If a Canadian sells foreign real property with an accrued gain, he or she should be able to claim a foreign tax credit in Canada for the foreign taxes paid. The same is not true if the Canadian dies owning…
Installments case
Gagnon v R, 2022 TCC 139 (informal procedure), provides a good review of the provisions of the Act, and related case law, that govern whether interest and penalties are payable by an individual who fails to remit installments in a…
Directors must prevent, not correct
In Donaldson v R, 2022 TCC 159, the former director of an invsolvent corporation argued that he had been duly diligent and was not liable for the unremitted source deductions of the corporation. He had met regularly with the CRA…
The “pursuit of profit”
In Brown v R, 2022 FCA 200, the Court overturned the judgment of the Tax Court, which had found that the taxpayer, a lawyer, undertook the management of an art gallery for a personal purpose: he began managing the gallery…
New OBCA shareholder register
New rules in the Business Corporations Act (Ontario) will require every corporation governed by the Act to maintain a register providing details on all individuals who have “significant control” over the corporations. Torys has a good summary of the requirements,…
Substantive CCPCs
A definition of “substantive CCPC” will be added to subsection 248(1). A private corporation (other than a CCPC) will be a substantive CCPC if it is controlled, directly or indirectly in any manner whatever, by one or more Canadian resident…
Director’s resignation
In Zvilna v R, 2022 TCC 50 (informal procedure), the Court accepted the taxpayer’s oral testimony that he had resigned from a corporation in writing even though the document in question was never entered into evidence. The taxpayer and his…
UHT Traps
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…
GAAR and 55(2)
3295940 Canada Inc. v R, 2022 TCC 68 considered a taxpayer who had wanted to sell shares of 329, which had a high tax cost, to an arm’s length purchaser. The purchaser would not buy the shares for commercial reasons.…
Timing of Corporate Partner’s CDA Increase
The CRA has stated that, when a partnership receives a capital dividend, a corporate partner’s capital dividend account increases at the time of the receipt of the dividend or at the end of the partnership’s fiscal period depending on the…