On Wednesday, the Canada Revenue Agency (CRA) released correspondence (2012-0436921I7) between Headquarters and a Large File Case Manager in a local office (TSO). Under audit was a Canadian parent company (Canco), which had invested in USD preferred shares of a…
When the right to challenge the enforcement of a tax debt expires for whatever reason (say because of a failure to pursue a timely objection or appeal to an assessment, or because of an unfavorable court decision), there is one…
On September 13, 2012, the Joint Committee (of the CBA and CICA) submitted a host of technical concerns with the proposed new rules relating to “foreign affiliate dumping”. Broadly, these new rules target any investments in a foreign affiliate made…
In 2011-0416181E5 (released on Wednesday), the CRA considered a US company (US Co) that offered to Canadian companies (Cancos) the ability to advertise on US Co’s website. The CRA concluded that payments by the Cancos were for advertising
Categories: Corporate Tax
Share
In Twomey v. The Queen (2012 TCC 310), the sole issue was whether shares were “issued” to the taxpayer in 1995, and not in 2005. The taxpayer argued that 100 shares were issued to him in 1995, and…
In 2011-0392171R3 (released last week) the CRA examined its previous position for share options in a company that owns Canadian real property. Under Article XIII of the Canada-US tax treaty, gains realized by US residents on Canadian real property, or…
The decision of the Tax Court in MacDonald earlier this year (2012 TCC 123) has prompted quite a lot of discussion among tax professionals. The case seems to take the debate about the legitimacy of dividend stripping to a new…
In one of his first decisions on the bench of the Tax Court of Canada, recent appointee Justice Randall Bocock wasted no time showing his teeth: see O’Dwyer v. The Queen, 2012 TCC 261.
On a motion by the Appellant…
A recent CRA technical interpretation on the allocation of safe income among several classes of shares got me musing about our sometimes schizophrenic approach to drafting income tax legislation. Most often the drafters attempt to anticipate every nuance that might…
In a recent case, the Federal Court of Appeal was asked to consider the adequacy of the reasons for judgment delivered by the Tax Court in an income tax appeal (SRI Homes Inc. v The Queen, 2012 FCA 208). The…