October 20, 2015
At the 40th annual convention of the Association de planification fiscale et financière (APFF), held from October 7 to 9, Justine Brossard and Marc-André Perreault, students in the Master of Laws, Taxation option program (LL.M.), each received a $1,250 scholarship in recognition of the excellence of their supervised projects.
The study by Justine Brossard, on proposed amendments to section 84.1 of the ITA, or how to simplify the transfer of family businesses, addresses the issue of business transfers – a serious problem for the Canadian economy because they are in short supply. She considers that this issue is aggravated by section 84.1 of the Income Tax Act, a real legislative hurdle to family business transfers. In her paper, Justine describes the obstacles created by this section of the Act, in particular the non-arm’s length relationship it is based on, and analyzes various possible solutions proposed by Full Professor Suzanne Landry in her 2010 report. Her analysis offers a broad solution to resolve this taxation problem once and for all.
In his guide for investors and creditors on the subject of insolvency and how tax collectors deal with deemed trusts, Marc-André Perreault analyzes this highly effective means of collection that gives tax authorities priority in recovering sales taxes and source deductions from tax debtors. The author examines the use of deemed trusts in transactions conducted in insolvency situations, when the tax debtor declares bankruptcy or when the debtor’s business is reorganized under the Bankruptcy and Insolvency Act and the Companies' Creditors Arrangements Act. Through these three main themes, Marc-André conducted a review of jurisprudence that has contributed to guiding the use of deemed trusts, so that investors and creditors will be able to determine with greater certainty the extent of the state’s rights with regard to such trusts.
Professor Luc Godbout, holder of the Research Chair in Taxation and Public Finances at the Université de Sherbrooke; the two scholarship winners from the Université de Sherbrooke, Marie-France Forest and Me Rosalie Plouffe; Me Maurice Mongrain, President and CEO of the APFF; the two scholarship winners from HEC Montréal, Justine Brossard and Marc-André Perreault; and Nicole Prieur, Full Professor, Academic Supervisor for the Specialized Graduate Diploma in taxation and the Master of Laws, Taxation option program, at HEC Montréal.