CRA technical interpretation 2016-0660861E5 dated September 27, 2016, provides a handy summary of how the transitional rules will work for milk quota that changes from eligible capital property (ECP) to Class 14.1 depreciable capital property (14.1 property) especially where only some of the quota is sold after 2016.
Sham and Golini
On Golini v R, 2016 TCC 174, Karen Stilwell writes: With respect to the assignment by Holdco, however, the Court reached a different conclusion. It found that though the collateral assignment by Holdco to secure its guarantee presented itself as…
Assessing beyond
Assume that a taxpayer did not make a negligent misrepresentation in a year and that the year is beyond the normal reassessment period. Are the transactions undertaken in that year subject to further review by the CRA?
Employee advances
Neal Armstrong notes that the CRA, in technical interpretation 2015-062357 (dated April 26, 2016), takes the position that an employee advance is taxable when received even if the amount must be repaid if the services aren’t performed.
Resigning as a director
What does it take to resign as a director of a corporation? An undated and unsigned resignation that sits in a lawyer’s file will not suffice, according to R v Chriss, 2016 FCA 236, rev’g 2014 TCC 254.
Get that divorce!
In Balanko Estate v R, 2015 TCC 66, an informal procedure case, the taxpayer could not claim the principal residence exemption for a property because she had never divorced her husband, from whom she had been living separate and apart…
The S 160 Family Law Exception
Subsection 160(4) of the Income Tax Act (Canada) in effect provides an exception to the “long arm” of section 160 where at any time a taxpayer has transferred property to the taxpayer’s spouse or common-law partner pursuant to a decree,…
Partnership negative ACB
In general, the negative ACB of an interest of a general partner does not trigger a capital gain at the end of a fiscal year. The negative ACB does not give rise to a capital gain until the partner disposes…
Form matters, again
In David Anthony v Canada (National Revenue), 2016 FC 955, the taxpayer applied for judicial review of a decision of the Minister. The taxpayer had requested that the Minister adjust his return for 2001 to permit the deduction of lease…
Narrow De Facto Control
Ashvin Singh, “FCA Reinstates Narrow View of De Facto Control” 6:3 Canadian Tax Focus (August 2016): The potential expansion of de facto control in McGillivray Restaurant Ltd. (2014 TCC 357) … has been curtailed by McGillivray Restaurant Ltd. v. The…