15(2) – Loukidelis PC

Purported shareholder loan repayments treated as income

In Kumar v R, 2024 TCC 105 (informal procedure), the Court found that the CRA had properly reassessed the appellant to include in his income payments to him and his son made by a corporation to which the appellant had…

Preparer penalties

I have become aware of a case where the CRA has imposed preparer penalties on an accountant who filed tax returns for corporations and their shareholders where the shareholders did not report income in respect of shareholder loan debit balances…

Back-to-back loans

Bill C-29 (Dec 2016) amended the Income Tax Act (Canada) so that a loan by a corporation to an arm’s length entity could be treated as a loan to a shareholder of the corporation if the entity is required to…

Shareholder loans

I just posted a brief introduction to shareholder loans, which introduction you can find here.

Sale of shares on income account

In Rudolph v R, 2024 TCC 148, the Tax Court held that the taxpayer had not disposed of shares in 2007 as alleged by the CRA. Instead, the taxpayer had received a loan from the purchaser in 2007 that was…

Deemed proceeds of an asset

In 0808414 B.C. Ltd. v R, 2024 TCC 99, the taxpayer sold equipment to a non-arm’s length purchaser as part of a transaction that also transferred employees and obligations under a pension and benefits plan. The CRA reassessed on the…

Trust beneficiary liability under s 160

In Barwicz v R, 2024 CCI 93, the Tax Court held that a beneficiary of a trust was liable under section 160 for its unpaid tax to the extent of capital distributions received from the trust. Subsection 107(2), which provides…

Fraudulent conveyances

In Ontario Securities Commission v Camerlengo Holdings Inc., 2023 ONCA 93, the OSC brought a claim under s 2 of the Fraudulent Conveyances Act (Ontario) (the “FCA”) against a husband and wife. The husband and wife convinced a judge to…

Category: 15(2)