In Wyrstiuk v. The Queen, 2022 TCC 10 (informal procedure), the Court held that a retiring allowance is not ‘earned income’ for the purposes of computing RRSP contribution room.
CRA interviews
The 2021 Federal budget proposed to amend the Income Tax Act (Canada) to permit the CRA to demand interviews with owner-managers and their employees. The authors note the potential for mischief or worse where an auditor interviews an unprepared owner-manager…
Shareholder loan repayment after death
In technical interpretation 2012-0442911C6 (June 2012), the CRA confirmed that subsection 15(2.6) will apply to prevent the amount of a shareholder loan from being included in the shareholder’s income if his estate repays the loan before the end of the…
Reassessment beyond the normal reassessment period
This article discusses Hansen v R, 2020 TCC 102. In our view, the Hansen decision is consistent with the four-part test established in Aridi v R, 2013 TCC 74. Mr. Hansen was aware that there was a PRE and that…
Gifts by Will
S 161(7) provides that interest on taxes payable for a year should be computed without reference to any reduction of tax payable resulting from the carryback of donation credits where a gift is made in a subsequent taxation year. The…
82(3) elections and TOSI
This articles review the interaction of the subsection 82(3) election and the TOSI rules. “n the CRA’s view, the correct method of applying the two provisions is to allocate receipt of the dividends in accordance with subsection 82(3) and then…
CRA problems with 55(3)(a) butterflies
The CRA might apply the GAAR to a 55(3)(a) butterfly if A + B > C where A is the ACB of the remaining shares in the capital of DC after the butterfly B is the ACB of the DC…
Part IV tax and amalgamations
Benco is a beneficiary of a trust that owns all of the issued shares of each of Opco1 and Opco2. On November 30, Opco1 pays a dividend to the trust, which allocates it to Benco. Opco1 does not receive a…
Good news on trust reporting
Neil Armstrong notes that the CRA will not require trust to provide additional beneficial ownership information for 2021 because the relevant legislation has not been enacted yet.
Betrayed by fonts
This story warmed my font-nerd heart. A bankruptcy trustee hired an expert in typography and design who testified that a document supposedly created in 1995 used fonts that weren’t available to the public until 2007. *Sad trombone sound*.