The CBA has received confirmation that the Budget 2017 proposal to eliminate billed-basis accounting for income-tax purposes will not affect contingency fee arrangements. While we are encouraged by this news, we are continuing discussions with the government to understand the scope of and ramifications of the proposal.
There are a number of areas that require clarification, including how the proposal may affect other types of arrangements that increase access to justice for many Canadians and how to value a lawyer’s work in progress. We are also concerned with the transition period.
We are continuing to work on this diligently. Stay tuned. And if you have something you want to add on the topic, please drop us a line at budget2017@cba.org.