Canadian Lawyer InHouse

29 cANAdIANlAwyermAg.com/INhouse DECEmBEr 2014 deals are still going through. Some of the survivors, like Tim Hortons and Burger King, were motivated by more than just tax considerations, says Gilman. But even some of the deals that were heavily influenced by tax avoidance are still moving forward. "As long as you can qualify for the inver- sion under the 80 per cent test and deal with not having a hopscotch loan, you can still do it," says Gilman. According to Gilman, inversions are merely a symptom — the U.S. tax system is the disease. "The U.S. Treasury needs to deal with this from an economic perspective and try to get the U.S. tax code in line with the global tax scheme," he says. But it's unlikely that will happen any time soon. "The President can't get anything done and Congress is unwilling to compromise. It's a shame," says Gilman. "You need tax reform, you need to find a way to get the trillions of dollars that is sitting overseas back to invest in the United States." And it's not just the American tax system that needs fixing. "On a global basis, corporate tax struc- tures grew up in the early 20 th century, where you were more of a global manufac- turing economy," says Berg. "Whereas now so much of the core of productivity is based on intellectual property." Inversions have been especially enticing for companies that depend on intellectual property for their profits, like pharmaceuti- cals and medical device manufacturers. "It's hard to move manufacturing plants around the world, but it's easy to move intel- lectual property," says Berg. Many of the European jurisdictions that are popular with inverting companies have extremely generous tax treaties when it comes to patent rights. Berg does see some hopeful signs. "There is a very strong shift towards transparency and towards eliminating these creative ways to structure international business through existing treaty networks and through preferential tax treatment," he says. Ireland recently announced it would no longer allow the so-called "double Irish" arrangement, which allowed many compa- nies to effectively pay no tax on income from intellectual property and royalties. The Organisation for Economic Co-op- eration and Development, the European Commission, and the U.S. government have all begun to apply pressure on tax havens like Switzerland and Luxembourg. And public outrage is forcing companies like Apple, Starbucks, and Google to openly defend their tax positions. "The people who are playing really aggressive are going to have to do so in the light of day where public pressure is always Under what circumstances can an employer terminate an employee for cause? Gain a clear understanding of the types of behaviours that can constitute just cause for dismissal in You're Fired! Just Cause for Dismissal in Canada. You're Fired! Just Cause for Dismissal in Canada Stuart E. Rudner Order # 982890-65203 $299 2 volume looseleaf supplemented book + CD-ROM 1-3 supplements per year Supplements invoiced separately 978-0-7798-2890-6 Shipping and handling are extra. Price(s) subject to change without notice and subject to applicable taxes. 00223HZ-A46338 Available risk-free for 30 days Order online: www.carswell.com Call Toll-Free: 1-800-387-5164 In Toronto: 416-609-3800 This practical and easy-to-read reference tool combines a thorough review of the law with a searchable CD-ROM of case summaries. When considering an employee's particular circumstance, you can quickly refer to previously considered allegations of just cause for dismissal. Experience the Benefits If you are involved in the discipline and dismissal of workers, you will find a wealth of expert commentary and practical guidance in this title. It will help you: • Understand what is – and what isn't – just cause for dismissal • See how the courts have treated comparable or similar cases • Understand the requirements for conducting investigations prior to dismissal • Avoid breaching human rights legislation • Update company policies and procedures regarding discipline and dismissal to limit potential liability What is – and what isn't – just cause for dismissal going to be greater," says Berg. "We are in the midst of a paradigm shift where a lot of our legal and tax infrastructure has at least one foot, if not two, in the 20 th century." But unless there is a major overhaul of the American and global tax systems, foreign earnings will remain stashed abroad, inversions will likely continue, and U.S. authorities and multinational corporations will keep playing their game of international hide-and-seek. IH

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