From Justice Bocock, in Robertson v R, 2015 TCC 246, we read the following regarding whether a mistake of law amounts to a negligent misrepresentation: wise and prudent person is, generally by definition, not unknowledgeable of the law. However,…
Personal Services Businesses
A version of the following article appeared in the most recent edition of the HLA Journal.
An employee, for income tax purposes, cannot deduct many expenses that a person in business for him- or herself can. On the other hand, a CCPC that carries on an active business can claim the small business deduction in respect of income from that business. Assuming that a worker does not wish to be treated as an employee, can he or she get the tax benefits of a self-employed person and the small business deduction by providing services through a corporation? The answer is “no”, if the personal service business (“PSB”) rules apply.
No cure for negligent misrepresentation
Filing an amended return will not cure a negligent misrepresentation made in the original return, and so the CRA will still be able to reassess beyond the normal reassessment period in respect of the misrepresentation. Georgina Tollstam, “Deceased’s Return Reassessed…
Letters of intent and control
From Karen Stilwell, “CRA View – LOI May Engage 251(5)(b)”, Tax Hyperion 12:9 (September 2015): CRA’s position on the issue is that the question may only be answered on a case-by-case basis…
Terminal return exemption claim does not create hard basis
From question 7 of the 2015 APFF roundtable: if Mr X’s estate claims the capital gain exemption in his terminal return in respect of a gain realized on his deemed disposition of Opco shares, then the resulting addition to the…
Spouses as directors
Apparently, somebody thought it would be a good idea to appoint a spouse as a director of a corporation in whose business she was not involved in order to insulate her husband, the true directing mind of the business, from…
Consent steeplechase
Craig Burley reports on the latest from the CRA about authorizations. Apparently Tax Centres are no longer processing faxed authorization forms. Update December 19, 2014. I spoke to an Appeals officer today who said that I couldn’t fax an authorization…