In Industries Perron Inc. v. The Queen, 2013 FCA 176, the Federal Court of Appeal (FCA) disallowed a deduction for amounts deposited to secure potential US softwood countervailing or anti-dumping duties. Under s. 20(1)(vv) a specific deduction is available for…
Forgive me for saying this about a government publication, but Canada’s Taxpayer Bill of Rights (TBR) really is a misleading document. It styles itself as a “Bill of Rights,” but it can’t be enforced in any legal way. The recent…
An immediate deduction is available for contributions to an environmental trust that is established for the sole purpose of funding the reclamation of a qualifying site (s. 20(1)(ss) and s. 211.6). In 2012-0463471R3 (released last week), the Rulings Directorate…
In 2012-0461741E5 (released last week), the Rulings Directorate applied s. 88(1)(d)(ii) to restrict a Canadian parent company’s (Canco’s) ability to increase the tax cost of capital property Canco received on the liquidation of its Canadian subsidiary (Target). The situation…
In 2012-0464901I7 (released last week), the Rulings Directorate concluded that the “substituted share” concept, contained in proposed new s. 93(2.01) and existing s. 93(2), could apply to any sequence of property substitutions even if the property substituted within the…
In FLSmidth Ltd. v. The Queen, 2013 FCA 160, the Federal Court of Appeal (FCA) denied a foreign tax deduction under s. 20(12) in the context of a cross-border financing arrangement commonly known as a tower structure. The narrow…
In Lyrtech RD Inc. v. The Queen, 2013 TCC 12, the Tax Court of Canada (TCC) held that a public company (Pubco) had de facto control of a Canadian research and development company (R&D Co); as such, the enhanced…
In 2013-0486011E5, the CRA concluded that the preferential 5% dividend withholding tax (WHT) rate under the Canada-Netherlands tax treaty (Treaty) should apply where a Canadian corporate partnership in a group lends funds to the group’s foreign parent. The facts…
In 2010-0385931I7 (released last week), the Rulings Directorate of the Canada Revenue Agency (Rulings) was asked to consider a case where a partnership of non-resident partners disposed of 25% of the common shares of a Canadian public company (Canco)…
The Federal Court of Appeal’s recent decision in The Queen v. Guindon attempts to answer the question: when is an intentional action criminal in nature? In Guindon, the taxpayer signed 153 charitable donation receipts in what was characterized by the…