The CRA has clarified that the subparagraph 55(5)(e)(i) exception for siblings will apply where the shares of either the distributing corporation (DC) or the transferee corporation (TC) (not both) need be quaified small business corporation shares or shares of a…
Objections for large corporations
A corporation is a “large corporation” if its taxable capital, and that of any related corporation, employed in Canada exceeds $10 million (a limit that has not changed since it was set in 2006). Per subsection 165(1.11), a large corporation…
Pleading away privilege
In One York Street Inc. v 2360083 Ontario Limited, 2026 ONCA 176, the Court held that, by putting in issue its state of mind on signing a lease where the state of mind was based in part on legal advice,…
Resigning as a director
According to the author, Stevens v R, 2026 TCC 76, is an important reminder of the importance of “objective” evidence for a director’s resignation. Having a resignation witnessed, ensuring that the corporation has updated its records and ensuring that the…
Build Canada announcements
Oslers has a couple of good posts on its website—here and here—about tax-related “Canada strong” announcements. The CRA, when considering advance tax rulings, will prioritize “nation-building projects”, and the Income Tax Act (Canada) will be amended to permit a new…
Receipts from fraudulent investment schemes
In Daniel Sze “Receipts from Fraudulent Schemes: When Are They Taxable?” Canadian Tax Focus 16:3 (August 2026), the author gives an overview of cases that have considered the taxation of amounts a taxpayer receives from a fraudulent “investment”. He notes…
Deductibility of professional fees
In Hypertec Systèmes inc. v Agence du revenu du Québec, 2025 QCCQ 6704, the taxpayer, the administrative entity for a corporate group, incurred about $1.3 million of professional fees in respect of a shareholder dispute that included a claim for…
TFSA advantage “tax” is a-ok
I just wrote about TFSA over-contribution hell. The Federal Court of Appeal recently confirmed that the advantage “tax” is constitutional under section 53 of the Constitution Act, 1867 and that no due-diligence defence is available because it is a tax.…
Part VI.1 tax
The Part VI.1 tax rules, which date from the late 1980s, can apply in unexpected and unhelpful ways to transactions that have nothing to do with the harm at which the rules were aimed. (The Department of Finance, in other…
GLGI appeals struck
In a previous post, I discussed Kelly v R, 2026 TCC 53, in which Mr Justice Graham proposed to dismiss ongoing GLGI appeals as an abuse of process. Eight of the appellants to whom this proposal applied provided submissions for…