We have moved! We are still at 20 Hughson St S in Hamilton, but our new suite number is 707. All of our other contact details remain the same. Our updated contact information can be found here. Because of COVID-19,…
Safe income and trust allocations
In technical interpretation 2019-0833061E5 (January 27, 2020), the CRA stated that, where a trust receives a dividend of $2,500, $1,000 of which is ‘safe’, it cannot designate the safe portion to a corporate beneficiary and the rest to an individual…
Getting around the AAII grind
The authors suggest that corporations might form a partnership to hold an investment portfolio to reduce or avoid the small business deduction grind for passive income in paragraph 125(5.1)(b) of the Income Tax Act (Canada). They counsel caution, however, because…
TOSI and digital downloads
In technical interpretation 2019-0833181E5 (March 15, 2020), the CRA considered when the sale or licensing of digital products could be considered to generate income from a service for the purposes of the TOSI rules. According to the CRA, the download…
Transferee pays debtors non-tax debts
In Brown v R, 2020 TCC 45, the Court considered whether section 160 of the Income Tax Act (Canada) applied where a tax-debtor husband transferred funds to his wife who had agreed to use the funds to pay his credit…
Acknowledgement of a debt
The 10-year limitation period during which the CRA can collect a debt under the Income Tax Act (Canada) is re-started if the debtor “makes a written acknowledgement” of it. The CRA has stated that merely filing an objection or an…
Case law update
The following are my notes on a case law update from Sal Mirandola given at an OBA taxation law presentation on September 22, 2020 (“Advising your clients amidst financial uncertainty: Summer 2020 tax developments”) For the paper, see ~\Knowledge\Seminar materials\2020…
International tax update
The following are my notes on an international tax update from Steven Suarez given at an OBA taxation law presentation on September 22, 2020 (“Advising your clients amidst financial uncertainty: Summer 2020 tax developments”) For the paper, see ~\Knowledge\Seminar materials\2020…
Joint Committee update
The following are my notes on an update from Angelo Nikolakakis given at an OBA taxation law presentation on September 22, 2020 (“Advising your clients amidst financial uncertainty: Summer 2020 tax developments”) For the paper, see ~\Knowledge\Seminar materials\2020 09 22…
Hockey players and fx trading
The Toronto Star is reporting that Darcy Tucker and Shayne Corson of Toronto Maple Leaf fame engaged in foreign exchange trading a reported losses for tax purposes. The CRA is calling the trading activities a “sham” (which doesn’t mean what…
Change of trustee and acquisitions of control
The CRA takes the position that, where a new individual becomes a trustee, a corporation controlled by the trust is controlled by a new group so that there will be an acquisition of control unless one of the exceptions in…