Fiducie Historia c HMK, 2024 CCI 76 (French only), affirmed the validity of trust allocations made by trustees where, the CRA alleged, another agreement (entered into to preserve capital losses in a corporation controlled by the trust) seemed to give…
2024 STEP Roundtable
The following is based on the text published in Tax Topics 2713 (September 10, 2024). Question 1 – Spousal Trusts A spousal trust that receives a contribution of capital after the death of the spouse-beneficiary remains a spousal trust, but…
Appeal quashed
In Cole v R, 2024 TCC 64, The Appellant spent the better part of ten years trying to convince the Minister of National Revenue to remove over $240,000 added to her taxable income for the 2011 taxation year. Due…
Demands for information from non-residents
Canada (National Revenue) v. Schreiber, 2024 FC 729, the Federal Court held that, in general, the CRA is entitled to demand information from non-resident persons or entities.
Dissolved trust year-end
At the 2024 CALU conference round table (question 12, addressed in 2024-1005851C6), the CRA confirmed that a bare trust has a December 31 year-end and that a trust (other than a GRE) that dissolves during a calendar year still has…
Reassessment outside the normal reassessment period
In Cheema v R, 2024 TCC 81, the Court held that the CRA was entitled to reassess beyond the normal reassessment period where the taxpayer provided no good explanation for a disposition of real property he did not report or…
Dividends and Section 160 again
In Active Asset Management Inc. v R, 2024 TCC 87, the Court held that neither a deemed dividend arising on a stated capital increase nor a dividend satisfied by a promissory note constituted a transfer of property for the purposes…
160 and discretionary trusts
Neal Armstrong (taxinterpretations.com) reports that, in Barwicz v R, 2024 CCI 93 (French only), the Court held that, for the purposes of section 160, a beneficiary of a discretionary trust had not given consideration for distributions of capital property from…
Making Trust Amounts Payable
The CRA has taken the position that a trust cannot deduct an amount made payable to a beneficiary under ITA subsection 104(6) unless, among other things, the trust was legally entitled to make the payment under the terms of its…
Resignation of a director
The result in Ferri v R, 2024 TCC 255, is fact-driven: the court found (at para 25) In these circumstances, there is simply insufficient credible, consistent, reliable evidence to allow the Court to conclude on a balance of probabilities that…