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…
Subsection 110.6(8) issues
Subsection 110.6(8) denies the capital gain exemption for a gain on a share if insufficient dividends are paid on it and the share is not a “prescribed share”. An ordinary common share is a prescribed shares under Reg 6205(1). A…
Part IV and 55(2) confusion
Consider the situation where subsection 55(2) applies to a dividend because it is paid as part of a series that includes the refund of the Part IV tax that was payable on the dividend. Ottawa Air Cargo Centre Ltd. v…
Late-filed elections
The CRA can permit the filing of a late-filed election only if it is one of those listed in Reg 600. An election is different from a designation, which Nassau Walnut addressed. See Banff Caribou Properties Ltd. v. Canada (Attorney…
Flipping out
The new “flipped property” rules in subsection 12(12) to (14) appear to apply in perverse ways. Suppose a taxpayer transfers a home to a corporation on a rollover basis and the corporation then sells the home within the “bright line…
REOP reborn?
In Philip Friedlan and Adam Friedlan “Brown v. Canada: REOP Redux?” Tax for the Owner-Manager 23:2 (April 2023), the authors argue that Brown v R, 2022 FCA 200, appears to have confirmed that R v Paletta, 2022 FCA 86, introduced…
Travel expense case
1048547 Ontario Inc. v R, 2023 TCC 24, illustrates the evidentiary burden a taxpayer will face when trying to justify travel expenses to exotic locations that seem to have nothing to do with the taxpayer’s ordinary business operations. If you…
Accounting entries, again
In Houle c. Le Roi, 2023 CCI 2, the Court considered assessments that alleged a shareholder received a benefit in two taxation year because of an (unsupported) increase in the credit balance of the shareholder loan account. The Court held…
Safe income again
A corporation must reduce the safe income of its shares by contingent liabilities and reserves, if they reduce the “inherent gain” of the shares. “The safe income is reduced by actual and potential cash outflows”. APFF 2022 Conference question 1,…