The author provides a summary of the detailed analysis undertaken by the Court in Gladwin Realty Corporation v Canada, 2020 FCA 142 to determine the object and spirit of the provisions of the Income Tax Act (Canada) at issue in…
Re-freeze caution
Part VI.1 tax can apply in respect of a dividend paid by a corporation to a trust that is allocated to a beneficiary even if the trust has a substantial interest in the corporation. The CRA takes the position that…
All due dispatch
Two recent cases consider the meaning of “all due dispatch” as the phrase applies to the time the CRA can take to pay refunds of net GST. In both cases, the courts refused to second-guess the CRA decision to withhold…
Tax cost step-up using losses
The writer summarizes a ruling in which a group of related corporations stepped-up the cost of depreciable property through a series intra-group transfers that triggered capital gains offset by losses. The step-up of the cost of the depreciable property was…
Dividends paid to beneficiaryco
The CRA takes the position that a dividend allocated by a trust is not paid until December 31. As a result, a trust beneficiaryco could be subject to Part IV tax if a target corporation pays a dividend through the…
Corporate counsel
In Canada v. BCS Group Business Services Inc., 2020 FCA 205, the Court found that a corporation in a general procedure appeal must be represented by a lawyer. For the reasons that follow, I have concluded that the legislator…
Interest relief
In Belchetz v Canada (National Revenue), 2020 FCA 225, the court considered whether the Minister had properly exercised her discretion to allow relief for 15 of the 30 (!) years for which interest had been outstanding. The issue before the…
Estate loss carry back
Has COVID-19 made it difficult or impossible for you, an estate executor, to dispose of capital property within the one-year deadline in subsection 164(6) because, say, courthouse staff have been unable to process probate applications in a timely manner? Then…
CDA timing strategies
After noting the Court’s comments Gladwin Realty Corporation v Canada, 2020 FCA 142, aff’g 2019 TCC 62, at ΒΆ76, the authors conclude “that CDA timing strategies are not offensive in general”. Capital dividends can be paid immediately after the realization…
Charity revocation decisions
The Federal Court of Appeal has decided that, in light of Vavilov (2019 SCC 65), the standard of review for CRA charity revocation decisions is “palpable and overriding error.” Ark Angel Fund v. Canada (National Revenue), 2020 FCA 99. Molly…