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Author: John Loukidelis (page 4)

Reassessment outside the normal reassessment period

Posted on: July 24, 2024 Last updated on: July 18, 2024 Written by: John Loukidelis
In Cheema v R, 2024 TCC 81, the Court held that the CRA was entitled to reassess beyond the normal reassessment period where the taxpayer provided no good explanation for a disposition of real property he did not report or…
Continue reading “Reassessment outside the normal reassessment period”…

Dividends and Section 160 again

Posted on: July 18, 2024 Last updated on: July 18, 2024 Written by: John Loukidelis
In Active Asset Management Inc. v R, 2024 TCC 87, the Court held that neither a deemed dividend arising on a stated capital increase nor a dividend satisfied by a promissory note constituted a transfer of property for the purposes…
Continue reading “Dividends and Section 160 again”…

160 and discretionary trusts

Posted on: July 15, 2024 Last updated on: July 15, 2024 Written by: John Loukidelis
Neal Armstrong (taxinterpretations.com) reports that, in Barwicz v R, 2024 CCI 93 (French only), the Court held that, for the purposes of section 160, a beneficiary of a discretionary trust had not given consideration for distributions of capital property from…
Continue reading “160 and discretionary trusts”…

Making Trust Amounts Payable

Posted on: June 27, 2024 Last updated on: June 27, 2024 Written by: John Loukidelis
The CRA has taken the position that a trust cannot deduct an amount made payable to a beneficiary under ITA subsection 104(6) unless, among other things, the trust was legally entitled to make the payment under the terms of its…
Continue reading “Making Trust Amounts Payable”…

Resignation of a director

Posted on: June 17, 2024 Last updated on: June 5, 2024 Written by: John Loukidelis
The result in Ferri v R, 2024 TCC 255, is fact-driven: the court found (at para 25) In these circumstances, there is simply insufficient credible, consistent, reliable evidence to allow the Court to conclude on a balance of probabilities that…
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Section 160 Liability for Indirect Transfers

Posted on: June 13, 2024 Last updated on: June 5, 2024 Written by: John Loukidelis
In Panneton c. R, 2024 CCI 24, the tax debtor husband caused corporations that he owned to pay for renovations on the wife’s residence. The Court held that the payments constituted indirect transfers from the husband to the wife that…
Continue reading “Section 160 Liability for Indirect Transfers”…

Individual tenants and Part XIII tax

Posted on: June 11, 2024 Last updated on: June 27, 2024 Written by: John Loukidelis
In 3792391 Canada Inc. v R, 2023 TCC 37 (informal procedure), the Canadian tenant of a residential unit paid rent to a resident of Italy for six years without remitting tax under Part XIII of the Income Tax Act (Canada).…
Continue reading “Individual tenants and Part XIII tax”…

PRE and COVID

Posted on: June 7, 2024 Last updated on: June 5, 2024 Written by: John Loukidelis
The CRA has stated that a residence outside of Canada that was not be used in 2020 and 2021 because of COVID travel restrictions and advisories likely would not be “ordinarily inhabited” in those years for the purposes of the…
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Attribution in action

Posted on: June 5, 2024 Last updated on: June 5, 2024 Written by: John Loukidelis
Suppose that A and B are spouses, that they purchase a cottage together for $400,000 and that A contributes $100,000 toward the satisfaction of that purchase price. The balance is financed, with A and B paying the principal and interest…
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Charter success

Posted on: May 28, 2024 Last updated on: May 23, 2024 Written by: John Loukidelis
In McCartie v The King, 2024 TCC 16, the Court, in a 158-paragraph judgment, held that the Crown, in the taxpayer’s Tax Court appeal, would not be able to rely on evidence gathered in violation of the taxpayer’s Charter rights,…
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Guest post on the DTC

The following article on the disability tax credit was written by Tanya O’Connell, a former law clerk at Loukidelis Professional Corporation. The Disability Tax Credit (DTC) The DTC is a personal tax credit available under section 118.3 of the Income…
Continue reading “Guest post on the DTC”…

Inter-company loans

Subsection 15(1) of the Income Tax Act could apply where Aco loans money to Bco and Bco has no means of repaying the money. On the other hand, subsection 246(1) will not apply where Bco and its shareholder have no…
Continue reading “Inter-company loans”…

Change in use and flipping

The CRA has confirmed that a deemed disposition under subsection 45(1) of the Income Tax Act resulting from a change in use is not a disposition for the purposes of the flipping rules in subsections 12(12) and 12(13). See 2024-1027831C6.
Continue reading “Change in use and flipping”…

Swiss bank account trouble

In Azmayesh-Fard v R, 2025 TCC 20, the Court considered whether the CRA had properly reassessed a taxpayer beyond the normal reassessment period and imposed gross negligence penalties for unreported income from a Swiss bank account and for failing to…
Continue reading “Swiss bank account trouble”…

Price adjustment clause

An accounting colleague has reported to me on a CRA audit involving a price adjustment clause. The CRA challenged the valuation used for a transfer of property. The taxpayer and the CRA eventually agreed on a valuation that was about…
Continue reading “Price adjustment clause”…

Recent Posts

Guest post on the DTC

The following article on the disability tax credit was written by Tanya O’Connell, a former law clerk at Loukidelis Professional Corporation. The Disability Tax Credit (DTC) The DTC is a personal tax credit available under section 118.3 of the Income…
Continue reading “Guest post on the DTC”…

Inter-company loans

Subsection 15(1) of the Income Tax Act could apply where Aco loans money to Bco and Bco has no means of repaying the money. On the other hand, subsection 246(1) will not apply where Bco and its shareholder have no…
Continue reading “Inter-company loans”…

Change in use and flipping

The CRA has confirmed that a deemed disposition under subsection 45(1) of the Income Tax Act resulting from a change in use is not a disposition for the purposes of the flipping rules in subsections 12(12) and 12(13). See 2024-1027831C6.
Continue reading “Change in use and flipping”…

Swiss bank account trouble

In Azmayesh-Fard v R, 2025 TCC 20, the Court considered whether the CRA had properly reassessed a taxpayer beyond the normal reassessment period and imposed gross negligence penalties for unreported income from a Swiss bank account and for failing to…
Continue reading “Swiss bank account trouble”…

Price adjustment clause

An accounting colleague has reported to me on a CRA audit involving a price adjustment clause. The CRA challenged the valuation used for a transfer of property. The taxpayer and the CRA eventually agreed on a valuation that was about…
Continue reading “Price adjustment clause”…

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Archives

Categories

Recent Posts

Guest post on the DTC

The following article on the disability tax credit was written by Tanya O’Connell, a former law clerk at Loukidelis Professional Corporation. The Disability Tax Credit (DTC) The DTC is a personal tax credit available under section 118.3 of the Income…
Continue reading “Guest post on the DTC”…

Inter-company loans

Subsection 15(1) of the Income Tax Act could apply where Aco loans money to Bco and Bco has no means of repaying the money. On the other hand, subsection 246(1) will not apply where Bco and its shareholder have no…
Continue reading “Inter-company loans”…

Change in use and flipping

The CRA has confirmed that a deemed disposition under subsection 45(1) of the Income Tax Act resulting from a change in use is not a disposition for the purposes of the flipping rules in subsections 12(12) and 12(13). See 2024-1027831C6.
Continue reading “Change in use and flipping”…

Swiss bank account trouble

In Azmayesh-Fard v R, 2025 TCC 20, the Court considered whether the CRA had properly reassessed a taxpayer beyond the normal reassessment period and imposed gross negligence penalties for unreported income from a Swiss bank account and for failing to…
Continue reading “Swiss bank account trouble”…

Price adjustment clause

An accounting colleague has reported to me on a CRA audit involving a price adjustment clause. The CRA challenged the valuation used for a transfer of property. The taxpayer and the CRA eventually agreed on a valuation that was about…
Continue reading “Price adjustment clause”…

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