In 2011-0427101C6 (released this week), the CRA was asked whether a creditor’s acquisition of an interest in a debtor-partnership could qualify as a “seizure” of the debtor-partnership’s property for purposes of s. 79.1. Section 79.1 contains rules (often favorable)…
In 2012-0432861E5, the CRA was asked whether a general partner would be required to obtain a clearance certificate under s. 159 on the liquidation of a limited partnership. Further, if such a certificate were required, would it need to…
In 2012-0441091E5, the CRA said that fees paid to a non-resident for the use of custom software in Canada were exempt from Canadian withholding tax. The situation involved a non-resident company (NR Co) that designs and develops computer software…
In my January 8, 2013 post (“My Name is Cliff, Drop Over Some Time”), I criticized parliamentarians for passing most tax legislation without much, if anything, in the way of informed debate. As a consequence, there is a lot of…
Imagine that you run a successful business and report a net income of tens of thousands on revenues of several hundred thousand dollars a year. You hire a respected accounting firm to prepare your financial statements and tax returns each…
The matter of fictions in our Tax Act was on my mind this week. Second Life has nothing on the Income Tax Act when it comes to creating a virtual reality. I’m thinking of the various tax rules that deem…
In Bioartificial Gel Technologies (Bagtech) Inc. v. The Queen, 2012 TCC 12, the Tax Court of Canada (TCC) found that the company was a Canadian-controlled private company (CCPC) even though a majority of the company’s voting shares were collectively…
In Prudential Plc v. Special Commissioner of Income Tax, [2013] UKSC 1, the UK Supreme Court held (by a majority decision) that the common law protection afforded to a client under legal advice privilege could not be extended to…
In 2012-0459411C6, the CRA considered the allocation of cross-border stock option income between two or more countries. The question typically arises in cases where the relevant employee performs employment duties both inside and outside Canada. The CRA confirmed that…
Non-residents are taxable in Canada in respect of capital gains realized on TCP (subject to an exemption that may be available in a tax treaty). In 2012-0453021C6, the CRA was asked whether shares of a private company (Mortgage Co)…