The cartoonist Andrew Donato donated his cartoons and claimed a tax credit for the fair market value of them. The CRA didn’t dispute the amount of the credit he could claim, but it took the position that he had realized a capital gain on making the gift. The Tax Court agreed with the CRA in Donato v. The Queen, 2009 TCC 590.
Why Clients Hate Lawyers
Some clients hate lawyers because the lawyers insist on charging more than $0.99 per hour. I can live with that kind of hatred. On the other hand, some clients “hate” lawyers for good reason, at least according to this post:…
ABILs
Given the economic climate, it’s not surprising that we are receiving a lot questions about allowable business investment losses (ABILs). Nor is it surprising that many taxpayers find it difficult to claim ABILs, given the many pitfalls.
New blogger
I’ve been posting articles to this blog for more than four years, and, to my surprise, it hasn’t become old for me yet. That said, I am pleased to welcome a new blogger to the site. Nathan Green is a…
Double Taxation in US Health Care Reform
A recent Tax Court of Canada decision raises concerns of double taxation in proposed US health care reforms. The case is Niemeijer v. The Queen, 2009 TCC 624.
Trust accounts
In Canada Trustco Mortgage Company v. The Queen, 2008 TCC 482, aff’d 2009 FCA 267, the Tax Court held that a financial institution must comply with a requirement to pay even where the the funds sought to be seized from the institution were held in a lawyer’s trust account.
Audit headlines
It’s not often that a CRA audit makes headlines: Canada Revenue probe focuses on some RBC DS clients.
Retail Loses Again
Taxpayers who participated in ‘retail’ donation tax shelters continue to fare poorly in the Tax Court. See Maréchaux v. The Queen, 2009 TCC 587.
Triangles
Don’t forget the triangular amalgamation. While these types of amalgamations are more typical in the public company context, they can be a useful tool for private company deals too.
Eligible Dividends
Last week, I gave a presentation for the Hamilton Law Association on eligible dividends at its annual Corporate Commercial update. You can find a copy of a sample resolution for eligible dividends here. Use at your own risk!