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Jared A. Mackey

Corporate Tax Lawyer at Bennett Jones Calgary

Partner

Anu Nijhawan

M&A, Corporate Financing and International Tax Lawyer at Bennett Jones Calgary

When Canadian multinationals issue discounted bonds, notes and similar obligations in a foreign currency, the tax consequences of repaying the debt are governed by subsections 39(2) and paragraph 20(1)(f) of the Income Tax Act (Canada). <a href="/sitecore/service/notfound.aspx?item=core%3a%7b13625BA3-D63A-493B-95F4-614BC797C9B7%7d%40en">Jared Mackey</a> and <a href="/sitecore/service/notfound.aspx?item=core%3a%7b5ACD4C1C-669D-4296-BB50-63DF73832411%7d%40en">Anu Nijhawan</a> explore the application and interaction of these provisions, which can give rise to unexpected results.

Tax Considerations on the Repayment of Discounted Foreign Currency Obligations

Hennadiy Kutsenko

Tax Lawyer at Bennett Jones Toronto

Associate

Incentivizing employees is a critical component of most business strategies. Employers may implement arrangements for deferred cash bonuses, often subject to the satisfaction of certain criteria. From a tax perspective, the efficacy of any such arrangement requires that no tax be payable prior to the time an individual receives a cash payout. To ensure that result, it is critical to avoid the application of the "salary deferral arrangement" rules under the Income Tax Act (Canada).

Incentivizing Employees Avoiding a Salary Deferral Arrangement

Incentivizing Employees: Avoiding a Salary Deferral Arrangement

Retirement compensation arrangements (RCAs) are, in appropriate circumstances, a useful tool for employers to provide supplemental pension benefits to employees, but such arrangements come at a cost of refundable tax under the Income Tax Act (Canada) (the ITA). The <a rel="noopener noreferrer" rel="noopener noreferrer" href="https://www.budget.canada.ca/2023/home-accueil-en.html" target="_blank">2023 Federal Budget</a> (the Budget), released on March 29, 2023 (Budget Day), proposes to amend the ITA to exempt, from the refundable tax, fees or premiums to the extent paid for the purposes of securing or renewing a letter of credit or a surety bond for an RCA structured as supplement to a registered pension plan.

Supplemental Pension Plans Secured with Letter of Credit Budget Proposes Refundable Tax Relief

Supplemental Pension Plans Secured with a Letter of Credit—Federal Budget 2023 Proposes Refundable Tax Relief

The Canadian Tax Foundation's newsletter Perspectives on Tax Law and Policy (June 2022) features an article by Anu Nijhawan and Jared Mackey on <a rel="noopener noreferrer" rel="noopener noreferrer" href="https://www.ctf.ca/CTFWEB/EN/Newsletters/Perspectives/2022/2/220205.aspx?_zs=J83WL1&_zl=IuCI2" target="_blank">Reimagining the Determination of Tax Avoidance</a>.

Canadian Tax Foundation Reimagining the Determination of Tax Avoidance

Canadian Tax Foundation: Reimagining the Determination of Tax Avoidance

Kees de Ridder

Intellectual Property Lawyer, Patent Agent and Trademark Agent at Bennett Jones Calgary

Associate, Patent Agent, Trademark Agent

Benjamin K. Reingold

Intellectual Property Litigation Lawyer at Bennett Jones Calgary

Stephen D. Burns

Technology Lawyer, Intellectual Property Lawyer at Bennett Jones Calgary

Partner, Trademark Agent

The Supreme Court of Canada will hear Pharmascience Inc v Janssen Inc on October 9, 2025, a case that could reshape the scope of patentable subject matter in Canada. At issue is whether a dosing regimen for a pharmaceutical product constitutes an unpatentable method of medical treatment or a valid invention under the Patent Act. The Federal Court and Federal Court of Appeal upheld the patent&rsquo;s validity, but Pharmascience has challenged this position. With several industry groups granted intervenor status, the case is expected to have significant implications not only for the pharmaceutical industry but also for broader questions of what qualifies as an &ldquo;invention,&rdquo; including computer-implemented and AI-related technologies.

Supreme Court to Assess Subject Matter Eligibility in Canadian

Supreme Court to Assess Subject Matter Eligibility in Canadian Patent Law: Implications Beyond the Pharmaceutical Context

AI is transforming performance marketing through hyper-personalization, automated content creation, and data-driven insights&mdash;enhancing efficiency while raising new legal and ethical considerations for brands.

The Implications of AI on Performance Marketing

Sean Zweig

Restructuring, Insolvency and Bankruptcy Lawyer at Bennett Jones Toronto

Andrew Froh

Commercial Litigation Lawyer at Bennett Jones Vancouver

James Atkinson

Articling Student at Bennett Jones 

Articling Student          

A recent decision of the US Bankruptcy Court in Re: Iovate Health Sciences International Inc. provides important insights for Canadian companies involved in cross-border restructurings. The case addresses how debtor companies can rebut the presumption that their &ldquo;center of main interests&rdquo; (COMI) is located at their registered office when seeking Chapter 15 recognition in the United States. Chief Judge Glenn reaffirmed that COMI is determined by a non-exhaustive set of factors, including management, assets, creditors and creditor expectations, and may also be influenced by pre-filing restructuring activities.

Trend Watch Determining COMI in US Chapter 15 Proceedings

Trend Watch: Determining COMI in US Chapter 15 Proceedings

Dom Sorbara

Banking & Financial Services Lawyer at Bennett Jones Toronto

Elizabeth K. Dylke

Corporate and Private Funds Lawyer

James G. Morand

This edition of the PE Briefing examines private equity developments in the third quarter of 2025, including trends in Canadian and global deal activity, the continued growth and complexity of private credit, Ontario&rsquo;s advantages as a jurisdiction for non-US flow-through vehicles, and practical considerations in the drafting of earnouts.

The Q3 2025 PE Briefing

David J. Wahl, FCIArb

Construction Arbitration & Litigation Lawyer at Bennett Jones Calgary

Brian P. Reid

Litigation, Construction, Joint Venture Agreement and Builder's Lien Lawyer at Bennett Jones Calgary

Aly Parth

Articling Student at Bennett Jones in Calgary 

Articling Student 

The Alberta Court of Appeal&rsquo;s decision in Tempo v. Man-Shield confirms that equitable set-off is a true defence capable of precluding summary judgment in construction disputes. The ruling emphasizes that where claims and cross-claims are inseparably connected, courts must account for both to avoid unjust outcomes. This case provides important guidance for contractors, subcontractors and counsel navigating payment disputes and litigation strategy in the construction sector

Employee Stock Purchase Trusts :
an Alternative to Restricted Stock Plans

Authors


Bennett Jones Article Employee Stock Purchase Trusts : an Alternative to Restricted Stock Plans April 4, 2005 Authors Anu NijhawanPartner Anu Nijhawan, "Employee Stock Purchase Trusts: an Alternative to Restricted Stock Plans" (2005) XVII(4) Taxation of Executive Compensation and Retirement 614. Share by Email Social Media Download Download Subscribe Republishing Requests For permission to republish this or any other publication, contact Amrita Kochhar at kochhara@bennettjones.com. For informational purposes only This publication provides an overview of legal trends and updates for informational purposes only. For personalized legal advice, please contact the authors. Authors Anu Nijhawan, Partner • Co-Head of Tax Department Calgary • 403.298.3389 • nijhawana@bennettjones.com

Employee Stock Purchase Trusts : an Alternative to Restricted Stock Plans

Authors

Employee Stock Purchase Trusts :
an Alternative to Restricted Stock Plans