The Law Blog

I often get calls from counsel from other provinces about the workings of Manitoba land transfer tax. The requirement to pay land transfer tax in Manitoba arises out of Part III of The Tax Administration and Miscellaneous Taxes Act. The tax is exigible on the registration of a transfer at a Land Titles Office (LTO). The LTO is made the agent of the Crown for purposes of collecting and remitting that tax.

Farmers in Manitoba are not like other debtors. They have special legislative protection which is intended to prevent creditors from seizing and selling farm land without giving the farmer a reasonable opportunity to repay the debt. Creditors who seek to enforce security against farmer must take a number of extra steps before they can proceed. If a creditor fails to follow the proper procedures, any action taken by the creditor to enforce its security will be void.

With rare exceptions, mortgage foreclosure and sale proceedings are handled by way of an administrative process through the Land Titles office rather than a court action. There are a number of cases where the a court application may be required in connection with a mortgage foreclosure and sale proceeding.

The due diligence stage is an essential element to a successful commercial transaction.

When purchasing a business the due diligence stage allows the buyer to assess the value of the business and to verify the information pertaining to the business in order to determine whether to proceed with the purchase. The due diligence period also permits the buyer to determine if there are any barriers or risks associated with the transaction. Accordingly, the transaction is usually conditional upon the due diligence stage being completed.

More and more Canadian charities are finding it necessary to carry on some type of business activity to generate additional revenues to support their charitable purposes. But the Canada Revenue Agency (CRA) takes a narrow view of the types of business activities that may be carried on by registered charities without putting their charitable status at risk.