In Kiperchuk v R, 2013 TCC 60, the Tax Court held that a widow was not the “spouse” of her deceased husband. In Enns v R, 2023 TCC 28, however, the Court followed Kuchta v R, 2015 TCC 289, and…
Section 160 and 50-50 shareholders
The appellant in Veilleux c R, 2022 CCI 69, was one of two unrelated individuals who were the 50/50 shareholders and only directors of Opco. The CRA assessed the appellant under section 160 for Opco’s unpaid tax debts in respect…
Recent developments in s 160 law
Yves St-Cyr and Jacob Yau “What’s New in Section 160” 2021 Ontario Tax Conference Table of Contents 1. Introduction 2. Overview of Section 160 2.1. Purpose 2.2. Requirements for Application 3. Underlying Tax Debt and Burden of Proof 3.1. Challening…
Transferee pays debtors non-tax debts
In Brown v R, 2020 TCC 45, the Court considered whether section 160 of the Income Tax Act (Canada) applied where a tax-debtor husband transferred funds to his wife who had agreed to use the funds to pay his credit…
Section 325 and Joint Bank Accounts
In White v R, 2020 TCC 22, the taxpayer’s husband owed tax debts under the Excise Tax Act at a time when he made deposits to their joint bank account. The issue was whether the taxpayer was liable under section…
Section 160 and Director Liability
In R v Colitto, 2020 FCA 70, rev’g 2019 TCC 88, the Court considered when the liability of a director arises under section 227.1 of the Income Tax Act (Canada) (the “Act”) for the purposes of section 160 of the…
Section 160 butterflies
In Eyeball Networks Inc. v R, 2019 TCC 150, the court held that section 160 applied to a transferee corporation (the new operating company or “TC”) that had received property from a distributing corporation (the old operating company or “DC”)…
Burden shifting
In Monsell v R, 2019 TCC 5, the taxpayer received payments for no consideration from a corporation to which she was related. The CRA subsequently reassessed the corporation for additional taxes for a number of years and then assessed the…
Section 160 and stock dividends
In R v 594710 British Columbia Ltd., 2018 FCA 166, the Court held that GAAR applied to a complicated series of transactions in which profits of a limited partnership were allocated to a corporation with tax shelter where the economic…
The S 160 Family Law Exception
Subsection 160(4) of the Income Tax Act (Canada) in effect provides an exception to the “long arm” of section 160 where at any time a taxpayer has transferred property to the taxpayer’s spouse or common-law partner pursuant to a decree,…