Manu Kakkar and Marissa Halil, in “Subsection 55(2): The CRA’s Recent Positions” Tax for the Owner-Manager 16:1 (January 2016), provide a useful summary of the CRA’s pronouncements on 55(2) at the Tax Foundation conference. The CRA is concerned that deliberately…
Neutral citation for PITA
Carswell is making the Practitioner’s Income Tax Act (PITA) even more useful by switching to neutral citations for its case references. The neutral citation provides a sure-fire way to locate a case quickly and easily, regardless of the database you…
Payments to non-residents
The CRA concluded that Canco was not required to withhold from incentive amounts paid to the non-resident employees of dealers of Canco’s profits. The incentive amounts amounts related to warranties registered on Canco’s products. The CRA, however, stated that Canco…
Car logo
The CRA takes the view that a section 6 standby charge is not reduced by a contract of employment that requires the employee to drive a company car at all times, even for personal use, where the car is decorated…
Run-off insurance
From CRA technical interpretation 2015-0618981E5 dated December 3, 2015: enerally speaking, the fact a taxpayer no longer carries on a business will not preclude the taxpayer from deducting Run-off Insurance premiums in the year they are paid, provided the insurance…
Deposit forfeited to non-resident vendor
From Georgina Tollstam, “Deposit Forfeited to Non-Resident” Canadian Tax Highlights 23:6 (June 2015): An internal technical interpretation (2013-0479861I7, March 16, 2015) confirms that if a Canadian taxpayer purchases real property located in Canada from a non-resident vendor and the sales…
Valuation presentation
Summary of “Business Valuation—CRA and Professional Advisor Perspectives”, a presentation given by Mark DeMarco, Team Leader, Business Equity Valuations Unit, Toronto Regional Valuations Unit, to a workshop held by The Canadian Institute of Chartered Business Valuators in Toronto on December 2, 2015.
Personal Services Businesses
A version of the following article appeared in the most recent edition of the HLA Journal.
An employee, for income tax purposes, cannot deduct many expenses that a person in business for him- or herself can. On the other hand, a CCPC that carries on an active business can claim the small business deduction in respect of income from that business. Assuming that a worker does not wish to be treated as an employee, can he or she get the tax benefits of a self-employed person and the small business deduction by providing services through a corporation? The answer is “no”, if the personal service business (“PSB”) rules apply.
A notice of additional assessment
684761 BC Ltd v R, 2015 TCC 288, introduced me to the concept of the “additional assessment”. The CRA reassessed the taxpayer for its 2008 taxation year on December 16, 2011, just before the end of the relevant normal reassessment…
Debt forgiveness and consumer proposals
From Marlene Cepparo’s comment on technical interpretation 2015-0568411E5, May 13, 2015, in Canadian Tax Highlights 23:9 (Sep 2015): The CRA’s view is that a full or partial release of a commercial debt obligation under a consumer proposal generally results in…