People

Services

Industries

Firm

About

Knowledge

Careers

News

Events

Contact

Connect

Privacy Policy

Disclaimer

Terms of Use

Accessibility

Legal

Calgary

Toronto

Edmonton

Ottawa

Vancouver

New York

Montréal

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="/People/M/Mackey-Jared">Jared Mackey</a> and <a href="/People/N/Nijhawan-Anu">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

Michelle F. Yung

Real Estate Lawyer at Bennett Jones Vancouver

Vanessa Kiraly

Commercial Real Estate Lawyer at Bennett Jones Toronto

A recent Ontario Superior Court decision underscores the importance of precise lease drafting. In Malleum Real Estate v. Donut Monster, the court held that tenant obligations began on the fixed commencement date&mdash;regardless of unfinished landlord improvements or pandemic disruptions. The ruling highlights that assumptions cannot override clear lease terms and offers practical lessons for both landlords and tenants.

When Assumptions Break Leases The Need for Clear Terms

When Assumptions Break Leases: The Need for Clear Terms

Vasilis F. L. Pappas, FCIArb

International Arbitration Lawyer at Bennett Jones Vancouver and Calgary

Partner 

Melanie Teetaert

Commercial Litigation Lawyer at Bennett Jones Vancouver

Geoffrey P. Stenger

Project Development, Energy, Infrastructure and Construction Lawyer at Bennett Jones Calgary

On October 7, 2025, British Columbia introduced Bill 20, the Construction Prompt Payment Act. If enacted, it will overhaul payment timelines and create a fast-track adjudication process for construction disputes. The legislation is expected to significantly impact owners, contractors and subcontractors across the province.

BC Introduces Prompt Payment Legislation

B.C. Introduces Prompt Payment Legislation

Benjamin K. Reingold

Intellectual Property Litigation Lawyer at Bennett Jones Calgary

Jesse Mighton

Insolvency and Restructuring Lawyer at Bennett Jones Toronto

Nyrie Israelian

Intellectual Property at Bennett Jones Toronto

The Office of the Superintendent of Bankruptcy has issued new guidance on the use of AI tools by Licensed Insolvency Trustees. The guidance underscores the need for oversight, accuracy, transparency, and adherence to professional obligations as AI becomes more integrated into insolvency practice.

OSB Issues New Guidance

OSB Issues New Guidance: What Licensed Insolvency Trustees Must Know about AI Tools 

Simon Grant

Banking & Finance Lawyer, Fintech Lawyer at Bennett Jones Toronto

Jessica B. Horwitz

International Trade Lawyer, Customs Lawyer, Regulatory Lawyer, Anti-Corruption and Economic Sanctions Lawyer at Bennett Jones Toronto

Andrew Bozzato

Corporate, M&A, Securities Lawyer at Bennett Jones Toronto

FINTRAC imposed a record $176.9 million penalty on cryptocurrency exchange Cryptomus for thousands of AML/KYC violations. The case underscores regulators&rsquo; increasing focus on compliance, with additional sanctions from the BCSC for operating without registration. Exchanges serving Canadian clients must ensure strict adherence to AML, KYC and securities laws to avoid similar consequences.

176 9 million fine against cryptocurrency exchange from FINTRAC demonstrates costs of non compliance

C$176.9 Million Fine Against Cryptocurrency Exchange From FINTRAC Demonstrates Costs of Non-Compliance

David J. Wahl, FCIArb

Construction Arbitration & Litigation Lawyer at Bennett Jones Calgary

Christopher Petrucci

Commercial Litigation Lawyer at Bennett Jones Calgary

Alex Payne

Commercial Litigation Lawyer at Bennett Jones Toronto

The Ontario Superior Court in Feldt Electric Ltd v Gorbern Mechanical Contractors held that non-compliance with an adjudicator&rsquo;s determination does not automatically invalidate a lien. The decision underscores the importance of jurisdiction and procedural fairness in construction disputes under Ontario&rsquo;s prompt payment and adjudication regime.

Source Withholding for U.S. Employees in Canada: An Ongoing Challenge

From the Same Authors