The CRA takes the position that a future income tax asset it not an asset for the purposes of the QSBCS and SBC definitions. Such an asset should be ignored when determining whether a share is a QSBCS or a…
98(3) News
Neal Armstrong is on a sarcasm roll this week. After noting that the CRA, in a recent interpretation (2014-0540611E5E), took the position that a 98(3) election is valid only if it is made for all property of the partnership and…
Diverted funds
Neal Armstrong has written a wonderfully sarcastic case comment on Dimane Enterprises Ltd. v R, 2014 TCC 334.
Brogan
Craig Burley has written a brief summary of Canada (Atty-General) v Brogan Family Trust, 2014 ONSC 6354, a recent case on rectification. I’m skeptical of the idea that the CRA has no interest in a rectification application if it is…
Spousal trust issues
Colleen Ma, in Canadian Tax Focus 4:3 (August, 2014) summarizes some issues with spousal trusts:
Portrait of the Tax Nerd as a Middle-aged Man
I noticed today that the clauses in subparagraph 256(7)(a)(i) of the Income Tax Act (Canada) are missing a conjunction. David Sherman and his team confirmed that Parliament enacted amendments to the subparagraph that omitted the conjunction. In fact, there should…
Ponzi schemes, again
In Roszko v R, 2014 TCC 59, the Court held that amounts received by a participant under notes issued as part of a Ponzi scheme were not income for the purposes of the Income Tax Act (Canada). The Court distinguished…
Inter-company Management Fees
A detailed services agreement was not enough by itself to justify the deduction of management fees paid by Opco to Holdco. The court wanted evidence of the services rendered, the service hours provided, the hourly rate and the identity of…
Providing space
Craig Burley has blogged about 0742443 BC Ltd v R, 2014 TCC 301. His takeaway on the case? “If you have a business that incorporates any sort of rental of space, or allowing customers to use your space, I recommend…
HST diversion
The CRA just tweeted “Is the GST number on your invoice valid? Find out by using the GST/HST registry at http://t.co/LCmyRdCTqQ #GST #HST”. I’ve posted about the registry before, but why would you bother to check? You would care because,…