Personal Tax, Estate & Wealth Planning

Hayfron-Benjamin v. R. - FCA: Appeal from finding that taxpayer was an employee dismissed

Sep 24, 2015 By Bill Innes

Précis: This decision was an appeal from a decision of the Tax Court which dismissed Mr. Hayfron-Benjamin’s appeal. He was assessed a 10% penalty for unreported income from three different employers in the 2008, 2009 and 2010 taxation years (the employers had all withheld and remitted the applicable tax). He maintained that he had not been employed by any of these employers. The Tax Court did not accept his evidence.
Hayfron-Benjamin v. R. - FCA: Appeal from finding that taxpayer was an employee dismissedREAD MORE »

Letoria v. R. - TCC: No tax credit for offset child support payments

Sep 23, 2015 By Bill Innes

Précis: Mr. Letoria shared custody of his two children with his former spouse. He made support payments in respect of the children pursuant to two sequential court orders. He claimed $11,038 for the eligible dependent amount pursuant to subparagraph 118(1)(b) of the Income Tax Act (the “Act”) and $2,234 for the child amount pursuant to subparagraph 118(1)(b.1) of the Act in respect of one of the two children.
Letoria v. R. - TCC: No tax credit for offset child support paymentsREAD MORE »

Kokai-Kuun Estate v. R. - TCC: Property generates a capital gain, no proven losses to offset it

Sep 11, 2015 By Bill Innes

Précis: This decision concerned 40 acres of undeveloped land (the “Land”) owned by the late Mr. Zoltan Kokai-Kuun for 16 years (1992-2008) prior to its sale. He purchased the property for $110,000 and sold it for $370,000 but did not report any gain in his 2008 income tax return. The Minister assessed his estate for a capital gain of $235,755.60 in 2008. The estate resisted the assessment on two bases:
Kokai-Kuun Estate v. R. - TCC: Property generates a capital gain, no proven losses to offset itREAD MORE »

Agostini v. R. - TCC: Court upholds net worth assessments in the face of taxpayer’s far-fetched evidence

Sep 10, 2015 By Bill Innes

Précis: This was a more than usually colourful net worth assessment case involving, inter alia, a wife ratting on her husband to CRA, the taxpayer’s mother contradicting the taxpayer’s evidence on the stand and an alleged safe full of cash that no one else in the family claimed to have ever seen. Put simply, Mr. Agostini attempted to defeat net worth assessments for 2007 and 2008 on the basis that prior to his marriage in 2004 he had lived frugally with his parents who paid most of his expenses (including buying clothes for him).
Agostini v. R. - TCC: Court upholds net worth assessments in the face of taxpayer’s far-fetched evidenceREAD MORE »

Heroux v. R. - TCC: Ss. 160(1) assessment upheld - appellant did not take the stand

Sep 10, 2015 By Bill Innes

Précis: The appellant was assessed $22,387.82 pursuant to subsection 160(1) of the Income Tax Act (the “Act”) in respect of amounts transferred to her bank account by her husband at a time he owed back income taxes. The appellant’s representative argued that CRA had not proven that the bank account in question was that of the appellant. The Court rejected this line of argument. The appellant did not testify and the Court drew a negative inference.
Heroux v. R. - TCC: Ss. 160(1) assessment upheld - appellant did not take the standREAD MORE »

Esmezyan v. R. - TCC: Court denies application to extend time to file GST objection

Sep 09, 2015 By Bill Innes

Précis: The taxpayer applied to extend the time to file a notice of objection to a GST assessment. The notice of assessment was sent by registered mail and signed for by his wife. He and his wife were separated and he claimed she never passed on the notice of assessment.
Esmezyan v. R. - TCC: Court denies application to extend time to file GST objectionREAD MORE »

Mehravaran v. R. - TCC: Court affirms net worth assessments based on power of attorney

Sep 09, 2015 By Bill Innes

Précis: Ms. Mehravaran was estranged from her husband for several years. Although they lived under the same roof they barely communicated. Her husband and her son, Amin, were engaged in businesses of importing goods, rugs, bicycles, boats, all-terrain vehicles and motorcycles.
Mehravaran v. R. - TCC: Court affirms net worth assessments based on power of attorneyREAD MORE »

Hatt v. R. - TCC: Taxpayer entitled to carry forward employment loss from time she was non-resident

Sep 04, 2015 By Bill Innes

Précis: Ms. Hatt worked as a federal civil servant from July 1978 to October 2007. She took unpaid leave in 2003 and worked for an international organization until her retirement from her civil service job in 2007. It was agreed that between 2003 and 2007 she was a non-resident. In 2007 she contributed $22,799 to her registered pension plan (“RPP”). She claimed that this gave rise to a non-capital loss of $20,302. She returned to Canada in 2010 and when filing her 2010 tax return she applied that non-capital loss carry forward from 2007.
Hatt v. R. - TCC: Taxpayer entitled to carry forward employment loss from time she was non-residentREAD MORE »

Guindon v. R - SCC: Tax preparer penalties survive a Charter-based challenge

Sep 02, 2015 By Bill Innes

Précis: Ms. Guindon was a lawyer who had issued an opinion which was used to market a charitable leveraged donation program; she was also an officer of the charity involved and signed the tax receipts that were issued totalling $ 3,972,775. She was assessed advisor penalties totalling $546,747 pursuant to subsection 163.2 (4) of the Income Tax Act (the “Act”), the so-called “preparer penalty”.
Guindon v. R - SCC: Tax preparer penalties survive a Charter-based challengeREAD MORE »

Pellerin v. R. - TCC: Infant entitled to capital gains exemption

Sep 01, 2015 By Bill Innes

Précis: In this case shares were formerly held by a trust of which the appellant was a beneficiary. The trust had been created in 2005 at a time the appellant was not yet born or conceived. They were transferred to the appellant after he was born and sold in 2008 in the year he turned one year old. The date of the sale was more than 24 months from the date of his conception, which the parties agreed was in June of 2006.
Pellerin v. R. - TCC: Infant entitled to capital gains exemptionREAD MORE »

Archives - 2015

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