Ontario law firm obligations: trust accounts (By-Law 9), PIPEDA and HST

This article is for law firms in Ontario. The Law Society of Ontario governs trust accounts under By-Law 9. The private sector is subject to PIPEDA; legal services billing uses HST. Here are the obligations and how PragmaLegal helps.

1. Law Society of Ontario and By-Law 9 (trust accounts)

Lawyers and paralegals who operate trust accounts must comply with By-Law 9: trust funds belong to clients and must not be commingled with operating funds. Account types: mixed trust account(interest to Law Foundation of Ontario), SIBA(interest-bearing for one client), e-reg trust account for electronic registrations. You must inform the Law Society in writing when opening or closing an account and maintain proper documentation and reconciliations.

2. Privacy: PIPEDA

In Ontario, the private sector (including law firms) is subject to PIPEDA. Centralizing data in a secure environment with access controls and an audit trail is part of expected best practices.

3. Billing: HST in Ontario

Taxable legal services in Ontario are subject to HST (13%). You must issue compliant invoices and track amounts to remit to the CRA. An integrated tool simplifies calculation and reporting.

4. How PragmaLegal helps Ontario lawyers

PragmaLegal lets you:

• Manage trust accounts with detailed registers that comply with By-Law 9 (mixed, SIBA, reconciliations).
• Centralize files and personal data (PIPEDA compliance).
• Bill HST correctly with reports for the CRA.