Alison Boyce tweeted today about an interesting article published recently in The National magazine. The article describes CBA efforts to convince the Department of Finance that it needs to re-visit the tax rules affecting shared parenting.
TOSI and foreign affiliates
The TOSI rules don’t just apply to dividends from Canadian private corporations. The rules can apply to dividends from foreign private corporations as well, and the tax results are potentially horrendous. Stan Shadrin, Manu Kakkar and Alex Ghani, “FAPI and…
TOSI and business reorganizations
In a technical interpretation (TI 2019-0814181E5, August 19, 2019), the CRA confirmed that the five-year test to qualify for the “excluded business” exception under the TOSI (tax on split income) rules should take into account all taxation years in which…
Estates and foreign affiliate dumping
The draft foreign affiliate dumping rules can create a deemed dividend to a non-resident discretionary beneficiary of the estate of an owner of a private Canco that holds shares in a foreign affiliate. Henry Shaw, “Foreign Affiliate Dumping and Estates…
Central mind and management
In Landbouwbedrijf Backx BV v Canada, 2019 FCA 310, the Court agreed that a Dutch company was resident in Canada because the central mind and management of the company was in Canada. The Court found the following facts to be…
SCC on judicial review
Gergely Hegedus, “SCC on Standards of Judicial Review” (February 2020) 10:1 Canadian Tax Focus, draws the following lessons from Canada (Minister of Citizenship and Immigration) v Vavilov, 2019 SCC 65, Bell Canada v Canada (Attorney General), 2019 SCC 66, and…
Commission employees
The trend in Tax Court jurisprudence is to require specificity in contracts to permit a commissioned employee to deduct an expense. The contract must contemplate the particular expense in question before it will be deductible under paragraph 8(1)(f) of the…
ABIL denied
In Moose Factory Restaurant Properties Ltd. v R, 2019 TCC 156, the taxpayer claimed an ABIL in respect of a debt of a third party that the taxpayer had guaranteed. The third party went bankrupt leaving the taxpayer exposed under…
The Tax Court and the implied undertaking rule
In Silver Wheaton Corp. v R, 2019 TCC 170, the Court held that the implied undertaking rule prevented third parties from obtaining the production of documents and information produced by the taxpayer in a Tax Court appeal. Bhuvana Sankaranarayanan, “Third…
Foreign tax credits and US estate taxes
US federal and state estate taxes are eligible for a tax credit in Canada only because of the Canada-United State Income Tax Convention (1980). The treaty, however, does not bind Canada’s provinces. Ontario and BC, unlike other provinces, have not…