Advocacy Matters - Spring 2020

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10+ STANDING COMMITTEE EVENT REPORT
Report on The Litigator’s
Guide to the Business of Law
Andrea Gonsalves, Stockwoods LLP
On February 12, 2020, the 10+ Standing Committee presented the second installment in its series
“The Litigator’s Guide to the Business of Law”. The event, which was hosted by Arbitration
Place, focused on the perennial question for many mid-career litigators: to incorporate or not
to incorporate? The panel also discussed various tax issues that arise for law firms of all sizes
as well as sole practitioners.
The panel was comprised of Deborah Templer of McCarthy Tétrault LLP, who offered the
perspective of a partner at a large firm; Daniel
Schwartz of Thornton Grout Finnigan LLP, who
brought his perspective as a partner in a midsize
firm; and Dal Deol, Senior Tax manager
with KPMG Enterprise in Toronto, who shared
his expertise in tax planning based on his frequent
advice to lawyers. The panelists offered
their views on the benefits and drawbacks for
litigators of practising through professional corporations,
including financial considerations,
administrative requirements, set-up and recurring
costs, and Law Society requirements.
Those in attendance at the event learned that
one of the potential advantages of incorporating
is the Federal small business tax deduction. However,
the benefits of that deduction depend to a
large extent on the number of partners at the firm
who practise through professional corporations.
Dal Deol provided a useful handout to illustrate
the potential tax savings of incorporating and the
impact of the small business deduction under different
scenarios.The discussion was lively, with
attendees asking a number of questions.
Setting up a professional corporation comes
with a cost and isn’t necessarily the right decision
for every lawyer. The main message was
that incorporating can have benefits, but the
extent of any benefits depends on a number of
factors. Those who are considering incorporating
should seek advice from an accountant to
assess whether it is the right decision in their
personal circumstances.
There was plenty of opportunity before and
after the panel for those who attended to mingle
over drinks and delicious food. Thanks
to Arbitration Place for sponsoring this event.
Learn more about the May 6 installment in the
series in this issue of Advocacy Matters.
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