In Scheuer v R, 2015 FC 74, Mr Justice Diner dismissed an appeal from an order of a prothonotary in which he dismissed a motion to strike a statement of claim against the CRA for failing to warn taxpayers adequately about a particular donation tax shelter. The Court agreed that the duty alleged is novel, but it is not “plain and obvious” that a claim based on the duty will fail.
Burden of proof and gross negligence
In Brown v R, 2014 FCA 301, Webb JA had no trouble dismissing the taxpayer’s claim that the Income Tax Act (Canada) was void for uncertainty because, for example, it did not provide an adequate definition of “person”. The Court,…
The rectification saga
The rectification saga continues. From Timothy Fitzsimmons’ summary of Fairmont Hotels Inc. et al v AG (Canada), 2014 ONSC 7302: Fairmont relied on the Ontario Court of Appeal decision in Juliar for the principle that the exact method to achieve…
Loss Carrybacks and Reassessments
Alex Klyguine reminds us that, if the CRA reassesses a year and the taxpayer wishes to dispute the reassessment, the taxpayer must be cautious about applying losses of other years to reduce the taxable income of the reassessed year. If…
Diverted funds
Neal Armstrong has written a wonderfully sarcastic case comment on Dimane Enterprises Ltd. v R, 2014 TCC 334.
Ponzi schemes, again
In Roszko v R, 2014 TCC 59, the Court held that amounts received by a participant under notes issued as part of a Ponzi scheme were not income for the purposes of the Income Tax Act (Canada). The Court distinguished…
Providing space
Craig Burley has blogged about 0742443 BC Ltd v R, 2014 TCC 301. His takeaway on the case? “If you have a business that incorporates any sort of rental of space, or allowing customers to use your space, I recommend…
Otteson and the capital gain exemption
The provisions of the Income Tax Act governing when a taxpayer can claim the capital gain exemption in respect of farm property are complex. Otteson v R, 2014 TCC 250, is an interesting case that navigates the provisions in the context of a rather complex set of facts.
Local interest
Here’s a case of interest to tax advisers and residents of the Hamilton area. In Henco Industries Limited v R, 2014 TCC 192, the Court dealt with the tax treatment of certain payments received from the Government of Ontario by…
163(1) Due Diligence
A taxpayer can avoid the rather harsh penalties potentially applicable under subsection 163(1) of the Income Tax Act (the “missing T-slip penalty”), if the taxpayer can show that the error in question—the failure to report income—occurred despite the taxpayer’s due…