Category: Tax Litigation

2024 Federal Budget – Major Income Tax Changes Announced

Published by Jonathan Longcroft & Elliott Simpson & Alexander Demner

Yesterday (April 16, 2024), the Department of Finance Canada published its 2024 federal budget (“Budget 2024”). Several major tax proposals were announced. This blog post briefly outlines those relating to income tax.

1. Increased Capital Gains Inclusion Rate 

3295940 Canada Inc v The King – Federal Court of Appeal overturns GAAR assessment based on the similar economic result of alternative transactions

Published by Morgan Watchorn

The Federal Court of Appeal (the “FCA”) recently released its decision in 3295940 Canada Inc v His Majesty The King, 2024 FCA 42. This decision is a welcome development in the jurisprudence regarding the application of the General Anti-Avoidance…

What’s new? The latest evolution in the GAAR “modernization” proposals

Published by Molly Martin

I.              INTRODUCTION

The Department of Finance first publicly announced an intention to modify the general anti-avoidance rule (the “GAAR”), found in section 245 of the Income Tax Act (Canada) (the “Act”), on November 30, 2020. This intention most recently came…

“Which court should I go to?” – Dow Chemical and Iris Technologies ask the Supreme Court of Canada to clarify the jurisdictions of the Tax Court and Federal Court

Published by Brittany Rossler

Earlier this week, the Supreme Court of Canada heard two tax appeals that may help clarify the jurisdictional boundaries between the Tax Court of Canada and Federal Court: Dow Chemical Canada ULC v His Majesty the King (SCC File No.

Marine Atlantic v The King – What is a “fair and reasonable” allocation in a business when everything depends on everything?

Published by Sarah Faber

When is an allocation of costs amongst supplies “fair and reasonable” for calculating input tax credits (“ITCs”)? In Marine Atlantic Inc. v The King (2023 TCC 95), the Tax Court confirmed that a “fair and reasonable” allocation:

  1. is based

SCC confirms application of GAAR to deny tax loss utilization

Published by Joseph Eid

Deans Knight Income Corp. v. Canada, 2023 SCC 16 (“Deans Knight”) involves the application of the general anti-avoidance rule (“GAAR”) to the utilization of non-capital losses and other deductions by a taxpayer, Deans Knight Income Corporation (the “Taxpayer”). Experiencing…

Tax-free savings accounts not always tax-free

Published by David Davies & Alexander Demner & Kyle Spampinato

In Ahamed v. The King (“Ahamed”), the Tax Court of Canada held that a tax-free savings account (“TFSA”), despite its moniker, is capable of carrying on a business of trading securities and any income earned from that business is fully…