Peter Enns, a tax debtor, designated his wife, Marlene, as the sole beneficiary of his RRSP. Peter died without paying his tax debt, and so the CRA assessed Marlene under section 160 on the basis that she was Peter’s “spouse”…
Acquisition of Control (AOC)
The CRA addressed AOCs in Question 17 of the 2024 APFF Round Table. 50/50 shareholders of Opco (A and B) are presumed to act in concert to control Opco. If they sell one-third of Opco’s shares to a third person…
84(2.31) and De Facto Control
The CRA and the courts will need to adopt a narrower definition of de facto control for the purposes of subsection 84.1(2.31), if its policies objectives are to be met. The subsection, among other things, requires parents to give up…
Trust reporting rules under the August 2024 draft legislation
The following seems to capture the logic of the trust reporting rules, as amended by the August 12, 2024, draft legislation, including the rules that will apply to “bare trusts” for years ending after December 30, 2025. Is the arrangement…
Taxpayer obligated to produce documents
In Robillard v R, 2024 TCC 90, the taxpayer-appellant, based on a decision of the Alberta District Court from 1974, argued that he was not required to produce documents to the CRA under sections 231.1 and 231.2. The Tax Court…
Loss carry back and interest
In Bank of Nova Scotia v R, 2024 FCA 192, the Court held that interest on a taxpayer balance owing should be calculated from the balance due date for a year to the date of a loss carry back request.…
Sale of shares on income account
In Rudolph v R, 2024 TCC 148, the Tax Court held that the taxpayer had not disposed of shares in 2007 as alleged by the CRA. Instead, the taxpayer had received a loan from the purchaser in 2007 that was…
Deemed proceeds of an asset
In 0808414 B.C. Ltd. v R, 2024 TCC 99, the taxpayer sold equipment to a non-arm’s length purchaser as part of a transaction that also transferred employees and obligations under a pension and benefits plan. The CRA reassessed on the…
Trust beneficiary liability under s 160
In Barwicz v R, 2024 CCI 93, the Tax Court held that a beneficiary of a trust was liable under section 160 for its unpaid tax to the extent of capital distributions received from the trust. Subsection 107(2), which provides…
Fraudulent conveyances
In Ontario Securities Commission v Camerlengo Holdings Inc., 2023 ONCA 93, the OSC brought a claim under s 2 of the Fraudulent Conveyances Act (Ontario) (the “FCA”) against a husband and wife. The husband and wife convinced a judge to…