The CRA does not consider a US limited liability company (LLC) itself to be a resident of the US for purposes of benefits under the Canada-US tax treaty (Treaty). However, pursuant to Article IV(6) of the Treaty, the CRA will…
In 2012-0438691E5, the Canada Revenue Agency (CRA) considered a US corporation (US Co) that shipped inventory to an unaffiliated customer’s warehouse in Canada. Title to the inventory remained with US Co until such time as the customer required the…
In 2012-0436181E5, the Canada Revenue Agency (CRA) disagreed with the Tax Court decision in Tawa Developments Inc. v The Queen 2011 DTC 1324, and said the Crown may legally confiscate a dividend refund under s. 129 if the taxpayer…
In Toastmaster Inc. v. MNR, 2012 FCA 317, the Canada Revenue Agency (CRA) denied the non-resident corporation’s request for discretionary relief from interest on taxes. On a judicial review of that decision, the Federal Court upheld the CRA’s decision. …
In 2012-0453071I7, Finance confirmed that a corporation could maintain its shareholders’ resolutions in a currency other than its elected functional currency without affecting the validity of the functional currency election.
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In Morguard Corporation v. The Queen, the Federal Court of Appeal (FCA) upheld the Tax Court of Canada decision that a “break fee” received on an attempted acquisition of a target company was ordinary income to the recipient. Critical…
In MNR v. Grant Thornton and Foremost Industries, the taxpayer successfully asserted solicitor-client privilege (Privilege) over documents inadvertently disclosed to its accounting firm. The judgment is a useful reminder that any Privileged documents should not be disclosed to an…
On June 4, 2012, the Supreme Court of Canada granted leave to appeal in the case of Daishowa-Marubeni International Ltd. v. The Queen. The case is being closely watched by the tax community in Canada, and concerns the tax treatment…
On February 13, 2012, Finance released the “Agreement Between The Government Of Canada And The Government Of The Hong Kong Special Administrative Region Of The People’s Republic Of China For The Avoidance Of Double Taxation And The Prevention Of Fiscal…
In 2011-0427181E5 (released October 17, 2012), the CRA considered whether a non-resident company would be subject to withholding tax in Canada on a bundled “licence fee” payment from a company resident in Canada in respect of certain computer software…