General

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. Before that complaints were...

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, c. 1 (5th Supp.)) establishes the reporting and...

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 Canada Revenue Agency (CRA) handles situations where a taxpayer has paid more tax than...

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...

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 in the decision in Devon...

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...

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, which involved potential director liability for specific corporate tax debts. The appellant in Basal sought to strike certain pleadings,...

Zero-Rated Supplies & GST/HST The Goods and Services Tax (GST) and Harmonized Sales Tax (HST) are consumption-based taxes levied in Canada. These taxes are applied to the sale of most goods and services. However, not all supplies are taxed at the regular GST/HST rate. Some goods and services are classified as...

Understanding Tax Treaties: The Basics and Importance Tax treaties play a pivotal role in the global tax system. They are bilateral agreements between two countries designed to avoid double taxation on income and capital, as well as to prevent tax evasion. In an increasingly interconnected world, where businesses and...

Overview of the CRA Collections Process Canada Revenue Agency (CRA) has specific guidelines and periods regarding the collection of outstanding tax debts.  Assessment and Notification:After filing a tax return, the CRA assesses the return and issues...