BUSINESS
CAREERS
Tax law can be a cliffhanger
suspense story for the players and
the audience alike. A fundamental principle of Canadian tax law
is that a taxpayer is entitled to
arrange his or her affairs to minimize tax — the Westminster principle, which is a legitimate and
accepted part of Canadian tax
law. Tax avoidance means reduction of tax payable by lawful
means. But what are the boundaries of lawful means?
We start with the premise
that the avoidance of tax is perfectly legitimate and, indeed,
even moral. A government
should intervene in the economy only to deliver essential
services or services that it can
TAX VIEWS
VERN
KRISHNA
deliver more effectively and effi-
ciently than the private sector.
As Justice Learned Hand said:
“Over and over again courts
have said that there is nothing
sinister in so arranging one’s
affairs as to keep taxes as low as
possible. Everybody does so,
rich or poor; and all do right,
for nobody owes any public duty
to pay more than the law
demands: taxes are enforced
exactions, not voluntary contri-
butions. To demand more in the
name of morals is mere cant.”
As world economies inter-
link, cross-border transactions
increase, and tax rates take a
substantial slice of income, tax
planning to protect return on
equity becomes increasingly
important in domestic and
international contexts. At the
same time, governments are
increasingly focusing on meth-
ods to curtail so-called “abu-
sive” tax avoidance, through
treaty shopping, transfer pricing
and transactions without eco-
nomic substance.
Butterworths®
The Law of ADR in Canada –
An Introductory Guide
Duncan W. Glaholt, B. A., J.D. &
Markus Rotterdam, LL.M.
New!
$70 + tax
Approx. 250 Pages
Softcover | April 2011
ISBN: 9780433465348
Fast and Fair — Choose the Right Dispute Resolution Method
Litigation is no longer the default mechanism for resolving a
commercial or civil dispute. Today, the key issue for parties in
dispute is choosing a process that is both fair and affordable.
The Law of ADR in Canada – An Introductory Guide explains all
dispute resolution mechanisms available across Canada — including
many not typically covered in other Canadian ADR texts. No matter
where a dispute arises, you will be prepared for all options at hand in
your jurisdiction. Discover when and how to use:
• Aboriginal courts
• Conciliation
• Dispute review boards
• Community and faith based dispute resolution
• International arbitration
• Apologies legislation
• Ombudsmen
• Settlement conferences
• Court annexed mediation
• Pre-trial conferences
• Other related ADR methods
Order Today! Take advantage of the 30-Day Risk-Free† Examination.
Visit www.lexisnexis.ca/bookstore or call 1-800-668-6481
Please quote Reservation Code 3306 when ordering.
† Pre-payment required for first-time purchasers.
Price and other details are subject to change without notice. We pay shipping and handling if payment
accompanies order.
LexisNexis and the Knowledge Burst logo are registered trademarks of Reed Elsevier Properties Inc., used under
licence. Butterworths is a registered trademark of Reed Elsevier (U.K.) Limited and its affiliated companies. Other
products or services may be trademarks or registered trademarks of their respective companies. © 2011 LexisNexis
Canada Inc. All rights reserved.
Returning to work after an inquiry can be tough
Inquiry
Continued From Page 23
to specific partners, in consultation with his clients. “The clients
interests are paramount,” he says.
“While the commission was in
progress, I was consulted frequently with questions from the
other lawyers at my firm, and even
got calls from clients.” He had to
accommodate these requests while
working days, evenings and weekends on the inquiry.
When the 18-month probe
concluded, two Saskatoon police
constables were fired: the inquiry
found that Stonechild had been
in their custody on the night he
froze to death in a field on the
city’s periphery. As for Hesje, he
resumed private practice. "I
didn’t try to reinsert myself into
my previous files unless the cli-
ents requested it. To some extent,
I was starting my practice over.
In a litigation practice, it takes
some time to get up to speed.”
Furthermore, he experienced
“an emotional letdown” when the
inquiry was over. “You’ve been
focused on one issue, and suddenly
that one’s done. You have to
refocus.” Yet there were some major
pluses. “The public service aspect
was what I found rewarding,” he
says Also, the inquiry’s prominence
meant that “I had my name in the
press far more than I otherwise
would.” While that didn’t translate
directly into a wave of new clients,
“I certainly don’t think it was nega-
tive. It was a very interesting
experience. I likely would answer
‘yes’ if asked to do another inquiry.”
Paul Cavalluzzo, senior partner
of the Toronto firm Cavalluzzo
Hayes Shilton McIntyre & Cornish
LLP enjoyed his first commission
experience so much that he did
answer yes when the call came
again only a few years later.
Cavalluzzo was watching a TV
news report one evening in early
2004 about Syria’s release of Syr-ian-born Canadian Maher Arar,
who had suffered “extraordinary
rendition” to Damascus by U.S.
immigration authorities. During
the broadcast, Associate Chief
Justice Dennis O’Connor phoned
Cavalluzzo with news that Ottawa
had asked the jurist to head a
commission of inquiry into the
actions of Canadian officials in
relation to Maher Arar. “I’ll do it if
you’ll do it,” Cavalluzzo recalls
Justice O’Connor saying.
O’Connor and Cavalluzzo had
previously established a strong
rapport as commissioner and lead
commission counsel, respectively,
of the Walkerton Inquiry into the
cause of the May 2000 E. coli
water supply tragedy. Now, they
had the chance to work together
again. “Justice O’Connor said we’d
be finished by the end of the year,
but he neglected to say which
year,” quips Cavalluzzo. In fact, the
final report wasn’t issued until
September 2006. “It’s very hard to
tell how long an inquiry will run,”
says Cavalluzzo.
He notes that “after you’ve done
one inquiry, you understand the
role of lead commission counsel.
It’s adversarial at law school and in
private practice. But in a judicial
inquiry, the commission counsel’s
job is to promote the public interest—to bring forward all relevant
evidence without any partisan perspective. It’s inquisitorial in that
you lead all the evidence, and follow it wherever it takes you.” Lead
commission counsel also helps
write the final report.
Cavalluzzo credits his family
and law partners for backing his
double dip into public service.
With the two inquiries unfolding
in Walkerton, Ont. and Ottawa,
the Toronto lawyer endured major
separation from his family. His law
partners, meanwhile, had to take
over his cases—except for two
under appeal to the Supreme
Court of Canada—and accept the
hit to his billable hours. The Walk-
erton and Arar inquiries paid
$250 and $300 an hour, respect-
ively. While the sheer number of
hours might compensate for the
lower hourly rates, Cavalluzzo
notes that the government caps
billable hours at only 10 per day.
