In 2012-0464411I7, the Aggressive Tax Planning (ATP) section of the CRA’s Toronto North Tax Services Office was proposing (among other things) to assess a taxable benefit on the shareholder of one group company (Borrower Co) that had borrowed funds…
In 2012-0461651I7, the CRA said that the general anti-avoidance rule (s. 245) did not apply to a legally-effective plan to transfer income from subsidiaries (each, a Subco) into their parent corporation which had losses (Parent), even though the same…
In Daishowa-Marubeni International Ltd. v. The Queen, 2013 SCC 29, the Supreme Court of Canada unanimously decided that reforestation obligations – assumed by a purchaser of a forest tenure in Alberta – represented a future expense embedded in the…
The Province of Québec has announced the details of a new mining tax regime. The new regime will be implemented in 2014, and follows on the heels of other changes that the Province of Québec has made to its mining…
In 2013-0477601E5, the CRA was asked “why in the Singleton case the interest deduction was allowed whereas in the Lipson case the deduction was not allowed”. The CRA responded that in Lipson v. The Queen the Supreme Court of…
In Morguard Corporation v. The Queen, the Federal Court of Appeal (FCA) upheld a Tax Court decision that a “break fee” received by a parent company (in a corporate group) in the course of its attempted acquisition of a target…
In Macdonald v. The Queen, 2013 FCA 110, the Federal Court of Appeal (FCA) held that corporate funds were distributed to a sole shareholder “in any manner whatever” on the winding up of the corporation’s business, with the result…
In C.A.E. Inc. v. The Queen, 2013 FCA 92, the Federal Court of Appeal (FCA) sets the Tax Court of Canada (TCC) straight on some fundamentally important tax principles: the interplay between inventory and depreciable property. The facts provide…
In Imperial Tobacco Canada Limited v. The Queen, 2013 TCC 135, the Tax Court of Canada (TCC) usefully examined various elements of solicitor-client privilege and common interest privilege when it ordered the disclosure of certain documents. The judgment arose…
In 2013-0474111I7, the Rulings Division advised a local Tax Services Office that an acquired company could not reverse prior-year CCA claims so as to revive expired losses. The facts indicated that in taxation years before the company was acquired,…