Tax Alert Archives November 2015

The Minister Has the Initial Onus of Establishing the Transferor’s Tax Liability in a Section 160 Assessment

In Ellis, S. v. the Queen, 2015 TCC 285, the taxpayer appealed an assessment made pursuant to section 160 of the Income Tax Act (the “Act”) in respect of her husband’s taxes and penalties, which included a gross negligence…

Prepared by: Ken Jiang

Ken Jiang is an associate at the firm’s Vancouver office. His practice focuses on corporate and personal tax planning, international tax planning and representation of taxpayers in disputes with Canada Revenue Agency. Ken is fluent and proficient in Chinese (Mandarin).… more »

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Foster Care Worker Held To Be Independent Contractor

In Quinte Children’s Homes Inc. v. M.N.R., 2015 TCC 250, the issue before the Tax Court was whether a worker at Quinte Children’s Homes Inc. (“QCH”) was an independent contractor or employee.  QCH provides foster care and treatment for…

Prepared by: Ken Jiang

Ken Jiang is an associate at the firm’s Vancouver office. His practice focuses on corporate and personal tax planning, international tax planning and representation of taxpayers in disputes with Canada Revenue Agency. Ken is fluent and proficient in Chinese (Mandarin).… more »

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Financial Difficulty Was Not A Defence To Director’s Liability

In Hall v. R. 2015 TCC 240, the taxpayers were husband and wife who acted as directors of a company in the alarm system business.  In late 1990s, the company incurred large expenses and started to experience financial difficulties. …

Prepared by: Ken Jiang

Ken Jiang is an associate at the firm’s Vancouver office. His practice focuses on corporate and personal tax planning, international tax planning and representation of taxpayers in disputes with Canada Revenue Agency. Ken is fluent and proficient in Chinese (Mandarin).… more »

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CRA Again Confirms Subsection 45(1) Does Not Apply To A Conversion From Inventory To Depreciable Property

In 2015-0596921E5, CRA confirmed the view expressed in 2013-0493811C6 that the change-in-use rule in subsection 45(1) should apply only where the use of the property changes from a personal use to an income earning use (and vice versa) and…

Prepared by: Ken Jiang

Ken Jiang is an associate at the firm’s Vancouver office. His practice focuses on corporate and personal tax planning, international tax planning and representation of taxpayers in disputes with Canada Revenue Agency. Ken is fluent and proficient in Chinese (Mandarin).… more »

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CRA Changes Its Policy On Recapture Arising In Statute – Barred Years

In 2015-0575921I7, the CRA announced a change of policy in regards to recapture resulting from revision made to the capital cost of depreciable property acquired during statute-barred years.  The prior policy, as stated in paragraph 14 of IT-478R2, was…

Prepared by: Ken Jiang

Ken Jiang is an associate at the firm’s Vancouver office. His practice focuses on corporate and personal tax planning, international tax planning and representation of taxpayers in disputes with Canada Revenue Agency. Ken is fluent and proficient in Chinese (Mandarin).… more »

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