In Canada (Attorney General) v 18335898 Alberta Ltd (Whitecap Energy Inc), 2023 ABKB 357, the taxpayer wound-up and dissolved in 2020. All of its assets were transferred to its parent. The CRA audited the taxpayer’s 2017 and 2018 taxation years.…
Form of objection
I have written before about the Tax Court’s tendency to give a liberal interpretation to what constitutes a “notice of objection”. I am a little surprised, then, that the CRA made an application to quash the appeal of the taxpayers…
T2057 amended
The CRA has amended the T2057 to make several significant changes. The form must now be accompanied by a calculation of the tax cost of the subject property, and the form must indicate whether an “independent assessment” of fair market…
Reportable Transactions and Adviser Fees
Last year, the Department of Finance proposed amendments to section 237.3 of the Income Tax Act (Canada) (the “Act”) that reduced to one the number of “hallmarks” that would trigger reporting on an avoidance transaction. In response, the Joint Committee…
VDP Woes
Christen v. Canada (Revenue Agency), 2021 FC 1440, aff’d 2023 CAF 101, is of interest on a number of levels, perhaps especially for lawyers who practice administrative law. The case also yields some interesting insight into the CRA’s approach to…
Penalties for false statements
The Court confirmed the imposition of gross negligence penalties in O’Hagan v R, 2023 TCC 52 (informal procedure) (a Fiscal Arbitrators case), after finding that the taxpayer had been “willfully blind” (among other things). The taxpayer submitted a return for…
Books and records
It bears repeating: you must maintain books a records as long as necessary to support any claim you wish to make for a deduction or loss under the Income Tax Act (Canada) (the “Act”), especially if you are prosecuting an…
Liability for Part XIII tax on rent paid to a non-resident
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)…
Negligent misrepresentation
In Goldhar v R, 2023 TCC 30, the CRA alleged that certain transfers had conferred a benefit on the appellant in a total amount of about $5.5 million. The appellant argued that the transfers were inter-corporate loans that had not…
Section 160 and “spouse”
In Kiperchuk v R, 2013 TCC 60, the Tax Court held that a widow was not the “spouse” of her deceased husband. In Enns v R, 2023 TCC 28, however, the Court followed Kuchta v R, 2015 TCC 289, and…