In 2013-0479161E5, the CRA confirmed that a net capital loss not reported in a statute-barred year may be carried forward and used in an open year. A net capital loss for a year is defined in part as the…
In 2013-0481691E5, the CRA confirmed that losses realized on monthly foreign currency forward contracts were on income account, notwithstanding that they were settled and re-entered into over the same 4-year period of a foreign currency capital loan made to…
The Supreme Court of Canada has been unequivocal in its affirmation of the importance of the protection of solicitor-client privilege. For example, in R. v. McClure, 2001 SCC 14 the Court held (at para.35) that the privilege “must be as…
In River Hills Ranch Ltd. (et al.) v. The Queen (2013 TCC 248), the Tax Court of Canada (Tax Court) examined the principles of contract interpretation and concluded that certain contractual payments made to the taxpayer were merely “dressed…
The Department of Finance (Finance) continues its ambitious agenda. On August 12, 2013, Finance released its Consultation Paper on Treaty Shopping and asked for comments by December 13, 2013. Comments may be submitted by email to Treaty.Shopping-Chalandage.Fiscal@fin.gc.ca. On…
In 2012-0470921E5 (released August 21, 2013), the CRA’s Rulings Directorate said the addition of a new partnership to an existing chain of partnerships means that all the partnerships would thereafter have a December 31 year end. In the case…
There can be no doubt that the intentional suppression of sales data, whether through use of an electronic device (often referred to as a “zapper”) or through use of an eraser on the end of a pencil might constitute criminal…
In February 2013, the OECD issued its report addressing “base erosion and profit shifting” (BEPS) by multinational enterprises: see my quick update at http://thor.ca/blog/2013/02/finance-embraces-oecds-report-on-base-erosion-and-profit-shifting/. On July 19, 2013, the OECD released its Action Plan for this ambitious project (see…
In his Blog posting “Finance Releases Proposed Amendments” (15 July 2013), my colleague Ian Gamble discussed several of the legislative proposals recently made by the Minister of Finance.
The proposals also include suggested amendments to s.241 of the Income Tax Act…
On July 12, 2013 Finance released several proposed amendments (see http://www.fin.gc.ca/drleg-apl/Itedst-irdatv-0713-eng.asp). The following is a quick summary of selected items, which is not intended to be exhaustive.
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