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LPC Notes (page 9)

Interest relief decisions

Posted on: May 23, 2024 Last updated on: May 23, 2024 Written by: John Loukidelis
In two recent cases—Brand v Canada (Attorney General), 2024 FC 159, and Cassidy v Canada (Attorney General), 2024 FC 174—the Federal Court sent back CRA decisions denying relief for reconsideration because the decisions in question had failed to consider adequately…
Continue reading “Interest relief decisions”…

Time out

Posted on: May 8, 2024 Last updated on: May 9, 2024 Written by: John Loukidelis
Joel Nitikman, in “Just the Fax Ma’am: A day late and a dollar short? A comment on Popovich” Tax Topics No 2074 (May 7, 2024), discusses in some detail Popovich v R, 2024 TCC 44, which analyzes the rules for…
Continue reading “Time out”…

Residence of a trust

Posted on: April 26, 2024 Last updated on: April 24, 2024 Written by: John Loukidelis
In Theodoros Darmos Family Trust v. Minister of Finance et al., 2023 ONSC 6431, the Court was called upon to determine whether two family trusts were resident in Alberta or Ontario. After conducting a detailed review of the relevant facts,…
Continue reading “Residence of a trust”…

Easier access to My Account

Posted on: April 24, 2024 Last updated on: April 24, 2024 Written by: John Loukidelis
Life is easier for a tax adviser if a client has access to his or her “My Account“, not least because the client can add the adviser as an authorized representative quickly and easily. (In fact, the CRA is making…
Continue reading “Easier access to My Account”…

Source of income

Posted on: April 13, 2024 Last updated on: April 11, 2024 Written by: John Loukidelis
In Stackhouse v R, 2023 TCC 156, Owen J carefully considered comments in Brown v Canada, 2022 FCA 200, and found that they improperly intepreted the test used in Canada v Paletta, 2022 FCA 86, for determining whether a source…
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Accessing stranded ACB ok under GAAR

Posted on: April 10, 2024 Last updated on: April 10, 2024 Written by: John Loukidelis
In 3295940 CANADA INC. v R, 2024 FCA 42, the taxpayer appealed the application of the GAAR to a series of transactions that used ACB in shares of a corporation that the purchaser refused to purchase. The transactions, in effect,…
Continue reading “Accessing stranded ACB ok under GAAR”…

Extension of time to object

Posted on: March 30, 2024 Last updated on: March 28, 2024 Written by: John Loukidelis
The CRA is generally pretty generous when it considers taxpayer applications to extend the time for filing an objection, but there are limits to that generosity, and the Tax Court will often respect those limits. In FOOi Inc. v R,…
Continue reading “Extension of time to object”…

UHTA update

Posted on: March 28, 2024 Last updated on: March 28, 2024 Written by: John Loukidelis
The CRA has published a bulletin on its interpretation of draft legislation released last fall that will amend the Underused Housing Tax Act.
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Acting in concert and section 160

Posted on: March 27, 2024 Last updated on: March 21, 2024 Written by: John Loukidelis
In Pillon v R, 2024 FCA 24, the Court upheld a Tax Court finding that the taxpayer “acted in concert” with a tax debtor to whom she was not related so that section 160 applied. The taxpayer and the tax…
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Costs against appellant in “unwinnable appeal”

Posted on: March 25, 2024 Last updated on: March 21, 2024 Written by: John Loukidelis
In Nixon v R, 2024 TCC 4, the Court awarded costs of about $165,000 against the appellant for, among other things, misleading the Court about key facts, refusing to admit key facts and filing “an unwinnable appeal” (paras 20ff).
Continue reading “Costs against appellant in “unwinnable appeal””…
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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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