The CRA issued a couple of interesting technical interpretations in the last few months. Foreign Entity Classification The CRA will no longer issue technical interpretations on foreign entity classification (CRA technical dated August 04, 2011, 2011-0415141E5) because whether the foreign…
Fuzzy logic
Is a gain realized on a sale of real property a capital gain or must it be fully included in income, perhaps because the sale was in connection with an “adventure in the nature of trade”? One might think that…
The Arnold Report
Brian Arnold maintains a blog of sorts over at the CTF website. I say “of sorts” not to denigrate what he does with his posts—which are always informative and often quite funny—but to point out that when you number your…
Acting in concert
Two unrelated individuals each own 50% of a corporation. If the daughter of one of them is an employee of the corporation, does she deal with it at arm’s length for the purposes of subsection 5(2) of the Employment Insurance…
Bending over backwards
Sometimes taxpayers and their representatives have a hard time understanding the Canadian tax-dispute resolution system, like the poor accountant in Roman Miniotas (Romeo’s Plumbing & Heating) v R, 2011 TCC 43.
Tax Court class actions?
“Government Invites Comments on Proposals to Improve the Caseload Management of the Tax Court of Canada”. From the Finance press release:
Disbursement headache?
PC Employment Agreement
It is our standard practice when incorporating a professional corporation (a PC) to prepare an employment contract between the professional and the PC.
CNFPCA in Force
The Canada Not-for-profit Corporations Act, SC 2009, c 23, is slated to come into force as of October 17, 2011, which means that corporations currently governed by the Canada Corporations Act will need to make the transition to the new…
160 and Knowledge
For the purposes of section 160 of the Income Tax Act, it does not matter whether the transferor or transferee knows that the transferor owes tax at the time of the transfer. What they intend to accomplish by making the transfer is irrelevant as well. In both cases, section 160 will apply, if its other conditions are satisfied. But what about the case where the transferor purports to transfer property to the transferee without her knowledge or consent. In Leclair v Canada, 2011 TCC 323 the court held that section 160 did not apply in those circumstances.