Précis: James Aitchison is a lawyer who owed at the time of trial in excess of $2,000,000 in federal income tax plus interest. He has not paid any federal income tax since 1992. In December of 2003 he and his two daughters, both lawyers, incorporated Aitchison Professional Corporation (APC). It appears that since that date all fees for his legal advice have been billed by APC which has provided him little or no compensation for his work.
 In 2012, the Minister of National Revenue assessed APC for almost $2.1 million pursuant to section 160 of the Income Tax Act. The assessment was premised on the assumption that James had transferred property worth more than $3 million to APC for little or no consideration between January 1, 2007 and September 30, 2010. The Respondent alleges that the property transferred was what the Respondent describes as James’ “right to invoice for legal services”.
In short Justice Graham found that Mr. Aitchison had transferred “services” to APC, not property and that accordingly section 160 of the Act did not apply. Thus the appeal of APC was allowed, with costs.
Aitchison Professional Corporation v. R. – TCC: Provision of legal services free to a related professional corporation not a transfer of “property” for the purposes of section 160Plus >