Audits

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 the Canada Revenue Agency’s (“CRA”) Voluntary...

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 the business income characterization applies requires referring to the definition of a...

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 approaches to collecting data from crypto currency...

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 losses and expenses to create large tax refunds. The Canada Revenue Agency...

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 crucial for...

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 tax administration.When legal matters arise (such as tax disputes or...

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 Agency (“CRA”) to target the consecutive purchase and sale of 3 or 4 homes...

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 collection action. This article...

Exceptions to the CRA Flipping Rules for the Sale of New Houses The Canada Revenue Agency (CRA) has introduced flipping rules that apply to the sale of real estate. These rules aim to ensure that profits from the sale of properties are reported and taxed as business income rather than capital gains. However, CRA recognizes...

The New CRA Gig Economy Rules The Canada Revenue Agency (CRA) has introduced new rules that require digital gig economy platforms, such as Uber, Lyft, and DoorDash, to report income earned by their workers. CRA is trying to ensure tax compliance within the rapidly growing gig...