Blog

Case summaries and commentary on Canadian tax law, including the archive formerly published at IncomeTaxAct.ca.

The IncomeTaxAct.ca archive is moving to Pariz

Case summaries previously published at IncomeTaxAct.ca are being republished here, linked to the annotated Income Tax Act in the Pariz tax wiki.

Moving Expense of Employees - CRA Officer v CRA

2014 TCC 24

Moving Expenses of Employees - What is Deductible for Income Tax Purposes?

CRA's Access to Tax Accrual Working Papers

2017 FCA 61

The court began by outlining the type of information contained in TAWPs as:

Reasonableness of Business Expenses

2017 TCC 40

There are a number of hurdles to overcome before an expense is deductible for income tax purposes when determining profits of a business under the Income Tax Act. One hurdle is the limitation imposed by section 67 of the Act, requiring that the expense be reasonable.

Law Professional Corporations - Rights to Invoice

2016 TCC 281

This was a Rule 58 application (that was not granted). The application of Rule 58 to the facts are not novel. What is interesting about this case is the effect the outcome could have on professional corporations whose shareholders are related.

Eligibility for Foreign Tax Credits

2016 TCC 172

At issue was whether the taxpayer, who filed both Canadian and US tax returns by reason of being a Canadian resident and US citizen, was entitled to claim a foreign tax credit in respect of Canadian sources income.

Extension of Time to Appeal to Tax Court

2016 TCC 279

The taxpayers were reassessed to deny their claim for the principal residence exemption.

Notice Requirements for Hearsay Exceptions in Tax Trials

2016 FCA 313

At issue was the question of what constitutes notice under the Canada Evidence Act when seeking to rely on a statutory hearsay exception. This was an appeal from 2015 TCC 239.

Verification Duties To Claim Input Tax Credits

2016 TCC 289

Mandatory Requirements To Claim Input Tax Credits

Lending Money or Investing Money

2016 TCC 287

Lending Money or Investing Money - Deducting Losses When Funds Become Unrecoverable

Findings of Fact in Criminal or Civil Trials in Tax Court

2016 TCC 290

This was a preliminary motion in the nature of a voire dire. The matter before the Court was in relation to findings of fact in a criminal proceeding, under issue estoppel or abuse of process in the context of an acquittal.

Wagner v The Queen, 2012 TCC 8

2012 TCC 8

Identifying the Nature of Conversion Payments and Non-Competition Payments During

Difference Between Astute and Abusive Tax Avoidance

2016 TCC 288

The Court was asked to draw a line between permissible and impressible tax avoidance strategies. The correctness of the application of the General Anti-Avoidance Rule (GAAR) was at issue when applied (i) at the partnership level and (ii) at the holding corporation level.

Voluntary Dislosure

Voluntary Disclosure to the CRA

Discovery Questions in Tax Court Appeals - Proper and Relevant?

2016 TCC 286

One of the issues was the application of Tax Court of Canada Rules (General Procedure), Rules 107(3) and 95(1).

MNR v RBC Life Insurance Co, 2013 FCA 50

2013 FCA 50

Minister's Duty to Make Full Disclosure - Third Party Production Orders Pursuant to

Principles of Rectification in the Canadian Tax Context

2016 SCC 56

Principles of Rectification in the Canadian Tax Context

Rectification of Documents to Avoid Adverse Tax Consequences

2016 SCC 55

[companion case Canada (Attorney General) v. Fairmont Hotels Inc., 2016 SCC 56]

Accountants Cannot Keep Confidential Information of Clients from CRA

2016 FC 1322

KPMG sought to quash an order pursuant to subsection 231.2(3) of the Income Tax Act, requiring it to disclose confidential information relating to unnamed clients, including identities and tax documents.

Claiming Investment Tax Credits for SRED Expenditures

2016 FCA 301

Claiming Investment Tax Credits for SRED Expenditures

Estoppel to Bind Crown

2016 FC 1329

The factors giving rise to estoppel were set out by the Supreme Court of Canada in Canadian Superior Oil Ltd v Paddon-Hughes Development Co, [1970] SCR 932 at para 19:

Hayer v The Queen, 2012 TCC 392

2012 TCC 392

Cab Drivers vs Cab Owner: Employees or Contractors?

Instructors - Independent Contractor or Employee

2014 TCC 23

Assessing whether Instructors were Independent Contractors or Employees

Minhas v MNR, 2012 TCC 221

2012 TCC 221

Is an Employee Whose Spouse is a Shareholder of the Employer-Corporation Engaged in

Off-Shore Investments and Section 94.1 - Primary purposes test

2016 TCC 172

The Court permitted the appeal because it found that none of the taxpayer's main reasons for investing in the funds was to defer or avoid Canadian taxes. Rather, the reason was to preserve its capital and complement its investments in long equities.

Federal Court not Appropriate Venue to Challenge Decision to Assess

2016 FC 1292

The motivation behind the application is found in paragraph 18 and is evidentiary. The lawyer was concerned that, given the taxpayer's burden before the Tax Court of Canada, the fact that a

Canadian Currency Requirement When Computing Income

2016 FCA 130

The provisions giving rise to tax consequences in a particular case must be considered as part of determining when relevant amounts "arose" (para 75). This requires consideration of the interaction of the relevant private law instruments and the applicable provisions of the ITA.

Desgagné v The Queen, 2012 TCC 63

2012 TCC 63

Is the MNR Permitted to Adjust Balances for Statute-barred Years?

Sham Doctrine as Taxpayer Defence

2016 FCA 181

Sham Doctrine as Taxpayer Defence

New Principle Residence Exemption Income Tax Rules

New Principle Residence Exemption Income Tax Rules

Testamentary Trusts Treated As One by CRA

2016 TCC 263

Testamentary Trusts Treated As One by CRA

Importance of Best Evidence in Tax Appeals

2016 TCC 257

Importance of Best Evidence in Tax Appeals

Karn v The Queen, 2013 TCC 78

2013 TCC 78

Deduction of Tuition Fees as Medical Expenses

Anti-Avoidance Rule in Paragraph 95(6)(b) Clarified - Lehigh Cement

2014 FCA 103

Anti-Avoidance Rule in Paragraph 95(6)(b) Clarified

Canada v GalaxoSmithKline Inc., 2012 SCC 52

2012 SCC 52

Relevant Circumstances in Transfer Price Determinations - Consideration of Other

What is a Charitable 'Receipt'?

2016 TCC 182

What is a Charitable Receipt?

Claiming Input Tax Credits against GST/HST

2016 TCC 156

At issue was whether the taxpayer was able to claim input tax credits (ITCs) related to certain legal fees paid.

Cunningham v The Queen, 2012 TCC 279

2012 TCC 279

Claiming the Child Tax Benefit pursuant to ITA Section 118 - Differences Between

Disability Tax Credit - Ensuring that the Certificate is Correct

2014 TCC 264

[7] The relevant statutory requirements are:

Employee vs Contractor - Niagara Gorge Jet Boating

2013 TCC 261

Employee vs Contractor

Fraud and Deductions - Garber

2014 TCC 1

Fraud and Deductions

Lucarelli v The Queen, 2012 TCC 301

2012 TCC 301

Certification Requirement to Deduct Tuition for Schooling as a Medical Expense

Medical Expense Tax Credit - Cord Blood

2014 TCC 74

At issue was whether the processing and storage of cord blood was an eligible medical expense to allow for a credit pursuant to 118.2(1) of the Income Tax Act.

Noran West Developments Ltd v The Queen, 2012 TCC 434

2012 TCC 434

What Counts as a "waiver in writing"?

Proceeds of Disposition and Conditional Portion of Sales Price

2015 TCC 294

At issue was whether the conditional elements of determining a sales price for shares should be taken into account in determining what the Proceeds of Disposition are for purposes of Income Tax Act section 54.

Tax Advisor Penalties - Guindon

2015 SCC 41

Tax Advisor Penalties

Tax Court of Canada Rules 58 and 91

2016 FCA 233

Tax Court of Canada Rules 58 and 91

Taxation of Foreign Exchange Options

2016 FCA 186

Taxation of Foreign Exchange Options

GST - Definition of Coupon Bill Credit

2012 TCC 256

What is Needed to Make Sure a Coupon is a Coupon and a Rebate is a Rebate?

Triad Gestco Ltd v The Queen, 2012 FCA 258

2012 FCA 258

"Value Shifting" in Capital Gains Caught by GAAR

Who Pays Tax on What?

Who Pays Income Tax on What?

1392644 Ontario Ltd v MNR, 2013 FCA 85

2013 FCA 85

The Role of Mutual Intention in Characterizing Working Relations

Lawyers' Obligation under Privacy Act

2016 FC 1154

Lawyers' Obligations Under Privacy Act

Allott v The Queen, 2012 TCC 232

2012 TCC 232

Deductibility of Babysitting Fees Pursuant to Subsection 63(1) - What is Required and

Blackburn Radio Inc v The Queen, 2012 TCC 255

2012 TCC 255

Is a Nil Assessment an Assessment? When Can the Crown Rely on subsection 152(4.3) as a consequential reassessment? Does an out-of-time Reassessment Extend the Time

Capital Cost Allowance Limit Leasing Business

2015 TCC 271

Capital Cost Allowance Limit: Leasing Business OR Income From Property?

Caropresco v The Queen, 2012 TCC 212

2012 TCC 212

What is the Nature of Payments Made to Post-Doctoral Fellows, and When Are They

Child Tax Credits Where Both Making Support Payments

2016 TCC 225

Child Tax Credits Where Both Making Support Payments

Commissioned Sales Employee Deductible Expenses

2014 TCC 280

The court had to determine whether expenses claimed by the taxpayer were deductible as employment expenses, and allowed some of the expenses.

Correct Forum - Tax Court vs Court of Appeal

2016 FCA 252

Correct Forum - Tax Court vs Court of Appeal

Cost Orders and Test Cases?

2016 TCC 161

Cost Orders and Test Cases?

What Counts as Qualified Farm Property

2014 TCC 250

What Counts as Qualified Farm Property for purposes of the Farming Capital Gains

Currency Hedging - Gains Capital or Income?

2015 TCC 42

The Appellant took the position that this gain was on account of capital and only half included in income. The respondent took the position that the gain was on account of income and, therefore, fully included.

De Jure versus De Facto Directors of Corporations

2014 TCC 308

The Appellant was assessed under the directors' liability provisions of the Income Tax Act (Section 227.1) and Excise Tax Act (Section 323) to be liable for a corporation's tax debts.

When is a Debt a "Bad Debt"?

2014 FCA 281

When is a Debt a "Bad Debt"?

Definition of "Beneficial Owner" In Income Tax

2014 TCC 373

Definition of "beneficial owner" in Income Tax

Director Liability - Efficacy of Resignations

2016 FCA 236

Director Liability - Efficacy of Director Resignations

Dissolved Corporation Standing to Appeal

2016 FCA 100

Dissolved Corporation Standing to Appeal

Double Residents, Effect of tie breaker rules

2014 TCC 12

Double Residents - What is the effect of resident tie breaker rules in tax conventions?

Dysert v The Queen, 2013 TCC 57

2013 TCC 57

Factual Resident, Deemed Resident, Treaty Tie-Breaker Rules

Employment Income or Student Financial Assistance

2016 TCC 142

Employment Income or Student Financial Assistance

Erickson v The Queen, 2012 TCC 398

2012 TCC 398

CCA - Application of Half Year Rule When Property Acquired in Year 1 Only Becomes Available for Use in Year 2.

Failure of Family Lawyers on Support

2016 TCC 197

Failure of Family Lawyers on Support Payments

General Anti Avoidance Rule GAAR

2016 TCC 159

General Anti-Avoidance Rule - GAAR

GST, Place of Supply, Intangible Personal Property

2016 TCC 149

Place of Supply rules in the Excise Tax Act - Intangible Personal Property

Hine v The Queen, 2012 TCC 295

2012 TCC 295

Gross Negligence When Spouse is Tax Preparer

HST/GST New Housing Rebate - Statutory Conditions

2015 TCC 10

Advisors and realtors need to be aware of the conditions in the Excise Tax Act ("ETA") that need to be satisfied so that a purchaser is eligible for the rebate. Failure to be aware of these conditions, and failure to advise your client appropriately is, in my opinion, negligent.

Income of Indian on a Reserve - Question of Situs

2011 SCC 38

This was a 5:2 split decision allowing the appeal of the Taxpayer from the FCA (2009 FCA 108) and TCC (2007 TCC 625) decisions holding that the exemption in section 87 of the Indian Act, operating through paragraph 81(1)(a) of the Income Tax Act, did not apply.

Injunctions to Stop CRA Action - Chabad 2013 FCA 196

2013 FCA 196

Injunctions against the CRA

Is a Graduate Student an Employee?

2013 TCC 273

At issue in this case was whether a graduate student, a Ph.D. student, was an employee of the University s/he was a student at. This determination was in the context of the Employment Insurance Act.

Jeopardy Order to Keep taxpayer Money

2016 FC 529

CRA Keeping Money Paid by Taxpayer

Transfer & Separated Spouses at Arm's Length

2013 TCC 60

What is a "Transfer"? Are separated but not divorced spouses dealing at arm's length?

Lawyers Getting Audited by CRA - Solicitor Client Privilege

2013 FCA 197

Ability to claim, and Limits of, Solicitor Client Privilege When a Tax Lawyer is Getting

Litigation Costs in Course of Commercial Activity?

2016 TCC 230

Litigation Costs in Course of Commercial Activity?

Location of Business Income on a Reserve - Kelly

2013 FC 171

Location of Business Income on a Reserve

Look Back Renunciations for Flow-Through Shares

2016 TCC 238

At issue was whether a corporation making a look-back renunciation under subsection 66(12.66) has to pay Part XII.6 tax on the amount where the renunciations are invalid.

Maximum Tax Credit Under Income Tax Treaties

2016 TCC 131

Maximum Tax Credit Under Income Tax Treaties

Mittal v The Queen, 2012 TCC 417

2012 TCC 417

Business Losses: When Does a Taxpayer's Stock Market Activity Amount to An

Neglect or Carelessness by Representative no Reason to Extend Time

2016 TCC 239

Neglect or Carelessness by Representative no Reason to Extend Time

No Need for a Filed Return for CRA to Issue an Assessment

2016 TCC 201

No Need for a Filed Return for CRA to Issue an Assessment

Not Filing Part X.1 Return Leaves Years Open

2016 TCC 221

Not Filing Part X.1 Return Leaves Years Open Indefinitely

Notice of Assessment Never Mailed by CRA

2016 TCC 215

Notice of Assessment Never Mailed by CRA

Organized Pseudo Commercial Arguments

2016 FCA 231

Organized Pseudo Commercial Arguments

Timing of Arrears Interest in GAAR Assessments

2016 TCC 190

Timing of Arrears Interest in GAAR Assessments

Professional Advice Capital v Income

2016 TCC 172

Professional Advice - Capital v Income

Professional Employee Legal Expenses

2016 TCC 170

Professional Employee Legal Expenses

Reasonable Expectation of Profit and Input Tax Credits

2016 TCC 249

Reasonable Expectation of Profit and Input Tax Credits

Reassessment vs Additional Assessment - Large Corporations

2014 TCC 288

At issue was whether the actions of the Minister were a "Reassessment" or an "Additional Assessment", and the effect of each for a large corporation's appeal/objection to the Minister's view as to its tax liability.

Res Judicata OR Stare Decisis? - Doctrines Explained

2014 FCA 184

Res Judicata vs Stare Decisis

Sangha v The Queen, 2013 TCC 63

2013 TCC 63

Income VS Capital? Sale of a House

Setting Aside Judgment Re Discontinuance

2016 TCC 235

Setting Aside Judgment Re Discontinuance

Small Business Deduction, Specified Investment Business

2014 TCC 301

The small business deduction applies only to income, below the small business limit, from an active business carried on by a corporation.

Superannuation or Pension Fund?

2016 TCC 245

Superannuation or Pension Fund or Plan?

Surrogacy Expenses and the Medical Expense Tax Credit

2014 TCC 293

The Court once again confirmed that medical expenses that relate to the surrogate or surrogacy do not qualify for the medical expense tax credit under paragraph 118.2(2)(a) or subsection 118(6) of the Income Tax Act.

Tax Planning Gone Wrong (and how to avoid it)

2016 TCC 174

Tax Planning Gone Wrong (and how to avoid it)

Tax Planning for Property Sale

2016 TCC 204

Tax Planning for Property Sale

Taxation of Pyramid Schemes

2016 TCC 232

Taxation of Pyramid Schemes

Taxpayer Relief Provisions

Taxpayer Relief Provisions – Waiver and/or Cancellation of Interest and/or Penalties

Taxpayer requests to Amend Returns

2013 TCC 259

The court, referring to the FCA decision in Armstrong v The Queen, 2006 DTC 6310, stated that a request to amend an income tax return does not necessarily result in a reassessment. In Armstrong, the FCA stated at paragraph 8:

Transfer Pricing and Controlled Foreign Subsidiaries

2014 TCC 194

The MNR reassessed these payments as not meeting proper transfer-pricing guidelines as a violation of the arm's-length principle, under s 247(2).

Use of Land Split Between Commercial and Non-Commercial Activity

2015 TCC 321

Use of Land Split Between Commercial and Non-Commercial Activity

VanGhent v The Queen, 2012 TCC 245

2012 TCC 245

Can a Canadian Resident Claim a Deduction for Payments to a Non-resident Spouse

Child Support & Set-off in Guidelines

2013 FCA 69

Child Support Payments - Is Set-Off in Child Support Guidelines Tantamount to Each

What's in a Section?

As with most legislation, the section is the primary unit of the ITA. Each section provides particular rules. Dealing with a question often becomes the task of identifying, assembling (in the right order), and interpreting the relevant sections of the ITA.

Judicial Review of CRA decision in MAP Process

2016 FC 1086

Judicial Review of CRA decision in MAP Process

Refusing CRA Settlement Offer Not Bar to Interest Relief

2016 FC 1145

Refusing CRA Settlement Offer Not Bar to Interest Relief

Charitable Status - Registration Requirements of the CRA

2014 FCA 265

the objects were broad and vague; activities supporting the purpose did not advance religion or education in the charitable sense; and funding a foreign scholarship would not further the organization's activities or that of a qualified donee.

Deduction of Legal Expenses from Income - Kelso Patry

2013 TCC 107

When are Legal Expenses Deductible From Income From a Business or Property?

Johnson Decision - Leave to Appeal to SCC denied

Thus, the FCA decision stands as guidance for now in Ponzi Scheme cases.

Measuring Distance for Moving Expense Purposes

2014 TCC 328

At issue was how to measure the distance between two locations (old home and work) for purposes of the moving expense deduction (ITA, s 62) so as to determine whether a move was an "eligible relocation" (ITA, s 248(1)) or not.

Pleadings, Document Production, and Redactions

2015 TCC 14

In the court of a tax appeal, the MNR produced documents that were either entirely or partially redacted. The Appellant brought a motion asking for unredacted copies of the documents.

9098-9005 Quebec Inc v The Queen, 2012 TCC 324

2012 TCC 324

Is a managing director of a partnership who receives additional income for the

Employee vs Independent Contractor - Order of Inquiry Reversed?

2014 TCC 14

The distinction between employees and independent contractors is an important one in the Canadian Income Tax system. The importance of the distinction is not discussed here.

Chell v The Queen, 2013 TCC 29

2013 TCC 29

Director Liability for Failure to Remit: When is a Resignation NOT Enough?

Martin v The Queen, 2012 TCC 239

2012 TCC 239

Directors' Liability for Unremitted GST/HST and for Payroll Taxes - Due Diligence

CRA - Duty of Care towards Taxpayers?

2015 FC 74

Author : admin

Change in Residence - Effect on Loss Deductions

2015 TCC 16

At issue was the deductibility of losses incurred by an individual on the sale of property (shares) after he ceased being a Canadian resident.

Effect of Provincial Legislation on ITA Liability

2015 TCC 8

Effect of Provincial Legislation on Tax Liability under the ITA

ABIL Loan to Shareholder or Corporation?

2016 FCA 150

ABIL Loan to Shareholder or Corporation?

Holding Company ITCs - Management Services

2015 TCC 26

Holding Company ITCs - Management Services

Offshore Property Income, FAPI

2016 TCC 163

Foreign Accrual Property Income of a Lending Business

Loss on Change in Use of Real Property

2016 TCC 5

Loss on Change in Use of Real Property

CRA, Taxation, and Solicitor Client Privilege

2016 SCC 21

CRA, Taxation, and Solicitor-Client Privilege

Is Prevention of Poverty a Charitable Purpose

Is Prevention of Poverty a Charitable Purpose

New Housing Rebate - Issues with Mortgage Guarantors

2014 TCC 379

After the amendments above, an application for the new housing rebate was prepared along with a statutory declaration that the Appellant was the 100% beneficial owner and that the friend held 0.01% in trust for the Appellant to satisfy the lender.

Discoveries in Tax Litigation

2016 TCC 189

The Tax Court had to determine, inter alia, the correct scope of questions that must be answered by a third party (the individual shareholder of a corporate shareholder of an Appellant corporation) during discoveries.

Discoveries in Tax Litigation

2016 TCC 189

The Tax Court had to determine, inter alia, the correct scope of questions that must be answered by a third party (the individual shareholder of a corporate shareholder of an Appellant corporation) during discoveries.

Jurisdiction of the Tax Court

2016 TCC 165

Jurisdiction of the Tax Court of Canada

Pleadings when Appealing ITA Penalties

2014 FCA 301

At issue was, inter alia, what, if any, facts need to be pled by a taxpayer appealing an assessment of penalties under the ITA.

Pre-Emptive Strike Using Rule 58

2016 TCC 171

Pre-Emptive Strike Using Rule 58

Extra-territorial Jurisdiction of the CRA

2016 TCC 75

Extra-territorial Jurisdiction of the CRA

Deducting Employment Expenses

2015 TCC 314

Deducting Employment Expenses

Duties and Obligations of Taxpayers

2016 TCC 27

Duties and Obligations of Taxpayers

GST HST on Commission Employee Services

2016 TCC 177

GST/HST on Commission Employee Services

Over Contribution to RRSP

2016 FC 10

Over Contribution to RRSP

Travel & Medical Expense Tax Credit

2015 FCA 156

Travel Expenses' Eligibility for the Medical Expense Tax Credit

Revocation of Charitable Status

2015 FCA 170

The FCA began by setting out the statutory framework:

Taxpayer Reliance on CRA Authorization

2014 TCC 380

At issue was whether the CRA could retroactively reassess taxpayers on a different basis than an authorization issued by the tax authority, or whether the CRA was limited to adopting an approach different than a past authorization only on a going-forward basis.

Do you need to be given a refund to have a refund?

2015 TCC 61

The only issue before the court was what the meaning of "dividend refund" in the context of the Refundable Dividend Tax On Hand (RDTOH) mechanism is.

Gross Negligence Penalties - s 163(2)

2015 FCA 60

The taxpayer was assessed gross negligence penalties pursuant to subsection 163(2) of the ITA. She claimed fictitious business losses at the behest of an unscrupulous tax preparer.

Taxpayer Reliance on Wording of Waiver

2015 FCA 40

[For a paper discussing judicial approaches to interpreting waivers of limitations periods

Lawyers and Anti Money Laundering Laws

2015 SCC 7

The majority of the Court stated:

Canadian Exploration Expense - Seismic Data

2014 TCC 30

[The facts and assumptions made by the Minister are in the decision and will not be repeated here].

Legal Requirements and Tax Planning

2014 TCC 297

This is based (some would argue incorrectly) on the statements made in the oft-quoted passage by Lord Tomlin in the case of IRC v Duke of Westminster,IRC v Duke of Westminster (1936) AC 1, at p 19, where it was said:

Release from Debt Obligation - Proposal in Bankruptcy

2014 TCC 336

[See also the decision in Gaumond v The Queen, 2014 TCC 339]

Trustee as Legal Owner's Withholding Responsibility s 116(5)

2014 TCC 372

Trustee as Legal Owner's Withholding Responsibility under s 116(5)

Application to Amend Notice of Appeal - FCA - Rule 75

2014 FCA 290

A court must consider:

Deductibility of Legal Expenses

2014 FCA 289

Gouveia v The Queen, 2013 TCC 414

Proper Court of Recourse - Non-Receipt of Notice of Assessment

2014 FCA 297

Proper Court of Recourse - Non-Receipt of Notice of Assessment

Medical Impairment and Directors' Liability for HST/GST

Attia v The Queen, 2014 TCC 46

Surrender Payment for Stock Options - Character of Receipt

2014 TCC 348

Surrender Payment for Stock Options - Character of Receipt

Amount on Account of Income or Capital? - Henco Industries

2014 TCC 192

Amount on Account of Income or Capital? - Henco Industries Amount on Account of Income or Capital?

Associated Corporations - De Facto Control

McGillivray Restaurant Ltd v The Queen, 2014 TCC 357

Degree of Care, dilligence and Skill - Corporate Directors

2014 TCC 277

Degree of Care, Diligence and Skill - Corporate Directors

Affidavits in Tax Court Practice - Reasonable Reliability

2014 TCC 218

Affidavits in Tax Court Practice

Assumptions of Fact by Crown - Proper Pleadings

2012 TCC 187

Health Quest Inc v The Queen, 2014 TCC 211

Charitable Donations Tax Shelter - The Effect of Inflated Receipts

2014 FCA 25

Charitable Donations Tax Shelter - The Effect of Inflated Receipts

Court Ordered Reassessments, Preconditions, and Limitation Periods

2014 TCC 227

Court Ordered Reassessments, Preconditions, and Limitation Periods

Disability Tax Credit - Certification Requirements

Gibson v The Queen, 2014 TCC 236

GST/HST - Can Developer Separate Development Fees from Consideration for Home?

2013 FCA 260

GST/HST - Can Developer Separate Development Fees from Consideration for Home?

Inconsistent Assessments by CRA

2014 FCA 99

Inconsistent Assessments by the CRA

Medical Expense Tax Credit - Surrogate Expenses

2014 TCC 240

Medical Expense Tax Credit - Certification Requirement

Presenting New Evidence on Appeal - Relevant Factors

2011 FCA 10

Brace v Canada, 2014 FCA 92

Relevant Factors in Setting Aside TCC Judgment

2014 TCC 108

Relevant Factors in Setting Aside TCC Judgment Dismissing Appeal for Failure to Appear at Status Hearing

Value of Self Supplied Rental Units for GST Purposes

Beaudet v The Queen, 2014 TCC 52

Admitting Fresh or New Evidence on Appeal

2011 FCA 10

Brace v Canada, 2014 FCA 92

Brown v MNR, 2012 TCC 251

2012 TCC 251

Income From Criminal Activities and the Use of Information by the CRA obtained by Police in the Course of a Criminal Investigation

Denial of Application for Voluntary Disclosure - Motion to Strike Judicial Review

2014 FCA 140

Denial of Application for Voluntary Disclosure - Motion to Strike Judicial Review

Director's Liability for Remittances - Effective Resignation and Failure to Act

2014 TCC 254

Director's Liability for Remittances - Effective Resignation and Failure to Act

Estoppel or Officially Induced Error in Tax Appeals

Academy of Applied Pharmaceutical Sciences v The Queen, 2014 TCC 171

Subsection 146(9) - Anti-avoidance or Automatic Application

2014 TCC 204

Subsection 146(9) - Anti-avoidance or Automatic Application

Superannuation or Pension Benefits From Other Countries

Schaub v The Queen, 2014 TCC 212

Canadian Imperial Bank of Commerce v The Queen, 2013 FCA 122

2013 FCA 122

Canadian Imperial Bank of Commerce v The Queen, 2013 FCA 122 Legality, Morality, and Taxation

Director's Liability for Remittances - Due Diligence When Relying on Employee

2014 TCC 139

Director's Liability for Remittances - Due Diligence When Relying on Employee

Large Corporation Rules for Tax Appeals - Motion to Strike

Devon Canada Corporation v The Queen, 2014 TCC 255

Medical Marihuana - Excise Tax Obligations of Sellers

Hedges v The Queen, 2014 TCC 270

Settlement Agreements with the CRA - Assumptions

Burg Properties Ltd v Canada, 2014 FCA 154

Severe Disability - Moving and Medical Expenses Claimed

2014 TCC 262

Severe Disability - Moving and Medical Expense Claimed

Shareholder Loans - Capital or Non-Capital Losses

2008 TCC 637

SRI Homes Inc v The Queen, 2014 TCC 180

The Queen v Johnson, 2012 FCA 253

2012 FCA 253

Taxability of Funds Received from a Ponzi Scheme

McKesson - Justice Boyle - Apprehension of Bias - Recusing - Appeal Factum

2014 TCC 226

McKesson - Justice Boyle - Apprehension of Bias - Recusing - Appeal Factum Apprehension of Bias - Recusing Judges - Appeal Factum

Arrears Interest Calculation when GAAR Applied

JK Read Engineering Ltd v The Queen, 2014 TCC 309

Cost Awards in the Tax Court of Canada

2014 TCC 42

Henco Industries Limited v The Queen, 2014 TCC 278

CRA Use of Information Obtained in Criminal Investigation

2014 FCA 243

CRA use of Information Obtained in Criminal Investigation

Director Liability Standard - "care, diligence and skill"

Maddin v The Queen 2014 TCC 277

Dividend Refunds for Private Corporations

1057513 Ontario Inc v The Queen, 2014 TCC 272

Effect of the TCC Vacating a Reassessment

2001 FCA 314

Ford v The Queen, 2014 FCA 257

Employee Expenses - Office In Home

Ross v The Queen, 2014 TCC 317

Employee Profit Sharing Plans - Sham in family income splitting

2014 TCC 334

Employee Profit Sharing Plans - Sham in family income splitting

Foreign Exchange Gains, Convertible Debentures, and Currency Fluctuations

2014 TCC 324

Foreign Exchange Gains, Convertible Debentures, and Currency Fluctuations

"Insurable Employment" for Employment Insurance Purposes

2014 TCC 292

"Insurable Employment" for Employment Insurance Purposes

Reasoning in Sommerer Reaffirmed by FCA

2012 FCA 207

Brent Kern Family Trust v Canada, 2014 FCA 230

Tax Avoidance and Share Acquisition - Interpretation 95(6)

2013 TCC 176

Canada v Leigh Cement Limited, 2014 FCA 103

Taxation of Communal Organizations Sharing Income

2013 TCC 264

Blackmore v The Queen, 2014 FCA 2010 ( CanLII )

Unpaid GST - Director Liability of Persons Carrying Out Duties of Director

2014 TCC 315

Unpaid GST - Director Liability of Persons Carrying Out Duties of Director

The Queen v Sommerer, 2012 FCA 207

2012 FCA 207

Does Subsection 75(2) of the ITA Apply to a bona fide Sale by a Beneficiary to a Trust at FMV?

Brewster v MNR, 2012 TCC 187

2012 TCC 187

What the CRA can Assume and What it can't Assume

Dickie v The Queen, 2012 TCC 242

2012 TCC 242

Where is a Nomadic Aboriginal Business Located?

New Housing Rebate - Factors as to Intention

2014 TCC 268

New Housing Rebate - Factors as to Intention of using property as primary residence at time of signing the agreement

Applying Statutory Limitation Periods in the ITA

Klemen v The Queen, 2014 TCC 244

Tax Liability and Contradictory Assessments

McAdams v The Queen, 2014 FCA 99

Aboriginal Taxation, Treaty 8 and others

2013 TCC 357

Aboriginal Taxation - Effect of Treaty 8, Royal Proclamation on 1763, and the United Nations Declaration on the Rights of Indigenous Peoples

Implied Time Limit for GST Rebate on Owner-Built Homes

Solanko v The Queen, 2014 TCC 100

Input Tax Credits for Expenditures on Dubious Suppliers

Construction SYL Tremblay Inc v The Queen, 2013 TCC 406

Eligibility for Disability Tax Credit - Brasard 2014 TCC 82

2014 TCC 82

Eligibility for the Disability Tax Credit - Allergies

Deakin v The Queen, 2012 TCC 270

2012 TCC 270

"Due Diligence Defence" Against Directors' Personal Liability for Unremitted Source Deductions and GST NOT Available Where Directors consciously Use These Funds to Keep Business Afloat.

Gross Negligence or Knowingly Making False Statements - Penalties

2014 TCC 72

Gross Negligence or Knowingly Making False Statements - Penalties

Interpretation of Contracts in Tax Cases - River Hills Ranch

2013 TCC 248

Principles to Apply in Interpreting a Contract - Use of External Evidence

Solicitor Client Privilege and Requirements - Accounts of the Lawyer

2013 FCA 197

Solicitor Client Privilege and Requirements - Accounts of the Lawyer

New Housing Rebate for Owner-Built Homes - D'Ambrosio 2014 TCC 63

2014 TCC 63

New Housing Rebate for Owner-Built Homes - D'Ambrosio 2014 TCC 63 New Housing Rebate for Owner Built Homes under the Excise Tax Act

New Housing Rebate - Timing of Intention to use as Primary Residence

2014 TCC 56

New Housing Rebate - Timing of Intention to use as Primary Residence

Tax Myths and Tax Schemes - Don't get Fooled

Tax Myths and Tax Schemes

Canada (National Revenue) v Patry, 2012 FC 977

2012 FC 977

Review of Jeopardy Order - Factors to Consider

Extension to File Notice of Objection - Existing but Unknown Case-Law

2014 TCC 62

Extension to File Notice of Objection - Existing but Unknown Case-Law

GST/HST and Excise Taxes on Junk Food

The GST/HST tax is not meant to be punitive - ie sin tax - but rather is meant to provide another broad-based tax that will with little distortion (though this is debatable and economic argument go both ways) raise government revenue on the basis of consumption. It is a value add

Is Income Tax Supposed to Be Fair?

A Rejoinder to the Rejoinder and the Rejoinder’s Rejoinder

Interest Paid to CRA on Tax Debt not Deductable - Doulis v The Queen

2014 TCC 26

Interest Paid to CRA on Tax Debt not Deductable - Doulis v The Queen Interest Paid to the CRA on a Tax Debt is not Deductable Expense of Gaining or Producing Income

Quinco Financial Inc (Formerly Landex Investments) v The Queen, 2013 TCC 20

2013 TCC 20

Quinco Financial Inc (Formerly Landex Investments) v The Queen, 2013 TCC 20 Deferred ITCs - no requirement to net against credit and debit notes

Jamieson v The Queen, 2013 TCC 52

2013 TCC 52

The Pursuit of Profit - Needs some actual pursuing

John Stuart Mill on Redistribution

Although this blog focuses on Canadian Tax Decisions, at times there will be items such as this whose purpose is to allow for a moment of reflection and thought.

MNR v The Money Stop Ltd, 2013 FC 133

2013 FC 133

Contempt Proceedings - Failure to Comply with a Court Order of Compliance

Partnership Income - Considerations for Spouses and Common-law Partners

2014 TCC 67

Partnership Income - Considerations for Spouses and Common-law Partners Partnership Income - Considerations for Spouses and Common-law Partners: When is there a Partnership?

Reassessment Beyond Normal Reassessment Period - Accountant's Mistake

2014 TCC 64

Reassessment Beyond Normal Reassessment Period - Accountant's Mistake

Secondary Sources

Secondary sources of information are not binding on a court and, depending on the source, are of varying persuasive value. There are a large number of secondary sources that are appropriate for tax law research and analysis, and only some of my preferred sources are referred to h

Asare-Quansah v MNR, 2012 TCC 226

2012 TCC 226

Is a Sessional Lecturere an Employee?

St Arnaud v Canada, 2013 FCA 88

2013 FCA 88

Valuation of Shares in the Hands of Innocent Victims in Cases of Fraud

Tuition Tax Credit - Institutions Outside Canada - Zailo

2014 TCC 60

Tuition Tax Credit for Institutions Outside Canada: What qualifies as a "degree"?

When a Credit is NOT Claimed or Claimable in Law - Ullah

2013 TCC 387

When is a tax credit not claimed or claimable, in law, by a taxpayer?

Judicial Review in Tax Cases - JP Morgan Asset Management

2013 FCA 250

Judicial Review in Tax Cases - JP Morgan Asset Management When is Judicial Review Available in Tax Cases?

Rebutting the Presumption that Items Mailed are Received the Day Mailed

2013 FC 1192

Rebutting the Presumption that Items Mailed are Received the Day Mailed Rebutting the Presumption that Items Mailed by CRA are Received on the Day Mailed

The Queen v MacDonald, 2013 FCA 110

2013 FCA 110

Surplus Stripping

Calculating the Alternate Minimum Tax

2013 TCC 250

Calculating the Alternate Minimum Tax - Consideration of losses

Implied Undertaking Rule in Tax Court Appeals

2014 TCC 58

Implied Undertaking Rule in Tax Court Appeals - Use of Documents obtained through discovery

Determination of a common question - Section 174

2014 FCA 45

Determination of a Common Question using Section 174 of the Income Tax Act

Trading Within an RRSP is NOT a Business

Prochuk v The Queen, 2014 TCC 17

Are Medical Residents Engaged in Full-Time Study?

Kansasamy v The Queen, 2014 TCC 47

Canada (National Revenue) v Clark, 2012 FC 950

2012 FC 950

Asserting Solicitor-Cleint Privilege and Protecting Lawyer's Duty of Confidentiality

Donative Intent, Charitable Tax Credit, and Inflated Donation Schemes

2014 FCA 25

Donative Intent, Charitable Tax Credit, and Inflated Donation Schemes What is Donative Intent - or - When Does Someone Make a Gift for Income Tax Purposes?

Edmond v The Queen, 2011 TCC 142 (eng translation)

2011 TCC 142

Sales Employee Expense Deduction and Existence of a Source of Property Income

Edwards v The Queen, 2012 TCC 264

2012 TCC 264

Despite Potential Prejudice to Taxpayer, Motion for Further Adjournment Pending Potential Retroactive Legislation Not Granted.

Expert Evidece and Reports in Tax Cases

2014 TCC 35

Expert Evidence and Reports in Tax Cases

Fixed Cost Awards in the Tax Court of Canada - Spruce Credit

2014 TCC 42

Fixed Cost Awards in the Tax Court of Canada - Spruce Credit Fixed Cost Awards in the Tax Court of Canada

GMC Distribution Ltd v The Queen, 2012 TCC 262

2012 TCC 262

A Dissolved Corporation Can be Sued and Can be Ordered to Pay Costs, but Cannot Defend Itself.

Interest Deduction and the Attribution Rules - Swirsky

2014 FCA 36

Interest Deduction and the Attribution Rules

Matthew v The Queen, 2012 TCC 289

2012 TCC 289

Use of Settlement Agreement for Personal Injury to "Camouflage" Income.

O'Dwyer v The Queen, 2012 TCC 261

2012 TCC 261

Striking the Crown's Entire Reply on the Basis that They Fail to disclose a Reasonable Grounds to Oppose the Taxpayer's Appeal - Rule 58(1)(b)

The Queen v Global Equity Fund, 2012 FCA 272

2012 FCA 272

What is the Underlying Purpose of ITA ss 3, 4, 9, and 111?

Spruce Credit Union v The Queen, 2012 TCC 357

2012 TCC 357

GAAR analysis framework - Purpose of ITA s 112 - meaning of "in proportion to"

Rectification, Amending Contracts, and Quebec Civil Law

Quebec (Agence du Revenu) v. Services Environnementaux AES, 2013 SCC 64

Berg v The Queen, 2012 TCC 406

2012 TCC 406

How is the intention to obtain a false and inflated donation receipt to be used to obtain an inflated tax credit related to the intention to donate?

1207192 Ontario Ltd v The Queen, 2012 FCA 259

2012 FCA 259

How does one detemine the "primary purpose" of a series of transactions for purposes of subsection 245(3)?

Avrams v The Queen

2012 TCC 247

Net-Worth Assessment - The Need for Evidence

BIOARTIFICIAL GEL TECHNOLOGIES (BAGTECH) INC v The Queen, 2012 TCC 120

2012 TCC 120

BIOARTIFICIAL GEL TECHNOLOGIES (BAGTECH) INC v The Queen, 2012 TCC 120 Effect of a Unanimous Shareholders' Agreement on a Corporation's Status as a CCPC

Brandt v The Queen, 2013 TCC 70

2013 TCC 70

Deductibility of Employment Expenses by Sales Employee

Brosamler v The Queen, 2012 TCC 204

2012 TCC 204

What Can an Estate do with Capital Losses Realised on Disposition of Capital Property Received from the Deceased?

Clearwater Seafoods Holdings Trust v The Queen, 2012 TCC 186

2012 TCC 186

Clearwater Seafoods Holdings Trust v The Queen, 2012 TCC 186 Who Gets to Continue an Appeal after a Plan of Arrangement

Cloutier v MNR, 2012 TCC 164

2012 TCC 164

Relationship of Subordination in Classifying the Employment Relationship in Quebec

Curtis v The Queen, 2012 TCC 248

2012 TCC 248

What a Farmer Needs to do, at a Minimum, so as Not to Get Caught by Section 30's Limitation on Farming Losses.

Ethier v The Queen, 2012 TCC 241

2012 TCC 241

Determining Who the "Eligible Individual" is in Respect of a Child when the Child Doesn't Live Exclusively With One Parent.

Fannon v Revenue Canada Agency, 2012 FC 876

2012 FC 876

Reasonableness of the Minister's Denial of Child Care Expense Deductions Pursuant to Subsection 63(3) in the Interest of Fairness AND Constitutionality of the Definition of Child Care Expenses in that Subsection

Kreuz v The Queen, 2012 TCC 238

2012 TCC 238

Employee Deduction of Motorvehicle Expenses and Res Judicata in Tax Cases.

Michelle D'Elia v The Queen, 2012 TCC 180

2012 TCC 180

Canada Child Tax Benefit as Between Parents

Newmont Canada Corporation v The Queen, 2012 FCA 214

2012 FCA 214

Shareholder Loans on Account of Income or Capital? - Rebuttable Presumption Of Capital Nature.

Nuclear Waste Management Organization v MNR, 2012 TCC 217

2012 TCC 217

Nuclear Waste Management Organization v MNR, 2012 TCC 217 When is an Advisory Board Member an Officer?

R v He, 2012 BCCA 318

Limitations of CRA's use of ITA section 231.1 - Richardson Reasoning Applies

Re Jones, 2012 BCSC 1146

What Circumstances Would Permit a Trustee in Bankruptcy to Look Behind a CRA Assessment upheld by the TCC and FCA so as to Disallow the CRA's Claim for Tax Debt?

SRI Homes Inc v Canada, 2012 FCA 208

2012 FCA 208

What Constitutes Sufficient Reasons?

Velcro Canada Inc v The Queen, 2012 TCC 273

2012 TCC 273

TCC Has Absolute Discretion in Awarding Costs and Is NOT Limited to Special Circumstances Before Looking Beyond the Tariff

Bruno v The Queen, 2012 TCC 316

2012 TCC 316

Paying Child-employees With Luxury Good Purchases

Canada v Craig, 2012 SCC 43

2012 SCC 43

SCC overrules its earlier decision regarding the test for subsection 31(1) limitation on loss deductions from farming activities.

Lytle v The Queen, 2012 TCC 368

2012 TCC 368

Res Judicata In relation to Right to Object to a Reassessment

Pawlak v The Queen, 2012 TCC 355

2012 TCC 355

ITCs claimed in out of time return must be considered in determining Net Tax

Chenard v The Queen, 2012 TCC 211

2012 TCC 211

Gross Negligence Penalties - 163(2) - Fictitious Business Losses Claimed, But No Refunds Obtained.

Jordan v The Queen, 2012 TCC 394

2012 TCC 394

Repeated Travel to-and-from Medical Facility During Period of Treatment Deductible as Medical Expense Tax Credit

Cashing in on Child's Potential Tennis Career - Bouchard v MNR

2013 TCC 247

Cashing in on Child's Potential Tennis Career - Bouchard v MNR Whether a Partnership to Cash in on Child's Future Tennis Career was In pursuit of Profit.

Lump-Sum Child Support - Retroactive Increase in Monthly Obligation

2013 TCC 164

Lump-Sum Child Support - Retroactive Increase in Monthly Obligation Lump-Sum Child Support - Retroactive Increase in Monthly Obligation: Are They Deductible to the Payor?

Proceeds of Disposition - Timber Tenures

2013 SCC 29

Proceeds of Disposition: When to Include in Proceeds Obligations/liabilities Assumed by a Purchaser?

Minister's Duty to Assess

2013 FC 502

The MNR's Duty to "Assess With All Due Dispatch" - What Does it Mean?

Tax Court Condemns CRA - Hansen

2013 TCC 142

Tax Court Condemns CRA - A Story That Had to be Told

Unscrupulous Tax-'Professionals' and Taxpayers Who Trust Them

2013 TCC 143

Unscrupulous Tax-'Professionals' and Taxpayers Who Trust Them

Proof of Charitable Donations - Onus on the Donor

Ehiozomwangie v The Queen, 2013 TCC 145

Imperial Tobacco Canada Limited v The Queen, 2013 TCC 144

2013 TCC 144

Imperial Tobacco Canada Limited v The Queen, 2013 TCC 144 Solicitor-Client Privilege In Tax Litigation

Carver PA Corporation v MNR, 2013 TCC 125

2013 TCC 125

When is a Business a "Placement or Employment" Agency?

Brown v The Queen, 2013 FCA 111

2013 FCA 111

Can the Crown introduce in Evidence Documents Seized by Police Under Warrant Executed as Part of a Criminal Investigation?

Price v The Queen, 2012 FCA 332

2012 FCA 332

Pilots Flying through Canadian Airspace - How to Allocate Income as Between "earned in Canada" and "earned outside of Canada" for Air Canada Pilots?

Cavanagh v The Queen, 2013 TCC 94

2013 TCC 94

Support Payments - Do They Include Interest

Hedebrecht v The Queen, 2012 TCC 113

2012 TCC 113

Insurable Earnings - Teachers and Eligibility of Non-Instructional Extra Work

Edwards v The Queen - Still Waiting for Bill C-48

2012 FCA 330

Michael Edwards is the appellant in a test case involving about $500 Million in donations (“The ParkLane Charitable Donation Program”)and affecting approximately 18,000 Canadians. Edwards brought a motion for adjournment to allow pending legislation to be enacted, as this legisla

Devon Canada Corporation v The Queen, 2013 TCC 4

2013 TCC 4

When can an Appellant employ Rule 58 of the TCC Rules (General Procedure) to have a question decided prior to the hearing of the Appeal?

1259066 Ontario Limited v The Queen, 2012 TCC 399

2012 TCC 399

Business Deduction: Shareholder Travel to Time-Share in Mexico and Basic Internet and Cable at Home Office

The Queen v Lewing, 2012 FCA

At issue was whether a declaration by trustees was sufficient to be a credit of dividends to a beneficiary.

1726437 Ontario Inc v The Queen, 2012 TCC 376 (informal procedure)

2012 TCC 376

1726437 Ontario Inc v The Queen, 2012 TCC 376 (informal procedure) SR&ED expenses - What counts?

Morrissette v The Queen, 2012 TCC 37

2012 TCC 37

Determinations by Employers as to taxability - Are they binding on the employee?

Breau v The Minister of National Revenue, 2012 FC 1207

2012 FC 1207

Requests for Information while Criminal Investigation is Ongoing

Ashton v The Queen, 2012 TCC 353 (informal procedure)

2012 TCC 353

Jurisdicition of the TCC in relation to whether there was in fact a refund of tax to a taxpayer.

Last v The Queen, 2012 TCC 352

2012 TCC 352

Can the TCC, on Appeal, alter the Character of the Amount?

Motech Moldings Inc v The Queen, 2012 TCC 351

2012 TCC 351

Deductibility of amounts paid to one affiliated company on behalf of another affiliated company so as to earn dividend income from the second company

Swain v The Queen, 2012 TCC 323

2012 TCC 323

Things that can cause a judge to grant above tariff costs!

Welch v The Queen, 2012 TCC 350

2012 TCC 350

Can Parties With Order of Provincial Superior Court Affect ITA's Requirements of Income Inclusion?

Stevens v The Queen, 2012 TCC 312

2012 TCC 312

Writers' Deductions of Expenses Related to Producing Works

Lawrence v The Queen, 2012 TCC 331

2012 TCC 331

Who Has Standing to File a Notice of Appeal for Pre-Bankruptcy Years of a Taxpayer?

Kossow v Canada, 2012 TCC 325

2012 TCC 325

Is a Donation Contingent Upon Approval of an Application for an Interest-Free Loan a Gift for Purposes of Caritable Tax Credits (ITA s 118.1)?

Gill v The Queen, 2012 TCC 302

2012 TCC 302

Is a Lump-sum Payment From a Retirement Plan to a Taxpayer as a Result of the Death of the Plan Holder Included in Income of the Recipient?

Emond v The Queen, 2012 TCC 304

2012 TCC 304

Assignment of Pension Benefits vs Division of Matrimonial Property (ie pension amounts)

Bragg-Smith v The Queen, 2012 TCC 252

2012 TCC 252

Bragg-Smith v The Queen, 2012 TCC 252 When is a Payment Consideration for Purposes of Subsection 160(1)?