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LPC Notes (page 3)

GLGI appeals to be struck?

Posted on: April 1, 2026 Last updated on: April 1, 2026 Written by: John Loukidelis
In Kelly v R, 2026 TCC 53, Justice Graham has given multiple taxpayers until April 24, 2026, to provide written submissions on why their appeals should not be struck without a hearing “for abusing this Court’s process”. The taxpayers were…
Continue reading “GLGI appeals to be struck?”…

Capital gain exemption fail

Posted on: February 20, 2026 Last updated on: February 13, 2026 Written by: John Loukidelis
I wrote the following article for the Hamilton Law Association Journal on Ehresman v R, 2025 TCC 78. For another summary of the case, see Colin Bartlett “Are Excess Cash Reserves an Active Business Asset?” 25:4 Tax for the Owner-Manager…
Continue reading “Capital gain exemption fail”…

Relevant group entities

Posted on: February 17, 2026 Last updated on: February 13, 2026 Written by: John Loukidelis
A relevant group entity (RGE) of a corporation (per subaparagraphs 84.1(2.31)(c)(iii) and 84.1(2.32)(c)(iii) in the intergenerational transfer (IGT) rules) is any entity carrying on an active business that is relevant to whether the corporation’s shares are qualified small business corporation…
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IGT, de facto control and notes

Posted on: February 16, 2026 Last updated on: February 13, 2026 Written by: John Loukidelis
The immediate transfer regime under the intergenerational transfer (IGT) rules found in subsection 84.1(2.31) will not provide a safe harbour from section 84.1, if the taxpayer-vendor at any time after the sale, either alone or with a spouse, has de…
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Transfer of property

Posted on: February 13, 2026 Last updated on: February 13, 2026 Written by: John Loukidelis
Subsection 106(2) applies where a taxpayer disposes of an income interest in a trust. Paragraph 106(2)(a) requires the taxpayer to include in income an amount equal to the proceeds of disposition received for the interest less amounts included in the…
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Harvard Properties detailed notes

Posted on: January 16, 2026 Last updated on: January 16, 2026 Written by: John Loukidelis
Harvard Properties 2024 TCC 139 per Boyle TCJ General procedure Under appeal A-382-24; A-388-24 “Another Section 160 Tax Avoidance Scam: Harvard Properties” Brian Arnold report 296 Jan 14/25 * Facts The following is a paraphrase of the facts set out…
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VD Info Circular Updated

Posted on: October 21, 2025 Last updated on: October 21, 2025 Written by: John Loukidelis
I just updated my webpage article on voluntary disclosures, which addresses the CRA’s amended policy on VDs found in IC00-1R7 (Voluntary Disclosures Program).
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Poker appeals dismissed

Posted on: August 25, 2025 Last updated on: August 14, 2025 Written by: John Loukidelis
The taxpayers’ appeals in the poker winnings trilogy of cases have been dismissed: Fournier-Giguère v R, 2025 FCA 112. English translations of the Tax Court decisions are now available. See 2022 TCC 132 (Fournier‑Giguère Judgment), 2023 TCC 3 (D’Auteuil Judgment)…
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Twenty years

Posted on: August 22, 2025 Last updated on: August 14, 2025 Written by: John Loukidelis
Today is the 20th anniversary of this blog. I made my first post on it on August 22, 2005. I’m now working on post number 1,077.
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Shares acquired by a trust are QSBCSs

Posted on: August 21, 2025 Last updated on: August 15, 2025 Written by: John Loukidelis
On January 1, 2023, a newly-formed personal trust purchased shares of Opco from Dad, who owned them throughout the preceding two years. The trust sold the shares on June 30, 2023, to an unrelated person. The CRA found that the…
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Recent notes

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…
Continue reading “Contributions to a testamentary trust”…

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…
Continue reading “Corporation attribution”…

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…
Continue reading “Association and trusts”…

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…
Continue reading “Over-contribution penalty hell”…

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…
Continue reading “No more shortcuts for excess CDA elections”…

Recent Posts

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…
Continue reading “Contributions to a testamentary trust”…

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…
Continue reading “Corporation attribution”…

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…
Continue reading “Association and trusts”…

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…
Continue reading “Over-contribution penalty hell”…

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…
Continue reading “No more shortcuts for excess CDA elections”…

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Archives

Categories

Recent Posts

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…
Continue reading “Contributions to a testamentary trust”…

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…
Continue reading “Corporation attribution”…

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…
Continue reading “Association and trusts”…

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…
Continue reading “Over-contribution penalty hell”…

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…
Continue reading “No more shortcuts for excess CDA elections”…

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