Tax and climate change intersected in 6398316 Canada Inc. v R, 2021 TCC 17. The Tax Court denied scientific research and experimental development (SRED) tax credits to a corporation that built a passive house. The Court found that the corporation…
VDs and enforcement against a related person
The taxpayer, in a previous application (2019 FC 51), succeeded in having the Court order the CRA to reconsider its decision because it did not adequately address how the demand for returns from the individual would have uncovered the corporation’s…
Oral evidence
In Osinski v R, 2013 TCC 71, the Court wrote: 20 With respect to both parties, the law in my opinion is simply as stated in C. (R.) v McDougall, C. (R.), … 2008 SCC 53, above by Justice Rothstein…
Taxpayer onus regarding limitation period
In Manna v R, 2019 TCC 70 (informal procedure) the Court held that the taxpayer has the onus to show when a normal reassessment period began if the taxpayer wishes to rely on the expiry of the period as a…
Mail room case
In Luxury Home Landscape Construction Inc. v R, 2021 TCC 4, a GST informal procedure “mail room” case, the Minister brought a motion to quash the appeal because it was supposedly late-filed. The Court dismissed the motion and ordered the appeal set down for a hearing because the Minister failed to prove that it had sent a notice of confirmation in a timely manner.
GAAR object and spirit
The author provides a summary of the detailed analysis undertaken by the Court in Gladwin Realty Corporation v Canada, 2020 FCA 142 to determine the object and spirit of the provisions of the Income Tax Act (Canada) at issue in…
Re-freeze caution
Part VI.1 tax can apply in respect of a dividend paid by a corporation to a trust that is allocated to a beneficiary even if the trust has a substantial interest in the corporation. The CRA takes the position that…
All due dispatch
Two recent cases consider the meaning of “all due dispatch” as the phrase applies to the time the CRA can take to pay refunds of net GST. In both cases, the courts refused to second-guess the CRA decision to withhold…
Tax cost step-up using losses
The writer summarizes a ruling in which a group of related corporations stepped-up the cost of depreciable property through a series intra-group transfers that triggered capital gains offset by losses. The step-up of the cost of the depreciable property was…
Dividends paid to beneficiaryco
The CRA takes the position that a dividend allocated by a trust is not paid until December 31. As a result, a trust beneficiaryco could be subject to Part IV tax if a target corporation pays a dividend through the…