Set-back for Donation Tax Shelters
Over the last decade or so, thousands have reduced their tax bills by millions of dollars by purchasing prints, paintings, comic books, medical supplies and other items at one price and then donating the items to a charity at another, higher price. The CRA has aggressively attacked these donation arrangements to try to claw back the tax. Will it succeed? It might, if Canada (Attorney General) v. Nash, 2005 FCA 386, is any indication.
Relief for Charities?
Some time ago, I wrote about proposed subsection 248(40), which would have required charities to make inquiries about the circumstances surrounding a gift where the eligible amount of the gift exceeded $5,000. It appears that Finance might withdraw the proposed subsection.
Finance on Income Trusts
In a press release that appeared on the Department of Finance website today, Finance Minister Ralph Goodale announced that Finance consultations on income trusts had ended and that it would attempt to solve the problem posed by the vehicles by reducing “personal income taxes on dividends, which will help level the playing field between corporations and income trusts.”
OBA Presentation on Professional Corporations
CRA Obligations to Disclose Audit Files
“Grumbling”?
Limits on Fairness
Apparently, the Department of Finance and the CRA believe that you can have too much fairness in the tax system. In the 2004 budget, Finance introduced a ten-year limitation period for fairness applications. It appears that the CRA is now adopting a particularly strict interpretation of the rule to deny relief to taxpayers even where the events that form the basis for the fairness request occurred within the limitation period.
CRA Alert Service
The CRA has launched an “alert service” to provide information on tax shelters, “scams” and other areas of interest. Will the service make it easier for us to provide advice to our clients?