In R v Colitto, 2020 FCA 70, rev’g 2019 TCC 88, the Court considered when the liability of a director arises under section 227.1 of the Income Tax Act (Canada) (the “Act”) for the purposes of section 160 of the…
We have moved!
We have moved! We are still at 20 Hughson St S in Hamilton, but our new suite number is 707. All of our other contact details remain the same. Our updated contact information can be found here. Because of COVID-19,…
COVID-19 update
Our office remains closed for now even as the province re-opens after the pandemic. We continue to serve our clients, however, by phone and by email. Our contact information can be found here.
Excess CDA election
A corporation purports to pay a capital dividend, but a portion of the dividend is in excess of the balance of the corporation’s capital dividend account (CDA). The corporation pays Part III tax on the excess rather than elect under…
159(5) elections
An estate can file an election under subsection 159(5) of the Income Tax Act (Canada) using form T2075. The election permits the deferral of the payment of taxes owing as a result of the deemed disposition of property on death.…
55(3)(a) purpose test?
The CRA believes that a dividend otherwise exempt under paragraph 55(3)(a) of the Income Tax Act (Canada) will be subject to GAAR if one of the purposes of the dividend was to increase the cost of property contrary to the…
Section 160 and FMV Consideration
A dental professional corporation (the vendor) sold its professional practice to an arm’s length purchaser. Some of the proceeds from the sale were paid to the shareholder of the corporation (the dentist) who used the funds to pay obligations of…
Back-to-back loans
Bill C-29 (Dec 2016) amended the Income Tax Act (Canada) so that a loan by a corporation to an arm’s length entity could be treated as a loan to a shareholder of the corporation if the entity is required to…
Hiatus
I haven’t posted since May 20, 2020, which represents one of the longest (if not the longest) stretches I’ve gone without adding content to this site. My site was hacked, and so it has taken me a while a to…
Burden of proof
One sometimes hears that a taxpayer’s task in a Tax Court appeal is to “demolish” the assumptions of the CRA (as listed in the Crown’s Reply) by proving them wrong on a balance of probabilities. Webb JA, in Morrison v.…