Under s 149(12) of the Income Tax Act (Canada), certain not-for-profits (“NPOs”, ie entities exempt from tax under s 149(1)(l)) must file a T1044 information return. An NPO must file the T1044 if (a) the total of all amounts each…
Collections scam
I have heard recently about a number of taxpayers who received voicemail messages purporting to be from the CRA. The caller left a message threatening the seizure of assets or the immediate imposition of criminal or severe civil sanctions if…
Section 51 loss on conversion
Summary of Technical interpretation 2014-0524651I7 E (May 6, 2014).
Spousal trust cannot be a GRE
The CRA, in technical interpretation 2014-0553181E5F (June 25, 2015), says that a spousal trust cannot be a “graduated rate estate” for the purposes of the Act.
Interest on debt to acquire land; bad debts
Per Lyons J in Kokai-Kuun Estate v R, 2015 TCC 217: a taxpayer cannot add to the cost of vacant land interest and property taxes paid in respect of the land where it was acquired for “investment” purposes but never…
Personal services business
C.J. McCarty Inc. v R, 2015 TCC 201, is a good recent analysis of whether the personal services business rules applied to a taxpayer in light of Wiebe Door and Sagaz. Bruce Russell, “McCarty – A Personal Services Business?” Tax…
Shareholder agreements and de jure control
Will a shareholder agreement that permits a minority shareholder to elect the majority of the corporation’s board confer control on the minority shareholder? The Tax Court in Kruger Wayagamack Inc. v R, 2015 TCC 90, said not if the minority…
Stock options and death
From Andrew Morreale, “Stock Option Deduction Is Available on Death” Canadian Tax Focus 5:3 (August 2015): An employment benefit in respect of unexercised employee stock options that arises on death is eligible for the paragraph 110(1)(d) deduction through the use…
Alberta trust vindicated
What does it take to make an Alberta trust “work” in light of Fundy Settlement v Canada, 2012 SCC 14? From Colin Poon, “Interprovincial Tax Planning Using Trusts Upheld”, Canadian Tax Focus 5:3 (August 2015) re Discovery Trust v Canada…
Crooked preparer jail
I’ve complained before about crooked preparers who file false expense or donation claims for (sometimes) clueless taxpayers. The taxpayers get the refund, pay the preparer’s fee (which is often pretty generous) and then are reassessed for the bogus claims (with…