Mark Hunter pointed out to me that paragraph 20(1)(j) of the Income Tax Act (Canada) doesn’t work well as an income-averaging tool if used in circumstances where the person taking the loan can’t repay it any time soon or will do so in a year without much income.
Donation tax shelter case
Hamilton’s own Mr Justice Randall Bocock goes head-to-head with Maréchaux in Berg v R, 2012 TCC 406.
Estate planning and personal use real property
I just listened to a helpful presentation on estate planning for personal use real property by Robin MacKnight at the Law Society’s seminar on “Taxation Issues in Real Estate Transactions“.
Subsection 83(2.1) applied
In Groupe Honco inc. c R, 2012 CCI 305, the Tax Court applied the anti-avoidance rule in subsection 83(2.1) to a dividend purported to be paid from the capital dividend account of a corporation taken over by another so that…
No rectification necessary
In Twomey v R, 2012 TCC 310, the taxpayer thought he had been issued 100 Common Shares in the capital of a corporation, but the minute book indicated he had received only one. The difference mattered: whether the taxpayer could…
Guindon appealed
The Crown filed its appeal in Guindon yesterday.
Family Law and the ITA
Folks, just a reminder that the parties to a family law dispute, even with the assistance of an order of the Ontario Superior Court of Justice, cannot override the rules in the Income Tax Act respecting the taxation of support amounts.
Johnson appeal allowed
The Federal Court of Appeal has allowed the Crown’s appeal in Johnson: see R v Johnson, 2012 FCA 285, rev’g 2011 TCC 540.
Third-party penalties case
Last week, the Tax Court released its decision in Guindon v R, 2012 TCC 287, in which the court concluded that the third-party penalties provided by section 163.2 of the Income Tax Act are criminal in nature and that the…
Audit process
The next issue of the Hamilton Law Association Journal will contain an article I’ve written on the audit process and a taxpayer’s liability under the Income Tax Act.