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Onus of Proof: Derivative Assessments
Jul 16 2015 - As a general rule in tax litigation, the initial onus is on the appellant-taxpayer to “demolish” the Minister’s assumptions that form the basis of the disputed assessment. This initial onus is met where the appellant makes out at least a prima facie ...
https://www.taxandtradelaw.com/Tax-Trade-Blog/onus-of-proof-derivative-assessments.html -
ITC Allocation: The BC Ferry Case
Jun 19 2015 - Businesses (other than financial institutions) that provide a mix of both taxable and exempt supplies must utilize the allocation rules found in section 141.01(5) of the Excise Tax Act (ETA) to determine the proper amount of input tax credits (ITCs) ...
https://www.taxandtradelaw.com/Tax-Trade-Blog/itc-allocation-the-bc-ferry-case.html -
Specified Persons Rules and Notices of Objections: The Ford Case
May 31 2015 - Both the Income Tax Act (“ITA”) and the Excise Tax Act (“ETA”) include an increased burden on entities considered “large corporations” or “specified persons”, respectively, when it comes to the level of detail required in a notice of objection. ...
https://www.taxandtradelaw.com/Tax-Trade-Blog/specified-persons-rules-and-notices-of-objections-the-ford-case.html -
The Role of Intention in ITC Allocation: The Sun Life Case
Apr 13 2015 - Where a business provides both taxable and exempt services, claiming ITCs can become a thorny issue that generally requires an attribution of inputs between the business’ supply of exempt and taxable services. Section 141.01 of the Excise Tax A...
https://www.taxandtradelaw.com/Tax-Trade-Blog/the-role-of-intention-in-itc-allocation-the-sun-life-case.html -
Tax Court Proper Forum for Determining Whether Notice of Assessment Mailed
Mar 31 2015 - Whether a notice of assessment was mailed or not has important legal consequences for taxpayers. There is an irrebuttable presumption of receipt of the notice of assessment by a taxpayer once it is mailed by the Minister (S,248(7)(a) of the Inc...
https://www.taxandtradelaw.com/Tax-Trade-Blog/tax-court-proper-forum-for-determining-whether-notice-of-assessment-mailed.html -
HoldCos Benefit From Broad ITC Look-Through Rule
Mar 25 2015 - Input Tax Credits (“ITCs”) are typically not available for “holding companies” that exist solely to hold shares or indebtedness of another company due to the fact that taxpayers are only entitled to ITCs in respect of tax paid on property or services...
https://www.taxandtradelaw.com/Tax-Trade-Blog/holdcos-benefit-from-broad-itc-look-through-rule.html -
GST Treatment of Management Fee Distributions and Rebates: The Invesco Case
Jan 31 2015 - In Invesco Canada Ltd. v. The Queen (2014 TCC 375), CRA assessed the taxpayer for GST, arising out an arrangement designed to minimize income tax. Specifically, at issue was a determination of the value of the consideration paid for the supply ...
https://www.taxandtradelaw.com/Tax-Trade-Blog/gst-treatment-of-management-fee-distributions-and-rebates-the-invesco-case.html -
Incomplete Address: Notice of Assessment not “Mailed”
Jan 29 2015 - GST/HST rules provide that a notice of objection has to be filed with the Minister within 90 days of the mailing of an assessment (section 301(1.1) of the Excise Tax Act (the “ETA”); the parallel provision in the ITA is section 165(1)). However...
https://www.taxandtradelaw.com/Tax-Trade-Blog/incomplete-address-notice-of-assessment-not-mailed.html -
The Buzz around the Section 156 GST Election
Dec 16 2014 - Section 156 of the Excise Tax Act (the "ETA") provides GST/HST relief in the context of certain supplies between closely related corporations and partnerships, and is amongst the most important provisions in the GST/HST legislation. Recently enacted ...
https://www.taxandtradelaw.com/Tax-Trade-Blog/the-buzz-around-the-section-156-gst-election.html -
The Holiday Rush – Assessing 2015 GST/HST Compliance
Dec 14 2014 - With the New Year approaching, GST/HST registrants should be aware of a number of GST/HST compliance requirements for 2015, the more notable of which include as follows. ...
https://www.taxandtradelaw.com/Tax-Trade-Blog/the-holiday-rush-assessing-2015-gst-hst-compliance.html -
An Auditor's Standard of Care
Dec 08 2014 - For years it was an open question as to whether or not a Canada Revenue Agency ("CRA") auditor owed a duty of care to a taxpayer under audit. In the recent case of Leroux (2014 BCSC 720) the Supreme Court of British Columbia (BCSC) concluded th...
https://www.taxandtradelaw.com/Tax-Trade-Blog/an-auditor-s-standard-of-care.html -
CRA Ramping up GST payable by Insurance Companies
Nov 25 2014 - In a recently released GST/HST ruling, CRA seems to place a high bar on the exempt treatment of administrative services acquired by an Insurance Company in operating its insurance business. In RITS 154220 (Application of GST/HST to Insurance-re...
https://www.taxandtradelaw.com/Tax-Trade-Blog/cra-ramping-up-gst-payable-by-insurance-companies.html -
Involuntary GST Registrations of Non-Residents
Oct 01 2014 - Non-residents carrying on business in Canada must be cognizant of the potential to be involuntary registered for the GST/HST. Subsections 241(1.3) to (1.5) of the ETA (which came into effect in June 2014) empower the CRA to unilaterally regis...
https://www.taxandtradelaw.com/Tax-Trade-Blog/involuntary-gst-registrations-of-non-residents.html -
Undisclosed Agency Questioned
Sep 30 2014 - An undisclosed agency exists if an agent enters into a contract with a third party on behalf of a principal, but does not reveal to the third party either the identity of the principal or the fact that the agent is acting on behalf of any principal. ...
https://www.taxandtradelaw.com/Tax-Trade-Blog/undisclosed-agency-questioned.html -
GST Notice 284–Joint Venture Relief … but not Much
Feb 07 2014 - The CRA's treatment of "bare trusts" has been problematic from the first days of the GST. When the GST was first implemented in January 1991, the CRA was initially advising bare trustees of bare trusts (trusts that operating at the behest of their b...
https://www.taxandtradelaw.com/Tax-Trade-Blog/gst-notice-284-relief-for-joint-ventures-but-not-much.html -
Director's Liability: Creditor-Proofing Personal Assets?
Jan 28 2014 - Directors often ask about creditor-proofing personal assets when facing a possible assessments for "Director's Liability" under Canada's income tax and GST legislation. That question usually follows the director's first understanding that the Canada ...
https://www.taxandtradelaw.com/Tax-Trade-Blog/director-s-liability-creditor-proofing-personal-assets.html -
Temped to Hide / Undervalue Cross Border Purchases ?
Jan 16 2014 - A recent decision in the Federal Court ends up being a real good lesson for (mostly) all of the bad things that Canadian's can face when tempted to either non-report or undervalue their purchased goods when returning to Canada from abroad - all in th...
https://www.taxandtradelaw.com/Tax-Trade-Blog/temped-to-hide-or-undervalue-your-cross-border-purchases.html -
Nurse Staffing Agencies Come under the GST Gun
Sep 24 2013 - The Canada Revenue Agency ("CRA") recently reversed its long standing administrative policy regarding the exempt nature of nursing staffing agencies, taking the position that these services are taxable and not exempt: see Excise and ...
https://www.taxandtradelaw.com/Tax-Trade-Blog/nurse-staffing-agencies-come-under-the-gst-gun.html -
Tobacco Sold & Delivered On Reserve Not Subject to GST - End of Story
Aug 01 2013 - The Canada Revenue Agency (CRA) has recently been assessing tobacco wholesalers that sell their cigarettes and other tobacco products to status Canadian Indians, on federal Indian reserves, for GST/HST that CRA says should have been collect...
https://www.taxandtradelaw.com/Tax-Trade-Blog/tobacco-sold-delivered-on-reserve-not-subject-to-gst-end-of-story.html -
Can I get out of tax debts on Bankruptcy ?
Apr 05 2013 - When things go awry in one’s business or personal affairs, taxes often get neglected. The Canada Revenue Agency (CRA) does not forget about these tax obligations, however, and has extensive collections powers available to it, including “directors lia...
https://www.taxandtradelaw.com/Tax-Trade-Blog/can-i-get-out-of-tax-debts-on-bankruptcy.html