Canada Appeals Court Denies Lawyers’ Group Tax Exemption Claim

An organization providing mandatory liability insurance in Ontario is not exempt from paying income taxes, an appeals court has ruled.

The Lawyers’ Professional Indemnity Company, a subsidiary of the Law Society of Ontario, does not qualify for an exemption from the Income Tax Act for government bodies even if the society performs some public roles, the Federal Court of Appeal said in a judgment Tuesday.

The company, which also provides title insurance across Canada, was appealing a 2018 Tax Court of Canada decision that upheld the Canada Revenue Agency decision not to allow the exemption.

The Law ...