Précis: Lawyers’ Professional Indemnity Company (LPIC) has apparently claimed an exemption from federal income tax pursuant to paragraph 149(1)(d.5) of the Income Tax Act (the Act), as a “public body performing a function of government in Canada” for some time. CRA reassessed its 2013 and 2014 taxation years denying it the exemption. D’Arcy J. agreed with CRA’s position, finding:
The Law Society of Ontario (the Law Society) owns in excess of 90% of LPIC’s capital;
The Law Society is a public body within the provision of paragraph 149(1)(d.5);but
The Law Society did not at the material times perform a function of government in Canada;
and dismissed LPIC’s appeal (apart, that is, from a few small concessions made by CRA) with costs to CRA.
LPIC v. R. – TCC: Ontario’s insurer of lawyers is not exempt from income tax, despite being owned by the Law Society of OntarioREAD MORE »