Chief Justice Bowman of the Tax Court of Canada just does not like tax shelters much. He has released a number of decisions over the last few years in which he has ruled against taxpayers who purchased shelters of one kind or another. Makuz v. The Queen, 2006 TCC 263, is another recent example.
Control and groups
Crystal Beach Park Limited v. The Queen, 2006 TCC 183 is an interesting case with some local roots
Fees, audits, objections and appeals
When can a taxpayer deduct fees paid to contest an assessment or reassessment? As is usual in tax matters, the answer is neither simple nor obvious.
Checking GST Numbers
You can now check the CRA’s website to see whether a person really is a GST registrant. The CRA explains: The GST/HST Registry lets you validate the GST/HST number of a business, which helps to ensure that claims submitted for…
More on Fraud
In September last year, I wrote a short article about fraud and income tax. The Federal Court of Appeal reiterated the law on this subject in Vankerk v. The Queen, 2006 FCA 96. The ratio of Madame Justice Sharlow is…
Limits on Solicitor and Client Privilege
Some time ago, we wrote an article for The Bottom Line on accountants and client privilege (see the mid-September, 2003 issue). In the article, we noted that, in light of Tower v. M.N.R. and BDO Dunwoody LLP, [2002] D.T.C. 7315 (F.C.T.D.), rev’d 2003 FCA 307 on other grounds, most communications between an accountant and her client are not privileged. A recent case—M.N.R. v. Reddy, 2006 FC 277—shows that neither is some of the confidential information held by a lawyer about her client.
De Facto Control
I am regularly asked whether it is possible to “multiply” the small business deduction (the SBD), and just as regularly I find it difficult to provide easy-to-understand advice and guidance. The association rules are complex, and even if their technical requirements are met the CRA can still reassess to require corporations to share the SBD on the grounds that they are controlled de facto by the same person. Two recent cases show that the courts are willing to uphold such reassessments.
Current Tax Cases on June 1, 2006
I presented “Current Tax Cases” at the CRA’s Hamilton and District Tax Consultation Group on June 1, 2006 at the Royal Botanical Gardens. You can download my PowerPoint presentation here.
Going to Tax Court
Joe Monaco and I spend a good deal of time handling cases before the Tax Court of Canada because sometimes the CRA just will not listen to reason. Before filing an appeal, however, the client should understand something about the process. To that end, the following table provides a simplified outline of a General Procedure income tax appeal.
Amendments to the CA Act
Our readers who are CAs will be aware that Ontario has amended the Chartered Accountants Act, 1956 to permit professional corporations to be partners in limited liability partnerships. The amendments are effective May 18, 2006. The Chartered Accountants of Ontario…