Posted on January 28, 2010 by Chris Jaglowitz

Talking back - employers' vicarious liability

Bob Gardiner reminds us that the grace period for the ban on hand-held devices while driving is coming to an end. 

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Now it is illegal for drivers to talk, text, type, dial or e-mail using Blackberrys, cellphones and similar hand-held devices.

Bill 118, the Countering Distracted Driving and Promoting Green Transportation Act, promoted by the Ministry of Transportation, took effect on October 26, 2009. A three-month probationary educational period will end February 1, 2010, when police will begin issuing tickets to offenders, resulting in fines of up to $500.

Employers, such as property management companies, could be held vicariously liable for payment of fines or damages arising from an injury or accident deemed to have been caused by an employee’s inattention to driving while manipulating a hand-held device. It is recommended that employers issue the company’s no hand-held policy to employees prohibiting use of hand-held devices while employees drive a car, except in accordance with permitted hands-free technology such as Bluetooth. It is expected that if a driver involved in an accident was found to be using a hand-held device at the time of a collision, such unlawful use may more likely be deemed to be the cause of an accident and possibly result in a higher award of damages against such a driver and employer. Delivery of a no hand-held policy to employees should exempt employers from vicarious liability.

Studies indicate that drivers using cellphones are four times more likely to crash, while those texting messages may be the cause of approximately 20% of all collisions. Ontario has joined 50 other countries and several Canadian provinces which enforce rules against driving while using a hand-held device.

Drivers who need to gab while driving will still be entitled to use hands-free technology such as can be provided by various Bluetooth devices. Choose systems which allow vocal dialing or speed-dialing of your favorite numbers.

Firefighters, paramedics, police and drivers dialing 911 will be excepted from enforcement of that law. Regulations dealing with other exempted cell phone scenarios are also being enacted.
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Posted on February 4, 2009 by Chris Jaglowitz

New for 2009: Home Renovation Tax Credit

Bob Gardiner of our office has given the following quick summary of the nuts and bolts of the Home Renovation Tax Credit (“HRTC”) that was introduced as part of last week’s 2009 Federal Budget:

The HRTC will provide a 15% non-refundable tax credit to individuals for eligible expenditures in excess of $1,000 but not more than $10,000 made in respect of eligible dwellings. That will result in a maximum federal tax credit of $1,350 ($9,000 x 15%). The work must be performed between January 28, 2009 to January 31, 2010. The HRTC provides a single limit for each family consisting of an individual, spouse or common law partner and their children under age 18 throughout 2009.

An eligible dwelling consists of a person’s principal residence or the principal residence of one or more of the other family members. For condominiums and co-operative housing corporations, eligible expenditures will include the individual’s share of the cost of renovating common areas, in addition to costs to renovate the unit. Portions of a home used partly to earn business or rental income do not qualify, but the residential portion of a home can qualify for appropriate expenditures in respect of the personal-use areas. Expenditures made in respect of common areas or that benefit the housing unit as a whole such as re-shingling a roof, must be allocated between personal and income-earning use in order to determine the portion that qualifies for the credit.

The renovations must be of an enduring nature that are integral to the dwelling (or common elements), including expenditures for the cost of labour and professional services, building materials, fixtures, and equipment rentals and permits.  However, routine repairs and maintenance typically performed on an annual or more frequent basis are excluded expenditures, as are expenditures for appliances, audio-visual electronics and financing costs. Furniture, draperies and other indirect expenditures that have a value independent of the renovation (such as construction equipment and tools) do not qualify. Goods or services must be provided by a non-arm’s length person supported by receipts and GST charges.

Click here to see Frequently Asked Questions about the HRTC on Canada Revenue Agency's website. 

Click the picture to the left to view details about the HRTC on the Budget 2009 website.

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