In a recent decision1, the Quebec Court recalls important principles regarding the qualification of expenses related to income properties. Indeed, Mr. La Chapelle contested tax assessment notices issued by Revenu Québec (hereinafter "RQ"). The RQ's qualification of certain expenses incurred in relation to his income properties was contested by the…
Section 160 of the Taxation Act1 sets out the criteria for deducting interest expense on a loan. There are four cumulative conditions: The expense must be paid or payable during the fiscal year; The expense must be paid in fulfillment of a legal obligation to pay interest on borrowed money;…
The court, faced with a prima facie case of counter letter, had to decide whether Elsie Monereau, plaintiff, remained the true owner of a property, despite certain transactions suggesting otherwise1. Indeed, on February 13th, the Court of Québec ruled in a tax dispute between two taxpayers and Revenu Québec ("RQ").…
Regrettable as it may seem, sometimes the outcome of a suicide is dealt with by the Quebec courts. Indeed, it was in such a context that the Superior Court and Court of Appeal, in the Bolduc case, recently had to rule on the nullity of a suicide clause in a…
On January 9, 2024, the Quebec Court of Appeal had the opportunity to render a decision regarding the quantification of damages incurred following the conclusion of a share purchase agreement between Pop-Up and Boomba1. The appellate court had to decide whether the Superior Court had erred in awarding $41,000 in…
Too often overlooked, the task of properly preparing a client for his or her testimony regularly has a crucial impact on the outcome of the trial. Indeed, one of the most delicate tasks for a first instance judge is to assess the credibility of the witnesses who appear before him…
Time limits in disciplinary law are often very, even too long for the professionals concerned, and it is common for them to wonder about possible remedies for such delays, or whether there is a maximum time limit within which the investigation and disciplinary process must be completed. In 2016, in…
Recently, a new law was adopted to modernize the legislation on the protection of personal information, inspired by the new requirements in this field in European countries. The evolving context of technology and the rapid exchange of information have forced the government to look at the protection of personal information…
Shareholder agreements often contain compulsory buy-back clauses that provide for the eviction of a shareholder and the repurchase of his shares at a price lower than their real value, particularly when the shareholder has committed a criminal offence or has defrauded the company. Such clauses may also apply in the…
Treating one's colleagues with respect is an ethical obligation for the professional in the performance of his or her duties. This obligation of respect is derived from section 59.2 of the Professional Code: "No professional may engage in an act derogatory to the honour or dignity of his profession or…
The Quebec government's Bill 96 was assented to by the Lieutenant-Governor on June 1 and is now called the Act respecting French, the official and common language of Québec. With this new law, the government has amended several provisions of the Charter of the French Language1 (hereinafter referred to as…
Can an e-mail serve as a will? The advent and democratization of the use of technological tools brings its share of legal questions. In the Bitton case1, the Superior Court considered the validity of an e-mail as a means of expressing the last wishes of a deceased person. The Law…
Can freedom of speech be limited by a professional's ethical obligations? This is what the Conseil de discipline des comptables professionnels agréés du Québec (hereinafter, the "Conseil") answered in a recent decision1. In this case, the Syndic Adjoint of the Ordre des comptables professionnels agréés du Québec filed a complaint…
Can a company offering extended warranties defer the amounts collected as a reserve under the Taxation Act1? This is what the Court of Quebec is trying to clarify in a recent decision2. The Quebec tax rules provide, as do the federal rules, that when a taxpayer receives an amount in…
The penalty clause makes it possible to establish, in advance, the damages to be paid by the party that does not respect its obligation1. It is particularly well known for accompanying a non-competition clause that may be found in an employment contract. When parties negotiate the terms of a transaction,…
The interpretation of a contract for the sale of shares that does not respect the obligations of good faith can by synonymous with abuse of rights. The Court of Appeal, in a decision issued in November 20211, puts an end to the legal saga regarding Les placements Péladeau inc. (hereafter…
The Court of Québec recently recalled the principles to be applied in matters of extinctive prescription when the Agence du Revenu du Québec (hereinafter “ARQ”) alleges that a taxpayer has deliberately made false representations. In 2012, the ARQ carried out a random audit of the tax returns of the corporation…
As discussed in our last publication, in relation to workplace mandatory vaccination, there is, to date, no clear guidance to help employers manage the issue of mandatory vaccination, nor legal precedent that can be applied to the letter. On the other hand, an arbitral award rendered on November 15, Service…
Through access to information, is it possible to have access to images captured by surveillance cameras in a public place? In the age of technology, it is increasingly common to question the disclosure and sharing of our information. Recently, in the decision of Whaley v. Université du Québec à Trois-Rivières1,…
Can an unreasonable takeover offer constitute oppression against a minority shareholder? The Superior Court recently ruled on the possibility of such an action. The oppressive remedy is a mechanism provided for in the Business Corporation Act1 that allows you to claim corrective measures when a corporation has behaved abusively or…
Usually, when you carry on commercial activities, you are required to register for the GST and QST. Since these taxes influence the method used to enter transactions, it is important to understand how the process works. The acronyms QST and GST mean "Quebec Sales Tax" and "Goods and Services Tax,"…
In legal drafting, although it is not recommended, it is common for lawyers to insert standard terms in contractual clauses that have a very broad scope, that can sometimes be excessive, with a statement specifying the discretionary power left to the judge to corrects and minimize the extent of such…
A shareholders’ agreement is often the appropriate legal tool for a new project or business partnership. Such a union is usually compared to a marriage contract, rightly so, since the shareholders' agreement, like said marriage contract, aims to provide the new "partners" with clear corporate governance rules. But often the…
When exercising their freedom of contract, the parties involved have a myriad of opportunities when stipulating clauses that are specific and customized to the circumstances surrounding their legal situation. However, one slight note of caution remains: all aspects that are necessarily contrary to public order may be challenged in court.…