Tax & Trade Blog

The Ontario Court of Appeal (the “OCA”) has recently upheld (Sims Professional Corporation v. Cooke, 2024 ONCA 388) a non-competition clause, and in the process confirmed several important points about the Court’s approach to reviewing such clauses. 

This is good news for the direct selling industry and signals that properly drafted non-compete clauses with independent contractors can be upheld in Canada.  However, each company’s clauses should be considered in the context of the Court’s approach, as enforceability can depend on the details. 

On June 1, 2022, Quebec’s Bill 96 amended the Charter of the French Language (the “French Charter”) to include changes to the use of English trademarks on product packaging.  Effective June 1, 2025, a registered trademark is generally exempt from the French language requirements (meaning it does not have to be in French).

While this largely codifies existing jurisprudence, accompanying amendments to the Regulation respecting the language of commerce and business (the “Regulation Amendments”) will require additional French wording in some cases, also effective June 1, 2025.

A T4A slip is an essential Canadian tax form that businesses must issue to contractors and other self-employed individuals when payments are made for services rendered within Canada.

For Direct Selling businesses, properly issuing T4A slips and understanding withholding requirements are crucial for ensuring smooth, efficient operations and compliance with the Canada Revenue Agency (“CRA”).

As we have blogged about here, in the world of “natural health products” (“NHPs”), the ability to import unlicensed products into Canada for personal use — colloquially known in the industry as “Not for Resale” (“NFR”) — is a hot topic for direct sellers.  Businesses need to understand the specific and narrow administrative policies which allow for these importations, so they do not draw the ire, and enforcement actions, of Health Canada!