In Bank of Nova Scotia v R, 2024 FCA 192, the Court held that interest on a taxpayer balance owing should be calculated from the balance due date for a year to the date of a loss carry back request.…
Deans Knight applied
In R v. MMV Capital Partners Inc., 2023 FCA 234, the Court applied GAAR to a scheme where five of the original shareholders of the taxpayer maintained de jure control but an arm’s length party acquired 99% of the corporation’s…
REOP reborn?
In Philip Friedlan and Adam Friedlan “Brown v. Canada: REOP Redux?” Tax for the Owner-Manager 23:2 (April 2023), the authors argue that Brown v R, 2022 FCA 200, appears to have confirmed that R v Paletta, 2022 FCA 86, introduced…
The “pursuit of profit”
In Brown v R, 2022 FCA 200, the Court overturned the judgment of the Tax Court, which had found that the taxpayer, a lawyer, undertook the management of an art gallery for a personal purpose: he began managing the gallery…
Paletta: The Pursuit of Profit
The author writes: Based on the Tax Court’s finding that Paletta’s trading activity was carried on solely for tax purposes without any pursuit of profit, the FCA concluded that Paletta’s trading activity could not constitute a source of business income,…
Tax cost step-up using losses
The writer summarizes a ruling in which a group of related corporations stepped-up the cost of depreciable property through a series intra-group transfers that triggered capital gains offset by losses. The step-up of the cost of the depreciable property was…