Joe Monaco and I will do a presentation for the Realtors Association of Hamilton-Burlington tomorrow on real estate and tax. You can obtain a copy of our PowerPoint presentation here.
OBA Presentation on Charities
I will present at a seminar hosted by the Charity and Not-for-Profit section of the Ontario Bar Association in Toronto on Wednesday, October 26. I will cover topics addressed in my article on the new split-receipt rules ((2004) 18(4) The…
Supreme Court Releases GAAR Decisions
The Supreme Court of Canada, in Canada Trustco Mortgage Co. v. The Queen, 2005 SCC 54 and Mathew v. The Queen, 2005 SCC 55, released its first judgments on the general anti-avoidance rule yesterday. The Court unanimously dismissed the Crown’s…
More on CRA Demands for Information
Redeemer Foundation v. M.N.R., 2005 FC 1361, represents an interesting coda to my article on CRA demands for third-party information. In this decision, the Federal Court quashed reassessments that were based on information obtained pursuant to an improper demand for third-party information.
Professional Corporations
In its 2005 budget, the Ontario government announced that it would amend the legislation governing professional corporations to permit corporations controlled by doctors to issue shares to family members (see “Paper C: Details of Revenue Measures” under the heading “Professional…
Fraud and Income Tax
A rogue convinces you to “invest” in a “business” and you lose the money you invest because the business really consists of stealing your money. Will you be entitled to a deduction in respect of the money you have lost? The Federal Court of Appeal, in Hammill v. The Queen, 2005 FCA 252, said no.
A Nasty Surprise for Charities
On July 18, 2005, the Department of Finance released over 300 pages of draft legislation amending the Income Tax Act (Canada) (the “Act”). For the most part, the legislation merely reintroduces previously-announced proposals, but Finance slipped in a new measure that imposes new burdens on charities. If the proposal is enacted, a charity that issues a receipt with an eligible amount in excess of $5,000 will be required first to make “reasonable inquiry” about whether the amount should be reduced under any one of a number of complex provisions of the Act relating to gifts.
Arguing with the CRA While the Clock Ticks
You file an income tax return for your client, and later the CRA issues an assessment or a reassessment that does not agree with the return as filed. Your natural instinct is to try to solve the problem by discussing it with the auditor or the person who issued the assessment. The communication is quicker and more direct. The person is already familiar with the issue in dispute. Remember, however, that while you are dealing with this person the clock is ticking away and your time for filing an objection is running out.
CRA Demands for Third-Party Information
Section 231.2 of the Income Tax Act (Canada) (the “Act”) authorizes the CRA to demand information from any person for any purpose related to the enforcement of the Act. What do you need to know about a demand for information about an unnamed third party, if the CRA comes knocking at your door with one in hand?
The Perils of Large Corporation Appeals
When drafting a notice of objection for a large corporation, it is essential to ensure that you cover all of the issues in dispute between your client and the CRA. If you fail to cover all of the issues, your client’s ability to contest them at the Tax Court could be curtailed. Newmont Canada Limited v. The Queen, 2005 TCC 143, is a harsh reminder of this possibility.