Bill Innes on Current Tax Cases

R. v. Schimpf - FC: Taxpayer held in contempt for failure to abide by compliance order

Jan 15, 2016 By Bill Innes

Précis: The taxpayer was held in contempt of a compliance order issued by the Federal Court.
R. v. Schimpf - FC: Taxpayer held in contempt for failure to abide by compliance orderREAD MORE »

Levenson v. R. - FC: Judicial review of RRSP over-contribution tax dismissed

Jan 15, 2016 By Bill Innes

Précis: The applicant had formed the habit of filing his tax returns late since he always overpaid his tax. This led to a confusion on the part of CRA as to the amount of his unused RRSP room. The applicant made excess contributions to his spousal RRSP which led to the imposition of tax, penalties and interest. He applied for taxpayer relief which was denied. He brought a judicial review application in the Federal Court. Shortly before trial CRA consented to a judicial review of the interest and penalties.
Levenson v. R. - FC: Judicial review of RRSP over-contribution tax dismissedREAD MORE »

University of Alta. v. R. - TCC: Campus had 25.36% commercial space for GST purposes

Jan 14, 2016 By Bill Innes

Précis: For GST purposes the University of Alberta was required to compute the percent of its campus which was used for commercial purposes; that computation in turn determined the amount of its input tax credits. The University, after accepting some of the Minister’s adjustments, contended for a figure of 25.36%; the Minister argued for a lower allocation of 14.12%.
University of Alta. v. R. - TCC: Campus had 25.36% commercial space for GST purposesREAD MORE »

University of Cal. v. R. - TCC: Taxpayer’s computations of commercial use accepted by Court

Jan 14, 2016 By Bill Innes

Précis: For GST purposes the University of Calgary was required to compute the percent of its campus which was used for commercial purposes; that computation in turn determined the amount of its input tax credits. The University, after accepting some of the Minister’s adjustments, contended for allocations as follows:
University of Cal. v. R. - TCC: Taxpayer’s computations of commercial use accepted by CourtREAD MORE »

Taylor v. R. - TCC: Penalties sustained where claims made for fictitious business losses

Jan 13, 2016 By Bill Innes

Précis: The only issue in this case was the propriety of levying gross negligence penalties where the taxpayer claimed fictitious business losses. As in many prior cases the court sustained the penalties.
Taylor v. R. - TCC: Penalties sustained where claims made for fictitious business lossesREAD MORE »

Foster v. R. - TCC: Reassessment not barred - arises out of same facts

Jan 13, 2016 By Bill Innes

Précis: In 2006 Mr. Foster purchased equipment and licenses for his fishing business for an aggregate price of $215,000. The agreement of purchase and sale was in his name but he subsequently showed the assets in the name of a company of which he was the sole shareholder (KJF). He was reassessed a shareholder benefit in the amount of $70,000 on the basis that he had overcharged KJF for the equipment. He applied for a rectification order making KJF the original purchaser of both the equipment and the license. He obtained, with the consent of the Minister, a partial consent order that “the Appellant held the Equipment and Licences as bare trustee for the benefit of KJF”.
Foster v. R. - TCC: Reassessment not barred - arises out of same factsREAD MORE »

Luschtinetz v. R. - TCC: No tax credits for children living with ex-spouse

Jan 12, 2016 By Bill Innes

Précis: The appellant was required pursuant to a court order to pay support for both his former wife and their children, who resided with the ex-wife. He claimed tax credits in respect of the children which CRA denied. His appeal to the Tax Court was dismissed.
Luschtinetz v. R. - TCC: No tax credits for children living with ex-spouseREAD MORE »

Vamathevan v. R. - TCC: No extension for GST/HST notice of objection - application out of time

Jan 12, 2016 By Bill Innes

Précis: The taxpayer applied for an extension of the time to file a notice of objection in respect of a new housing GST/HST rebate. The application was made more than one year and 90 days after the assessment in question. The Tax Court held that it could not allow the application despite some postal confusion arising out of the taxpayer’s original application for the rebate.
Vamathevan v. R. - TCC: No extension for GST/HST notice of objection - application out of timeREAD MORE »

Blue v. R. - TCC: Annual payments were deductible as spousal support

Jan 11, 2016 By Bill Innes

Précis: Mr. Blue and his ex-wife agreed to her receiving $12,000 per annum for 5 years on the breakup of their marriage. Originally the payments were to be monthly but that was changed to one annual payment of $12,000. When he sought to deduct the first payment in 2013 CRA denied the deduction on the basis that it was not a payment for maintenance but rather a non-deductible capital payment.
Blue v. R. - TCC: Annual payments were deductible as spousal supportREAD MORE »

Durocher v. R. - TCC: Option not a nullity - corporation not a CCPC - no capital gains exemption

Jan 11, 2016 By Bill Innes

Précis: The appellants disposed of the shares of Gestion RJCG Inc. ("RJCG") in 2006 and claimed a capital gains exemption in respect of the disposition. CRA denied the exemption on the basis that RJCG was not a "qualified small business corporation shares" as defined by subsection 110.6(1) of the Income Tax Act (the “Act”). CRA concluded that RJCG was controlled by Aviva Canada Inc. ("Aviva"), a public corporation, by virtue of an option agreement throughout the 24 month period preceding the disposition. Thus it was not a Canadian-controlled private corporation (“CCPC) and, as a result, not a qualified small business corporation.
Durocher v. R. - TCC: Option not a nullity - corporation not a CCPC - no capital gains exemptionREAD MORE »

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