Amit Ummat summarizes Smith v R, 2019 FCA 173, in which the Court held that a flight attendant received a taxable benefit from an employer-provided parking pass.
Director resignations
In Singh v R, 2019 TCC 120, the taxpayer had been assessed as a director of a corporation for its unremitted HST. The issue considered by the Court was whether, as the taxpayer claimed, he had resigned more than two years before the date of the assessment in issue (per subsection 323(5) of the Excise Tax Act).
Trust miscellania
Some points of interest from a recent CRA technical interpretation (2017-0683021I7, June 8, 2018) respecting a reorganization involving a trust with non-resident beneficiaries: The trustees of a trust purported to add a ULC as a beneficiary. The CRA, however, noted…
Five-year test when no related individual
An employee who works in a business on a full-time basis (ie more than an average of 20 hours per week) for five or more years will not be subject to TOSI even where the years occurred before the TOSI…
Employee discounts
the CRA acknowledges that its administrative position on employee discount programs is that an employee may exclude from income discounts on merchandise and commissions from personal purchases, but that administrative position does not…
Dividends to a trust and Part VI.1 tax
Opco wishes to redeem low-low preference shares held by a family trust, which proposes to allocate the resulting deemed dividend to a beneficiaryco (Benco). Will Part VI.1 tax apply to Opco? If the preference shares are subject to a price…
TOSI and rental income
Mr X owns the voting shares of Holdco that owns a rental property. His two kids own non-voting shares that on which Holdco pays dividends. Does the TOSI apply to dividends paid to the kids? Is the rental operation a…
CDA surplus stripping
Can a corporation trigger capital gains deliberately to increase its CDA and, as a result, facilitate surplus stripping? Using 55(2) for this purpose might problematic because of issues with the purpose test. A share exchange might be problematic as well.…
CDA timing and GAAR
If a corporation triggers a capital gain, pays a capital dividend using the resulting CDA balance and then triggers a capital loss that, in effect, offsets the gain, does the GAAR apply? In Gladwin Realty Corporation v R, 2019 TCC…
Interest payable
Amit Ummat has written a good article about Glatt v Canada (National Revenue), 2019 FC 738. The taxpayer was assessed a preparer penalty. To reduce risk, the taxpayer paid the assessed amount, which was later reversed, but without interest on…