Summary of “Business Valuation—CRA and Professional Advisor Perspectives”, a presentation given by Mark DeMarco, Team Leader, Business Equity Valuations Unit, Toronto Regional Valuations Unit, to a workshop held by The Canadian Institute of Chartered Business Valuators in Toronto on December 2, 2015.
Personal Services Businesses
A version of the following article appeared in the most recent edition of the HLA Journal.
An employee, for income tax purposes, cannot deduct many expenses that a person in business for him- or herself can. On the other hand, a CCPC that carries on an active business can claim the small business deduction in respect of income from that business. Assuming that a worker does not wish to be treated as an employee, can he or she get the tax benefits of a self-employed person and the small business deduction by providing services through a corporation? The answer is “no”, if the personal service business (“PSB”) rules apply.
A notice of additional assessment
684761 BC Ltd v R, 2015 TCC 288, introduced me to the concept of the “additional assessment”. The CRA reassessed the taxpayer for its 2008 taxation year on December 16, 2011, just before the end of the relevant normal reassessment…
Debt forgiveness and consumer proposals
From Marlene Cepparo’s comment on technical interpretation 2015-0568411E5, May 13, 2015, in Canadian Tax Highlights 23:9 (Sep 2015): The CRA’s view is that a full or partial release of a commercial debt obligation under a consumer proposal generally results in…
What’s a waiver?
From John Sorenson’s comment on Remtilla (2015 TCC 200) in Canadian Tax Highlights 23:9 (Sep 2015): The TCC confirmed that waivers of the normal reassessment period are typically filed in prescribed form, but that a waiver can be in another…
Discretionary dividend shares
Readers of this blog will know that I am not a fan of discretionary dividend shares (shares issued for $1, or some other nominal amount, that are redeemable for that amount but entitled to unlimited dividends). I harbour these concerns…
No cure for negligent misrepresentation
Filing an amended return will not cure a negligent misrepresentation made in the original return, and so the CRA will still be able to reassess beyond the normal reassessment period in respect of the misrepresentation. Georgina Tollstam, “Deceased’s Return Reassessed…
Letters of intent and control
From Karen Stilwell, “CRA View – LOI May Engage 251(5)(b)”, Tax Hyperion 12:9 (September 2015): CRA’s position on the issue is that the question may only be answered on a case-by-case basis…
ONCA: More Delay
It appears that the Ontario Not-for-Profit Corporations Act, 2010 (the “ONCA”) won’t come into force until 2017, seven years after it was enacted. What’s with the delay?
Terminal return exemption claim does not create hard basis
From question 7 of the 2015 APFF roundtable: if Mr X’s estate claims the capital gain exemption in his terminal return in respect of a gain realized on his deemed disposition of Opco shares, then the resulting addition to the…