It seems that lately the CRA has been refusing to accept corporate authorization forms (RC59s) signed by anyone other than a director of a corporation. The CRA will refuse to accept the consent unless it is signed by somebody who appears in the “Ontario registry” as a director. What is the CRA up to now?
C-50
Bill C-50—”An Act to implement certain provisions of the budget tabled in Parliament on February 26, 2008 and to enact provisions to preserve the fiscal plan set out in that budget”—received third reading in the House of Commons yesterday.
Recent cases
Joe Monaco will be giving a presentation at the CRA practitioner’s roundtable on June 5 at the Royal Botanical Gardens.
Citing the Income Tax Act
Here’s some tax trivia to get us through the month of June. How does one cite the Income Tax Act?
Model Objects
The CRA posted a useful, albeit brief, memorandum a few weeks ago on its website about model objects for charities.
Refund Interest
Subsection 164(3) of the Income Tax Act (Canada) requires the Minister to pay interest on an amount that is refunded, repaid or applied to another liability.
Withholding Tax Issues
In Sentinel Hill No. 29 Limited Partnership v. Canada (Attorney General), 2008 ONCA 132, the Ontario Court of Appeal held that the Superior Court is not the place to resolve disputes involving assessments under the Income Tax Act (Canada) (the “Act”). That much is not surprising: in general, non-tax courts run as fast as they can from tax disputes, given the chance. The case illustrates, however, a nasty gotcha in international taxation that any practitioner who does cross border work should watch out for.
Nil Assessments
A taxpayer cannot object to or appeal from a nil assessment. The courts have held that a piece of paper that says you don’t owe any tax is not an assessment for the purposes of the Income Tax Act even though it might have that word printed at the top of it.
Correcting 85 Election Forms
The CRA’s Information Circular IC 76-19R3 sets out its position on the procedures for correcting T2057s (the form used for elections under section 85 of the Income Tax Act (Canada)). In effect, the Circular identifies two types of mistakes.
Tax Court Jurisdiction Again
In a February post, I noted that the Tax Court does not have jurisdiction over an assessment that relates only to Ontario taxes. In Hiscock v. Canada, 2007 FCA 382, the Court held that the Tax Court did have jurisdiction to determine whether a taxpayer was a resident of Nova Scotia.