Withholding Tax Issues

In Sentinel Hill No. 29 Limited Partnership v. Canada (Attorney General), 2008 ONCA 132, the Ontario Court of Appeal held that the Superior Court is not the place to resolve disputes involving assessments under the Income Tax Act (Canada) (the “Act”). That much is not surprising: in general, non-tax courts run as fast as they can from tax disputes, given the chance. The case illustrates, however, a nasty gotcha in international taxation that any practitioner who does cross border work should watch out for.

Lawyers!

Subsection 30(2) of the Tax Court of Canada Rules (General Procedure) provides that “where a party to a proceeding is not an individual, that party shall be represented by counsel except with leave of the Court and on any conditions that it may determine.”

Executors’ fees

For quite some time now, the CRA has taken the position that (to quote the Employers’ Guide – Payroll Deductions and Remittances ):

Fees paid to executors or liquidators and administrators are either income from office or employment or business income, depending on whether the executor or administrator acts in this capacity in the regular course of business.