The revised rules for notices of non-compliance (NONCs) suspend the counting of days for determining the end of a notice reassessment period during which a judicial review of a NONC is pending regardless of the outcome. “A taxpayer considering whether…
IGTs and GAAR
Technical notes to C-15 (Royal Assent March 26, 2026) appear to take the position that GAAR could apply to an otherwise compliant intergenerational transfer (IGT) if it is really a surplus-stripping arrangement. The Finance comments refer to situations where the…
Deliberate triggering of 55(2) and the GAAR
The CRA accepted that the pre-2024 GAAR did not apply where subsection 55(2) was triggered deliberately. Will the amended GAAR apply to such planning? The authors point out that the economic substance test in subsection 245(4.1), if it applies, is…
Anti-Avoidance for the 21-year rule
Bill C-31 expands the scope of the anti-avoidance rule in subsection 104(5.8) so that it applies where property is transferred to a beneficiary under subsection 107(2) and “an interest, or for civil law, a right, in the taxpayer is held…
Contributions to a testamentary trust
Contributions to an estate or testamentary trust (in this article, an “estate” for short) by anyone other than the testator can vitiate the estate’s status as such. See paragraph 108(1) “testamentary trust” (b) of the Income Tax Act (Canada). Such…
Corporation attribution
With higher interests, corporate attribution (ITA 74.4(2)) becomes more of a concern. The rule doesn’t apply to a small business corporation, however. The attributed amount is also reduced by dividends or interest paid to the transferor in respect of the…
Association and trusts
The authors provide a helpful overview of the various rules that apply for the purposes of determining whether two corporations are associated where a trust is a shareholder of one or both of the corporations. Paragraph 256(1.2)(b) groups. A relevant…
Over-contribution penalty hell
A taxpayer over-contributes to his TFSA, and then the investments in the TFSA become worthless so that he cannot withdraw the excess. Is the taxpayer entitled to relief from the over-contribution penalty? The Federal Court recently held that the CRA…
No more shortcuts for excess CDA elections
The CRA has “retired” the shortcut method for excess CDA elections. It is now necessary to wait for the Part III assessment and then file an election under subsection 184(3) of the Income Tax Act (Canada) in respect of the…
Transfer of title only caught by section 160?
In Gill v R, 2026 TCC 18, the Tax Court seemed to find that a transfer of title as such represented value from a tax debtor that could support an assessment under section 160 of the Income Tax Act (Canada).…