Tax Blog

In correspondence released October 10, 2012 (2012-0455781E5), the CRA said it has the power to reassess a dissolved Ontario company.  This stems from s. 242(1)(b) of the Business Corporations Act (Ontario), which provides that a civil, criminal, or administrative action…

One of the simplest business structures involves one party (typically a company) holding legal title for and on behalf of the true beneficial owner (in a group).  This can be done for various reasons, both tax and non-tax related.  The…

An appeal to the Tax Court from an assessment must be filed within specific time limits. As a general rule, the notice of appeal must be filed within 90 days of receiving the Minister’s notification confirming the assessment. Subsection 165(3)…

There are various reasons why an individual might decide to give up residence in Canada; most of them are not tax driven. Canada’s tax rates are favourable compared to those in most developed countries and changes in family circumstances and…

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

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…