Bill Innes on Current Tax Cases

Barejo Holdings ULC v. R. - FCA: Appeal on meaning of “debt” an “improper use of judicial resources”

Dec 14, 2016 By Bill Innes

Précis: This is a decision on appeal from a case that had unusual beginnings in the Tax Court. That decision involved one of the oddest procedures seen in the Tax Court in many years: [1] The question referred to the Court by the parties pursuant to Rule 58 is whether two contracts, entitled Notes and issued for US $998 million by affiliates of two Canadian banks and guaranteed by those banks, which are held by St. Lawrence Trading Inc. (“SLT”), an open-ended investment fund incorporated under the laws of the British Virgin Islands, constitute debt for purposes of the Income Tax Act (the “Act”).
Barejo Holdings ULC v. R. - FCA: Appeal on meaning of “debt” an “improper use of judicial resources”READ MORE »

Skartaris Holdings Ltd. v. R. - TCC: Taxpayer’s business was renting homes - no Small Business Deduction

Dec 01, 2016 By Bill Innes

Précis: The taxpayer owned a number of homes which it rented out. Its only significant source of income was rents. It had no employees. CRA denied its claim for the Small Business Deduction. The Tax Court held that its principal business was earning income from property, that it was a “specified investment business” and denied its appeal. There was no order as to costs since this was an informal procedure appeal.
Skartaris Holdings Ltd. v. R. - TCC: Taxpayer’s business was renting homes - no Small Business DeductionREAD MORE »

Alexander College Corp. v. r. - FCA: Taxpayer a “university” for GST purposes - Tax Court reversed

Nov 30, 2016 By Bill Innes

Précis: This decision turned on a very narrow point of law, elucidated in the Tax Court as follows: [4] The appellant contended that the Associate Degree, defined as a “degree” under the DAA is a degree-granting institution which is recognized by British Columbia provincial legislation, by universities and colleges within that province, by post-secondary institutions within and outside Canada, and by federal departments or programs. As such, it meets the definition of a “university” under subsection 123(1) of the ETA. Therefore, as a university, the Fees paid for courses (supplied) are exempt from GST/HST under section 7 of Part III of Schedule V of the ETA (“section 7”)
Alexander College Corp. v. r. - FCA: Taxpayer a “university” for GST purposes - Tax Court reversedREAD MORE »

Lauzon v. R. - FCA: Fiscal Arbitrators appeal rejected by Federal Court of Appeal

Nov 30, 2016 By Bill Innes

Précis: This is an appeal from a Tax Court decision upholding a gross negligence penalty where the taxpayer had claimed $308,073 in false business losses in a Fiscal Arbitrators scheme. It is perhaps surprising that the Federal Court of Appeal reserved for 1 day and took a full 16 paragraphs to dismiss the appeal. Nevertheless Justice Woods is a very careful jurist.
Lauzon v. R. - FCA: Fiscal Arbitrators appeal rejected by Federal Court of AppealREAD MORE »

Okeke v. R. - FCA: Trial judge’s finding that no cash donations made supported by evidence

Nov 29, 2016 By Bill Innes

Précis: CRA denied $9,000 in alleged cash charitable donations. The Tax Court found that the taxpayer had not proven the making of the cash donations and dismissed his appeal. The Federal Court of Appeal dismissed his appeal from the bench holding that there was ample evidence before the Tax Court to support its finding.
Okeke v. R. - FCA: Trial judge’s finding that no cash donations made supported by evidenceREAD MORE »

Aubrey Dan Family Trust v. R. - ONSC: Federal form of waiver effective for Ontario purposes

Nov 29, 2016 By Bill Innes

Précis: The taxpayer is a trust. For 2007 it filed as a resident of Alberta. Ontario reassessed the trust on the basis that it was a resident of Ontario. The trust appealed to the Ontario Superior Court of Justice. This was a decision on a motion by the trust for summary judgment on the basis that the assessment in question was statute-barred. The sole issue was whether a federal form of waiver executed by the trustees and delivered to Ontario operated to extend the limitation period for Ontario purposes. The Court held that the waiver was effective for Ontario purposes and dismissed the motion. The parties were to make written submissions if they could not agree on costs.
Aubrey Dan Family Trust v. R. - ONSC: Federal form of waiver effective for Ontario purposesREAD MORE »

Syla v. R. - TCC: Fraudulent donation claims - years opened up - appeals dismissed

Nov 28, 2016 By Bill Innes

Précis: Mr. and Mrs. Syla claimed false charitable donations which they may have bought from their accountant (in at least one case a false receipt was filed with Mr. Syla’s 2006 tax return). Mr. Syla claimed donations in 2003, 2004, 2005 and 2006. Mrs. Syla claimed donations in 2003, 2004 and 2005. The Court first concluded that the otherwise statute-barred years of 2003 and 2004 could be opened up. It next looked at the donations claimed and found them to be without any factual basis and dismissed both appeals. There was no order as to costs since these were both informal procedure appeals.
Syla v. R. - TCC: Fraudulent donation claims - years opened up - appeals dismissedREAD MORE »

Athabasca University v. R. - TCC: Books supplied to students enrolled in distant learning eligible for GST rebates

Nov 28, 2016 By Bill Innes

Précis: Athabasca University provided courses in distant learning and, as part of the tuition for such courses, provided printed books (the “Books”) to their students which became the property of the students. They applied for an HST rebate on the books and were denied the rebate on the basis that there was a “sale” of the books to the students. Athabasca appealed to the Tax Court which ruled that the Books were part of a single supply of tuition to the students and therefore gave rise to a valid rebate claim. The appeal was allowed with costs.
Athabasca University v. R. - TCC: Books supplied to students enrolled in distant learning eligible for GST rebatesREAD MORE »

Sapi v. R. - TCC: Charitable donation shelter cases - extensions to file a Notice of Appeal denied

Nov 25, 2016 By Bill Innes

Précis: This is a decision in 4 applications to extend the time to file Notices of Appeal. Each of the applicants has been involved in various charitable donation plans (comic books, pens, pencils, etc.). They relied on the promoter of these plans, Mr. Robert Mattacchione (who acted as agent at the hearing), and PAC Protection Corporation (“PAC”), a company affiliated in some way with Mr. Mattacchione, to deal with CRA on objections and appeals. PAC in turn relied upon a lawyer, Mr. Tony De Bartolo, to file appeals to the Tax Court where required. The evidence was that he appears to have failed to file these and other appeals within the time permitted.
Sapi v. R. - TCC: Charitable donation shelter cases - extensions to file a Notice of Appeal deniedREAD MORE »

Bédard v. R. - TCC: Mixed result in opening statute-barred years in an RRSP scam

Nov 25, 2016 By Bill Innes

Précis: The six appellants in this decision were all the victims of a fraudster who was subsequently sentenced to prison for tax evasion. The subject matter of the fraud was an RRSP strip which resulted in amounts being included in the income of the appellants. The only questions before the Court was whether, on the facts, the Crown could open up the appellants’ 2001 taxation years by means of assessments issued in 2009, 4 years after the expiration of the normal reassessment period.
Bédard v. R. - TCC: Mixed result in opening statute-barred years in an RRSP scamREAD MORE »

Archives - 2016

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