Jeff Manishen, a Hamilton lawyer who specializes in criminal law, wrote to me recently to ask some interesting questions about donations. Jeff sometimes negotiates arrangements under which clients can avoid prosecution by making a donation to a charity. Some charities, however, refuse to issue receipts for such donations. Is that right? My responses follow.
Paid-up Capital Traps
According to the Income Tax Act (Canada) (the “Act”), when computing paid-up capital (“PUC”) for tax purposes, one must begin with “an amount equal to the paid-up capital in respect of that class of shares at the particular time, computed without reference to the provisions of this Act”.
What is PUC “computed without reference to the provisions of this Act”?
Good news for CAs
Here is some good news for accountants from last week’s provincial budget: a chartered accountant’s professional corporation will be able to become a member of a limited liability partnership.
CRA Charities Newsletter No. 26
The CRA recently released Registered Charities Newsletter No. 26. The newsletter contains an interesting discussion of the legal meaning of words like “may”, “shall” and “deemed”. It also has a useful table setting out the period of time for which…
List of Canadian legal blogs
Blogging is so popular that even lawyers are doing it! Steve Matthews, the Knowledge Services Director at Clark Wilson LLP in Vancouver, has created a list of legal blogs (“blawgs”) in Canada, which you can find here.
Reallocation of Partnership Income
Subsection 103(1) of the Income Tax Act (Canada) is an anti-avoidance rule that permits the Minister to reallocate (among other things) income among the partners of a partnership where the “principal reason” for the allocation agreed upon by the partners…
Independent Contractors — Or Not?
When is an independent contractor not an independent contractor for the purposes of the Employment Insurance Act (the “EI Act”)? Apparently when the Employment Insurance Commission of Canada makes a regulation that says she isn’t.
Fairness and Delay
If a court take too long to hear a taxpayer’s case, is the taxpayer entitled to interest relief under the fairness provisions of the Income Tax Act? In Cole v. Canada (Attorney General), 2005 FC 1445, the CRA said no. The Federal Court took another view of the matter.
Settling Tax Court Appeals
It is often said that, in a tax appeal, the Canada Revenue Agency is the client and the Department of Justice is its lawyer. As the client, the CRA gives instructions to Justice about how to conduct a tax case. Whether a case can be settled, it is thought, depends on the litigation officer from the CRA who is giving instructions to Justice. Indeed, Justice lawyers themselves often talk this way.
Garber v. The Queen, 2005 TCC 635, suggests that the situation is more complex than that.
OMA Law
Some readers of this newsletter were under the impression that my last article (“OMA Opens Law Firm!”) was intended to applaud the Ontario Medical Association (OMA) for offering to incorporate professional corporations for its members. In fact, our firm has…