In 2014-0563081R3 and 2014-0526431R3 (in French), the Canada Revenue Agency issued advance income tax rulings confirming that subsections 84(2) and 245(2) of the Income Tax Act (Canada) would not apply as a result of proposed transactions implementing post-mortem…
On July 9, 2015, the Supreme Court of Canada dismissed the application for leave to appeal from the decision in Lyrtech RD Inc. v The Queen, 2014 FCA 267 in which the Federal Court of Appeal upheld the…
On July 10, 2015, the CRA released Income Tax Folio S4-F2-C1, “Deductibility of Fines and Penalties”, which replaces and cancels former Interpretation Bulletin IT-104R3. In addition to consolidating the content of the former Interpretation Bulletin, the Chapter Folio discusses…
This is a reminder that the phasing out of the requirement for certain large businesses to recapture the provincial portion of Ontario HST claimed as input tax credits in respect of specified property and services has started on July 1,…
In Paul L. Schnier v. Her Majesty the Queen, the Tax Court of Canada dismissed the motion brought by the Respondent under Rule 53(3)(c) of the Tax Court of Canada Rules (General Procedure) to quash the appeal on the basis…
In 2014-0536661R3, the CRA issued an advance income tax ruling concerning a situation where a Canadian public company will consolidate property held by its controlled foreign affiliates and a wholly-owned foreign LP.
The CRA confirmed that a distribution of certain property…
In 2015-0574291I7, the CRA considered whether Part XIII tax was exigible on an early termination payment made by a Canadian resident corporation (Canco) to a foreign resident corporation (Forco).
Canco made the early termination payment to Forco as consideration…
In Minister of National Revenue v. BP Canada Energy Company, 2015 FC 714, the Federal Court ordered BP to hand over tax accrual working papers that the Canada Revenue Agency (CRA) requested in the course of its audit. Tax accrual…
On June 9, 2015, the CRA released an updated version of its Income Tax Folio on related persons and dealing at arm’s length: “Related persons and dealing at arm’s length” (S1-F5-C1).
Among other things, the updated version adds paragraph 1.44.1,…
In Harvest Operations Corp v Canada (Attorney General), 2015 ABQB 327, the Alberta Court of the Queen’s Bench denied an application for rectification, holding that parties who are seeking rectification “need to demonstrate more than just a general intent to…