Archives - octobre 2016

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  ONEnergy Inc. v. R. - TCC: No ITCs for legal fees incurred 2 years after sale of business

  27 octobre 2016 By Bill Innes

  catégories:

  • Bill Innes on Current Tax Cases
  • Commodity Tax
  • Federal Income Tax

  Précis: The taxpayer, formerly known as Look Communications Inc. (“Look”), sold its business in 2009 (the “Spectrum Sale”). In 2011 it commenced action against its former directors to recover roughly $15 million in payments made to them for “equity cancellation” and as bonuses. Look claimed ITCs on the legal fees in connection with the litigation. CRA denied the ITCs on the basis that the legal fees were not incurred “in the course of a commercial activity pursuant to subparagraph 141.1(3)(a) of the Excise Tax Act” ( the “Act”). The point came before the Tax Court on an application under Rule 58 of the Tax Court of Canada (General Procedure) Rules.
  ONEnergy Inc. v. R. - TCC: No ITCs for legal fees incurred 2 years after sale of businessPlus >
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  407 ETR Concession Company Limited v. R. - TCC: Policing Highway 407 by OPP an exempt supply

  7 octobre 2016 By Bill Innes

  catégories:

  • Bill Innes on Current Tax Cases
  • Commodity Tax
  • Federal Income Tax

  Précis: The taxpayer, a private corporation, operated Highway 407 in Ontario under a public-private partnership arrangement. Policing for the Highway was provided by the Ontario Provincial Police (“OPP”) and was billed by the OPP to the taxpayer. The taxpayer took the position that the policing was the supply of a “municipal service” and therefore an exempt supply. CRA took that position that, since the policing was provided by the province and not a municipal entity, the service was taxable.
  407 ETR Concession Company Limited v. R. - TCC: Policing Highway 407 by OPP an exempt supplyPlus >
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  2269619 Ontario Inc. v. R. - TCC: Trucking company did not provide zero-rated supplies

  6 octobre 2016 By Bill Innes

  catégories:

  • Bill Innes on Current Tax Cases
  • Commodity Tax
  • Federal Income Tax

  Précis: The taxpayer was incorporated by a Mr. Billing and provided trucking services. It claimed that the services it provided were zero-rated but CRA assessed it for GST. The taxpayer appealed to the Tax Court in respect of 2012 and 2013. The Court held that the taxpayer had not established on the evidence that it had provided zero-rated trucking supplies. The Court did however adjust its receipts and, accordingly, its Input Tax Credits for 2012. An appeal for 2013 was quashed since no notice of objection had been filed. There was no order as to costs since this was an informal procedure appeal.
  2269619 Ontario Inc. v. R. - TCC: Trucking company did not provide zero-rated suppliesPlus >