According to the Department of Finance website, “Canada Supports U.S. Technical Explanation of the Fifth Protocol to the Canada-United States Income Tax Convention“.
Not-for-profit
BBM Canada v. The Queen, 2008 TCC 341, is a surprise, not because of the result but because of the novel position advanced by the Crown in support of the assessment in question. The organization assessed had taken the position that it was exempt from tax under paragraph 149(1)(l) of the Income Tax Act because it was a not-for-profit. The CRA thought otherwise.
Foreign tax credits
In Marchan v. The Queen, 2008 TCC 158, the taxpayer received stock options from the U.S. parent of the Canadian subsidiary for which he worked in Canada. He exercised the options and sold the underlying securities, but the brokers handling the transactions withheld amounts from his proceeds, presumably on account of U.S. taxes. The taxpayer tried to claim a foreign tax credit.
Another loss
Another tax shelter case, another loss for the taxpayer: see Norton v. The Queen, 2008 TCC 91. It’s clear that the courts have little patience for these schemes, which is a real problem for those trying to promote legitimate shelters.…
Objection Held in Abeyance
In my post for June 17, I discussed a case allowing interest relief for court-related delay for a taxpayer whose objection was held in abeyance pending the outcome of the court case. In the June 5 Tax Topics, John Yuan points out a potential trap for a taxpayer whose objection is being held in abeyance.
C-50 Now Law
Bill C-50 received Royal Assent yesterday and became law as S.C. 2008, c. 28.
Golf and tax
A number of my faithful correspondents have written to me to draw my attention to a story on the front page of yesterday’s Globe and Mail. The story recounts the saga of an insurance executive who went to Tax Court…
Interest relief
A Federal Court decision from earlier this year considers whether interest relief should be available to a taxpayer whose objection is held in abeyance pending the outcome of the appeal.
Corporate authorizations
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.