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Category: Collections

Jeopardy collection order

Posted on: September 26, 2022 Last updated on: September 23, 2022 Written by: John Loukidelis
In general, the CRA cannot collect a debt under the Income Tax Act (Canada) where the tax debtor has objected to, or appealed from, the reassessment underlying the debt (section 225.1). In Canada (National Revenue) v Zhao, 2022 FC 1108,…
Continue reading “Jeopardy collection order”…

Acknowledgement of a debt

Posted on: October 2, 2020 Last updated on: October 2, 2020 Written by: John Loukidelis
The 10-year limitation period during which the CRA can collect a debt under the Income Tax Act (Canada) is re-started if the debtor “makes a written acknowledgement” of it. The CRA has stated that merely filing an objection or an…
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Spousal constructive trust precedes CRA lien?

Posted on: September 14, 2018 Last updated on: September 14, 2018 Written by: John Loukidelis
From David Nathanson, “Tax Liens and Constructive Trusts” 26:8 Canadian Tax Highlights (Aug 2018): Thus, if a constructive trust is recognized, for income tax purposes the legal owner of the property in dispute is generally regarded by the CRA as…
Continue reading “Spousal constructive trust precedes CRA lien?”…

Section 160 and shareholder benefits

Posted on: February 13, 2016 Last updated on: February 13, 2016 Written by: John Loukidelis
Can the Minister assess a taxpayer under section 160 in respect of an amount already included in the taxpayer’s income under subsection 15(1)? From Justice Bocock, in Parihar v R, 2015 TCC 52 at ¶45: shareholder who has been…
Continue reading “Section 160 and shareholder benefits”…

Collections scam

Posted on: October 10, 2015 Last updated on: October 10, 2015 Written by: John Loukidelis
I have heard recently about a number of taxpayers who received voicemail messages purporting to be from the CRA. The caller left a message threatening the seizure of assets or the immediate imposition of criminal or severe civil sanctions if…
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Collections While a Reassessment is Under Objection

Posted on: November 27, 2013 Last updated on: November 27, 2013 Written by: John Loukidelis
Can the CRA force a taxpayer to provide information about net worth and the location and identity of assets for the purposes of assessing the “credit risk” of a debt owing pursuant to an assessment when that assessment is under…
Continue reading “Collections While a Reassessment is Under Objection”…

Point in time due diligence

Posted on: January 17, 2013 Last updated on: January 17, 2013 Written by: John Loukidelis
A director of a corporation that fails to remit source deductions might be duly diligent to a point in time, and therefore not liable for the failure to that time, but not diligent after that time, and therefore liable for…
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Making it easier to collect

Posted on: July 13, 2012 Last updated on: July 13, 2012 Written by: John Loukidelis
Canada v. Barrett, 2012 FCA 33, is an interesting companion to Madison v R, 2012 FCA 80 (discussed here). The upshot of Barrett is that the CRA need not undertake reasonable collection efforts against a corporation before assessing one of…
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Savoy Now Somewhat Shabby

Posted on: May 19, 2012 Last updated on: May 19, 2012 Written by: John Loukidelis
I wrote here about Savoy v R, 2011 TCC 35. The Federal Court of Appeal recently concluded that Savoy was wrongly decided on the question of what the Minister must do to satisfy the requirements of subsection 227.1(2) where a…
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Antle and Garron

Posted on: November 25, 2010 Last updated on: November 25, 2010 Written by: John Loukidelis
The Federal Court of Appeal has released its reasons for dismissing the appeal of the taxpayer in Antle. See Antle v. The Queen, 2010 FCA 280. The reasons are also now available online in St. Michael Trust Corp. v. The…
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Guest post on the DTC

The following article on the disability tax credit was written by Tanya O’Connell, a former law clerk at Loukidelis Professional Corporation. The Disability Tax Credit (DTC) The DTC is a personal tax credit available under section 118.3 of the Income…
Continue reading “Guest post on the DTC”…

Inter-company loans

Subsection 15(1) of the Income Tax Act could apply where Aco loans money to Bco and Bco has no means of repaying the money. On the other hand, subsection 246(1) will not apply where Bco and its shareholder have no…
Continue reading “Inter-company loans”…

Change in use and flipping

The CRA has confirmed that a deemed disposition under subsection 45(1) of the Income Tax Act resulting from a change in use is not a disposition for the purposes of the flipping rules in subsections 12(12) and 12(13). See 2024-1027831C6.
Continue reading “Change in use and flipping”…

Swiss bank account trouble

In Azmayesh-Fard v R, 2025 TCC 20, the Court considered whether the CRA had properly reassessed a taxpayer beyond the normal reassessment period and imposed gross negligence penalties for unreported income from a Swiss bank account and for failing to…
Continue reading “Swiss bank account trouble”…

Price adjustment clause

An accounting colleague has reported to me on a CRA audit involving a price adjustment clause. The CRA challenged the valuation used for a transfer of property. The taxpayer and the CRA eventually agreed on a valuation that was about…
Continue reading “Price adjustment clause”…

Recent Posts

Guest post on the DTC

The following article on the disability tax credit was written by Tanya O’Connell, a former law clerk at Loukidelis Professional Corporation. The Disability Tax Credit (DTC) The DTC is a personal tax credit available under section 118.3 of the Income…
Continue reading “Guest post on the DTC”…

Inter-company loans

Subsection 15(1) of the Income Tax Act could apply where Aco loans money to Bco and Bco has no means of repaying the money. On the other hand, subsection 246(1) will not apply where Bco and its shareholder have no…
Continue reading “Inter-company loans”…

Change in use and flipping

The CRA has confirmed that a deemed disposition under subsection 45(1) of the Income Tax Act resulting from a change in use is not a disposition for the purposes of the flipping rules in subsections 12(12) and 12(13). See 2024-1027831C6.
Continue reading “Change in use and flipping”…

Swiss bank account trouble

In Azmayesh-Fard v R, 2025 TCC 20, the Court considered whether the CRA had properly reassessed a taxpayer beyond the normal reassessment period and imposed gross negligence penalties for unreported income from a Swiss bank account and for failing to…
Continue reading “Swiss bank account trouble”…

Price adjustment clause

An accounting colleague has reported to me on a CRA audit involving a price adjustment clause. The CRA challenged the valuation used for a transfer of property. The taxpayer and the CRA eventually agreed on a valuation that was about…
Continue reading “Price adjustment clause”…

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Archives

Categories

Recent Posts

Guest post on the DTC

The following article on the disability tax credit was written by Tanya O’Connell, a former law clerk at Loukidelis Professional Corporation. The Disability Tax Credit (DTC) The DTC is a personal tax credit available under section 118.3 of the Income…
Continue reading “Guest post on the DTC”…

Inter-company loans

Subsection 15(1) of the Income Tax Act could apply where Aco loans money to Bco and Bco has no means of repaying the money. On the other hand, subsection 246(1) will not apply where Bco and its shareholder have no…
Continue reading “Inter-company loans”…

Change in use and flipping

The CRA has confirmed that a deemed disposition under subsection 45(1) of the Income Tax Act resulting from a change in use is not a disposition for the purposes of the flipping rules in subsections 12(12) and 12(13). See 2024-1027831C6.
Continue reading “Change in use and flipping”…

Swiss bank account trouble

In Azmayesh-Fard v R, 2025 TCC 20, the Court considered whether the CRA had properly reassessed a taxpayer beyond the normal reassessment period and imposed gross negligence penalties for unreported income from a Swiss bank account and for failing to…
Continue reading “Swiss bank account trouble”…

Price adjustment clause

An accounting colleague has reported to me on a CRA audit involving a price adjustment clause. The CRA challenged the valuation used for a transfer of property. The taxpayer and the CRA eventually agreed on a valuation that was about…
Continue reading “Price adjustment clause”…

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