General

Enns v. Canada, 2025 FCA 14: When is a Spouse Is No Longer a Spouse? Can the Canada Revenue Agency (“CRA”) hold a surviving spouse personally liable for a deceased partner’s unpaid taxes simply because the survivor received the proceeds of the deceased’s...

Section 280.1 Penalties and Subsection 296(2.1) - Allowance of Unclaimed Rebates Section 280.1 of the Excise Tax Act, R.S.C., 1985, c. E-15 (“ETA”) imposes a penalty when a person fails to file a Part IX return (GST/HST net tax return) by the applicable deadline. The penalty consists of two components:an...

Fadali v. His Majesty the King, 2026 TCC 86 & Paragraph 123(1)(f) of the Excise Tax Act The Tax Court of Canada’s recent decision in Fadali v. His Majesty the King, 2026 TCC 86   illustrates the importance of paragraph 123(1)(f) of the Excise Tax Act, R.S.C., 1985, c. E-15, which provides an exception to the definition...

Director's Liability: Madison v. Canada, 2012 FCA 80 & Canada v. Colitto, 2020 FCA 70 When a corporation fails to remit trust amounts such as payroll source deductions, the Canada Revenue Agency’s (“CRA”) recovery options do not end with the company itself. For example, according to section 227.1 of the...

Business vs. Adventure or Concern in the Nature of Trade “Adventure or concern in the nature of trade” is not defined in the  Excise Tax Act, R.S.C., 1985, c. E-15 (“ETA”). In Aviva Canada Inc. (formerly CGU Group Canada Ltd.) v. The Queen, 2006 TCC 57 , the Court held that nothing in the GST/HST scheme requires the phrase...

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, for example, where a person makes a taxable sale of real property while...

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 affects incorporated individuals who provide services...

Capital v. Income in Imperial Tobacco Canada Limited v. Canada, 2011 FCA 308 Imperial Tobacco Canada Limited v. Canada, 2011 FCA 308 (CanLII), concerns the characterization of payments made by a corporation as being on account of income or capital. Payments on account of income are deductible, while payments capital 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 the Canada Revenue Agency’s (“CRA”) Voluntary...

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 a Notice of...