Assume that Ms X, a lawyer in Ontario, wishes to incorporate a professional corporation (PC). Unlike her doctor and dentist clients, she can’t permit her husband to subscribe for shares in the capital of the PC because only members of…
Access to information requests
I’ll sometimes make a Privacy Act or access to information request so that I can see the auditor’s or appeals officer’s file (or both). The CRA has published a webpage on how to make such requests, which is a welcome…
Tax “protesting” as crime
The CRA reports that a tax “protester” has been fined for evading tax and sentenced to prison for counselling others to commit fraud (presumably by teaching them tax protester “methods”).
Splitting income for PCs
I’ve written before concerning my doubts about the advisability of issuing shares that are redeemable for a nominal amount but that are entitled to unlimited dividends. Robin MacKnight does not share these concerns: he appears to have no qualms about…
Otteson and the capital gain exemption
The provisions of the Income Tax Act governing when a taxpayer can claim the capital gain exemption in respect of farm property are complex. Otteson v R, 2014 TCC 250, is an interesting case that navigates the provisions in the context of a rather complex set of facts.
Being Digital
From “Paperless Tip” at Lawyerist.com: Never ever ever send a Word file as “correspondence.” A Word file — or a WordPerfect, OpenOffice.org, or Pages file — is not a document. PDFs are documents. Word files are drafts. And sending a…
Paper-less
Neal Armstrong at taxinterpretations.com reported yesterday on CRA TI 2014-0526121E5, which confirmed that electronic copies of original records should suffice for the purposes of complying with the provisions of the Income Tax Act relating to business records. Keeping originals might…
The ONCA: Not Until 2016
It appears the “new” Not-for-Profit Corporations Act, 2010 will not come into force before 2016 according to a post from early June on the Ministry of Government and Consumer Services website.
The T1135, Again
The saga continues: Form T1135 – Reporting for 2014 and later tax years.
Filing nil returns to avoid penalties
Can taxpayers, by filing nil returns, avoid late-filing penalties and begin the beginning of the normal reassessment period? The CRA says ‘no’ in technical 2014-0519701I7. The CRA says that, even if it issues a notice of assessment in response to…