At the 2012 IFA conference, the CRA was asked to confirm its position on when a non-resident would be considered the beneficial owner of income (such as dividends, interest, or royalties) for tax treaty purposes. Canada’s tax treaties generally require…
Once in a while I read a tax case and say to myself: “That’s not fair!” If I’m otherwise having a good day, I’ll stop and think about it for a minute before blowing my stack about another injustice imposed…
In NRT Technology Corp v. The Queen, 2012 TCC 420, a company (NRT) acquired a target company with substantial business losses (Losses). NRT subsequently sought to use the Losses against its own taxable business income in a year following…
At the 2012 IFA conference, the Canada Revenue Agency (CRA) commented on three items of interest: treaty-benefit declarations by non-residents, partnerships that sell taxable Canadian property, and Reg. 105 withholding for partnerships that provide services in Canada.
o Treaty-benefit…
As I head into the New Year I’m disheartened by the sorry state of the tax legislative process in both the US and Canada. The pathetic response of the US legislators to the debt crisis in that country is profoundly…
The Canadian tax system generally seeks to eliminate double tax in respect of dividends to Canadian individuals out of corporate income that was subject to either the “small business rate” or the “general rate” of corporate tax. This is achieved…
The CRA does not consider a US limited liability company (LLC) itself to be a resident of the US for purposes of benefits under the Canada-US tax treaty (Treaty). However, pursuant to Article IV(6) of the Treaty, the CRA will…
In 2012-0438691E5, the Canada Revenue Agency (CRA) considered a US corporation (US Co) that shipped inventory to an unaffiliated customer’s warehouse in Canada. Title to the inventory remained with US Co until such time as the customer required the…
Once upon a time, courts in Canada and the United Kingdom were adamant that there was no room for equitable principles when applying the tax rules. In a 1956 decision the Supreme Court of Canada cited an English case (with…
In a recent article in a golfing magazine that I read, a leading light in the golf instruction world started off an article with the observation “Golf is a hard game.” (Hank Haney, “Golf Digest,” January 2013.) If you’re a…