The FAD Rules
Referred to as the foreign affiliate dumping (“FAD”) rules, section 212.3 was designed to restrict a non-resident corporation (a “parent”) from using a corporation resident in Canada (a “CRIC”) as an intermediary to invest in a…
In Canada v Rio Tinto Alcan[1], the Federal Court of Appeal (“FCA”) upheld the Tax Court of Canada (“TCC”) decision[2] confirming, inter alia, the deductibility of certain takeover expenses incurred by Rio Tinto Alcan Inc. (“Alcan”)…
On September 20, 2019, the Federal Court of Appeal (“FCA”) released its decision in Tedesco v. Canada (2019 FCA 325) (“Tedesco”), overturning the decision at the TCC of Canada (“TCC”) (heard as Stewart v. The Queen, 2018 TCC 75). The…
Context: In 1982 the CRA published its position on barter transactions, describing them as transactions “effected when any two persons agree to a reciprocal exchange of goods or services and carry out that exchange usually without using money”: IT-490. This…
Quebec expanded its sales tax registration requirements last year to require sellers that are not resident in the Province to register and collect Quebec’s sales tax if their sales made to Quebec consumers in the last year were CAD $30,000…
On June 17, 2019, the federal government tabled a notice of ways and means motion proposing legislative amendments to the stock option regime. Consistent with the intention announced in the 2019 federal budget, the draft legislation imposes a $200,000 annual…
On July 22, 2019, the Federal Court released its reasons for judgement in rejecting a constitutional challenge of sections 263-269 of the Income Tax Act (Canada) (the “ITA”). The full reasons can be found at 2019 FC 960 (“Deegan”).…
In the recent decision in Polubiec (2019 TCC 146), the Tax Court of Canada upheld the assessment of approximately $140,000 in penalties under the repeated failure to report income penalty under s. 163(1) of the Income Tax Act (Canada). In…
On May 17, 2019, the Minister of Finance published proposed amendments to the GST/HST portion of the Excise Tax Act. Notable among the proposed amendments is the inclusion of “virtual payment instrument” in the definition of “financial instrument”. A virtual…
On May 3, 2019, the Saskatchewan Court of Appeal released its decision in the Saskatchewan government’s reference regarding the constitutionality of the federal government’s carbon tax. In a 3-2 decision, the Court ruled that the federal carbon tax “backstop”…
