Company and Finance News:

Seven Areas the Canada Revenue
Agency is Scrutinizing
The 2021 Federal Budget devoted an additional $304.1 million to the CRA to help it combat tax evasion and aggressive tax avoidance. The federal government expects to recover $810 million in revenues over five years.

Based on public documents and information gathered from the CRA and DOJ, we have generated the below list of CRA audit activities already underway and expected to increase over the next couple of years. Even if a taxpayer has done nothing wrong, they may still have to convince eager auditors that they have complied with the law. Read the full article by Jenny P. Mboutsiadis and Nicolas Simard with Fasken Martineau DuMoulin LLP.

Senate Passes Significant Tax Bill Aimed at Facilitating
Intergenerational Business Transfers
On June 22, 2021, the Senate passed Bill C-208 (following its previous passage in the House of Commons). A Private Members' Bill, Bill C-208 is aimed at facilitating intergenerational business transfers and follows similar Bills introduced by various political parties in previous Parliamentary sessions. [The Bill received Royal Assent and became law on June 29, 2021].

The Bill proposes to amend sections 55 and 84.1 of the Income Tax Act (Canada) by, in general:

1. providing that siblings continue to be related for purposes of section 55 if a share of the corporation paying the subject dividend is a qualified small business corporation share (QSBCS) or share of the capital stock of a family farm or fishing corporation (SFFC), each as defined in s.110.6(1) of the ITA; and
2. deeming, for purposes of section 84.1, a vendor to deal at arm's length with a purchaser corporation if the transferred shares are QSBCS or SFFC, the purchaser corporation is controlled by one or more children or grandchildren of the vendor who are 18 years of age or older, and the purchaser corporation does not dispose of the subject shares within 60 months after their purchase.

Read the full article by Alexander Demner of Thorsteinssons LLP.

Cancelled Trips During COVID-19: Consumer Protection BC Weighs in on Travel
Refunds under the Business Practices and Consumer Protection Act
Consumer Protection BC recently issued an advisory informing consumers about their rights under provincial law to receive refunds for travel. Specifically, the advisory suggests, "If eligible consumers take the proper steps to exercise their rights, they should be provided with a full refund in the same way they paid, as outlined in the law."

This advisory comes only days after Consumer Protection BC released a step-by-step guide that explains how consumers can claim refunds for cancelled travel. The guide requires consumers to first address refunds with their travel supplier, such as airlines and tour operators, before filing a complaint with the regulator. A consumer's right to a refund for travel is based on the distance sales contract provisions of the Business Practices and Consumer Protection Act, S.B.C. 2004, c. 2 (the "BPCPA"). Read the full article by Miranda Lam, Kirsten Marsh and Heather Mallabone with McCarthy Tetrault LLP.

British Columbia Securities Commission Proposes Rules to
Require Disclosure of Promotional Activities
BCSC's proposed disclosure rules would attempt to address "problematic promotional activity" and improve transparency for investors.

• The issue of potentially misleading promotional activities has been on the radar of Canadian regulators since at least 2018.
• Under proposed BCI 51-519, a person or company that conducted promotional activity would be required to disclose certain information at the time of the promotional activity.
• Those engaging third parties to conduct promotional activities would have to oversee the third party's compliance with the rules, and venture issuers would have additional disclosure requirements.
• Registrants, investment funds, and those conducting promotional activities on their own behalf would be exempted from the rules.
• The BCSC is accepting comments on the proposal until July 26, 2021.

Read the full article by Michael G. Urbani of Stikeman Eliott.

BC Court Provides Commission Another Chance to
Collect from Fraudster's Spouse
In March 2020, landmark amendments to the British Columbia Securities Act, RSBC 1996, c. 418, (the "Act") came into force that conferred upon the British Columbia Securities Commission (the "Commission") some of the strongest enforcement powers in the country (the "March 2020 Amendments"). Notably, in certain circumstances, the March 2020 Amendments expanded the Commission's statutory authority to commence collection proceedings against family members and other third parties of persons found to have contravened the Act.

The recent decision British Columbia (Securities Commission) v. Pasquill, 2021 BCSC 1047, ("Pasquill") highlights the impact the March 2020 Amendments could have on the Commission's ability to collect from fraudsters' families and their related holding companies. Read the full article by Jordan Deering and Swetha Popuri of DLA Piper LLP.

BC Securities – Policies & Instruments
The following policies and instruments were recently published on the BCSC website:

• 21-326 – CSA Staff Notice 21-326 Guidance for Reporting Material Systems Incidents
• 45-110 – CSA Notice of Publication of National Instrument 45-110 Start-up Crowdfunding Registration and Prospectus Exemptions
• 33-708 – Transitional Relief Related to the Elimination of the Deferred Sales Charge Option in respect of Client Focused Reforms Enhanced Conflicts of Interest and Client First Suitability Provisions of National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations.
• 31-103 – Registration Requirements, Exemptions and Ongoing Registrant Obligations

Health News:

As COVID-19 Outbreaks in Long-term Care Continue, 
BC Rethinks Voluntary Vaccines Policy
Ninety-five per cent of seniors at Kelowna's Spring Valley long-term care home have been vaccinated to protect them against COVID-19, but only two-thirds of caregivers at the facility had rolled up their sleeves for their shot when an outbreak was declared in mid-May. Over the past month, 11 residents have died because of the virus. Since British Columbia began its vaccine program in December, workers in long-term care homes have had the choice over whether to be vaccinated. Employers are not even allowed to require employees to say if they have been vaccinated. Read The Globe and Mail article.

BCLI & CCEL Issue Study Paper On Health Care 
Consent and Capacity Assessment Tribunals
BCLI and CCEL have released the Study Paper on Health Care Consent and Capacity Assessment Tribunals, which examines informal tribunals operating in Canada and Australia that review findings of mental incapacity to consent to health care or admission to a care facility and resolve disputes about substitute decision-making in health care. Read the full statement by Greg ZBlue, Q.C. published on the British Columbia Law Institute website.

BC Accessibility Legislation Now in Force
On June 17, 2021, the BC Legislature passed the Accessible British Columbia Act (the "Act") into law. The Act will create new responsibilities for organizations.

What Does the Act Do?
The Act allows the provincial government to establish "accessibility standards" aimed at identifying, removing and preventing barriers to accessibility and inclusion. A "barrier" is defined as "anything that hinders the full and equal participation in society of a person with an impairment".

Development of Accessibility Standards
An accessibility standard is a rule that government and organizations must follow to remove barriers in a specific sector.
The government may establish accessibility standards in a range of sectors, including employment, delivery of services, the built environment, information and communications, transportation, health, education, and procurement, among others.

Read the full article by David G. Wong, Matthew Allard and Fabian Jankovic with Fasken Martineau DuMoulin LLP.

Employees Cannot Collect Twice – CERB Payments 
Deducted from Wrongful Dismissal Awards
In the case of Hogan v 1187938 BC Ltd., 2021 BCSC 1021, the BC Supreme Court confirmed that an employee's receipt of Canada Emergency Response Benefit ("CERB") payments after termination should be deducted from an award of damages for wrongful dismissal.

Facts
Mr. Hogan started working at the defendant's automotive dealership in 1998 as a technician. He was gradually promoted over the years to the position of assistant service manager. He, along with several other employees, was placed on a temporary
layoff in March 2020 because of the significant downturn in business due to the COVID-19 pandemic. Mr. Hogan was ultimately not recalled for work after March 2020 and he was terminated in August 2020.

Read the full article by Scott Marcinkow with Harper Grey LLP.

BC Financial Services Authority Revises Their Information 
Security and Outsourcing Guidelines
In response to industry feedback after its initial release of the Information Security Guideline, BC Financial Services Authority (BC FSA) has issued:

1. A revised version of the Information Security Guideline and
2. The new Outsourcing Guideline.

BC FSA advised in its Advisory 21-015 that accompanied the revised Information Security Guideline that the revisions reflect the response from the pension sector. The revised Information Security Guideline distinguishes between BC credit unions, insurance and trust companies on the one hand and pension plan administrators on the other. The prior version of the Information Security Guidelines applied equally to all of those entities, despite the differences in their scope, purpose and operational structures. Read the full article by Lisa Chamzuk with Lawson Lundell LLP.

From Bad to Worse: Court of Appeal Significantly Increases 
Damages Award Due to Egregious Conduct of Employer
While all legal decisions have something interesting to tell us about employment law, there are those cases that lawyers keep in their back pocket to serve as a cautionary tale for clients about the potential cost of HR blunders. Ojanen v Acumen Law Corporation, a decision of the British Columbia Court of Appeal, is, without question, one of those cases. We often see appeal courts reducing damage awards on appeal, in order to bring them more in line with established case law. Ojanen is certainly an exception – in this case, the behaviour of the employer in question was so egregious that the Court of Appeal was compelled to more than triple the award granted at trial. Read the full article by the team at Rudner Law, published on the website First Reference.

Employer Reimbursement Program Launches
COVID-19 Paid Sick Leave
Starting Thursday, June 17, 2021, employers can apply for reimbursement of wages paid to workers who have taken sick leave related to COVID-19. The temporary reimbursement program is retroactive to May 20, when legislation was passed, to ensure sick workers can stay home for up to three days without losing wages, while supporting businesses during the pandemic.

The amendments to the Employment Standards Act (ESA) require employers to pay sick workers their regular wages. Employers can then apply for reimbursement up to $200 per day, to a maximum of three days per worker. Any employer whose workers are covered under the ESA but does not currently provide paid sick leave benefits to its employees will be eligible. Read the full government new release.

Howard Levitt: Here Are Some Ways Employers
Can (Legally) Get People Back to Work
Employers might require employees to remain in the province of the company or require them to be available to attend work the following day at any time. I am arguing cases at live hearings in both British Columbia and Alberta this coming week, a sign the Grand Reopening has unofficially commenced. You see it everywhere. Previously repressed Canadians out and about, spending the money they saved at unprecedented rates during the past 15 months. They are re-enacting the lives they fondly remembered and have been desperate to have return: dining, travelling, visiting their friends and fully returning to work. But threats remain. Irresponsible fiscal policy has lead to inflationary risks which could ultimately hemorrhage the employment market. Employees have been incentivized to stay home with stimulus cheques paying close to what they earned working. Employers, particularly of lower income workers, have had trouble recruiting, and that was before the economy sprung fully to life. But those stimulus cheques are getting smaller, driving more employees back into the workforce. Read the Financial Post article.

Local Government News:

BC Court of Appeal Restores the City's Decisions
Regarding Expiration of Building Permits
On June 9, 2021, the BC Court of Appeal released reasons for judgment in Yu v. Richmond (City), 2021 BCCA 226. In this case, the Court overturned two decisions of the BC Supreme Court in Minster Enterprises Ltd. v. City of Richmond, 2020 BCSC 455 and Yu v. City of Richmond, 2020 BCSC 454.

In both cases, the respondents had obtained building permits from the City to construct large single-family homes on ALR land (15,006 and 13,482.77 square feet, respectively). The permits, issued prior to the Province's move to restrict the size of non-farm buildings on ALR land, were marked with an expiration date of six months from their issuance "if no construction activity" were to occur. Read the full client news bulletin by Nick Falzon and Alexandra Greenberg, Articled Student with Young Anderson Barristers & Solicitors.

Claiming Privilege Over Records of
Closed Meetings of Council
In McGraw v. Southgate (Township), 2021 ONSC 2785 the Ontario Superior Court of Justice considered the appropriateness of disclosing a recording of a closed council meeting. The disclosure was sought in a wrongful dismissal suit brought by a former employee of the Township and the recording contained discussions related to the Township's decision to terminate the Plaintiff's employment. The Township opposed the disclosure of the recording on a number of grounds of privilege. The judge assessed the merits of each claim of privilege over the recording before ultimately ordering the disclosure of a part of the recording.

This decision is a good reminder to local governments that even discussions which occur during closed meetings may not remain confidential in all circumstances. As such, it is important to remain conscious that any recordings or notes of the closed meeting may one day be put before a Court. It is therefore prudent on local governments to maintain appropriate record-keeping practices in order to preserve as much confidentiality as possible. Read the full article by David Giroday with Stewart McDannold Stuart.

BC Waives Income Requirements for Farm Operations
For the second consecutive year, the Province is waiving the income requirements normally required for existing BC farm operations when qualifying for farm classification.

"The pandemic has been very difficult for everyone, including the thousands of British Columbians who are involved in putting food on our tables," said Lana Popham, Minister of Agriculture, Food and Fisheries. "Over the past year, the trend of buying BC food has grown instinctively in families and communities around our province. By maintaining this change for another year, we are letting BC farmers know that we have their back, so they can continue to focus on providing their amazing and delicious products we all enjoy."

If the Province had not taken action with a regulatory amendment last year, more than 400 farm properties with a history of sub-threshold income and many developing farms would have been at risk of losing their farm class for 2021. By once again eliminating the income requirement as BC recovers from COVID-19, farmers will not have to worry about the possibility of losing their farm classification and having an increase in property taxes in 2022. Read the full government news release.

RCMP Union Agrees to Tentative Deal
The Government of Canada and National Police Federation, the bargaining unit representing RCMP members, have tentatively reached a six-year collective agreement. Details of the agreement will not be made public until RCMP members have an opportunity to examine and potentially ratify the agreement later this summer. Read the UBCM article.

BC Lends Support to Temporary
Patios Going Permanent
Updated on June 16, 2021
More than 2,000 temporary patios authorized to serve liquor during the COVID-19 pandemic can apply to become permanent under amended provincial liquor regulations. This includes prospective patios that are supported by local governments and meet local bylaws.

"Temporary patios have been a lifeline for so many businesses and workers in the hospitality sector, and we're committed to making these expanded serving areas part of their long-term recovery and beyond," said Mike Farnworth, Minister of Public Safety and Solicitor General. Read the full news release.

Community Wildfire Resiliency Funding
Applications are now being invited for the 2022 Community Resiliency Initiative FireSmart Community Funding & Supports program. Local governments and First Nations in BC are eligible to apply for funding to undertake community-based FireSmart planning and activities that reduce the community's risk from wildfire. The intake is open until October 8, 2021. Eligible applicants may apply for up to $50,000 or $150,000, depending on their specific risk of wildfire. There are opportunities to apply for additional funding for regional districts, and for fuel management proposals that include Provincial Crown land within and adjacent to community boundaries. Read the UBCM article.

Courts Confirm Local Government
Powers to Protect Tenants
In two recent decisions, released only one month apart, the BC Court of Appeal and BC Supreme Court gave local governments two big wins in relation to their ability to protect tenants.

In VIT Estates v. New Westminster, 2021 BCSC 573, the BC Supreme Court confirmed that the residential rental tenure zoning power at section 481.1 of the Local Government Act ("RRT Zoning") could be used to preserve existing rental units. In that case, the City applied an RRT Zoning Bylaw to six stratified buildings which were wholly owned by various corporate entities. The Bylaw specified that those units – which had always been occupied by tenants – could henceforth only be occupied in that same manner. No owner of any such unit would be able to occupy it while the Bylaw was in force. Read the full article by Nick Falzon with Young Anderson Barristers and Solicitors published in the firm's LGMA Conference newsletter.

WHADDAYAMEAN? – A Ramble Through the
BC Interpretation Act
Artisans of all sorts have a go-to tool that they find themselves using more often than any other. For chefs, it's likely the so-called chef's knife; for carpenters, perhaps a try square or marking gauge; for barbers, a particular pair of scissors. For many public law lawyers, it's the Interpretation Act. A quick stroll through the BC Interpretation Act viewed through a local government lens will give an idea of how important this tool is to lawyers in our firm. (There's also an Interpretation Act applicable to federal enactments, that we consult less frequently.) Read the full article by Bill Buholzer in the LGMA Conference Issue of the Young Anderson Newsletter.

Motor Vehicle & Transportation News:

U.S. Agency Orders Automated Vehicle
Makers to Report Crashes
The U.S. government's highway safety agency has ordered automakers to report any crashes involving fully autonomous vehicles or partially automated driver assist systems. The move Tuesday [June 29] by the National Highway Traffic Safety Administration indicates the agency is taking a tougher stance on automated vehicle safety than in the past. It has been reluctant to issue any regulations of the new technology for fear of hampering adoption of the potentially life-saving systems. The order requires vehicle and equipment manufacturers and companies that operate the vehicles to report crashes on public roads involving fully autonomous vehicles, or those in which driver assist systems were operating immediately before or during a crash. Read the CTV news article.

Canadians Face Increased Fine Amounts for Trespassing onto Railway Property and
Interfering with the Safe Operations of the Railway System
Railways are a crucial part of our national transportation network, delivering important products and commodities to Canadians, or to ports for export. The Government of Canada is taking action to enhance the safety and security of Canada's railway system, railway employees, railway passengers, as well as those living and working near Canada's rail corridors. Today [June 23], the Minister of Transport, the Honourable Omar Alghabra, announced amendments to the Contraventions Regulations, with regard to provisions under the Railway Safety Act that increase the fine amounts for trespassing onto property where railway lines are located and for not giving way at railway crossings. Read the full government news release.

Defendant Obligated to Yield to Plaintiff's Car which  
Entered Intersection Ahead: BC Case
The Supreme Court of British Columbia has recently rejected the defendant's version of events in a personal injury case featuring a motor vehicle accident, on the basis of this version's inconsistency with the recorded damage to the vehicle.

In Kim v. Dresser, 2021 BCSC 1032, the plaintiff and the defendant were involved in a March 2015 collision at an intersection, which was a four-way stop with stop signs visible in every direction. The plaintiff filed an action seeking compensation for numerous injuries sustained due to the accident, but the defendant denied liability. Read the full article by Bernise Carolino on the Canadian Lawyer.

New Fairness Officer at Insurance Corporation of  
British Columbia to Be in Place by End of 2021
The Insurance Corporation of British Columbia's new fairness officer, which seeks to ensure that the corporation's decisions, actions and practices are transparent and fair, has been approved, announced the province on June 4.

BC intends for the fairness officer to be in place by the end of 2021, said a news release. The related amendments to the Insurance Corporation Act received royal assent on Mar. 25 and the applicable regulations, which impose additional parameters to the fairness officer's role, received approval on June 2. Read the full article by Bernise Carolino on the Canadian Lawyer.

CVSE Bulletins & Notices
The following notices were posted recently by CVSE:

• Circular 04-21 – Changes to Pilot Car Requirements and Travel Times for Oversize Loads
• CVSE 1016 – 9-Axle Logging Truck Routes

For more information on these and other items, visit the CVSE website.

7 Signs of Sleep Deprivation at Work
Lack of sleep can have a devastating effect on worker health – and on an organization's bottom line. It is common knowledge that humans need on average seven to eight hours of sleep a night to properly function. Researchers at Hult International Business School have found however that most professionals only get around six hours and 28 minutes of sleep a night – which maybe doesn't seem so bad but ultimately builds up in the long-run. While short term sleep loss may be caught up, chronic issues with sleep are a huge problem – not just for worker health but job performance as well. The National Institute for Working Life estimated that sleep deprivation among workers costs businesses around USD$350 billion worldwide annually. Read the full article by Maia Foulis with Canadian Occupational Safety.

Consultation on Proposed Amendments to Part 3 of the
Occupational Health and Safety Regulation
– from WorkSafeBC
Our Policy, Regulation and Research Division is requesting feedback on proposed amendments to Part 3, Rights and Responsibilities, new section 3.12.1 — Reassignment of refused work, of the Occupational Health and Safety Regulation. The consultation phase provides stakeholders an opportunity to share feedback before the proposed amendments are taken to public hearing. View the proposed regulatory amendment and information on how to provide feedback. Read the official WorkSafeBC news release for more information including feedback deadlines and contact information.

New Public Health Orders
The Public Health Office (PHO) recently issued the following Orders & Guidelines:

Orders:

• Food and Liquor Serving Premises – June 30, 2021 (PDF, 338KB)
  • Read related Public Heath guidance
• Gatherings and Events – June 30, 2021 (PDF, 244KB)
  • Read related Public Heath guidance
• Agricultural Temporary Foreign Workers – June 20, 2021 (PDF, 286KB)
• Workplace and Post-Secondary Institution Safety – June 14, 2021 (PDF, 360KB)
• Coverage of Electoral Area J of the Cariboo Regional District – June 10, 2021 (PDF, 272KB)
• Overnight Camps for Children or Youth – June 7, 2021 (PDF, 310KB)

Notices:

• Notice of Repeal of the Workplace and Post-Secondary Institution Safety Order – June 29, 2021 (PDF, 215.8KB)
• Notice of Repeal of the Workplace Safety Plans Order – June 29, 2021 (PDF, 192.1KB)

Guidance:

• Guidance for Courthouse Users During the COVID-19 Pandemic & BC Restart Plan – June 30, 2021 (PDF, 401KB)
• Guidance for Episodic Markets – June 24, 2021 (PDF, 657KB)
• Guidance for Retail Food and Grocery Stores – June 24, 2021 (PDF, 657KB)
• Guidance for Food and Liquor Serving Premises – June 24, 2021 (PDF, 687KB)
• Guidance for Holding Low Risk Worship Services – June 15, 2021 (PDF, 427KB)
• Guidance for Holding Low Risk Stand-Alone Lifecycle Events – June 15, 2021 (PDF, 428KB)

Visit the PHO website to view these and other related orders and notices.

OHS Policies/Guidelines – Updates
WorkSafeBC recently issued the following OHS Updates:

OHS Guidelines — Occupational Health and Safety Regulation

The following guideline was issued:

• Part 8 Personal Protective Clothing and Equipment
  G8.13 Use of safety headgear with bicycles and skates (new)

The following guideline was retired:

• Part 8 Personal Protective Clothing and Equipment
  G8.21(2)-1 Leg protection - WorkSafeBC standards (new)

Editorial revisions were made to the following guidelines:

• Part 8 Personal Protective Clothing and Equipment
• G8.5(b) Special program option for pulp and paper industry
• G8.12-8.13 Use of safety headgear for workers on ATVs & similar eqpt in agricultural ops
• G8.26(3) Buoyancy equipment and fall protection
• G8.28 Working alone or in isolation with a hazard of drowning
• G8.38(2) Respiratory protection and use of contact lenses
• G8.42 Medical assessment

• Part 10 De-energization and Lockout
• G10.3 Worker entry into J-bar sorting systems in sawmills
• G10.4(1) Lockout of multiple control devices
• G10.10(2) Approval of control system isolating devices

• Part 11 Fall Protection
• G11.1 Definitions - Anchor and anchorage

• Part 13 Ladders, Scaffolds and Temporary Work Platforms
• G13.1 Types of work platforms
• G13.2(1)(b) Ladders in manholes
• G13.19 When and how to ground metal scaffold
• G13.25 Warning devices

• Part 19 Electrical Safety
• G19.28 Emergency work
• G19.35 Tree pruning and falling equipment

• Part 20 Construction, Excavation and Demolition
• G20.77 Mechanical equipment

• Part 24 Diving, Fishing and Other Marine Operations
• G24.13 Principal performers using underwater diving equipment
• G24.26 Breathing mediums
• G24.29 Gauges and meters
• G24.37 Restrictions on scuba

New and revised guidelines are posted for a 60-day preliminary period, during which time the stakeholder community may comment and request revisions.

Check the WorkSafe BC Updates page to explore these and other important OHS updates.

To Stay, You Have to Pay: B.C. Supreme Court Again Rules in
Favour of Landlords in Covid-19 Dispute
Once again the courts have confirmed that commercial tenants must pay their rent, despite arguments about the effect of COVID-19. In a recent decision, Cherry Lane Shopping Centre Holdings Ltd v. Hudson's Bay Company ULC, 2021 BCSC 1178, the Supreme Court of British Columbia found that the provisions of the lease requiring Hudson's Bay to pay rent were "clear, unequivocal and unambiguous." The court dismissed the tenant's set-off argument based on the effect of the pandemic. HBC is a tenant in the Cherry Lane Shopping Centre in Penticton, where it has leased retail space since 1996. In May 2020, HBC wrote to the landlord advising that they would not be paying rent due to the COVID-19 pandemic. Each month that HBC failed to pay rent, the landlord issued a notice of default demanding payment. On November 9, 2020, the landlord issued a notice to quit and a notice to terminate the lease in accordance with the terms of the lease. Read the full article by Thomas D. Boyd, Natasha Sanders with Lawson Lundell LLP.