In Glenogle Energy Inc. v Canada (Attorney General), 2022 FC 198, the taxpayer filed a 97(2) election with a nominal agreed amount. Three months later, the taxpayer applied to amend the election to insert an agreed amount of $32 million.…
Post mortem pipeline gone wrong
In Robillard (Succession) c R, 2022 CCI 13, an estate completed a pipeline for a corporation within seven months of the death of its shareholder. The CRA applied 84(2) to the pipeline. The taxpayer appealed. The Court, after criticizing Canada…
Underused Housing Tax Act
Bill C-8 will enact the Underused Housing Tax Act (the “UHT Act”). The UHT Act will impose an annual tax equal to 1% of the value of certain residential properties. There are steep penalties for failing to file the associated…
Voluntary disclosure gone awry
In Grewal v Canada (National Revenue), 2020 FC 356, the taxpayer, as part of a voluntary disclosure (VD), reported the existence of certain loans but (only implicitly?) took the position that they were not relevant to his income under the…
Form matters for an ABIL
In Dias v R, 2021 TCC 85, the taxpayers unsuccessfully argued that loans that appeared to be to a numbered company had actually been made to corporations that might have been small business corporations (the numbered company was not). The…
Non-resident beneficiary “roll outs”
The CRA doesn’t like it when trusts purport to roll out property to a Canadian corporation to which a non-resident beneficiary has assigned his or her capital interest. See technical interpretation 2017-0683021I7 (which I discuss here), 2021-0879021C6 and the Preston…
Part IV and 55(2) protection
Under the new refundable tax rules, carefully paying dividends can maximize the use of both safe income and Part IV to protect dividends from 55(2). “This tax-planning opportunity requires very specific tax attributes for the payer: a GRIP corresponding to…
Post-butterfly dispositions gone wrong
The authors note a number of significant issues with 55(3.1)(c): What is a series of transactions? (55(3.1)(c)(i)) What is considered the ordinary course of business? (subclause 55(3.1)(c)(i)(A)(I)) How is the 10% allowable threshhold determined? (pre- and postamble to 55(3.1)(c) and…
Valuations and the normal reassessment period
In Lauria v R, 2021 TCC 66, the taxpayers used a model from a shareholder agreement to value shares they sold to family trusts although an IPO of the issuer of the shares was imminent. The Court found that the…
Written Resignation of a Director
In Cliff v Canada, 2022 FCA 16, aff’g an unreported decision of Rossiter, CJ, on other grounds, the appellant argued that she was not liable for the unremitted HST of a corporation as one of its directors because she had…