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LAW OFFICE MANAGEMENT "I think lawyers are going to have some difficulty in implementing it, especially small law firms that provide services to clients outside the province." — CYNDEE TODGHAM CHERNIAK, LANG MICHENER LLP per cent to the cost of legal services in Ontario and this could place a huge burden on people who are inescapably caught up in litigation that will suddenly cost them thousands of dollars more. "I don't think clients fully understand what's coming," he says, adding that he intends to spell out implications of the new tax in all retainer discussions and contact existing clients to provide them with explanations. "Of course, they're going to be unhappy about it, but I think they'll be resigned to it," he says. Similar concerns have not arisen in B.C., since the province already imposes a seven-per-cent provincial sales tax on legal services. In fact, Barnett says, many law firms in the province welcome the switch to HST because the old system puts them at a competitive disadvantage with accountants and other consultants who do not have to charge the PST. Where law firms will likely run into difficulties is when they have to grap- ple with the complexities involved in the "place-of-supply rules," which were out- lined in a Canada Revenue Agency tech- Visit cra-arc.gc.ca/E/pub/gm/ b-103/b-103-e.pdf to read the Canada Revenue Agency's HST bulletin. For more information and updates on the HST, read Cyndee Todgham Cherniak's blog at thehstblog.com. nical bulletin in February, but still subject to further revision. As recently as the last week in April, just days before law firms and other businesses were required to start collecting HST (for payments on contracts for work to be completed after July 1), Barnett and Todgham Cherniak were still waiting to see the statutory provisions or regulations that would set out these rules in a detailed final form and, as Barnett puts it, "put flesh on the bones." "It's very frustrating for lawyers in order to advise clients, but also in order to implement it for law firms," says Todgham Cherniak, referring to the delay in finalizing the rules and the con- sequent lack of lead time for figuring out how to apply them. E-DISCOVERY QUIZ Protecting Privacy in Electronically Stored Information The protection of personal information is a well-known concept in Canada. However, protecting private information can be more difficult with electronically stored information (ESI). Applied Discovery tests your knowledge on this important issue. 1 2 3 4 22 JUNE 2010 www. C ANADIAN Law ye rmag.com pr T About Applied rue otecting or The Discovery T client rue use private client or your Y our of False? private vendors personal pr When T company rue operty T rules. rue private pr When information.eceived eceived r False? and a r has False? court sophisticated information. or issued ESI . collecting or information False? do oducing since ESI computers, not you a or court der or in a the legal information pr laptops, to have and , der electr you to do pr not onic tools oduce have can worry PDAs oceeding, is being do you pr not because about to documents worry assist employee the about your as a oduced to need pursuant computers pr client non-party otecting in . private worry By about to information ar e any Since the pr court O'Donnell otecting Crystal company on in audits, investigations, and litigation. For mor Applied Discover processing, r eview See page 53 for answers. y is a worldwide electronic discovervices for law fir , and production ser e infor ms, corporations, and gover mation visit www y leader that offers multi-national collection, analytics, .AppliedDiscover nmental entities engaged y .com.