Billed-basis accounting update

  • September 13, 2017

On September 8, 2017, the government released its draft legislation to implement changes to billed-basis accounting for work in progress.  The Canadian Bar Association welcomes the news that the proposal reflects a longer coming-into-force period, where the BBA measure would now be phased in over a five-year period – as opposed to only two years.

This news, along with earlier guidance from the Canada Revenue Agency that the proposed changes would not have any impact on contingency fee arrangements, are improvements over the original proposal – a great win for the CBA. 

The CBA is still concerned that the BBA proposal may inadvertently reduce access to justice by making it harder for lawyers to take on work for Canadians who cannot afford to pay the lawyer until the matter is resolved. As the legislation winds its way through the parliamentary process, the CBA will continue to seek more clarity on the application of the CRA guidance to deferred fee arrangements.