Bill C-208, the version that received Royal Assent, is short and sweet and obviously not drafted by the persons at Justice who normally draft tax bills. See, eg, new subparagraph 84.1(2.3)(a)(iii). “Operation”? That’s an odd word choice. I’m not aware…
Tax Court settlements
In McKenzie v R, 2012 TCC 329, the court held that a settlement offer must include a “degree of compromise” of the offeror’s position. A waiver of legal fees by itself isn’t enough to earn an entitlement to enhanced costs.…
Reliance on a section 116 certificate
In Landbouwbedrijf Backx BV v R, 2021 TCC 2, the court held that the CRA was not bound by a section 116 “letter” it had issued that had found, in effect, that the taxpayer was not a resident of Canada.…
Novation and withholding tax
CRA technical interpretation 2018-0757501E5 (September 29, 2020) states that the novation of a debt with accrued but unpaid interest results in the payment of the interest. The author notes that, if this is right (and he questions whether it is),…
Series of transactions redux
The author asks whether Agence du revenu du Québec c. Custeau, 2020 QCCA 1496, aff’g 2018 QCCQ 5692 (discussed here) reverses a trend that gave an expanded meaning to the phrase “series of transactions” in subsection 248(10) of the Income…
VD for 2019
An accounting colleague asked recently how the “one year overdue rule” applies for a voluntary disclosure for 2019. The rule is found in paragraph 37 of Information Circular IC00-1R6 (“Voluntary Disclosures Program”), which reads as follows: The VDP application must…
New trust reporting rules
The new trust reporting rules require a trust to provide information about settlors, trustees and beneficiaries. The rules also require a trust to provide information about every person “who has the ability (through the terms of the trust or a…
Trustees and acquisitions of control
Under the Income Tax Act (Canada) (the “Act”),1 the acquisition of control of a corporation can cause a number of unwanted consequences, including a deemed year-end and the restriction or elimination of loss carry forwards. Practitioners need to be aware…
Wilful Blindness
For the purposes of GST gross negligence penalties, a taxpayer will be treated as having made a misrepresentation ‘knowingly’ if the taxpayer was wilfully blind: if the taxpayer had reason to know that he or she should be making inquiries…
Corporate Appellants Need Lawyers
“In Canada v BCS Group Business Services Inc. (2020 FCA 205), the FCA held that a lawyer must represent a corporate appellant in a TCC general procedure appeal.” John Loukidelis “Corporate Appellants Need Lawyers” Tax for the Owner-Manager 21:2 (April…