In Canada v. BCS Group Business Services Inc., 2020 FCA 205, the Court found that a corporation in a general procedure appeal must be represented by a lawyer. For the reasons that follow, I have concluded that the legislator…
Interest relief
In Belchetz v Canada (National Revenue), 2020 FCA 225, the court considered whether the Minister had properly exercised her discretion to allow relief for 15 of the 30 (!) years for which interest had been outstanding. The issue before the…
Estate loss carry back
Has COVID-19 made it difficult or impossible for you, an estate executor, to dispose of capital property within the one-year deadline in subsection 164(6) because, say, courthouse staff have been unable to process probate applications in a timely manner? Then…
CDA timing strategies
After noting the Court’s comments Gladwin Realty Corporation v Canada, 2020 FCA 142, aff’g 2019 TCC 62, at ¶76, the authors conclude “that CDA timing strategies are not offensive in general”. Capital dividends can be paid immediately after the realization…
Charity revocation decisions
The Federal Court of Appeal has decided that, in light of Vavilov (2019 SCC 65), the standard of review for CRA charity revocation decisions is “palpable and overriding error.” Ark Angel Fund v. Canada (National Revenue), 2020 FCA 99. Molly…
Audit evidence excluded
A CRA “joint director” of the “Special Enforcement Program” and the “Criminal Investigations Program” heard that an anonymous informant had alleged that a taxpayer was evading taxes with the assistance of a highly-placed CRA official. The director ordered a civil…
Rescission lives
In Collins Family Trust v. Canada (Attorney General), 2020 BCCA 196, aff’g 2019 BCSC 1030, the Court affirmed Re Pallen Trust, 2015 BCCA 222, and held that, even Fairmont, 2016 SCC 56, and Jean Coutu (PJC), 2016 SCC 55, rescission…
PC employment agreement
In Andre Lamy Medicine Professional Corporation v R, 2020 TCC 61 (informal), the Court considered whether a Hamilton-based professional corporation (PC) was entitled to SRED credits. Some of the contracts relating to the research underlying the claim for the credits…
Disputes involving losses
Summary of Michael H. Lubetsky “Income Tax Disputes Involving Loss Years: Pitfalls, Foibles, and Possible Reforms” (2019) 67:3 Canadian Tax Journal 499-531. This article won an award from the Canadian Tax Foundation as the best article it published in 2019.…
Use of a cottage
At the 2020 Canadian Tax Foundation Roundtable (question 7), the CRA was asked about a cottage owned by an alter ego trust or a joint spousal trust trust. Can the children of the trust’s beneficiaries use the cottage without being…