The matter of fictions in our Tax Act was on my mind this week. Second Life has nothing on the Income Tax Act when it comes to creating a virtual reality. I’m thinking of the various tax rules that deem…
In Bioartificial Gel Technologies (Bagtech) Inc. v. The Queen, 2012 TCC 12, the Tax Court of Canada (TCC) found that the company was a Canadian-controlled private company (CCPC) even though a majority of the company’s voting shares were collectively…
In Prudential Plc v. Special Commissioner of Income Tax, [2013] UKSC 1, the UK Supreme Court held (by a majority decision) that the common law protection afforded to a client under legal advice privilege could not be extended to…
In 2012-0459411C6, the CRA considered the allocation of cross-border stock option income between two or more countries. The question typically arises in cases where the relevant employee performs employment duties both inside and outside Canada. The CRA confirmed that…
Non-residents are taxable in Canada in respect of capital gains realized on TCP (subject to an exemption that may be available in a tax treaty). In 2012-0453021C6, the CRA was asked whether shares of a private company (Mortgage Co)…
At the 2012 IFA conference, the CRA was asked to confirm its position on when a non-resident would be considered the beneficial owner of income (such as dividends, interest, or royalties) for tax treaty purposes. Canada’s tax treaties generally require…
Once in a while I read a tax case and say to myself: “That’s not fair!” If I’m otherwise having a good day, I’ll stop and think about it for a minute before blowing my stack about another injustice imposed…
In NRT Technology Corp v. The Queen, 2012 TCC 420, a company (NRT) acquired a target company with substantial business losses (Losses). NRT subsequently sought to use the Losses against its own taxable business income in a year following…
At the 2012 IFA conference, the Canada Revenue Agency (CRA) commented on three items of interest: treaty-benefit declarations by non-residents, partnerships that sell taxable Canadian property, and Reg. 105 withholding for partnerships that provide services in Canada.
o Treaty-benefit…
As I head into the New Year I’m disheartened by the sorry state of the tax legislative process in both the US and Canada. The pathetic response of the US legislators to the debt crisis in that country is profoundly…