UHT Traps – Loukidelis PC

It appears that the underused housing tax (UHT) might apply to residential property owned by

a partnership one of the partners of which is another partnership
a trust where one or more of the beneficiaries of the trust is another trust or a partnership
a corporation that is wholly-owned by a trustee who is neither a citizen nor permanent resident of Canada even if all of the beneficiaries of the trust are citizens or permanent residents

Alex Kerslake “Traps in the Underused Housing Tax: Tiered Ownership Structures” 12:4 Canadian Tax Focus (November 2022)

Residence of a trust

In Theodoros Darmos Family Trust v. Minister of Finance et al., 2023 ONSC 6431, the Court was called upon to determine whether two family trusts were resident in Alberta or Ontario. After conducting a detailed review of the relevant facts,…

Easier access to My Account

Life is easier for a tax adviser if a client has access to his or her “My Account“, not least because the client can add the adviser as an authorized representative quickly and easily. (In fact, the CRA is making…

Source of income

In Stackhouse v R, 2023 TCC 156, Owen J carefully considered comments in Brown v Canada, 2022 FCA 200, and found that they improperly intepreted the test used in Canada v Paletta, 2022 FCA 86, for determining whether a source…

Accessing stranded ACB ok under GAAR

In 3295940 CANADA INC. v R, 2024 FCA 42, the taxpayer appealed the application of the GAAR to a series of transactions that used ACB in shares of a corporation that the purchaser refused to purchase. The transactions, in effect,…

Extension of time to object

The CRA is generally pretty generous when it considers taxpayer applications to extend the time for filing an objection, but there are limits to that generosity, and the Tax Court will often respect those limits. In FOOi Inc. v R,…