In 2014-0528021E5, the CRA usefully discussed the taxation of timber limits. Some quick observations:
…
In 2014-0536331E5, the CRA ignored a technical timing problem on the liquidation of a foreign affiliate. In the CRA’s view, the deemed disposition of active business assets at fair market value under s. 88(3)(b) should not generate foreign accrual…
Distributions from a partnership in excess of a partner’s basis in its partnership interest can generate a deemed gain to the partner (s. 40(3.1)). In 2011-0417491E5 (recently released) the CRA said that technically such a gain realized by a…
In Inter-Leasing, Inc. v. Ontario (Revenue), 2014 ONCA 575, rev’g 2013 ONSC 2927, the Ontario Court of Appeal (OCA) upheld an internal group financing arrangement which eliminated provincial income tax on interest paid by Alberta-based companies (Alberta Cos) to…
The facts in the recent case of Samaroo v. Canada Revenue Agency, 2014 BCSC 1349 are not complicated. An investigator for CRA obtained a search warrant and the warrant was executed at the plaintiffs’ business and residence. Then CRA reassessed…
In 2014-0523041C6, the CRA was asked whether a US Limited Liability Limited Partnership (LLLP) should be treated a foreign partnership, a foreign corporation, or some other type of arrangement (for Canadian tax purposes). The CRA applies a two-step process…
In C.A.E. Inc. v. Canada, 2013 FCA 92, the Federal Court of Appeal (FCA) said that the change-in-use rules in s. 13(7) and s. 45(1) should apply when property, initially held as inventory, begins to be used as depreciable property…
In McLarty v. The Queen, 2014 TCC 30, the Crown took another run at a tax-structured acquisition of seismic data, having previously lost at the Supreme Court of Canada in respect of a reassessment of the same taxpayer for…
The recent decision of Gervais c. La Reine (2014 CCI 119; available only in French) gave the TCC an opportunity to review a common planning technique that spouses use to multiply the use of their lifetime capital gains exemption (CGE)…
Murphy’s Law is, as everyone knows, the proposition that “Anything that can possibly go wrong, does.” There are many variants of this. Among tax practitioners, a well known one is the proposition “There is no equity in a tax statute.”…