Understanding Competent Authority Assistance under Canada’s Tax Treaties (MAP) International taxation can be complicated, particularly when two countries claim the right to tax the same income. Fortunately, Canada’s network of tax treaties provide mechanisms to prevent double taxation and resolve
Subsection 296(2.1) of the Excise Tax Act & Unclaimed GST/HST Rebates Subsection 296(2.1) of the Excise Tax Act, R.S.C., 1985, c. E-15 (“ETA”) allows the Canada Revenue Agency (“CRA”), in certain circumstances, to recognize an eligible GST/HST rebate that was
Section 257 – Rebate for Taxable Sale of Real Property by a GST/HST Non-Registrant A person who carries on a business is normally required to register for GST/HST, charge and remit it to the Canada Revenue Agency (“CRA”). A difficulty arises,
Canada v. Quebecor Inc., 2025 FCA 207 In Canada v. Quebecor Inc., 2025 FCA 207, the Federal Court of Appeal (“Court”) rejected the Appellant’s argument that the general anti-avoidance rule (“GAAR”) applied to a series of transactions undertaken to consolidate
The Estate of the Late Paul Uppal v. His Majesty the King, 2025 TCC 34 According to subsection 53(1) of the Tax Court of Canada Rules (General Procedure), the Tax Court of Canada (“TCC”) can “strike out or expunge all
Canada v. Loewen (F.C.A.), 2004 FCA 146, [2004] 4 FCR 3 Can the Canada Revenue Agency (“CRA”), after the expiry of the reassessment period, defend an assessment by relying on a new legal argument or additional facts that were not
Employer Health Tax (EHT) Several Canadian provinces impose a payroll-based levy on employers commonly referred to as an Employer Health Tax (“EHT”). As of the date of this article, these regimes exist in the Canadian provinces of Ontario, British Columbia,
Understanding Canada’s Personal Services Business (PSB) For Tax Purposes In Canada, the concept of a Personal Services Business (PSB) under subsection 125(1) of the Income Tax Act, R.S.C., 1985, c. 1 (5th Supp.) (“ITA”) is a critical tax classification that
Capital v. Income in Imperial Tobacco Canada Limited v. Canada, 2011 FCA 308 Imperial Tobacco Canada Limited v. Canada, 2011 FCA 308 (CanLII), [Imperial] concerns the characterization of payments made by a corporation as being on account of income or
What does it mean to “Demolish” the Minister’s Assumptions? The good thing about tax disputes is that there is little to no room to personally and vexatiously malign a party in an attempt to gain an advantage. For example, in
Milgram Foundation v. Canada (Attorney General), 2024 FC 1405 The Applicant, the Milgram Foundation, was established in 1964 as a non-resident entity in Liechtenstein and had not filed Canadian tax returns prior to 2015. In 2015, the Foundation applied under
Notice of Objection & Voluntary Disclosures Program The ability to file a Notice of Objection to Notices of Re/assessment issued following a Voluntary Disclosure, governed by IC00-1R6-Voluntary Disclosures Program (“IC00-1R6”), was limited to specific circumstances. Importantly, taxpayers could not file
Canada Repeals Digital Services Tax Canada has decided to repeal its Digital Services Tax (DST), meaning the requirement for businesses to file DST returns and pay related amounts will be suspended until the law is officially removed. The Canada Revenue
Devon Canada Corporation v. Canada, 2015 FCA 214 Devon Canada Corporation v. Her Majesty the Queen, 2015 FCA 214 [Devon] concerns the scope of what comprises a Notice of Objection under the Large Corporation Rule in subsection 169(2.1). The Federal Court
Summary of the CRA’s Changes to the Voluntary Disclosures Program under the Income Tax Act The CRA has issued IC00-1R7 – Voluntary Disclosures Program (“IC00-1R7”), introducing several changes to the Voluntary Disclosures Program (“VDP”). Applications received on or after October
Practice Note 21 & the Rhetoric Practice Note No. 21 (dated November 30, 2018) is the Tax Court of Canada’s directive on how settlement conferences are to be handled. According to the Court: 1. Settlement conferences will not be scheduled unless parties to
The “Business” Test in Happy Valley Farms Ltd. v. The Queen, 1986 CanLII 7434 (FC) If income is characterized as business income then 100% is subject to taxation. Only 50% of a capital gain is subject to taxation. Determining whether
In Northwest Hydraulic Consultants Ltd v R, 1998 CarswellNat 696, 98 DTC 1839 [Northwest], the Tax Court of Canada considered whether certain scientific and technical work conducted by the appellant qualified as scientific research and experimental development (SR&ED) under the Income
How is CRA Improving its Ability to Collect Crypto Currency Data? Currently, governments and tax agencies such as Canada Revenue Agency (CRA) are putting together a framework to better track and tax crypto currency transactions. The CRA has adopted two primary
Tax Court of Canada Jurisdiction & Main Rehabilitation Co. v. Canada, 2004 FCA 403 The Tax Court of Canada does not have the jurisdiction to consider issues of abuse of process. Its jurisdiction is limited to determining the correctness of