In Boutilier v. The Queen, 2007 TCC 96, the taxpayer received trailer fees and reported them as income he had earned. Later, he purported to transfer his fee-earning business to a company. Fees received by the taxpayer were assigned to the company and reported in its income. The Minister reassessed on the basis that subsection 56(4) of the Income Tax Act applied to the transfer of the fees to the company.
“Indirectly … by any other means whatever”
In St-Pierre c. La Reine, 2007 CCI 90, the taxpayer transferred shares of a corporation to his management company, which he controlled. The management company transferred the shares to the taxpayer’s spouse. The spouse later disposed of shares substituted for…
Schemes
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,…
Eligible dividends
Joe and I prepared a presentation for some area accountants on the new eligible dividend rules. You can download a copy here.
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.
Property
Every now and then a taxpayer proposes to transfer an intangible “something” to a corporation for valuable consideration. The taxpayer, or his or her advisers, would do well to read Tri Pacific Gas Corporation v. Canada, 2007 FCA 38, before proceeding.
Eligible dividends
Joe and I will be giving a presentation on the new eligible dividend rules on Thursday, March 1, at noon at the Hamilton Chamber of Commerce. We will provide an overview of these rather complex rules and present some planning ideas and issues to consider.
Eliminating tax packages
I wonder how much confusion this will create: Elimination of Tax Packages for Individuals Using the Services of a Tax Professional.
Information for individuals leaving Canada
From time to time my clients contemplate leaving Canada for warmer weather or more friendly tax collectors. Over the years, I have collected a set of CRA publications and forms that provide useful guidance on the tax consequences of becoming…