Using “a textual, contextual and purposive analysis”, the Tax Court in Zhang v R, 2017 TCC 258 (informal procedure), concluded that “may deduct” in ‘D’ in the formula in 118.61(1) meant “is entitled to deduct” rather than “chooses to deduct”.
Amateur lawyers
One of the “arguments” advanced by amateur lawyers who question the legality of the income tax is that no “official” consolidated version of the Income Tax Act, RSC 1985, c 1 (5th Supp), as amended, exists. Because no official version exists, the argument seems to go, the Act must be illegal or unenforceable. This is nonsense of course. An official consolidated version of the Act does exist (see below). Moreover, validity does not require consolidation.
Portrait of the Tax Nerd as a Middle-aged Man
I noticed today that the clauses in subparagraph 256(7)(a)(i) of the Income Tax Act (Canada) are missing a conjunction. David Sherman and his team confirmed that Parliament enacted amendments to the subparagraph that omitted the conjunction. In fact, there should…
Thoughts on things cross border
Please see this post for an interesting perspective on some of the 2014 Budget’s cross-border measures by my colleague, Jonathan Garbutt of Garbutt Tax Law. In addition, the Tax Lawyers Alliance, Garbutt Tax Law and EMG Transfer Pricing Experts are…
Tax Court class actions?
“Government Invites Comments on Proposals to Improve the Caseload Management of the Tax Court of Canada”. From the Finance press release:
Privilege
The Minister of Finance has apparently responded positively to submissions from the Canadian Bar Association on the effect of the new reporting regime for tax avoidance transactions on solicitor-client privilege. In a letter to the Association dated January 11, 2011,…
Budget bill
The 2010 federal budget was enacted as law yesterday as S.C. 2010, c. 12. Chapter 12 includes the new rules respecting section 116 of the Income Tax Act.
Harmony
Harmony sounds like something we should all want, even when it comes to taxes. Be that as it may, the Ontario government has created a webpage that discusses the harmonization of its PST with the federal GST.
Demand notes
Lawyers will be familiar with Hare v. Hare, 2006 CanLII 41650, in which the Ontario Court of Appeal held that the limitation period for a demand note began to run with its delivery not with default, much to the consternation…
Tax Nerd
Paragraph 149.1(4)(c) in my version of the Practitioner’s Income Tax Act (35th edition) is missing an “or” at the end of it. I emailed David Sherman, the PITA editor, about this, and he confirmed that the “or” was missing in…