In 2012-0449371I7, the Canada Revenue Agency (CRA) confirmed that a both an upstream and a downstream absorptive merger under US corporate law would qualify for tax-deferred (rollover) treatment under proposed new s. 87(8.2). The facts involved a Canadian company…
On March 21, 2013 the federal government released its budget (http://www.budget.gc.ca/2013/doc/plan/toc-tdm-eng.html).
Mining Industry. The CEE (100%) deduction for intangible mine development expenses will become a CDE (30% per year) deduction, to be fully phased in after calendar 2017. The…
The 2013 federal budget continues the trend of removing income tax incentives for Canadian mining companies. In particular, the budget proposes to reduce the deductions available to mining companies in respect of expenses incurred in developing or expanding mines.
The…
Two important features of the 2013 Budget, released last week, are the closing of tax “loopholes” used for “aggressive” tax planning and renewed focus upon measures to investigate and prosecute tax evasion.
In the words of the government:
“To help…
The federal budget last week (March 21) provoked the usual range of comment and criticism from the media, members of the opposition parties, and the blogosphere. I read very little discussion of the traditional idea that budgetary proposals are to…
I was on an airplane last week in order to escape from the interminable Vancouver rain. As I contemplated the warmer and drier climate that would receive me, I also used the flight as a chance to catch up on…
In 2011-0431871I7 (released last week), the CRA’s Ruling Division (Rulings) advised a local Tax Services Office (TSO) that a portion of a “procurement licence fee” under franchise agreement would be subject to Canadian withholding tax. Briefly, a US company…
In 2009-0342861I7 (released last week), the CRA said that the anti-avoidance rule in s. 94.1 should not apply to the particular foreign affiliate structure presented. Briefly, s. 94.1 contains an anti-avoidance provision that can apply where a taxpayer invests…
In Ollenberger v. The Queen (2013 FCA 74), the Federal Court of Appeal (FCA) reversed the Tax Court of Canada (TCC) and held that “active business” is specifically defined in s. 248(1) to mean “any business” other than two…
In Anchor Pointe Energy Ltd. v. the Queen, 2007 FCA 188 the Court held “[i]t is trite law that, barring exceptions, the initial onus of proof with respect to assumptions of fact made by the Minister in assessing a taxpayer’s…