I’ve said it before, and I’ll say it again: the procedural rules for tax disputes are strict: they do not leave room for what is “fair”. In Hess v. R, 2011 TCC 387, the taxpayer, it might have been argued, filed an objection to a notice of assessment issued in 2003. The CRA, however, reassessed the taxpayer for the same year in 2006, and the taxpayer took no action in respect of the subsequent reassessment until 2009. Justice Woods responded to the fairness argument as follows:
Crazy
The judgment in Chaput v R, 2011 TCC 363, is short and to the point. I reproduce it here in its entirety:
Kiddie tax
In Jeannotte v R, 2011 TCC 247, the taxpayer’s representative tried to argue that the Court should make an exception to the kiddie tax rules on income from a trust that was set up, not to avoid tax, but to…
The Gambler
The upsurge in interest in all things poker-related has sort of passed me by, like a lot of other trends and fashions. But, because I am a tax nerd, I have asked myself why it is that those who make a living playing poker, or who make some money at it anyway, don’t seem to pay tax on their winnings? I suspect that the answer can be found in Cohen v R, 2011 TCC 262.
DIY Tax Planning Gone Wrong
It seems that, in S & D International Group Inc. v. Canada (Attorney General), 2011 ABQB 230, the court confronted a situation where the parties engaged in some do-it-yourself tax planning and, then, some do-it-yourself tax repair work. Fortunately for…
Privilege and a claim for legal expenses
In RICHARD A. KANAN CORPORATION v R, 2011 TCC 211, an informal procedure case, the Court was asked “how much information can the Minister, or the Court, require a taxpayer to produce in support of his or her expenses, if that information is subject to solicitor-client privilege?” (¶ 1).
Garron leave granted
The Supreme Court of Canada has granted leave to appeal in St. Michael Trust Corp. v. The Queen, 2010 FCA 309, aff’g Garron Family Trust v. The Queen, 2009 TCC 450.
Marechaux dismissed
The Supreme Court of Canada has dismissed the taxpayer’s application for leave to appeal from the decision of Federal Court of Appeal.
10-Year Limitation for Relief Revisited
In 2005, I wrote a post about the 10-year limitation period for relief applications that was introduced by the 2004 budget, and I noted that the drafting of the limitation period was ambiguous. The Federal Court of Appeal just released a decision resolving that ambiguity in favour of the taxpayer given the purpose and context of the relief provisions: see Bozzer v. The Queen, 2011 FCA 186, rev’g 2010 FC 139.
T1135 Madness
The more I read about the penalties for late-filing T1135 forms (the forms for foreign property reporting), the crazier they seem to me.