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…
A recent decision of the Tax Court is at times interesting, surprising and disturbing. The case – Swirsky v R, 2013 TCC 73 – raises an important question about the scope of paragraph 20(1)(c) of the Income Tax Act. That…
In 2012-0445891E5, the CRA confirmed its view that contributed surplus in Canada’s thin capitalization formula is the amount that is, or would be, recognized as contributed surplus under Canadian GAAP. The thin capitalization formula generally places a limit on…
In 2012-0457741E5, the CRA confirmed that Canadian withholding and reporting obligations can potentially arise when two foreign corporations, holding taxable Canadian property, cease to exist in the course of a foreign amalgamation. In broad terms, a withholding and reporting…
In 2012-0432141R3, the CRA ruled that web-hosting services provided by a Canadian company (Canco) to a related non-resident company (USCo) would not constitute a permanent establishment (PE) of US Co in Canada. The facts disclosed that Canco would construct…