The CRA has posted the list of notifiable transactions that have been designated by the Minister of National Revenue effective today. In the email I received notifying me of the notifiable transactions list, the CRA wrote “The list of transactions…
Dividends paid to beneficiaryco, again
In Vefghi Holding Corp. v R, 2023 TCC 135, the court provided the following answers to a Rule 58 Question: Where a trust designates a portion of a taxable dividend (the “Amount”) received on a share of the capital stock…
Reviewing your tax return
The court upheld gross negligence penalties in Fransen v R, 2023 TCC 107, a Fiscal Arbitrators case, because the taxpayer had been wilfully blind (the test for which is discussed at paras 9ff) and because he had not bothered to…
Fair market value is a fact
In R v Preston, 2023 FCA 178, rev’g 2021 TCC 79, the court (per Monaghan JA) held that fair market value was a fact that could be pleaded by the Crown as an assumption.
GAAR changes bad
Subsection 245(3) will be amended so that a transaction will be an “avoidance transaction” if one of its main purposes is to obtain a tax benefit. Many more transactions will be avoidance transactions because tax considerations always play a major…
Challenging the underlying assessment
Yesterday, Amit Ummat gave an excellent short presentation about director liability under the Income Tax Act and Excise Tax Act at the HLA’s 16th Corporate-Commercial seminar. He referred to Duque v R, 2020 FCA 73, in which Webb JA said…
STEP submissions re AMT
STEP has made some submissions (pdf) to Finance about the new AMT rules in the August 4 draft legislation as they apply to trusts. Because most trusts will not be entitled to claim the basic exemption for AMT purposes, they…
No accountant privilege
In Gaudreau c R, 2023 CCI 115, the Court was willing to consider the argument that an accountant’s planning memorandum need not be produced on discovery because it was not relevant. After duly considering the matter, the Court concluded the…
Resurrection
In Canada (Attorney General) v 18335898 Alberta Ltd (Whitecap Energy Inc), 2023 ABKB 357, the taxpayer wound-up and dissolved in 2020. All of its assets were transferred to its parent. The CRA audited the taxpayer’s 2017 and 2018 taxation years.…
Form of objection
I have written before about the Tax Court’s tendency to give a liberal interpretation to what constitutes a “notice of objection”. I am a little surprised, then, that the CRA made an application to quash the appeal of the taxpayers…