My thanks to Fred Buzzelli, who sent me a link to a good article by Gabe Hayos on the simplified T1135.
Are step children related?
Mr X and Ms Y are common law partners. Each of them has a son from a previous relationship. Are the sons related for the purposes of the Income Tax Act (Canada)? The CRA says “yes” because the step brothers…
Misrepresentation
From Justice Bocock, in Robertson v R, 2015 TCC 246, we read the following regarding whether a mistake of law amounts to a negligent misrepresentation: wise and prudent person is, generally by definition, not unknowledgeable of the law. However,…
No refund for you
A corporate payor doesn’t get a refund if it pays a dividend but fails to file its tax return for the year within three years. But at least RDTOH isn’t reduced either. See Dino Infanti, “FCA Agrees: Dividend Refund Timed…
55(2) This Week
Manu Kakkar and Marissa Halil, in “Subsection 55(2): The CRA’s Recent Positions” Tax for the Owner-Manager 16:1 (January 2016), provide a useful summary of the CRA’s pronouncements on 55(2) at the Tax Foundation conference. The CRA is concerned that deliberately…
Neutral citation for PITA
Carswell is making the Practitioner’s Income Tax Act (PITA) even more useful by switching to neutral citations for its case references. The neutral citation provides a sure-fire way to locate a case quickly and easily, regardless of the database you…
Payments to non-residents
The CRA concluded that Canco was not required to withhold from incentive amounts paid to the non-resident employees of dealers of Canco’s profits. The incentive amounts amounts related to warranties registered on Canco’s products. The CRA, however, stated that Canco…
Car logo
The CRA takes the view that a section 6 standby charge is not reduced by a contract of employment that requires the employee to drive a company car at all times, even for personal use, where the car is decorated…
Run-off insurance
From CRA technical interpretation 2015-0618981E5 dated December 3, 2015: enerally speaking, the fact a taxpayer no longer carries on a business will not preclude the taxpayer from deducting Run-off Insurance premiums in the year they are paid, provided the insurance…
Deposit forfeited to non-resident vendor
From Georgina Tollstam, “Deposit Forfeited to Non-Resident” Canadian Tax Highlights 23:6 (June 2015): An internal technical interpretation (2013-0479861I7, March 16, 2015) confirms that if a Canadian taxpayer purchases real property located in Canada from a non-resident vendor and the sales…