TLOMAToday - January 2024

January, 2024 | Article

Holiday Networking Event Hilights

The TLOMA Holiday Networking Event was held on November 30, 2023, at Biagio Restaurant.

Our outgoing TLOMA 2023 Board of Directors, Dawn Millar, Past President, Sarah Dovaston, Conference Chair, Rand Bilal, Communications Coordinator, and outgoing TLOMA 2023 SIG Leaders, Nicole Hunter, Human Resources SIG Leader and Gabor Balogh, Facilities SIG Leader were proudly presented with a plaque by Pat Carrano, TLOMA 2023 Vice President. A sincere TLOMA thank you to our volunteers.

Lifetime Members, Margaret Parker, Dee Nevett, Christine Bogle, and Janice Rooney also attended and reconnected with their TLOMA colleagues.

Here’s a gallery of some of our time spent together.

iCompli - Golden Ticket - October 2023 to March 2024 Leaderboard

January, 2024 | Presidents Message

President's Message

Golden Ticket - Facility Plus - Cleaning - November 1/23 - October 31/24 HalfPage

Author Brigitte Mulder

Happy New Year to all our members and Business Partners. I hope everyone had a chance to rest and take some time off over the holidays.

During the December Board of Directors meeting, we made the decision to internally reorganize the structure and Karen Gerhardt has accepted the role of Director of Administration. TLOMA is now hiring for the role of Administration Coordinator.

As we start the new year, don’t forget to renew your TLOMA membership for 2024. Remember the membership fee will remain at $435 + HST. Reminder emails will be sent in January and February.

Here are a few of the benefits you receive as a member of TLOMA:

Unlimited complimentary attendance at Special Interest Group in-person and online events (approximately 20 free events a year)
TLOMA Newsletter that identifies key developments and trends in the legal industry
Member only Networking events
Golf Tournament
Professional Development events and an annual Conference
Business Partner Directory that offers key contacts for your firms
Member only access to purchase Business Services Survey and Total Rewards Survey
Extremely low member fee to post job postings on our vibrant career board and complimentary reposts within the same calendar year
Member only discussion Forums

The TLOMA SIG Leaders are hard at work planning many more excellent meetings for you. Please watch your inbox and check the upcoming events landing page on the TLOMA website for details.

The upcoming SIG events this month are:

January 31, 2024 - TLOMA Human Resources SIG - Neurodiversity in the Workplace

Also, now is the time to register for the conference as the member and non-member early bird rates are in effect until May 31, 2024. Don’t forget to REGISTER! Business Partners should watch their inbox for the 2024 TLOMA Prospectus.

Brigitte is the Director of Finance and Administration at Henein Hutchison LLP and her responsibilities include Finance, Technology, Human Resources and Operations. Since joining the firm, she has led many process improvement projects around financial reporting, document management, internal controls, and IT.

Brigitte is a Chartered Accountant and Certified Public Accountant. She has been a senior finance leader for over 15 years with a breadth of experience in multiple industries including Finance Director at many different professional services companies.

Brigitte is a member of The Law Office Management Association (TLOMA) and a member of the CFO Leadership Council. She has previously served on the Board of Directors as Treasurer for a non-profit-for-profit agency called Alternatives for Youth for six years.

January, 2024 | Article

2023 - A Year in Review

Authors Tom Wolfenden, Megan Quinlan and Belinda Fallavollita

Finance SIG Leader - Tom Wolfenden

This was my first year as the Finance SIG leader and it was really rewarding. I would like to thank Ava Isaacson and Karen Gerhardt for all of their help getting the sessions organized, and ensuring they all went off without a hitch, thank you very much: you two are incredible!

In 2023 we were able to put on four great sessions on topics around understanding Cyber insurance, navigating the new LSO requirements around Knowing Your Client, and on software options for Law Firms. These were all very well attended, including the October event, which doubled the attendance of the other events during the year with a staggering 142 attendants.

I am looking forward to more exciting and informative sessions in 2024, and am pleased that we will be hosting a few of these SIG’s live. So we will be able to get back to connecting in person throughout the year at these events. If you have any ideas for events this year, or for speakers/sessions at the TLOMA 2024 conference, please do not hesitate to reach out to me directly. Looking forward to 2024!

Marketing SIG Leader - Megan Quinlan

2023 was a year of firsts for me in the TLOMAsphere – my first year as a member, my first year as Marketing SIG leader, and my first time attending the fantastic annual conference! I made some great connections this year, and I look forward to connecting with more members throughout the year.

Thank you to everyone who attended the Marketing SIG sessions in 2023. I hope you found them insightful and educational (insightational, if you will), and that they helped shine a light on the multifaceted world of working on the marketing and business development side of law firm management. I hope to continue sharing my experience and expertise over the course of the next year – stay tuned for the 2024 marketing programming.

A special shout out to Karen Gerhardt, Ava Isaacson, and Joe Mauro for helping me navigate my first year as a newbie, and for their patience, wit and wisdom, as well as to all of you for making me feel so welcome and included, and for sharing your own insights and experiences with me.

As always, feel free to reach out to me if you have any marketing or business development questions, challenges, or if you just need to vent – I’m just an email/phone call away.

Here’s to embracing new opportunities and challenges in 2024 – I look forward to exploring them with you.

Technology SIG Leader - Belinda Fallavollita

In my first year as the Technology SIG leader at TLOMA, I would like to thank the TLOMA members for their assistance and support throughout this exceptional busy year. A special thanks goes to Karen and Ava for their help in organizing sessions. I had the privilege of meeting exceptional individuals who shared their insights on generative AI, cybersecurity and the chance to participate in a panel on empowering women in technology. I look forward to the sessions planned for 2024.

As Finance manager, Tom is responsible for managing all of the firm’s accounting and finance functions.

Prior to joining Barriston, Tom articled as an external auditor at BDO before working as a controller with a growing manufacturing company in Barrie.

Tom received his Bachelor of Business Administration from Laurentian University in 2012 with a major in accounting. He became a Chartered Professional Accountant in September 2016. He also taught as a part time Accounting professor at Georgian College for a number of years.

In his spare time Tom turns to friendly competition, playing a range of sports, mainly hockey, golf and soccer. He is proud to call Barrie his home and enjoys spending his time outside and with family and friends.

Megan is the Director of Business Development and Strategic Projects at Lerners LLP. She has 17years of legal marketing and business development experience, with nine years in a
management role.

Megan, along with her team, is responsible for the development, implementation, and
execution of a wide variety of projects and initiatives, from client and referral source
relationship development and maintenance, events and seminars, RFP responses, proposals and pitches, award nominations, market recognition, and legal service innovation. She works with practice groups and individual lawyers on the development of strategic marketing and BD plans and budgets. She also works on firm wide initiatives, including website development and CRM implementation.

Megan often works with her colleagues in other administrative departments, to connect the
dots and break down the silos that are often present in a law firm environment. As a Director, she has the opportunity to work with an amazing team of talented marketing and business development professionals, and coaches and mentors them to be the best they can be. In her spare time, Megan enjoys spending time with her six year old son, failing at baking, dancing, and cheating at Wordscapes.

Belinda has over 25 years experience working at Loopstra Nixon and over 15 years in the Information Technology management role. Belinda has guided the evolution of the firm’s technology from a single local network to a robust cloud-based environment servicing multiple office locations.

Belinda contributes to, and manages, the firm’s strategic plan for all our major IT projects, as well as all daily operational plans for the firm including regular network checks and data security. Belinda is directly involved in identifying opportunities and implementing improvements to the IT environment. As manager of her team, she provides direction for the IT team members, including looking for ways to coach and mentor the team to help provide a consistently high level of performance.

In her spare time, Belinda enjoys gardening and spending time with her family.

January, 2024 | Article

Safeguarding Legal Practice: Cybersecurity Best Practices for Law Firms in Ontario, Canada

Author Damir Grubisa

In an era where digitalization reigns supreme, the legal industry stands as a prime target for cyber threats – upwards of 60%. As law firms in Ontario, Canada, increasingly rely on digital platforms to manage sensitive client data and PII, the importance of robust cybersecurity measures cannot be overstated. Ensuring the protection of confidential information is paramount, and partnering with trusted cybersecurity providers like Group 4 Networks can significantly fortify these defenses.

Understanding the Threat Landscape

Cyber threats facing law firms have evolved dramatically, encompassing ransomware attacks, phishing attempts, data breaches, and more. In the legal realm, where client confidentiality and sensitive case details are sacrosanct, any breach can have far-reaching legal, financial, and reputational repercussions.

Cybersecurity Best Practices

1. Regular Training and Awareness: Educating staff on cybersecurity best practices is fundamental. Training sessions to identify phishing attempts, strong password practices, and recognizing potential threats can fortify the first line of defense.

2. Data Encryption and Access Controls: Encrypting sensitive data and implementing strict access controls ensures that only authorized personnel can access confidential information.

3. Regular Software Updates and Patch Management: Keeping all software and systems updated with the latest security patches is crucial in mitigating vulnerabilities exploited by cyber attackers.

4. Backup and Recovery Plans: Establishing regular data backups and recovery plans ensures that in the event of a breach, essential information can be restored without significant loss.

The Role of Group 4 Networks

Partnering with a reputable cybersecurity firm like Group 4 Networks can be a game-changer for law firms seeking comprehensive protection. Their expertise in cybersecurity offers tailored solutions, including:

1. Threat Detection and Response: Group 4 Networks employs advanced threat detection mechanisms to identify and respond to potential cyber threats in real-time, minimizing the impact of attacks.

2. Customized Security Solutions: Understanding the unique needs of law firms, they design and implement customized security strategies that align with industry-specific compliance requirements.

3. 24/7 Monitoring and Support: With round-the-clock monitoring and support, Group 4 Networks provides continuous vigilance against emerging threats, ensuring a proactive defense posture.

4. Compliance and Regulatory Adherence: Their services ensure that law firms remain compliant with industry-specific regulations, such as PIPEDA (Personal Information Protection and Electronic Documents Act) and other data protection laws.

In the digital age, safeguarding sensitive legal information is non-negotiable. Law firms in Ontario must adopt a proactive stance towards cybersecurity. Partnering with Group 4 Networks equips these firms with the necessary tools and expertise to navigate the complex cybersecurity landscape, fortifying their defenses against evolving threats and ensuring the integrity of client data remains uncompromised. With firm savings potentially ranging tens to hundreds of thousands of dollars annually.

Remember, in the realm of cybersecurity, proactive prevention is always better than reactive remedies. Prioritizing cybersecurity today safeguards the future of legal practices in Ontario. Contact us today at www.g4ns.com and safeguard your practice for tomorrow.

Damir Grubisa serves as the President of Group 4 Networks Inc., an IT management consulting firm. With a wealth of experience as a senior business leader and entrepreneur, he has operated at the CIO level, boasting extensive training in IT and IT architecture.

Damir brings a distinctive and proven skill set to his roles as a consultant and corporate IT director. He holds a strong record of success in constructing and revitalizing both private and public sector IT organizations across North America and the global market.

His background encompasses a spectrum of experiences, including launching start-ups, spearheading IT restructuring, driving change management initiatives, implementing IT service management based on the ITIL framework, and showcasing adept project management skills.

In challenging environments, Damir has steered numerous organizations by cultivating teamwork, effectively communicating, and adeptly executing IT and corporate objectives.

January, 2024 | Article

Lawyers in Ontario: Key LSO and CRA Filing Dates for 2024

Author Keith Hill, Jr.

Running a law firm in Ontario includes keeping up with important deadlines set by the Law Society of Ontario (LSO) and the CRA. As the new year begins, it's helpful to be reminded of the various filing deadlines that lay ahead so you can have these key dates marked in your calendar. This guide highlights essential 2024 deadlines, that will help your firm stay proactive and compliant.

Key Deadlines for Ontario Lawyers in 2024

January 15, 2024 (every month)

Payroll/Source Deductions:

When you pay employees, you must take source deductions from each payment and remit them to the CRA. Most remitters are "regular remitters" which means they are on a monthly remittance frequency. As a monthly remitter, the due date is the 15th of every month.

Therefore, all deductions from December 2023 need to be remitted by January 15, 2024.

Note: Understanding the payroll deduction method is crucial here, as it involves calculating and remitting the correct amounts for CPP, EI, and income tax.

January 25, 2024 (every month)

Trust Reconciliations:

Subsections 18(8) and 22(2) of By-Law 9 require that the reconciliations and comparisons of all your firm's trust accounts be prepared monthly and completed within 25 days of the end of the period covered by the financial institution's monthly statement.

NOTE: You must reconcile each trust bank account, including interest-bearing accounts, GICs and term deposits every month, even if you did not have any trust activity for a particular month.

This means your December 2023 reconciliations must be completed by January 25, 2024.

January 31, 2024 (every month)

Monthly HST Filers:

For monthly HST filers, the deadline to file is the last day of the month following the reporting period.
For instance, the filing deadline for December 2023 is January 31, 2024.

NOTE: If you make more than $30,000 in one quarter or over four quarters in a row, you must start charging GST/HST.

February 29, 2024

T4 Issuance:

Law firms must ensure the distribution of T4 and T4A slips, along with the filing of T4 and T4A returns, is executed on or before the last day of February following the calendar year to which the slips relate.

This means that firms must provide their employees with 2023 T4s and submit them for filing no later than February 29, 2024.

March 31, 2024

LSO Member's Annual Report:

Under By-Law 8, Part II all licensees must file an Annual Report Filing with the Law Society by March 31 each year. All licensees, regardless of licence type, must submit an Annual Report Filing to maintain their licence, unless expressly exempted on application to the Law Society.

Therefore, your 2023 Annual Report is due by March 31, 2024.

Note: It is advisable to include your bookkeeper when completing the financial reporting segment of the report.

April 30, 2024 (every quarter)

Transaction Levy Filing:

The real estate and civil litigation transaction levy surcharges payable by a lawyer shall be accumulated and paid quarterly.

For Q1 (January – March) the deadline is April 30th.

April 30, 2024 (every quarter)

Quarterly HST Filers:

Firms registered for quarterly HST, the HST filing shall be accumulated and paid within thirty days of the quarterly period ending.

For Q1 (January – March) the deadline is April 30th.

April 30, 2024

Transaction Levy Filing (Exemptions):

Lawyers who will not practice civil litigation or real estate this year and wish to be exempt from quarterly filings must submit their annual exemption forms.

Submit your exemption by April 30, 2024, to exempt this year’s remaining quarters.

Note: By April 30, you should have completed the filing for either your first quarter or your annual exemption.

April 30, 2024

Annual HST Filers (with a December 31 fiscal year-end) – payment deadline:

For firms registered as annual HST filers, with a fiscal year-end of December 31, the payment deadline is April 30 of the following year.

This year, the payment deadline for 2023 is April 30, 2024.

June 15, 2024

Annual HST Filers (with a December 31 fiscal year-end) – filing deadline:

Annual HST filers with a fiscal year-end of December 31 have a filing deadline of June 15 of the following year.

In this instance, your HST filing should be completed by June 15, 2024.

Note: It's important to note that while the HST payment is due on April 30^th (as noted above), the actual filing deadline extends to June 15th.

July 31, 2024 (every quarter)

Transaction Levy Filing:

For Q2 (April – June) the deadline is July 31.

July 31, 2024 (every quarter)

Quarterly HST Filers:

For Q2 (April – June) the deadline is July 31.

October 31, 2024 (every quarter)

Transaction Levy Filing:

For Q3 (July – September) the deadline is October 31.

October 31, 2024 (every quarter)

Quarterly HST Filers:

For Q3 (July – September) the deadline is October 31.

Reporting for non-calendar fiscal year-end

Annual HST Filers (with a non-December 31 fiscal year-end):

The specific date for this type of filer depends on your fiscal year-end. The payment and filing deadlines both occur three months following the conclusion of the fiscal year.

For instance, if the fiscal year ends on April 30, 2024, the filing date is July 31, 2024.

Corporate Tax Filing (with or without a non-December 31 fiscal year-end):

Corporate entities must file tax returns within six months of their fiscal year's end. For example, a fiscal year ending on December 31 requires filing by June 30 of the following year. The same six-month timeframe applies if the fiscal year does not align with the calendar yearend.

For instance, if the fiscal year ends on April 30, 2024, the filing date is October 31, 2024.

The start of the year is a busy time in legal accounting, highlighting the importance of being reminded of these deadlines at this time of the year. However, remember that while the provided list is a helpful guide, it's not exhaustive. Primarily, the deadlines in this article are the ones that necessitate close collaboration with your bookkeeper.

Furthermore, while efforts have been made to provide accurate deadlines, it is essential to stay informed and verify dates with relevant sources for the most up-to-date information. It's important to recognize that circumstances may change, potentially impacting these timelines. Staying informed throughout the year is recommended.

To learn more or for additional details, please refer to the following resources:

Payroll/Source Deductions:https://t.ly/yTNT9
HST information: https://t.ly/6HYY8 or https://t.ly/A6391
Transaction Levies:https://www.lawpro.ca/your-policy/key-dates/
Annual Report Filing: https://portal.lso.ca

Keith Hill Jr. is the Principal at Bookkeeping Matters Inc (BMI). For over a decade, Bookkeeping Matters has been satisfying bookkeeping needs for lawyers throughout Ontario and other provinces. As a former Legal Accounting professor, Keith has also positioned BMI as a premier provider of online legal accounting training. Specializing in several practice management software, Keith and his team can be contacted at: info@bookkeepingmatters.ca / 1-800-893-2820 / www.BookkeepingMatters.ca

January, 2024 | Article

The journey of a skillful employeeTM

Journey of a skillful employee - resized

Authors Manny Campione, CHRL, CHRP and Geneviève Cloutier, CHRP Fellow Distinction

The creation of an inspiring journey for employees is based on total rewards – both monetary and non-monetary – where companies offer employees both fair wages and the opportunities to achieve their career aspirations. To make this happen, salary progressions and career is underpinned by employees developing desired knowledge, skills and behaviours. Equipping managers with the tools to develop talent around this belief has a positive impact on attracting, engaging and retaining talent.

Now more than ever, organizations are operating in an ever-changing world. Employers are seeking insights to better understand their employee needs and not surprising, high-performing talent is motivated by a meaningful employee experience that fulfills the search for meaning at work thanks to rewarding career paths and growth opportunities.

The journey of a skillful employeeTM competency model is an excellent development lever and one that can play a key role in employees successfully navigating their career. By having a clear picture of various career options, employees choose the path (or paths) that align best with their ambitions, the pace at which they want to advance and career goals. Skillful employees know their strengths, work well with others, have a clear direction and deliver results, which helps to achieve their professional aspirations.

Creating inspiring career paths

Career paths are rooted in the development of a job architecture that classifies and maps jobs within the organization; it also highlights potential paths and commensurate levels of pay.

Once the job architecture is properly developed and communicated, the role requirements for organization’s jobs inform the recruitment needs.

When the right people are in the right jobs, they are called upon to perform. That is when performance management comes into play to support skillful employees in their desire to go above and beyond.

When companies take the time to learn about employees’ performance - including how they grow and develop – it makes it possible to plan for the next generation of talent, manage careers within the organization and foster employee growth through intentional development.

To maximize the potential of skillful employees and give them a meaningful experience, it is crucial to create competency profiles. During their creation, it is strongly recommended to align the competency profiles with the organizational strategy, analyze the context and business needs, and draw on the criteria of a high-performing organization, meaning one that:

is client-focused
creates lasting value
has a dynamic culture
seeks operational excellence
implements thoughtful strategies

A competency model helps build balanced behavioural competency profiles that outline precisely and more objectively, the expectations associated with each career path. With this competency resource, skillful employees then have clarity on where to invest their efforts to thrive.

A development culture connected to performance and compensation

Once the competency profiles are created, the connection between the various talent management and total rewards programs makes perfect sense.

For example, in the performance management process, an employee can be assessed against the achievement of annual objectives, the mastery of knowledge, skills and behaviours as well as the employee’s conduct leading to an overall performance rating. The performance rating often is used as a factor when making a base salary and / or variable pay decision.

If the year-end performance review meeting between the employee and their manager focuses only on the overall rating, the conversation is short and futile and likely unfulfilling. However, if the manager has additional tools and resources to help write the performance assessment messages to explain their decisions and can explain the possible career paths and necessary skills to help the employee develop professionally and advance their career, then that manager can inspire skillful employee and support them in their career! The relationship between the employee and their organization turns into a genuine partnership.

In closing, by knowing the organization’s job architecture the competency model helps employers, no matter how big or small to attract and retain talent on the promise of an inspiring professional journey.

---

The journey of a skillful employeeTM is an innovative person-centred approach developed by Normandin Beaudry that provides employees with full control of their professional journey while ensuring the organization has the right people it needs to succeed.

This approach consists in designing and integrating career journeys that support the business strategy, competency profiles required by the organization, and a coherent compensation structure. The goal is to provide clear career prospects in terms of professional development and salary progression.

Manny Campione joined Normandin Beaudry to open the Toronto office in 2018. He has worked across multiple industries over the past 25 years in human resources leading teams in total rewards, employee engagement, leadership development, organizational effectiveness and workforce planning. Manny has experience leading and working with clients on bespoke-sector surveys in advanced analytics, contact centres and retail.

Manny Campione’s industry and consulting experience, ensures that business and HR leaders leverage relevant solutions to affect organizations’ business objectives. He is a trusted advisor, coach and thought leader in the Canadian HR community.

Geneviève has close to 25 years of experience in the fields of compensation and performance. She worked for a global consulting firm where she served several clients in Canada and the U.S. before joining Normandin Beaudry in 2006. Under her stewardship, Normandin Beaudry's compensation practice has grown to become the largest in Quebec and Canada and is backed by robust tools such as remun. Lately, Geneviève has been devoting her time to the Performance practice to provide our clients with specialized services in employee experience, talent management and organizational efficiency.

Geneviève has served on Normandin Beaudry’s executive committee since 2015. Geneviève is often asked to share her valuable insights in public forums. Her expertise and dedication to her profession were acknowledged in 2014 as Premières en Affaires named Geneviève a key HR professional (Incontournable en RH), and once again in 2020 as she was honoured the Engagement Award (Prix Engagement) by l’Ordre des CRHA and she is now recognized with the Fellow Distinction.

January, 2024 | Article

New Trust Reporting Rules

Authors Cassandra Knapman, JD and Farryn Cohn, CPA, CA

New trust reporting rules expand the types of trusts which must file a return and the information that must be disclosed. Notably, these changes involve new filing requirements for bare trusts and law firms that hold funds in separate trust accounts for specific clients. These revised rules are applicable for December 31st, 2023 year ends and onwards.¹

New Entities Required to Report

These new rules require all trusts residents in Canada to file an annual T3 trust return if they are an express trust, or for civil law purposes a trust other than a trust that is established by law or by judgement, which are not listed trusts. Listed trusts are set out in subsection 150(1.2) of the Income Tax Act and include but not limited to:

Trusts in existence for less than three months at the end of the year. This category includes both trusts that were created less than three months before the end of the year and short-term trusts that existed for a period of less than three months,
Trusts who hold less than $50,000 in certain assets, including money or shares of a publicly traded company, throughout a year,
Trusts that are required under the applicable rules of professional conduct or the law of Canada or a province to hold funds for the purposes of an activity that is regulated under those rules or law, and;
Non-profit organizations and graduated rate estates.

Legal professionals should be aware that while lawyers’ general trust accounts are listed trusts, separate trust accounts established for specific client(s) are not and filing may be required for these trust accounts. Information which is subject to solicitor-client privilege does not need to be disclosed.

Bare trusts are now subject to the trust filing requirements as well. A bare trust is defined for this purpose as “an arrangement under which a trust can reasonably be considered to act as agent for all the beneficiaries under the trust with respect to all dealings with all of the trust’s property.” These trusts are used in real estate, estate planning, through partnerships and joint ventures, among other purposes.

Income from the trust’s property will continue to be reported on the beneficial owner’s tax return, instead of the bare trust’s T3 return, as there is no change to the taxation of bare trusts but just to the filing requirements. The Canada Revenue Agency has announced they will be proactively waiving late-filing penalties for bare trusts for the 2023 tax year, however, trusts that knowingly fail to file could incur gross negligence penalties.

Prior to the introduction of these new rules, whether a particular trust had a filing obligation was determined based on whether one or more of several conditions were present. A non-exhaustive list of these conditions includes:

a resident trust with Part I tax payable,
having a taxable capital gain or disposed of capital property in the year, and;
being a non-resident trust who, except for excluded dispositions, has a taxable capital gain or disposed of Canadian capital property in the year.

These conditions still apply for determining whether listed trusts, and trusts that are not express trusts, or for civil law purposes a trust other than a trust that is established by law or by judgement, are required to file.

New Reporting Schedule

All trusts with a filing obligation, except listed trusts, are required to complete Schedule 15. On this schedule, the filer will disclose information including name, address, country of residence and tax identification number of each reportable entity. Reportable entities are any person who has the ability through the terms of the trust or a related agreement, to exert control or override trustee decisions (such as a protector), trustees, settlors, and beneficiaries. A reportable entity that was only present for part of the year must also be disclosed.

The “settlor” and “beneficiary” are broad categories. The term “settlor” encompasses not only the person or partnership who originally contributed the property to create the trust, but anyone, except certain arm’s length people and partnerships, who loans or transfers property to or for the benefit of the trust throughout its lifetime. Beneficiary extends to those who receive trust income or capital through one or more trusts or partnerships as well as those that are entitled to future rights, contingent rights, or rights conditional on the discretion of a person or partnership as a beneficiary of a trust.

The new rules acknowledge a trust may not have information on every beneficiary of the trust. The trust is required to provide the reportable information on each beneficiary who is known or ascertainable with reasonable effort. For beneficiaries which are not known or cannot be ascertained, the trust must provide sufficiently detailed information to determine with certainty whether any particular person is a beneficiary of the trust. For example, if the beneficiaries are current and future grandchildren, the trust should provide the information of all current grandchildren as well as the details of the terms of the trust that extend the class of beneficiaries to the future grandchildren. Certain trusts with Indigenous beneficiaries or that have units listed on a designated stock exchange have special disclosure requirements relating to beneficiaries.

Trust returns are typically due 90 days after the year end of the trust. Filers should account for longer periods to complete returns given the increased number of trusts which must report under these new rules, and the more expansive disclosure requirements.

What would your tax advisors like you to know?

The Canada Revenue Agency intends to use the information disclosed as part of its compliance efforts. There will likely need to be additional guidance on bare trust reporting, especially given that bare trusts can be unknowingly created. We anticipate added caution around the usage of trusts as taxpayers wait to see the impact of these new trust reporting rules.

¹Authored by:
Cassandra Knapman, JD - Senior Associate, RSM Canada LLP - cassandra.knapman@rsmcanada.com
Farryn Cohn, CPA, CA - Senior Manager, RSM Canada LLP - farryn.cohn@rsmcanada.com

Cassandra consults on diverse tax matters relating to new legislative and legal developments, and builds on her background as a tax lawyer to navigate clients through ongoing CRA disputes. Cassandra is a member of RSM’s Canada National Tax Centre producing tax thought leadership. She has authored and collaborated on articles, presentations and practice tools on topics including compliance and disclosure requirements, Canadian customs as well as tax disputes and legal developments.

Before joining RSM, Cassandra spent three years with a boutique tax law firm representing clients in complex Canadian income tax and GST/HST disputes. She leverages her experiences with corporate clients in various industries and individuals to spot and resolve taxation issues for clients, and support the RSM tax and audit practices.

Farryn advises and consults on complex tax matters with experience ranging from multinational corporations to private client services. Her role in the Canadian National Tax Centre practice is to develop tax thought leadership in relatable and easy-to-understand ways.

Prior to joining RSM in 2023, Farryn’s focus was mainly in tax compliance and advisory as a Senior Manager at a mid-sized public accounting firm.

January, 2024 | Article

Artificial Intelligence in Law: The Future of Legal Services

Author Colin Pearce

There’s no question about it - AI is reshaping the way legal services are delivered. Thanks to the popularity of ChatGPT, generative AI is being used for tasks like legal research, analytics, contract drafting and review, and other forms of document generation and management. Its capabilities are expanding at such a rate that by this time next year, the task list will have quadrupled.

With so much happening so quickly, one can’t help but wonder: what’s next? In this article, we take a closer look at the transformative role of AI in various aspects of the legal field and what we can expect in the future.

AI-Driven Legal Research

Artificial intelligence has had a strong impact on legal research. At first, that impact was not a good one: in one widely-publicized case, two New York lawyers were fined when their AI-written briefs contained fake citations. Today, AI is integrated into legal databases like LexisNexis to optimize research results, improve due diligence, and even predict case outcomes based on historical data.

The growing use of AI in legal research and submissions has prompted some Canadian courts, such as the Yukon Supreme Court and the Court of King’s Bench in Manitoba, to issue directives requiring disclosure of AI use. These measures acknowledge the value of AI as a legal tool while emphasizing the need for transparency and responsibility in its application.

Automating Routine Legal Tasks

AI excels at automating routine and time-consuming tasks such as document drafting and review and contract analysis. This not only speeds up processes but also reduces the likelihood of human error, thereby increasing efficiency and accuracy.

Canadian law firms are currently leveraging this capability to streamline workflow and redirect team focus to more strategic tasks. While a human should still review all generated data, the amount of manual time saved can make a huge difference in a firm’s efficiency.

Legal Analytics and Strategy

AI can run through large volumes of data in seconds, rapidly identifying patterns and trends that would normally require hours of research. This ability to quickly review and analyze statutes, case law, and other legal information can make it easier to shape arguments or inform strategies. In this respect, AI can save time and resources, allowing lawyers and their support staff to focus on the more strategic aspects of their cases.

Ethical and Regulatory Considerations

Ontario lawyers can use AI ethically and in compliance with regulatory requirements by:

Selecting AI tools that adhere to Canadian privacy and data protection laws.
Limiting data collection to only what is necessary.
Including clear information about AI usage in retainer agreements and obtaining informed consent from clients.
Ensuring AI tools do not compromise client confidentiality.
Regularly reviewing and updating AI systems to maintain compliance with evolving legal standards.
Using AI to enhance, not replace, legal judgment and analysis.

The use of artificial intelligence marks a shift in the way legal services are delivered in Ontario and across Canada. From transforming legal research to revolutionizing document drafting and analysis, AI is not just a futuristic concept but a present reality. When properly applied, it can ensure that service delivery remains efficient, accessible, and in line with the highest standards of the profession.

Questions About Artificial Intelligence in Law?

There’s no question that AI has an important part to play in firm operations. As the technology evolves, we can expect artificial intelligence to play an even more integral role in case prediction, legal analytics, and customized clients solutions. Embracing its use now is not just a forward-thinking approach but a necessity for staying ahead in a rapidly evolving profession.

If you would like to learn more about generative AI or other IT tools for law firms, head to our website for short informational videos.

Colin is an IT and business expert from Hamilton, Ontario. In 2017 he launched his IT support company Inderly, local to Hamilton and Toronto and serving law firms across Ontario. Colin enjoys figuring out how to make business technology work best for each unique situation.

Colin is founder and CEO of Inderly - IT for Law Firms, serving clients across Ontario. Colin enjoys figuring out how to make business technology work best for each unique situation.

January, 2024 | Article

The Digital Age is the Great Equalizer

Author Stephen Mabey CPA, CA

Historically, large law firms could use their financial clout to out-market smaller firms, blocking access to lucrative clients.

When leveraged correctly, the digital age has become an equalizer, allowing small and mid-size firms (the "Group") to access these clients.

Several marketing trends are in vogue, and there are a couple that I would draw your attention to that enable the Group's cost-effective leveraging of the digital age. These include:

Social Media Marketing: Law firms can leverage social media platforms to connect with their audience and promote their services. They can leverage existing or new content, share updates on legal developments, and use platforms like LinkedIn and Facebook to foster relationships with potential clients;

Voice Search Optimization: With the rising use of voice assistants such as Siri, Alexa, and Google Assistant, law firms can optimize their online presence for voice searches. Firms incorporate long-tail keyword search phrases that typically contain three or more words. Long tail keywords aim to attract a smaller, more relevant, interested audience. Firms are also including conversational language in their website content and advertising campaigns, and

Influencer Marketing: Law firms are partnering with influencers in the legal industry to expand their reach and credibility. Law firms can tap into their existing audiences and establish trust by collaborating with respected legal professionals, bankers, industry experts, and accountants.

Perhaps just as important is the selection of digital platforms to place their content on so that it doesn't cause the Group to have to mortgage the firm.

Three platforms that enable firms to use their digital efforts cost-effectively include:

LinkedIn: LinkedIn is a professional networking platform where law firms can establish their presence, share updates, engage with potential clients, and connect with other professionals in the legal industry. It's an ideal platform for showcasing expertise; publishing thought leadership articles, and building relationships;

Google My Business: Google My Business is a free tool that allows law firms to manage their online presence on Google. It helps firms appear in local search results, collect reviews, provide contact information, and showcase important details about their services and

YouTube: As a video-sharing platform, YouTube can be an effective way for law firms to engage with their audience and showcase their expertise. Creating informative and educational videos can help firms establish credibility and reach a broad audience.

Not all firms can afford a full-time digital marketing group to manage the timeliness and relevancy of their content; several consultants out there can help you develop a program that your existing personnel can execute. A couple of such consultants on either side of the border who come to mind include:

Rita Chaires (US) - Rita founded Chaires & Associates, a legal marketing agency. She is known for her expertise in building successful online marketing campaigns for law firms. Rita often shares her knowledge and insights through conferences, webinars, and blog posts.

Mark Homer (US) - Mark is a legal marketing expert and founder of the GNGF (Get Noticed, Get Found) agency. He has a strong presence on social media and shares valuable content on topics like SEO, website design, and digital marketing strategies tailored specifically for law firms.

Sandra Bekhor (CAN) is a Canadian marketing consultant specializing in professional service firms, including law firms. She offers strategic guidance and practical advice on marketing and business development through her consulting firm, Bekhor Management.

Natasha Chetty (CAN) - Natasha is a Toronto-based digital marketing strategist with expertise in the legal industry. Through her consulting firm, Bellwether Strategies, she helps law firms leverage digital channels effectively to attract new clients and enhance their online presence.

What gets measured gets done right! Adapting the long-standing business truth applies to a firm's digital marketing effort. Digital marketing effort should not be a static effort but instead needs to be continuously monitored and adapted.

Some key metrics and methods to measure effectiveness can include:

Social Media Engagement: Tracking the number of followers, likes, comments, shares, and clicks on social media platforms to measure audience engagement and brand visibility. Monitoring social media metrics helps gauge the effectiveness of content and social media campaigns;

Online Reviews and Reputation: Monitoring online reviews and ratings on platforms like Google My Business. Tracking the number of positive reviews, overall ratings, and client testimonials can indicate the effectiveness of reputation management efforts and

Website Analytics: Tracking website traffic, user behavior (e.g., time spent on site, bounce rates), conversion rates, and goal completions using tools like Google Analytics. This data provides insights into website performance, user engagement, and call-to-action effectiveness.

By regularly analyzing these and other metrics and adjusting the firm's digital marketing strategies accordingly, law firms can measure the effectiveness of their online campaigns, optimize their efforts, achieve better results, and level the playing field of client access.

Stephen Mabey is a CPA, CA, and the Managing Director of Applied Strategies, Inc. His credentials include:

Fellow of the College of Law Practice Management (one of 19 Canadians – 276 Fellows);
Author of Leading and Managing a Sustainable Law Firm: Tactics and Strategies for a Rapidly Changing Profession and Key Performance Indicators An Introductory Guide (Amazon);
More than 25 years in a senior management role with Stewart McKelvey a 220 lawyer, six office Atlantic Canadian law firm;
Over 14 years providing advice and counsel to small to mid-size law firms on a broad range of issues;
A panelist and facilitator of the Managing Partner Information Exchange (“MPIE”) at the annual Managing Partner Forum Leadership Conference held in Atlanta Georgia each May;
A group mailing list that circulates articles, directly and indirectly, impacting law firms.

He has advised law firms on a wide range of law firm issues, including - strategic action planning, leadership, understudy (succession) planning, business development, capitalization of partnerships, partnership agreements, lawyer & staff engagement, marketing, key performance indicators, competitive intelligence, finance, mergers, practice transitioning, compensation, organizational structures, and partnership arrangements.

Stephen can be reached by email – smabey@appliedstrategies.ca or phone at 902.499.3895.

January, 2024 | Article

Member Spotlight - Simone Knott

Author Simone Knott

Job Title: Manager, Business Development & Marketing
How long have you been a member of TLOMA?
I have just completed my first year.
What’s something about you (a fun fact) that not many people know?
I ran my first full marathon unplanned in 2017 at Walt Disney World after training for a half marathon (which ended up getting cancelled the day before), and I have run different races in 11 different states in the U.S.A. I completed my 20th half marathon last year.
What is your favorite hobby?
I’m a sports junkie so I love to watch a lot of professional sports – often in person.
What’s the next place on your travel bucket list?
I just came back from Phoenix, Arizona, but the travel plans are often a bit spontaneous. My ultimate bucket list trip is to go to the Super Bowl one day.
Are you currently binge-watching any shows?
I don’t binge-watch. I can never find the time for so many episodes. I do, however, love to watch Love After Lockup - the perfect trainwreck we all need in the current climate.
What’s one item you can’t live without?
My NEXUS card.
Why did you join TLOMA?
I wanted to meet similar people in the industry and share knowledge.

Simone Knott is the Manager, Business Development & Marketing at Bereskin & Parr LLP. She develops and executes short and medium-term business development and marketing plans and coordinates and oversees the development and implementation of BDM campaigns, advertising, and other efforts to achieve specific objectives.

Simone has 20 years’ experience in marketing and has worked in professional services for 15 years. She has helped launch prominent campaigns in the banking and accounting industries and in the legal space.

Simone is a huge sports fan, avid traveler and runner. She has seen sporting events in several cities across North American and has run races all over North America. She recently completed her 20^th half marathon.

January, 2024 | Movers and Shakers

New Members
Jackie Dillon Office Manager de Vries Litigation LLP	James MacInnis Office Administrator Reeves Richarz LLP
Elizabeth Sonderskov Operations Administrator / Law Clerk Bridge Legal & HR Solutions