General

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...

Covid Benefit Disputes & Notices of Objection When it comes to the Canada Emergency Response Benefit (CERB) or Canada Recovery Benefit (CRB), taxpayers disputing benefit denials have the option of two internal Canada Revenue Agency (CRA) reviews before pursuing an application for judicial review in Federal Court. The...

First Nations Goods and Services Tax The FNGST provides a framework that allows First Nations governments to exercise tax jurisdiction on their lands. This tax operates similarly to the federal Goods and Services Tax (GST), with some critical differences aimed at recognizing and accommodating the unique legal and cultural...

SR&ED and Contemporaneous Documentation The SR&ED (Scientific Research and Experimental Development) policy in Canada advises that taxpayers claiming tax incentives for R&D activities maintain “contemporaneous documentation.” This refers to keeping detailed, accurate, and up-to-date records to...

GST/HST Input Tax Credits for First Nations Businesses In Canada, First Nations businesses often face unique challenges when it comes to managing taxes like the Goods and Services Tax (GST) and Harmonized Sales Tax (HST). These challenges stem from the complexities surrounding tax exemptions and entitlements under the...