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Category: Collections

Jeopardy collection order

Posted on: September 26, 2022 Last updated on: September 23, 2022 Written by: John Loukidelis
In general, the CRA cannot collect a debt under the Income Tax Act (Canada) where the tax debtor has objected to, or appealed from, the reassessment underlying the debt (section 225.1). In Canada (National Revenue) v Zhao, 2022 FC 1108,…
Continue reading “Jeopardy collection order”…

Acknowledgement of a debt

Posted on: October 2, 2020 Last updated on: October 2, 2020 Written by: John Loukidelis
The 10-year limitation period during which the CRA can collect a debt under the Income Tax Act (Canada) is re-started if the debtor “makes a written acknowledgement” of it. The CRA has stated that merely filing an objection or an…
Continue reading “Acknowledgement of a debt”…

Spousal constructive trust precedes CRA lien?

Posted on: September 14, 2018 Last updated on: September 14, 2018 Written by: John Loukidelis
From David Nathanson, “Tax Liens and Constructive Trusts” 26:8 Canadian Tax Highlights (Aug 2018): Thus, if a constructive trust is recognized, for income tax purposes the legal owner of the property in dispute is generally regarded by the CRA as…
Continue reading “Spousal constructive trust precedes CRA lien?”…

Section 160 and shareholder benefits

Posted on: February 13, 2016 Last updated on: February 13, 2016 Written by: John Loukidelis
Can the Minister assess a taxpayer under section 160 in respect of an amount already included in the taxpayer’s income under subsection 15(1)? From Justice Bocock, in Parihar v R, 2015 TCC 52 at ¶45: shareholder who has been…
Continue reading “Section 160 and shareholder benefits”…

Collections scam

Posted on: October 10, 2015 Last updated on: October 10, 2015 Written by: John Loukidelis
I have heard recently about a number of taxpayers who received voicemail messages purporting to be from the CRA. The caller left a message threatening the seizure of assets or the immediate imposition of criminal or severe civil sanctions if…
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Collections While a Reassessment is Under Objection

Posted on: November 27, 2013 Last updated on: November 27, 2013 Written by: John Loukidelis
Can the CRA force a taxpayer to provide information about net worth and the location and identity of assets for the purposes of assessing the “credit risk” of a debt owing pursuant to an assessment when that assessment is under…
Continue reading “Collections While a Reassessment is Under Objection”…

Point in time due diligence

Posted on: January 17, 2013 Last updated on: January 17, 2013 Written by: John Loukidelis
A director of a corporation that fails to remit source deductions might be duly diligent to a point in time, and therefore not liable for the failure to that time, but not diligent after that time, and therefore liable for…
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Making it easier to collect

Posted on: July 13, 2012 Last updated on: July 13, 2012 Written by: John Loukidelis
Canada v. Barrett, 2012 FCA 33, is an interesting companion to Madison v R, 2012 FCA 80 (discussed here). The upshot of Barrett is that the CRA need not undertake reasonable collection efforts against a corporation before assessing one of…
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Savoy Now Somewhat Shabby

Posted on: May 19, 2012 Last updated on: May 19, 2012 Written by: John Loukidelis
I wrote here about Savoy v R, 2011 TCC 35. The Federal Court of Appeal recently concluded that Savoy was wrongly decided on the question of what the Minister must do to satisfy the requirements of subsection 227.1(2) where a…
Continue reading “Savoy Now Somewhat Shabby”…

Antle and Garron

Posted on: November 25, 2010 Last updated on: November 25, 2010 Written by: John Loukidelis
The Federal Court of Appeal has released its reasons for dismissing the appeal of the taxpayer in Antle. See Antle v. The Queen, 2010 FCA 280. The reasons are also now available online in St. Michael Trust Corp. v. The…
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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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