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 No. 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
Choptiany v. The King, 2022 TCC 112 The case of Choptiany v. The King, 2022 TCC 112 involved a tax scheme promoted by DeMara Consulting Inc. and Fiscal Arbitrators. It centered on convincing some taxpayers to unwittingly claim fictitious business
Interlining and GST/HST In Canada’s transportation and logistics industries, interlining is a widespread practice that aids the efficient transfer of freight over long distances. However, understanding the tax implications—specifically around GST (Goods and Services Tax) and HST (Harmonized Sales Tax)—is
Director Liability & Resignation Under certain circumstances, directors of a corporation can be held personally liable for the tax arrears of a corporation. This is referred to as director liability and one defense is that the Canada Revenue Agency (“CRA”)
Tax Law Services Portfolio – Memorandum of Understanding The Department of Justice (DOJ) in Canada primarily represents the Crown, not the Canada Revenue Agency (CRA) as an independent entity. How it works: The CRA is a federal agency responsible for
Eligible Canadian Public Corporations & SR&ED Historically, only Canadian Controlled Private Corporations (“CCPC”) have been eligible to claim Scientific Research & Experimental Development (“SR&ED”) tax incentives. However, now eligible Canadian public corporations (i.e., publicly‑listed but not foreign‑controlled) can claim the
Swift v. The Queen, 2020 TCC 115 & Coates v. The Queen, 2011 TCC 74 & GST/HST In Ontario, for example, many taxpayers bought and/or renovated homes consecutively during the housing upturn. Consequently, it has been common for Canada Revenue
Understanding Reprisal Complaints Against the Canada Revenue Agency (CRA) Canada Revenue Agency (“CRA”) employees have enormous individual discretion facilitated by the law. It was only relatively recently that Canadians were able to complain to a third-party, a service complaints division.
Taxable Canadian Property (TCP) & Section 116 Taxable Canadian Property refers to specific types of Canadian assets that, when sold or transferred by a non-resident of Canada, may trigger Canadian tax obligations. Section 116 of the Income Tax Act (R.S.C., 1985,
Subsection 164(1) – Refunds or Credits on Overpayment of Taxes Subsection 164(1) of the Income Tax Act (R.S.C., 1985, c. 1 (5th Supp.)) primarily deals with the refund or credit of taxes paid in excess. Specifically, it governs how the
March 21, 2025 Government Announcement re: GST/HST and Corporate Tax Relief for Businesses Canada Revenue Agency (CRA) is implementing relief from GST/HST and corporate tax remittances for approximately 3 months. According to the government’s announcement businesses can “[d]efer corporate income tax payments
Understanding Trust Amounts and CRA Collections When running a business, understanding your responsibilities around trust amounts and how the Canada Revenue Agency (CRA) handles collections is crucial. Failing to manage these obligations properly can lead to audits, penalties, and aggressive
Tiered Partnerships & Flow-Through Characteristics A tiered or stacked partnership refers to a partnership that owns a partnership interest in another partnership. The Tax Court of Canada (TCC) affirmed the flow-through characteristics of income and losses through a tiered partnership structure
Admissibility of Expert Evidence in Tax Court As outlined in the decision of the Tax Court of Canada in Cambridge Leasing Ltd. v. The King, 2024 TCC 136, determining the admissibility of expert evidence is a two-stage process: Threshold admissibility:
Pleading Relevant Facts Parties must plead relevant facts. The issue of relevant facts was addressed in the Tax Court of Canada (“TCC”) decision of Basal v. The King, 2022 TCC 154[Basal], which involved potential director liability for specific corporate tax