A definition of “substantive CCPC” will be added to subsection 248(1). A private corporation (other than a CCPC) will be a substantive CCPC if it is controlled, directly or indirectly in any manner whatever, by one or more Canadian resident…
Director’s resignation
In Zvilna v R, 2022 TCC 50 (informal procedure), the Court accepted the taxpayer’s oral testimony that he had resigned from a corporation in writing even though the document in question was never entered into evidence. The taxpayer and his…
UHT Traps
It appears that the underused housing tax (UHT) might apply to residential property owned by a partnership one of the partners of which is another partnership a trust where one or more of the beneficiaries of the trust is another…
GAAR and 55(2)
3295940 Canada Inc. v R, 2022 TCC 68 considered a taxpayer who had wanted to sell shares of 329, which had a high tax cost, to an arm’s length purchaser. The purchaser would not buy the shares for commercial reasons.…
Timing of Corporate Partner’s CDA Increase
The CRA has stated that, when a partnership receives a capital dividend, a corporate partner’s capital dividend account increases at the time of the receipt of the dividend or at the end of the partnership’s fiscal period depending on the…
Farm property rollover
The CRA recently confirmed that subsection 73(3) does not require property to be owned by the taxpayer in the years when it is used principally in the business of farming in which the taxpayer or certain related persons were actively…
Reportable and notifiable transactions
Amit Ummat and I published the following article in the most recent edition of the Hamilton Law Association Journal. One important point: Finance has postponed the coming into effect of the new rules to 2023. Lawyers can usually assist with…
Director liability defence fails
In Burnett v R, 2022 TCC 99, the Court rejected the taxpayer’s due diligence defence of a director liability assessment. It did not matter that the taxpayer was an “outside director” (which the evidence tended to contradict in any case).…
Earnout payments taxed under 12(1)(g)
In 4432002 Canada Inc. c La Reine, 2022 CCI 101, the corporate taxpayer appealed from CRA reassessments that had included amounts in its income under 12(1)(g) of the Income Tax Act (Canada) and imposed Part III tax liability for excess…
Value of an interest in a discretionary family trust
Cottrell v Cottrell, 2022 BCSC 1607, is a BC family law decision, part of which addresses the value of a spouse’s interest in several discretionary trusts. Joanne was a beneficiary of family trusts established by her parents. Under BC family…