As readers of this newsletter well know, the clear message from the courts lately has been “Woe unto you taxpayers who participate in retail tax shelters or other tax-driven schemes!” The Federal Court of Appeal has reiterated that message in Nunn v. The Queen, 2006 FCA 403 (decision not yet available online).
ABILs
To claim an allowable business investment loss (an ABIL) in respect of an amount loaned to a corporation, a taxpayer must establish (among other things) that the amount has become a bad debt. Kyriazakos v. The Queen, 2007 TCC 66,…
Complexity
I couldn’t help snickering a little at the following news release: The Minister of National Revenue announced the Canada Revenue Agency’s Action Task Force on Small Business Issues Report: Helping Small Businesses by Reducing the Compliance Burden But of course…
Price adjustments
In Desormiers c. Lalumière, 2006 QCCS 2357, a son purchased shares from his mother and father for $500,000. The purchase and sale agreement stated that the purchase price was subject to adjustment: if the Minister of National Revenue determined that…
National Charity Law Symposium
I will be speaking about split receipts at the National Charity Law Symposium on May 10, 2007, in Toronto. I hope to see some of you there.
Eligible dividends
Joe and I prepared a presentation for some area accountants on the new eligible dividend rules. You can download a copy here.
Lipson appeal
The Federal Court of Appeal, in Lipson v. The Queen, 2007 FCA 113, has dismissed the taxpayer’s appeal. Lipson was a GAAR decision of Chief Justice Bowman of the Tax Court.
Badges
Dobbs: “If you’re the police, where are your badges?” Gold Hat the Bandit: “Badges!? We ain’t got no badges. We don’t need no badges! I don’t have to show you any stinking badges!!” —The Treasure of the Sierra Madre That…
Children’s Fitness Tax Credit
We have received a few inquiries from interested parents and athletic organizations asking for information about the new children’s fitness tax credit. The CRA has published some useful information for parents and organizations on its website.
Partnership reporting changes, again
David Bazar was kind enough to point out that, in fact, the CRA has delayed the implementation of the administrative change noted in my last post. Please see the CRA notice here.