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 28, 2019, the Ontario Court of Appeal released its decision on the Ontario government’s reference regarding the constitutionality of the federal carbon pricing regime. Like the Saskatchewan Court of Appeal ruled in May, the majority of the…
On May 3, 2019, the Saskatchewan Court of Appeal released its decision in the Saskatchewan government’s reference asking it if the federal “carbon tax” is unconstitutional. The Court held that the federal legislation was validly enacted under the
The BC government’s recent focus on tax evasion and money laundering in the real estate market has led to proposed legislation, the Land Owner Transparency Act (Bill 23 – 2019), which will impose potentially onerous disclosure requirements on those who…
In Budget 2019, the federal government continues to bolster its tools and resources to detect and prosecute tax evasion and money laundering. These proposals are relevant both to those who do not pay the amount of tax the law requires,…
Minister of Finance, Bill Morneau, tabled the 2019 Budget today (“Budget Day”). This Thorsteinssons update summarizes some of the main tax takeaways.
The tax measures introduced in the Budget should not impact the vast majority of businesses. As a pre-election…