 1, 2015, the federal government announced two new tax measures favourable to investors in junior mining exploration companies in Canada in an effort to stabilize and strengthen the Canadian mining industry. First, the government has extended the 15% Mineral...
Mar. 02, 2015 – Legal Alert , Volume 33, Number 12 Davies partner Nathan Boidman briefly examines the background to the initiative launched by the G20 and the Organisation for Economic Co-operation and Development (OECD) against base erosion and profit shifting (BEPS). Download this article.
Davies Named a Top Tier Firm by the Tax Directors Handbook 2015
Jan. 20, 2015 – Tax Directors Handbook 2015 recommended Davies as a Top-Tier Firm in the area of Canada—Leading tax law firms. Said the handbook’s editors: “The ‘superior’ tax group at Davies Ward Phillips & Vineberg LLP is ‘excellent in every respect’, according to clients.” The TDH also...
Activities of Fund Manager Cause Fund to Be Engaged in U.S. Trade or Business
Jan. 16, 2015 – The United States taxes non-residents on income that is considered “ effectively connected ” to a trade or business carried on in the United States. Canada and most other countries adopt a similar approach. But pursuant to a safe harbour provided in the U.S. Code, trading in stocks and...
Canadian and U.S. Tax Law: A Review of 2014 and a Look Forward to 2015
Jan. 13, 2015 – Each year at this time, we offer a look back at some of the more significant business and international tax developments in Canada and the United States over the past year and a look forward to possible Canadian and U.S. tax developments in the coming year. I. CANADIAN TAX REVIEW AND OUTLOOK ...
Jan. 13, 2015 – The 2015 Lexpert/American Lawyer Guide to the Leading 500 Lawyers in Canada profiled 27 Davies lawyers and named the firm the leading corporate transactions firm in Toronto. As well, Lexpert ranked the Toronto office at the centre of the bull’s eye for corporate law and corporate transactions...
