If Son’s Buyco issues a note to his parents for the purchase of all of the shares of Opco, would the parents have de facto control of Buyco and Opco because of the note? The CRA said they would, if…
Donation tax shelters
Cases relating to donation tax shelters continue to pop up from time to time, and the hapless taxpayers are not having much success. The more recent cases generally focus on whether the taxpayers should be entitled to a tax credit…
Mail room affidavits
In Zampieri v R, 2025 TCC 25—which is yet another limitation period case from Mr Justice Bocock—one issue was whether the CRA had sent notices of confirmation and reassessment on the dates printed on them. Mr Justice Bocock was not…
Canada Child Benefit and Shared Custody
In Wong v R, 2025 TCC 24 (informal procedure), Mr Justice Bocock provided a helpful road map of the surprisingly complicated rules relating to shared custody and entitlement to the Canada Child Benefit.
Misdirected assessment
Poor Mr Lam trusted his tenant to forward important mail while Mr Lam was out of the country, but the tenant left a 2016 HST assessment in a pile of junk mail. Mr Lam didn’t become aware of the assessment…
50-50 shareholders and s 160; directors and independent contractors
McCague v R, 2025 TCC 59, is another section 160 case where 50/50 shareholders caused their corporation to pay them dividends at a time when it owed taxes. The Court held that section 160 applied and summarized the law in…
Preliminary vs preparatory expenses
In Lienaux v R, 2025 TCC 67 (informal procedure), the Court referred to Vesuna v R, 2022 FCA 58, and Gartry v R, 1994 CanLII 19352 (TCC), in denying expenses incurred where the taxpayer had not actually started to carry…
Negligence for not reviewing return
In 994552 N.W.T. Ltd. v R, 2025 TCC 55, Mr Justice Bocock considered whether the taxpayer corporation was liable to be reassessed beyond the normal reassessment period for two taxation years and for gross negligence penalties for overclaimed capital cost…
Guest post on the DTC
The following article on the disability tax credit was written by Tanya O’Connell, a former law clerk at Loukidelis Professional Corporation. The Disability Tax Credit (DTC) The DTC is a personal tax credit available under section 118.3 of the Income…
Inter-company loans
Subsection 15(1) of the Income Tax Act could apply where Aco loans money to Bco and Bco has no means of repaying the money. On the other hand, subsection 246(1) will not apply where Bco and its shareholder have no…