I presented “Breaking Up Is Taxing To Do: Tax Issues When Couples Divide Property” at the CRA’s Tax Practitioner’s Consultation Group meeting at the Royal Botanical Gardens today. Click here for a copy of my presentation.
Reason and the T1135?
The Tax Court has vacated penalties for failing to file a T1135 on time for a year where tax was otherwise not payable. See Douglas v R, 2012 TCC 73, a decision of Justice Woods under the informal procedure.
ABIL
Jamie Golombek has written an interesting piece on a taxpayer who tried to claim an ABIL and was met with the usual CRA skepticism. The issue in dispute in the Tax Court appeal eventually resolved itself into whether a return…
Exemption trap
March 30 Update John Campbell, in a comment posted below, points out that paragraph 110.6(15)(b) likely provides an escape from the “trap” that I discuss below at least insofar that one is concerned about whether the shares of Holdco qualify for the exemption.
I was helping a fellow tax professional with a situation like the following where I think I almost stumbled into a trap relating to the $750,000 capital gain exemption.
Relief?
I always hesitate to take a client’s money for a relief or fairness application because the CRA is usually pretty unsympathetic and the courts not much more helpful. In two relatively recent cases, the courts found that the CRA decision-making process in response to relief applications had been flawed, but the courts refused to provide a different result or order the Minister to reconsider the matter.
“Employee” loans
In Rémillard v R, 2011 TCC 327, the Court spent some time considering whether an employee is required to include an amount in income in respect of a loan advanced to him by his corporate employer if the loan is not a “commercial debt obligation” as defined in subsection 80(1).
Goodwill and estate planning
Mark Brohman at Durward Jones Barkwell was kind enough to send to me a reminder in the form of a technical interpretation of a very important fact about goodwill and estate planning.
Tax protesters redux (ridiculous more like)
The CRA is warning Canadians to stay away from the tax protest movement, again. I can’t believe people are still falling for this crap given that, as the CRA release points out, “Canadian courts have repeatedly and consistently rejected all…
Acting in concert
Two unrelated individuals each own 50% of a corporation. If the daughter of one of them is an employee of the corporation, does she deal with it at arm’s length for the purposes of subsection 5(2) of the Employment Insurance…
PC Employment Agreement
It is our standard practice when incorporating a professional corporation (a PC) to prepare an employment contract between the professional and the PC.