Canada: Cassels Brock Federal Budget Brief 2013

Published: 03/21/2013

The following is a summary of certain fundamental tax measures contained in the Canadian federal government's budget released on March 21, 2013.


Budget 2013 contains several proposals relevant to the mining and energy sectors, some of which will be welcome by certain taxpayers while other changes may have adverse implications to taxpayers incurring pre-production expenses and making investments in new mines and mine expansion.

Flow-Through Shares: Extension of the Mineral Exploration Tax Credit ("METC")

Flow-through shares provide a major source of new capital to junior mining companies.  These shares are attractive to investors for various reasons, including (i) the ability to deduct at the investor-level certain exploration expenses incurred by the issuing corporation; and (ii) the ability in certain circumstances to claim a special 15% METC in respect of the investment in the share. The existing METC is scheduled to expire on March 31, 2013; however, consistent with the past several federal budgets, Budget 2013 proposes to extend the 15% METC for an additional year, until March 31, 2014. Otherwise, flow-through shares are unaffected by Budget 2013.

Expansion of Accelerated Capital Cost Allowance ("CCA") for Clean Energy

Several proposals have been introduced by the Department of Finance ("Finance") over the past few years to provide a tax incentive for investment in clean energy generation equipment, including wind and solar equipment.  These incentives are in the form of rapid deductions for CCA in respect of the cost of the equipment (50% deduction on a declining balance basis).  Budget 2013 proposes to expand the existing category of eligible assets to include certain biomass production equipment and associated cleaning and upgrading equipment.

Phase-out of Accelerated CCA for Certain Mining Expenses

Budget 2013 proposes to phase-out certain preferential CCA deduction rates in respect of the cost of capital assets (i.e., machinery, equipment and structures) used in new mines and major mine expansions.

Natural resource companies, including mining and oil and gas companies, are currently entitled to claim capital cost allowance deductions in respect of most capital assets at a 25% declining-balance basis. Mining companies are entitled to an additional accelerated CCA in respect of capital assets used in new mines or certain mine expansions. Budget 2013 proposes to phase-out this accelerated CCA over the 2017-2020 taxation years, which in the view of Finance will better align the tax regimes of the mining sector with those applicable to other natural resource sectors (i.e., oil and gas).

Both this measure and the proposed phase-out of preferential deductions for pre-production expenses (discussed below) will apply to expenses incurred on or after March 21, 2013, subject to certain exceptions. Accordingly, taxpayers in the mining sector should closely review the types of expenses that will be subject to this phasing out and determine whether any such expenses may qualify for certain limited grandfathering.

Phase-out of Preferential Deductions for Pre-Production Mine Development

Budget 2013 proposes to phase-out preferential deduction rates in respect of pre-production mine development expenses (i.e., intangible expenses for removing overburden or sinking a mine shaft) that are incurred for the purpose of bringing a new mine for a mineral resource located in Canada into production.

Such expenses are currently treated as Canadian exploration expense ("CEE") and may be deducted in full in the year incurred or carried forward indefinitely for use in future years.  This is to be contrasted with similar expenses incurred after a mine comes into production, which are treated as Canadian development expense ("CDE") and are deductible at a much less favourable rate of 30% per year on a declining-balance basis.

Budget 2013 proposes to recharacterize such expenses as CDE instead of CEE (phased-in over the 2014 to 2017 taxation years), resulting in the loss of the favourable 100% deduction in the year the expenses are incurred and a migration over to the less-favourable 30% deduction regime. As with the phase-out of preferential depreciation rates for certain mining expenses (discussed above), Finance considers this measure as better aligning the tax treatment available across the natural resources sector. 


Synthetic Dispositions

A synthetic disposition is an arrangement under which a taxpayer economically disposes of a property but retains ownership of the property. The arrangement may be designed to alienate property without triggering the income tax consequences that would result from a disposition.

In a somewhat unexpected move, Budget 2013 proposes that agreements and arrangements entered into by a taxpayer that have the effect of eliminating all or substantially all of the taxpayer's risk or loss and opportunity for gain or profit in respect of the property for a period of more than one year, will give rise to a deemed disposition of the property by the taxpayer at fair market value and a deemed reacquisition of the property at that same amount. Despite the deemed reacquisition of the property, the taxpayer would not be regarded as being the owner of the property for certain holding period tests relating to stop-loss rules and foreign tax credits. The taxpayer would re-commence to be regarded as the owner of the property when all or substantially all the risk of loss/opportunity for profit ceases to lie with someone other than the taxpayer.  The proposal can extend to agreements and arrangements entered into by persons or partnerships not dealing at arm's length with the taxpayer, where it may reasonably be considered to have been entered into with the purpose of eliminating the taxpayer's risk of loss/opportunity for profit.

The proposal is quite broad and, according to Finance, could apply to certain forward sales of property, put-call collars and certain indebtedness that is exchangeable for property. There is no discussion in the Budget materials concerning the potential application of this proposal to exchangeable share arrangements, which have been widely used in the market. Also, there is no mention of the potential application of these rules to convertible debentures, which presumably should not be within the ambit of these proposed rules. The proposal is generally not intended to apply to hedging transactions, ordinary securities lending arrangements or ordinary commercial leasing transactions.

The proposal is to apply to agreements and arrangements entered into on or after March 21, 2013, as well as agreements and arrangements entered into before that date, the term of which is extended on or after that date.

Character Conversion Transactions

A character conversion transaction is designed to reduce income tax by converting what would otherwise be ordinary income into a capital gain, only half of which is included in taxable income.  The transaction involves an agreement to purchase or sell a capital property in the future at a price determined by reference to a derivative, often a portfolio of investments.  If a taxpayer invested in the derivative directly, the return would generally be included as fully-taxable income rather than a capital gain.

Budget 2013 proposes to treat the return (or loss) under such an arrangement as being on income account, distinct from the disposition of the particular capital property.  Changes would be made to the adjusted cost base rules, to avoid double taxation in respect of the particular capital property.  The measure would apply to all such agreements that have a duration of more than 180 days, entered into on or after March 21, 2013, as well as agreements entered into before that date, the term of which is extended on or after that date.

Anti-Loss Trading

Budget 2013 proposes to introduce rules prohibiting "loss trading" transactions that circumvent the existing "loss streaming" rules that are triggered on the acquisition of control of a corporation having net operating losses.

"Loss trading" transactions have been a hot topic for several years. Tax attributes such as losses and credits are not assets that can be directly bought and sold.  Moreover, the Income Tax Act (Canada) ("ITA") significantly limits the use by a corporation (or its successor as a result of a wind-up or amalgamation) of its non-capital losses (i.e., business losses) after the loss corporation experiences an acquisition of control.  For this purpose, an acquisition of control is triggered generally upon the acquisition by a person of shares carrying the right to elect the majority of the board of directors. Accordingly, transaction structures have developed to allow a profitable corporation to effectively benefit from the losses of another corporation without triggering a legal acquisition of control of the loss corporation. These structures generally involve some combination of the assets of the profitable and loss corporations and the acquisition by the profitable corporation of a non-controlling block of shares in the loss corporation; however, the profitable corporation will obtain an economic interest in the loss corporation that is often significantly greater than 50%. While such structures were initially considered by the Canada Revenue Agency ("CRA") to not offend the "general anti-avoidance rule" ("GAAR") in section 245 of the ITA (see, e.g., the "Hemosol" Advance Tax Rulings in 2003 and 2004), there has subsequently been significant criticism from the Canadian government, including the Auditor General.  Accordingly, there has been some measure of risk that such transactions may be attacked by the CRA under the GAAR. 

Budget 2013 will make it much more difficult to implement such transactions by proposing to deem an acquisition of control of the loss company where a person has acquired more than 75% of the fair market value of the shares of the loss corporation regardless of the voting control of such shares. Accordingly, the CRA would not need to consider, or rely upon, the application of the GAAR when assessing loss trading transactions that fall within the ambit of this proposed rule. It is interesting to note that a measure designed to combat the abuse of a bright-line test (i.e., the threshold for a legal acquisition of control) itself introduces a new bright-line test (i.e., 75% of the fair market value of the shares of the loss company).

This measure will apply to acquisitions of shares that occur after March 21, 2013, subject to limited exceptions.

Trust Loss Trading

As discussed above, the ITA contains restrictions on the trading of losses between arm's length corporations.  Budget 2013 proposes to extend these rules to trusts to combat arrangements under which a person would (i) acquire an interest in the trust with unused losses, (ii) transfer an income-producing property to the trust, and (iii) use the trust's losses to offset the income from the property.  This may be relevant to certain income trust conversion transactions. The new measure would apply where a trust is subject to a "loss restriction event", being the acquisition by a person or partnership of a beneficial interest in the trust having a fair market value greater than 50% of all the beneficial interests in the trust.  This measure, which is not anticipated to impact family trust structures, will be effective for transactions that occur on or after March 21, 2013, other than transactions that the parties are obligated to complete pursuant to a written agreement concluded before that date.

Extension of Accelerated CCA for Manufacturing Equipment

Prior Budgets introduced an accelerated CCA rule for machinery and equipment acquired between 2007 and 2014, for use primarily in Canada for the manufacturing or processing of goods for sale or lease.  Budget 2013 proposes to extend this measure to such equipment acquired in 2014 or 2015, thus extending the 50%, straight-line CCA rate for another two years.

Corporate Group Consolidation

In prior years, Finance had indicated that it was reviewing whether the introduction of a formal group consolidation regime (similar to what has been adopted in other countries such as the United States) should be introduced into the Canadian corporate tax landscape.  The general benefit of consolidation is the ability to apply the losses of one corporate group member against the profits of another, without the need to enter into complex inter-company loss or profit-shifting transactions.

Budget 2013 confirms that corporate group consolidation is not something that we should expect to see in the near future. After a lengthy consultation process with various members of the tax and business communities, it appears that group consolidation "is not a priority at this time".  This does not come as a surprise since the issue of group consolidation regularly surfaces from time to time and no consensus concerning an efficient means of implementing such system in Canada has yet emerged.


Thin Capitalization – Extended Application to Trusts and Branches

Budget 2013 proposes to extend the scope of Canada's thin capitalization rules and, as a result, non-residents that hold Canadian businesses or investments through a trust or non-resident corporation will need to review the potential thin capitalization implications to new and existing indebtedness.

Canada's thin capitalization regime generally restricts the amount of interest expense that a Canadian corporation can deduct on debt owed to a "specified non-resident shareholder" as defined in the ITA. As a result of changes made in 2012, similar rules would apply to a partnership of which a Canadian-resident corporation is a partner. Generally, if the ratio of such debt as compared to certain "equity" of the corporation exceeds a ratio of 1.5:1, the corporation will be denied an interest deduction in respect of the excess and will be deemed to have paid a dividend subject to Canadian withholding tax.

Many changes were made to the thin capitalization regime in 2012 on the basis of recommendations by the 2008 Advisory Panel on Canada's System of International Taxation. Budget 2013 seeks to further implement the recommendations of the Advisory Panel, notably to extend the application of the thin capitalization rules to Canadian-resident trusts and non-resident corporations and trusts that operate in Canada.  These have long been perceived as deficiencies in the thin capitalization rules that, in certain cases, may influence the manner through which non-residents seek to hold businesses or investments in Canada. For example, there may be a tax benefit for a corporation resident in a low-tax jurisdiction to highly leverage a non-resident trust or another non-resident corporation to acquire Canadian real estate. Rather than be subject to high Canadian withholding tax rates on its rental income, the entity holding the Canadian real estate could elect to pay Canadian tax on its income but could reduce its income significantly through large interest deductions that are not currently subject to any thin capitalization restrictions.  In contrast, if the real estate was held through a Canadian corporation, the corporation would be limited in the amount of interest-bearing debt that it could issue to its non-resident parent. 

The determination of the thin capitalization threshold and the implications of exceeding such threshold by a Canadian-resident trust, a non-resident trust or a non-resident corporation are unique and must be carefully considered on a case-by-case basis. For example, a branch of a non-resident corporation will need to monitor its "debt-to-asset" ratio (which must be kept within a new 3-to-5 ratio) and must be aware of potential Canadian branch tax implications to any denied interest expense. Moreover, a Canadian-resident trust may be able to designate to treat the denied interest payment as a payment of income to a non-resident beneficiary, subject to Canadian withholding tax and potentially an additional tax under Part XII.2 of the ITA.

These proposals will apply to taxation years beginning after 2013 and there is no grandfathering of existing indebtedness. Accordingly, non-residents that may be affected by these proposals must evaluate their existing structures and determine if any reorganization or recapitalization may be required.

Budget 2013 does not propose to extend the thin capitalization rules to inter-company guarantees, which has previously been raised as a potential issue.

Non-Resident Trusts – Deemed Residency

Canada has complex tax rules (and proposed rules) that operate to deem a non-resident trust to be a resident of Canada in certain circumstances, including where a resident of Canada has made a "contribution" to the trust. Other rules will attribute income from a trust to a person if the trust's property may revert to that person or the person effectively controls the trust's dealings with the property. Recent case law (Sommerer v. the Queen, 2012 FCA 207) confirms that this latter attribution rule will not apply if a Canadian resident beneficiary sells property to a non-resident trust for fair market value consideration, even if the property may ultimately revert to that person.

Finance considers the result in Sommerer to be contrary to the "intended tax policy" of the ITA.  Budget 2013 therefore contains a provision that will amend the rules in section 94 of the ITA and deem a trust to be resident in Canada (and therefore taxable in Canada) generally where a Canadian resident sells property at fair market value to the trust and retains some measure of "effective ownership" over the property.

This proposal will apply to taxation years ending on or after March 21, 2013 and may have far-reaching effects that should be considered by any Canadian resident that has, or is contemplating, a sale of property to a non-resident trust.

Treaty Shopping

"Treaty shopping" is a term commonly used by tax authorities to describe international investment that is structured by a resident of Country A into Country B indirectly through an entity in Country C and that results in the availability of benefits under a tax treaty between Countries B and C that would not have been available between Countries A and B. The CRA has made several varied attempts to judicially challenge perceived "treaty shopping" (see, e.g., MIL (Investments) SA, 2006 TCC 460; aff'd. 2007 FCA 236; Prévost Car, Inc. 2008 TCC 231, aff'd 2009 FCA 57; Velcro Canada, 2012 TCC 57); however, the courts have not been receptive to the CRA's arguments, leaving the CRA in a position where it may have little judicial, statutory or treaty-based means of challenging such situations.

Budget 2013 does not introduce any formal measure designed to curtail "treaty shopping"; however, the Budget materials provide that Finance intends to release a consultation paper concerning potential measures.  This will be an interesting consultation process, as the topics of "treaty shopping", treaty abuse, beneficial ownership, limitation on benefits, etc., have produced varied international responses and opinion.


Rewarding Whistleblowers

In a surprising move, Budget 2013 will introduce a program to permit the compensation of persons who "tip" the authorities to international tax non-compliance resulting in assessments exceeding $100,000 in federal tax. The program will provide for "rewards" of up to 15% of the tax collected. To be eligible to collect the reward, the person providing the information will have to satisfy "program criteria" which are not clearly defined. The CRA will announce further details on the program.

Extended Reassessment Periods – Tax Shelters and Reportable Transactions

The tax rules require certain filings in respect of tax shelters and certain reportable transactions.  The tax benefits flowing from participation in those transactions are generally not recognized until the filings are made.  However, the normal reassessment period is not extended when a filing is made late or not at all.  Commencing with taxation years that end after March 21, 2013, Budget 2013 proposes to extend the normal reassessment period to three years after the date the required information return is filed.

Accelerated Tax Collection – Charitable Donation Tax Shelters

Where a taxpayer objects to or appeals from an assessment that disallows a charitable donation deduction or credit, the CRA is generally prohibited from taking collection action until after the dispute is resolved.  In an effort to discourage participation in charitable donation tax shelter schemes, commencing with assessments for 2013 the Budget would permit the CRA to take action to collect 50% of the disputed tax, interest and penalties.

SR&ED Program Compliance

Budget 2013 proposes to require greater information about an SR&ED claimant's third-party SR&ED tax preparers, including the third-party's CRA business number and details regarding the billing arrangements, including the amount of the fees and whether contingency fees were involved.  In addition, Budget 2013 proposes a new penalty of $1,000 for each incomplete or inaccurate SR&ED claim. 

Reporting of Electronic Funds Transfers

Budget 2013 proposes to introduce a measure to require financial intermediaries such as banks to report clients' international electronic fund transfers of $10,000 or more.

Demands for Information and Foreign Reporting

Budget 2013 proposes to streamline the process relating to third-party demands for information, as well as revisions to the foreign property reporting required of taxpayers.  Further, the normal reassessment period would be extended for taxpayers who fail to report income from a specified foreign property and fail to file the required form.


Lifetime Capital Gains Exemption Increased and Indexed

Currently the ITA exempts from tax capital gains of up to $750,000 on the disposition of "qualified small business corporation shares" and "qualified farm property".  Effective as of 2014, Budget 2013 proposes that the exemption be increased by $50,000 to $800,000 and be indexed to the rate of inflation commencing in 2015.

Dividend Tax Credit Changes

Income earned through a corporation and then distributed to shareholders as a dividend is taxed at both the corporate and personal levels.  The dividend gross-up and tax credit mechanisms are intended to equate the amount of corporate and personal tax paid on dividends with the amount of tax an individual would have paid if the individual earned the income directly.  There are two gross-up and tax credit factors, depending on whether the corporation paid tax at the general rate (eligible dividends) or the preferred rate applicable to certain active business income (non-eligible dividends).  Budget 2013 proposes to adjust the gross-up and tax credit mechanisms for non-eligible dividends, on the basis that the current mechanism overcompensates individual shareholders.  The adjustments will have the effect of increasing the rate of federal tax on such dividends from 19.58% to 21.22%.


Restricted Farm Losses

For taxpayers that do not have farming as their chief source of income are limited by the restricted farm loss ("RFL") rules to claiming an annual maximum deduction for farm losses of $8,750.  Budget 2013 proposes to overturn the Supreme Court of Canada's ruling in The Queen v. Craig, 2012 SCC 43, by codifying that the "chief source of income" test requires that all of a taxpayer's other sources of income must be subordinate to farming. For example, a taxpayer whose chief source of income is professional services but that also carries on a secondary farming business would be subject to the RFL rules in respect of losses from the farming business.

Charitable Donation Tax Credit

Budget 2013 proposes to introduce an enhanced charitable donation tax credit for donors who have not claimed the credit since 2008.  The "First-Time Donor's Super Credit" will provide a tax federal credit of 40% for cash donations up to $200 and a 54% federal credit for donations in excess of $200 but not exceeding $1,000.

Labour-Sponsored Venture Capital Corporation ("LSVCC") Tax Credit Phase Out

The LSVCC tax credit presently provides a 15% tax credit to individuals who invest in up to $5,000 worth of shares of a LSVCC, providing tax relief of up to $750.  In light of other sources of venture-capital funding, Budget 2013 proposes to phase out the credit.  The credit will be reduced to 10% for 2015, 5% for 2016 and eliminated as of 2017.

Graduated Rates for Testamentary Trusts – Consultation

Budget 2013 announces the intention to initiate consultations on the elimination of graduated tax rates for testamentary trusts and certain inter vivos trusts.  The government is concerned with fairness in relation to the treatment of inter vivos trusts, which pay tax at the highest marginal rate, as well as with an increased use of multiple testamentary trusts.

Withholding of GST/HST Refunds

Budget 2013 would permit the withholding of  GST/HST refund payments where the claimant has failed to provide information required as part of the GST/HST registration process.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

In association with
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:
  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.
  • Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.
    If you do not want us to provide your name and email address you may opt out by clicking here
    If you do not wish to receive any future announcements of products and services offered by Mondaq you may opt out by clicking here

    Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

    Use of

    You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


    Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

    The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


    Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

    • To allow you to personalize the Mondaq websites you are visiting.
    • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
    • To produce demographic feedback for our information providers who provide information free for your use.

    Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

    Information Collection and Use

    We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

    We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

    Mondaq News Alerts

    In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


    A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

    Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

    Log Files

    We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


    This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

    Surveys & Contests

    From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


    If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


    From time to time Mondaq may send you emails promoting Mondaq services including new services. You may opt out of receiving such emails by clicking below.

    *** If you do not wish to receive any future announcements of services offered by Mondaq you may opt out by clicking here .


    This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

    Correcting/Updating Personal Information

    If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

    Notification of Changes

    If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

    How to contact Mondaq

    You can contact us with comments or queries at

    If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.

    By clicking Register you state you have read and agree to our Terms and Conditions