On July 18, 2017, the Department of Finance released its consultation policy paper on the taxation of private corporations first announced in Budget 2017, along with proposed legislation on some of the topics addressed.
The Minister’s introductory letter acknowledges the…
“Rectification”, a means to “fix” a mistake made in the implementation of an agreement, has been a popular topic in tax law since the Supreme Court of Canada’s decisions limiting the availability of rectification for tax planning errors in AG…
Canadian taxpayers have a statutory right to information under the government’s control, subject only to limited and specific exceptions (Access to Information Act, s. 2(1)). One such exception is for information protected by solicitor-client privilege. In The Information Commissioner…
In a well-reasoned technical interpretation (2014-0525501E5, just released), the Canada Revenue Agency (CRA) concluded that payments by Canadian companies (Usercos) to UK and US resident companies (Ownercos) for the right to use customer lists owned by the Ownercos are…
In the CRA’s long-standing view, proceeds realized on a hedge contract cannot be on capital account if there is no sale (or proposed sale) of the underlying item being hedged. Such could be the case if a hedge is entered…
In 2014-0529981I7, the CRA Rulings Directorate considered a case where partnership interests and a debt obligation (Particular Note) owed by a partnership were sold mid-year. No portion of the partnership’s loss for the year was allocated to the selling…
In Repsol Canada Ltd. v. The Queen, 2015 TCC 21, the Tax Court of Canada found that a deep water pier and plant (Facility) in New Brunswick qualified as a processing asset included in Class 43 for the 2007…
In 2013-0509771E5, the CRA confirmed that oil & gas royalties earned by a U.S. resident are subject to tax in Canada and no relief is available under the Canada-US tax treaty (Treaty). Such royalties constitute income from immovable property…
In 2014-0541921E5, the CRA said that no debt forgiveness should arise under s. 80 if a debtor has a contingent right to reduce a commercial debt obligation, where it is reasonable to conclude (having regard to all the circumstances)…
In 2014-0539191E5, a Canadian corporation (A Co) with a December 31 taxation year end had a significant interest in a partnership (Partnership) with a fiscal period also ending December 31. On August 1, 2014 A Co amalgamated with its…