From H.M. Dolson, “What To Expect in Tax Adjudication”, Canadian Tax Highlights 23:4 (April 2015): As a whole, a general procedure taxpayer represented by counsel achieved a meaningful victory in 38.5 percent of the published TCC decisions and…
Partnership winding-up
Subsection 85(3) requires that a partnership be wound-up within 60 days after the disposition of property to a corporation under subsection 85(2). The CRA accepts that a partnership has been wound up even if the legal title to real property…
Spousal rollover denied
In Murphy Estate v R, 2015 TCC 8, the Tax Court denied the spousal rollover where a consent order issued in the family law context seemed to provide for the transfer of the RRSP to the spouse from the children…
Immigration Tax Issues
Jack Bernstein and Ron Choudhury, in “Immigration into Canada”, Canadian Tax Highlights 23:2 (February 2015), highlight some of the tax issues to be considered in advising a person who is immigrating to Canada.
Claming ABILs
A husband who is an employee but not a shareholder of Opco cannot claim an ABIL for amounts loaned interest-free to Opco (even though his wife is the sole shareholder of Opco). The husband’s employment income does not mean that…
Budget 2015 and self-storage
KPMG, in its TaxNewsFlash on the federal budget for 2015, writes the following about the budget promise to review the active business income rules: The budget states that stakeholders have expressed concern about the application of these rules in cases…
74.4(4) Exception Inapplicable
74.4(4) will not apply to save an estate freeze of Opco from the corporate attribution rule where a trust holds shares in Holdco rather than shares in Opco directly. 74.4(4) would also not apply where Opco1 and Opco2 are frozen,…
Worker status and intention
Bruce Russell, in “The Role of Intent in Determining Worker Status” Tax Hyperion 12:3 (March 2015), notes that recent Federal Court of Appeal jurisprudence seems to require a two-step analysis when determining worker status. The first step attempts to ascertain…
T1135 work
Some tax preparers are reporting that brokerage statements are often inadequate for the purposes of preparing T1135s. An accountant told me that it often takes as long to prepare the T1135 as it does the T1 to which it relates.…
Rodents as food
Neal Armstrong, in his summary of technical interpretation 2015-0564611E5, writes as follows: CRA now construes “livestock” more narrowly than as stated in IT-427R, so that it considers that raising rodents qualifies as farming only if they are sold as food…