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Category: Employees

Employee loans

Posted on: December 27, 2023 Last updated on: December 20, 2023 Written by: John Loukidelis
The CRA has published a document on its website about employee debt.
Continue reading “Employee loans”…

Commission employees

Posted on: March 2, 2020 Last updated on: March 2, 2020 Written by: John Loukidelis
The trend in Tax Court jurisprudence is to require specificity in contracts to permit a commissioned employee to deduct an expense. The contract must contemplate the particular expense in question before it will be deductible under paragraph 8(1)(f) of the…
Continue reading “Commission employees”…

Payroll deductions are special

Posted on: November 26, 2019 Last updated on: November 26, 2019 Written by: John Loukidelis
How are payroll source deductions different from an ordinary income tax debt? 1. The CRA can commence collection action as soon as source deduction are overdue. An objection does not stay collection action. 2. Some limitation periods (assuming no negligent…
Continue reading “Payroll deductions are special”…

Employee parking pass

Posted on: July 26, 2019 Last updated on: July 26, 2019 Written by: John Loukidelis
Amit Ummat summarizes Smith v R, 2019 FCA 173, in which the Court held that a flight attendant received a taxable benefit from an employer-provided parking pass.
Continue reading “Employee parking pass”…

Employee discounts

Posted on: July 13, 2019 Last updated on: July 13, 2019 Written by: John Loukidelis
the CRA acknowledges that its administrative position on employee discount programs is that an employee may exclude from income discounts on merchandise and commissions from personal purchases, but that administrative position does not…
Continue reading “Employee discounts”…

Parking as a taxable benefit

Posted on: April 29, 2018 Last updated on: July 21, 2018 Written by: John Loukidelis
An employee derives a benefit from free parking unless the employee must use the space “regularly” to perform his or her employment duties (ie for business purposes). Parking “to facilitate working irregular or extended hours is parking for business…
Continue reading “Parking as a taxable benefit”…

CRA backs off on employment expenses

Posted on: February 16, 2018 Last updated on: February 16, 2018 Written by: John Loukidelis
It appears the CRA has backed off its employment expenses project. A colleague of mine sent a release he received from CRA Audit, which read in part as follows: Effective immediately, the Agency will stop reviewing and disallowing “other employment…
Continue reading “CRA backs off on employment expenses”…

Project for employees

Posted on: January 12, 2018 Last updated on: January 13, 2018 Written by: John Loukidelis
The CRA has a new ‘project’ underway. This time the target is employees who deduct employment expenses under section 8 of the Income Tax Act. The CRA seems to be on the lookout for employees who are also shareholders of…
Continue reading “Project for employees”…

Employee discounts

Posted on: December 5, 2017 Last updated on: December 5, 2017 Written by: John Loukidelis
Kathryn Walker, “Employee Discounts for Merchandise: The Law” Canadian Tax Focus 7:4 (November, 2017) argues that the CRA’s new policy in Income Tax Folio S2-F3-C2, “Benefits and Allowances Received from Employment” on employee discounts simply reflected a change in the…
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Cell phone costs for employees

Posted on: November 17, 2017 Last updated on: November 17, 2017 Written by: John Loukidelis
Neal Armstrong draws our attention to Meberatu v R, 2017 TCC 211. The Court allowed the taxpayer-employee to deduct amounts in respect of her work-related use of a cell phone. The amounts permitted were estimates because the taxpayer failed to…
Continue reading “Cell phone costs for employees”…
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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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