,canada ,cu/oms                       #a
& ,rev5ue ,ag5cy

          ,9t]pret,n ,bullet9
    
,subject3 ,9come ,tax ,act--,lawy]s'
  ,tru/ ,a3.ts & ,4burse;ts
,numb]3 ,,it-#abi;,r
,date3 ,novemb] #g1 #aihf
,ref];e3 ,subsec;n #i7#a7 7al p>agraph
  #ab7#a77b77

  ,? ,bullet9 replaces & c.els
,9t]pret,n ,bullet9 ,,it-#abi dat$
,octob] #ca1 #aigc4 ,curr5t revi.ns (
signific.e >e designat$ 0v]tical l9es4

#a4 ,! purpose ( ? ,bullet9 is 6provide
  9=m,n = lawy]s 9 practice on ! prop]
  me?od ( report+ _! 9comes & exp5ses =
  9come tax purposes ) respect 6tru/
  funds & 4burse;ts &) respect 6funds
  held = cli5ts 9volv$ 9 litig,n4 ,!
  foll[+ rules >e 3sid]$ applica# 6all
                                      #a
              ,,it-#abi;,r           a#a
  lawy]s 9 practice :o ma9ta9 tru/
  a3.ts4
#b4 ,)! excep;n ( adv.es : ! lawy] is
  5titl$ 6tr1t z 8 or h] funds 0specific
  agree;t )! cli5t & reta9]s : ! lawy]
  is 5titl$ 6keep :e!r or n s]vices >e
  r5d]$ or 4burse;ts >e made1 adv.es
  rcvd f a cli5t = s]vices 6be r5d]$ or
  4burse;ts 6be made >e 3sid]$ 6be tru/
  funds & >e n 9come at ! "t ( receipt4
  ,! f/ "d :5 s* adv.es c 2 leg,y )drawn
  f ! tru/ a3.t =! use & b5efit (! lawy]
  is reg>d$ z ! e>lie/ "d ^u : an a3.t
  cd h be5 r5d]$ =! purposes (
  subp>agraph #ab7#a77b77;ii7 & p>agraph
  #ab7#a77a74 ,h["e1 ! profes.nal may
  elect 6exclude "w 9 progress f 9come
  "u p>agraph #cd7a74 7,ref] to
  ,,it-#deg74 ,2f #aihe a simil> result
  0 obta9$ "u p>agraphs #cd7#a77b7 & 7c7
  subject 6an elec;n 6exclude "w 9
  progress f 9come "u p>agraph
  #cd7#a77d74
                                      #b
              ,,it-#abi;,r           b#a
#c4 ,any am.t transf]r$ \ (! tru/ a3.t
  =! use & b5efit (! lawy] m/ 2 9clud$ 9
  9come at ! "t ( s* transf] un.s a
  correspond+ am.t 9 respect (! same
  s]vices or 4burse;ts 0 report$ z 9come
  at "s previ\s "t4
#d4 ,4burse;ts on 2half (a cli5t : >e
  *>gea# directly 6funds adv.ed 0a
  cli5t1 or wd 2 s *>gea# if s* funds _h
  be5 adv.ed1 >e ess5ti,y exp5ditures (!
  cli5t & >e n deducti# 0! lawy]4
  ,examples ( s* 4burse;ts t may 2 made
  on 2half ( cli5ts 9clude am.ts adv.ed
  6-plete a r1l e/ate transac;n or an
  9ve/;t
--------------------------------------#b
  transac;n1 am.ts adv.ed 6meet bail1
  am.ts adv.ed 6pay 9corpor,n fees1 etc4
#e4 ,simil>ly1 4burse;ts : >e prop]ly
  *>gea# 6! cli5t "u ! t]ms ( an agree;t
  7see #b abv7 7s* z travell+ exp5ses71
  >e norm,y *>g$ directly 6! tru/ a3.t4
  ,if s *>g$1 ! lawy]'s a3.t is n
  a6ect$4 ,if a 4burse;t made on      #c
              ,,it-#abi;,r           a#b
  2half (a cli5t f :om an adv.e is rcvd
  is n s *>g$ 9 circum/.es ": x is
  r1sona# 63sid] t ev5tu,y ! lawy] c
  leg,y )draw f ! tru/ fund an am.t
  equal 6! am.t (! 4burse;t1 no am.t is
  deducti# 0! lawy] = tax purposes 9
  respect (! 4burse;t4
#f4 ,4burse;ts t a lawy] cu/om>ily makes
  9 ! ord9>y c\rse ( practice : >e n
  *>gea# directly 6funds adv.ed 0cli5ts
  >e 3sid]$ 6be ! lawy]'s [n exp5ses :
  may or may n 2 recov]a# f ! cli5ts "?
  regul> bill+s4 ,3sequ5tly1 s* exp5ses
  (a busi;s nature 9curr$ 9 a tax,n ye>
  >e deducti# 9 -put+ 9come = t ye> =
  9come tax purposes un.s ! lawy] *ooses
  6def] s* exp5ses t relate 6"w 9
  progress4





                                      #d
         ,9t]e/ on ,tru/ ,a3.ts      b#b
    
#g4 ,9t]e/ on tru/ a3.ts :1 0prov9cial
  law1 is requir$ 6be pd 6a law society
  or b> associ,n or "s f.d,n or fund
  relat$ "!to is n taxa#4
#h4 ,": no s* law is applica# & no
  >range;t 6! 3tr>y exi/s 2t ! lawy] &
  cli5t1 9t]e/ cr$it$ on a tru/ a3.t 6:
  ! cli5t's adv.es h be5 deposit$ 2l;gs
  b5efici,y 6! cli5t2 "!=e ! 9t]e/ is
  9come (! cli5t & n (! lawy]4
#i4 ,if "! is a specific agree;t 2t !
  lawy] & cli5t t ! 9t]e/ cr$it$ 6a
  "picul> tru/ a3.t a3rues 6! lawy]'s [n
  use & b5efit1 !n ! 9t]e/ is 9come (!
  lawy] at ! "t :5 x is cr$it$ 6! a3.t4

     ,9t]e/ on ,funds ( ,litigants
    
#aj4 ,": funds deposit$ )a lawy] 0a
  litigant or litigants = safekeep+ &
  9ve/;t1 p5d+ a c\rt ord] or settle;t
  e/abli%+ _! prop] 4posi;n1 e>n 9come !
  ,de"p;t 3sid]s s* 9come 6be 9come   #e
              ,,it-#abi;,r           c#b
  (a tru/ & recognizes t ! b5eficial [n]
  is ! ev5tual recipi5t (! funds4 ,"!=e1
  3di;nal ^u waiv]s 2+ fil$ 0ea* (!
  litigants &! lawy]-tru/ee =! relevant
  tax,n ye>s1 ! ,de"p;t w def] assess;t
  (! 9come until ! recipi5t is f9,y
  det]m9$4 7,ref] 6,9=m,n ,circul>
  #ge-g;,r#c1 p>agraph #e74















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