John Loukidelis – Page 87

Classes of shares

As readers of this blog know, the Ontario Business Corporations Act was amended late last year to provide that

The articles [of a Corporation] may provide that two or more classes of shares or two or more series within a class of shares may have the same rights, privileges, restrictions and conditions.

Robin MacKnight, writing in the Canadian Tax Foundation’s Tax for the Owner-Manager in July, pointed out that:

At the 2007 STEP National Conference, the CRA was asked how it would interpret this change in the context of the attribution and income-splitting rules. Not surprisingly, its response was that tax consequences depend on more than just a name, and it would not necessarily recognize a distinction between classes of shares on that basis alone.

At some point, I will write a longer piece on requirements to pay, but for now I will rest content with pointing to Encan Construction Ltd v. The Queen, 2007 TCC 579, as an example of the heavy burden they can impose on a taxpayer.

Soccer appeal denied

In its latest decision on the subject of registered charities, the Supreme Court has denied the appeal of the charity in A.Y.S.A. Amateur Youth Soccer Association v. Canada (Revenue Agency), 2007 SCC 42.

Disability plans

Yesterday, Finance released draft legislation for the new registered disability savings plans.

Donation shelters—the plot thickens

The Toronto Star is reporting that the CRA has reassessed or will reassess more than 100,000 taxpayers for about $1.4 billion in taxes, interest and penalties because they participated in donation tax shelters. I posted previously about another story in…

Price adjustments

In a post I wrote in the spring, I summarized briefly Desormiers c. Lalumière, 2006 QCCS 2357, a decision of the Quebec Superior Court, which seemed to call into question the effectiveness of price adjustment clauses.

Prorogued

The Parliament of Canada website reports that The Governor General informed the Speaker of the Senate and the Speaker of the House of Commons that the First Session of the 39th Parliament was prorogued on Friday, September 14, 2007. Prorogation…

Garnishments

A garnishment (or “requirement to pay”) under section 224 of the Income Tax Act can be a real headache for the garnishee. The garnishee is put in the middle of another taxpayer’s troubles with the CRA, and the scope of the requirement is sometimes unclear.

U.S. Treaty amended

Finance just announced that “Canada’s New Government Sign[ed] Protocol to the Canada-U.S Tax Treaty for the Benefit of Canadians”. The news release summarizes the changes implemented as follows:

Fairness

Making an application for fairness—or “taxpayer relief” as it is now called—is often a frustrating process for a tax professional. One wonders, sometimes, whether the CRA agent responsible even reads the application. The CRA has issued Information Circular IC07-1 about…

Author: John Loukidelis (page 87)

Classes of shares

Requirements

Soccer appeal denied

Disability plans

Donation shelters—the plot thickens

Price adjustments

Prorogued

Garnishments

U.S. Treaty amended

Fairness