In R & S Industries Inc. v R, 2017 TCC 75, both the CRA and the taxpayer agreed that they were bound by the elected amount shown on a T2059. That amount cannot be altered unless the CRA permits the…
Objections
Ken Griffin and Marc Vanasse, “Income Tax Objection Process” Canadian Tax Highlights 25:3 (March 2017), summarizes the Auditor General’s report on the CRA objection process. Not surprisingly, the report found the process lacking in a number of ways. Objections take too long. The CRA does not learn effectively from the results of objections. In addition, the CRA does not have any standards for resolving objections in a timely manner.
Tax deals re-visited
I wrote previously about Rosenberg v Canada (National Revenue), 2016 FC 1376. Kathryn Walker and Robert G. Kreklewetz “Deals with the CRA” Canadian Tax Highlights 25:3 (March 2017) discusses the cases. After discussing Rosenberg, the authors argue that Galway v…
Corporate gifts
Neal Armstrong reports that the Quebec Court of Appeal, in Emballages Starflex Inc. v Agence du revenu du Québec, 2016 QCCA 1856, has held that a corporation cannot deduct a gift to a charity as a business or promotional expense.…
US Issues in Canadian Tax Disputes
Roy Berg, in “Tax Dispute Resolution: Watch for US Issues” Canadian Tax Highlights 24:2 (February 2016), outlines some issues to consider when representing a US taxpayer who has a dispute with the CRA. He writes: The practitioner …
Jeopardy order
John Sorenson, in “Jeopardy Order Overturned” Canadian Tax Highlights 24:2 (February 2016), discusses Canada (National Revenue) v Grenon, 2015 FC 1050. In this case, the taxpayer applied to the court to overturn a jeopardy collection order made under section 225.2…
Misrepresentation
From Justice Bocock, in Robertson v R, 2015 TCC 246, we read the following regarding whether a mistake of law amounts to a negligent misrepresentation: wise and prudent person is, generally by definition, not unknowledgeable of the law. However,…
Personal Services Businesses
A version of the following article appeared in the most recent edition of the HLA Journal.
An employee, for income tax purposes, cannot deduct many expenses that a person in business for him- or herself can. On the other hand, a CCPC that carries on an active business can claim the small business deduction in respect of income from that business. Assuming that a worker does not wish to be treated as an employee, can he or she get the tax benefits of a self-employed person and the small business deduction by providing services through a corporation? The answer is “no”, if the personal service business (“PSB”) rules apply.
No cure for negligent misrepresentation
Filing an amended return will not cure a negligent misrepresentation made in the original return, and so the CRA will still be able to reassess beyond the normal reassessment period in respect of the misrepresentation. Georgina Tollstam, “Deceased’s Return Reassessed…
Letters of intent and control
From Karen Stilwell, “CRA View – LOI May Engage 251(5)(b)”, Tax Hyperion 12:9 (September 2015): CRA’s position on the issue is that the question may only be answered on a case-by-case basis…