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Legal Expenses “In Connection With” Wind Down of Corporation Not Deemed to Have Incurred in Course of Commercial Activity Pursuant to Section 141.1(3): Onenergy
Feb 22 2017 - Section 141.1(3) of the of Excise Tax Act (“ETA”) broadens the scope of what is considered to be in the course of commercial activities to activity done “in connection with” extraordinary transactions such as starting and winding-up commercial activi...
https://www.taxandtradelaw.com/Tax-Trade-Blog/legal-expenses-in-connection-with-wind-down-of-corporation-not-deemed-to-have-incurred-in-course-of-commercial-activity-pursuant-to-section-141-1-3-onenergy.html -
Legislative Inconsistency & the Place of Supply Rules: The Club Intrawest Case
Nov 12 2016 - Section 165 of the ETA imposes GST in respect of supplies “made in Canada”. The so-called “place of supply rules” in section 142 of the ETA serve to deem particular supplies to be made either inside or outside of Canada. As a result of a ...
https://www.taxandtradelaw.com/Tax-Trade-Blog/legislative-inconsistency-the-place-of-supply-rules-the-club-intrawest-case.html -
Discretionary Power & CRA’s Administrative Guidelines
Oct 20 2016 - For years, the CRA has consistently assessed taxpayers for GST/HST and interest in circumstances where although there was technical non-compliance with the rules, there was no true financial impact to the government. Examples of such situations (e.g....
https://www.taxandtradelaw.com/Tax-Trade-Blog/discretionary-power-cra-s-administrative-guidelines.html -
GST/HST on Advertising Barters
Oct 20 2016 - If your business ever provides a good or service in exchange for advertising, you should be aware of a recent CRA ruling (RITS 2015-158946), dated November 4, 2015), which sets out how GST/HST applies to barter transactions and includes an example of...
https://www.taxandtradelaw.com/Tax-Trade-Blog/gst-hst-on-advertising-barters.html -
Section 160: Unexpected Consequences
Oct 20 2016 - Gail Baker v The Queen (2016 TCC 120), illustrates the extent to which s. 160 of the Income Tax Act can apply. The decision shows that a taxpayer’s debts may be imposed on his or her inheritors to the extent of any unpaid tax debts at the time of the...
https://www.taxandtradelaw.com/Tax-Trade-Blog/section-160-unexpected-consequences.html -
Commerical Activity or Hobby?
Oct 04 2016 - Living Friends Case - In Living Friends Tree Farm (2016 TCC 116), the central issue was whether the taxpayer’s expenses in respect to preparation for a Christmas tree farm were incurred in relation to commercial activity. The TCC held for the M...
https://www.taxandtradelaw.com/Tax-Trade-Blog/commerical-activity-of-hobby.html -
Financial Services case pits supplier against recipient
Jul 27 2016 - Whether or not a supply is a financial service is a significant issue for suppliers because suppliers of financial services are unable to claim ITCs for the GST/HST they pay on their inputs. Accordingly, financial service providers scrutinize their o...
https://www.taxandtradelaw.com/Tax-Trade-Blog/financial-services-case-pits-supplier-against-recipient.html -
Admissibility of Accountant’s Statements in Court: the Spears Case
Jul 20 2016 - An out-of-court statement is generally inadmissible as evidence in court to prove the truth of the statement’s contents – this is the general rule against hearsay. There are a number of exceptions to this rule including an admission – where a p...
https://www.taxandtradelaw.com/Tax-Trade-Blog/admissibility-of-accountant-s-statements-in-court-the-spears-case.html -
ITCs and Supplier Nominees: The SNF Case
Jul 19 2016 - There has been significant jurisprudence on the extent to which recipients are entitled to ITCs in respect of GST paid to so called “rogue suppliers” – suppliers who collect but fail to remit GST to the fisc. The CRA has often taken the positio...
https://www.taxandtradelaw.com/Tax-Trade-Blog/itcs-and-supplier-nominees-the-snf-case.html -
CRA Not Entitled to Privileged Documents: Supreme Court of Canada
Jul 15 2016 - The principle of solicitor-client privilege holds that communications between a client and his or her lawyer cannot be compelled to be disclosed without permission of the client. Although this principle started as an evidentiary rule, it ...
https://www.taxandtradelaw.com/Tax-Trade-Blog/cra-not-entitled-to-privileged-documents-supreme-court-of-canada.html -
CRA Assessing Taxicab Fleet Management Companies for “Re-Supplying” Insurance
Jun 06 2016 - CRA has recently been issuing assessments to taxicab fleet management companies for failing to charge GST/HST on pass-through insurance premium expenses. ...
https://www.taxandtradelaw.com/Tax-Trade-Blog/cra-assessing-taxicab-fleet-management-companies-for-re-supplying-insurance.html -
Tax Litigation and the Implied Undertaking Rule: The Samaroo Case
May 05 2016 - Disgruntled taxpayers have often attempted to seek remedies against tax authorities through civil actions – albeit with very limited success. A 2014 BC Supreme Court’s decision in Leroux v. CRA (2014 BCSC 720) did confirm that CRA owes a duty o...
https://www.taxandtradelaw.com/Tax-Trade-Blog/tax-litigation-and-the-implied-undertaking-rule-the-samaroo-case.html -
Dangers of Relying on CRA Auditor Advice
Apr 14 2016 - When faced with Notices of Assessment from CRA that run contrary to a particular tax practice, taxpayers often defend their practice on the basis that CRA had not previously taken issue with it. For tax litigators it is common to hear from clie...
https://www.taxandtradelaw.com/Tax-Trade-Blog/dangers-of-relying-on-cra-auditor-advice.html -
New Brunswick 2% HST Increase
Apr 12 2016 - New Brunswick is increasing its HST by 2%, effective July 1, 2016, resulting in an HST rate of 15%. Businesses will need to consider which tax rate – the existing HST rate of 13% or the new HST rate of 15%, will apply to transactions that straddle J...
https://www.taxandtradelaw.com/Tax-Trade-Blog/new-brunswick-2-hst-increase.html -
Purposive Interpretation of New Housing Rebate Rules: The Crooks Case
Mar 30 2016 - Section 254 of the ETA allows the purchaser of a new residential unit to claim a partial GST/HST Rebate (often called a New Housing Rebate – “NHR”). The NHR was intended to off-set GST/HST payable on new housing, back to the point where the GST...
https://www.taxandtradelaw.com/Tax-Trade-Blog/purposive-interpretation-of-new-housing-rebate-rules-the-crooks-case.html -
Public Service Bodies and ITC Allocation: The U. of Calgary Case
Mar 05 2016 - The concept of claiming input tax credits (“ITC”) for private businesses that provide both taxable and exempt services has recently been explored by the TCC (see for example: Sun Life (2015 TCC 37) and BC Ferry Services (2014 TCC 305)). For rea...
https://www.taxandtradelaw.com/Tax-Trade-Blog/public-service-bodies-and-itc-allocation-the-u-of-calgary-case.html -
Reinforcement of Integration Approach for Single vs. Multiple Supplies: The Tele-Mobile Case
Nov 24 2015 - The issue of single versus multiple supplies in the context of the GST is the subject of frequent litigation. This is likely attributable to the fairly fact-driven analysis employed by the courts in determining the existence of single or multip...
https://www.taxandtradelaw.com/Tax-Trade-Blog/reinforcement-of-integration-approach-for-single-vs-multiple-supplies-the-tele-mobile-case.html -
Recent Taxpayer Success on TCC Cost Awards
Oct 22 2015 - Litigating parties must consider cost implications at every stage in litigation, which generally requires a cost-benefit analysis of starting litigation in the first place, proceeding with litigation at any given stage, and negotiating towards settle...
https://www.taxandtradelaw.com/Tax-Trade-Blog/recent-taxpayer-success-on-tcc-cost-awards.html -
Director Liability in Context of a “Carousel Scheme”: The Cherniak Case
Aug 31 2015 - Although section 323 of the Excise Tax Act imposes joint and several liability onto the corporate director for a corporation’s failure to remit GST/HST, this liability is negated if the director “exercised the degree of care, diligence and skill to p...
https://www.taxandtradelaw.com/Tax-Trade-Blog/director-liability-in-context-of-a-carousel-scheme-the-cherniak-case.html -
Perils of Appointing Uninvolved Spouse as Director
Aug 22 2015 - In light of the inherent risks of serving as director of a corporation, business owner-operators may be tempted to appoint their spouse or family member as the sole director of their corporation, despite the fact that that person may be completely un...
https://www.taxandtradelaw.com/Tax-Trade-Blog/perils-of-appointing-uninvolved-spouse-as-director.html