Mattacchione v. R. - TCC: 50-1 Donation flip not a hit in Tax Court

Nov 27, 2015 By Bill Innes

Précis: This may (one can only hope) be one of the last cases dealing with inflated valuations of gifts in kind to charities. The appellants, formerly husband (“Roberto”) and wife (“Vincenzina”), made donations to a registered charity in the period 2003-2005 of hockey sticks and medical supplies. They received donation receipts of roughly $8 million in the case of the wife and $1.5 million in the case of the husband.
Mattacchione v. R. - TCC: 50-1 Donation flip not a hit in Tax CourtREAD MORE »

Vo v. R. - FCA: No extension of time to file notice of objection

Nov 26, 2015 By Bill Innes

Précis: Ms. Vo’s 2008 taxation year was assessed in 2011. She claimed not to have had notice of the assessment until 2013. Both the Minister and the Tax Court denied her application for an extension of the time to file a notice of objection. The Federal Court of Appeal agreed with the Tax Court and dismissed the appeal from the bench with costs of $300 to the Crown.
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Ellis v. R. - TCC: Penalty vacated on subsection 160(1) assessment, transfer from husband

Nov 26, 2015 By Bill Innes

Précis: Mrs. Ellis’ husband transferred his 50% interest in their matrimonial home to her at a time when he had an income tax liability. Mrs. Ellis conceded that the transfer was for less than market value. The two points before the Tax Court were the amount of Mr. Ellis’ tax debt at the time of the transfer and the imposition of a gross negligence penalty on Mrs. Ellis.
Ellis v. R. - TCC: Penalty vacated on subsection 160(1) assessment, transfer from husbandREAD MORE »

O’Byrne v. R. - FCA: Tax Court correct to deny extension of time to file notices of objection

Nov 24, 2015 By Bill Innes

Précis: This was an appeal from a decision of the Tax Court in which Justice Boyle had denied the taxpayer’s application for an extension of time to file notices of objection holding that the application was more than 10 years late. The Federal Court of Appeal concurred with Justice Boyle and dismissed the appeal from the bench, but without costs.
O’Byrne v. R. - FCA: Tax Court correct to deny extension of time to file notices of objectionREAD MORE »

Barejo Holdings ULC v. R. - TCC: Unusual security was “debt” for the purposes of the ITA

Nov 23, 2015 By Bill Innes

Précis: This decision involves 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”).
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Canada (National Revenue) v. McNally - FCA: Court declined to hear moot appeal

Nov 20, 2015 By Bill Innes

Précis: The underlying issue in this case dealt with the Minister’s power to delay assessing a taxpayer who participated in a large tax shelter. Mr. McNally brought an application to compel the Minister to assess his 2012 tax return and was successful in the Federal Court. The Minister assessed Mr. McNally but also appealed the decision to the Federal Court of Appeal. Mr. McNally advised that he would take no part in the appeal since he had obtained what he wanted.
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Mcnally v. R. - FCA: Crown ordered to make submissions on why appeal not moot

Nov 19, 2015 By Bill Innes

Précis: Mr. Mcnally moved successfully in the Federal Court for an order requiring the Minister to reassess his 2012 taxation year. The Minister did so but nonetheless appealed the order to the Federal Court of Appeal. Mr. Mcnally advised that he would not participate in the appeal as he regarded the matter as over. The Minister moved for directions. Stratas JA ordered the Minister to make written submissions within 10 days on the issue of mootness. Mr. Mcnally would have 4 days to respond if he chose to do so. There was no order as to costs.
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Heroux v. R. - FCA: Appeal not setting out any grounds of appeal dismissed

Nov 18, 2015 By Bill Innes

Précis: Ms. Heroux appealed a Tax Court decision upholding a subsection 160(1) assessment against her in respect of property transferred to her by her husband. She filed a notice of appeal that simply copied the Federal Court of Appeal form for a notice of appeal and did not set out any specific grounds applicable to her case. The Court of Appeal ordered her to provide specific grounds and she failed to do so. The Crown moved to have the appeal dismissed.
Heroux v. R. - FCA: Appeal not setting out any grounds of appeal dismissedREAD MORE »

ITC Invoice (20376525 Ontario) v. R. - TCC: Development of factoring software not SRED

Nov 18, 2015 By Bill Innes

Précis: The taxpayer operated a factoring business. In the course of that business it developed factoring software known as Factorsuite. It claimed SRED credits in respect of the development cost of Factorsuite and CRA denied the credits. It appealed to the Tax Court. The Court held that the Factorsuite project did not amount to SRED because it did not entail a sufficient degree of uncertainty. They were retooling off the shelf programs.
ITC Invoice (20376525 Ontario) v. R. - TCC: Development of factoring software not SREDREAD MORE »

Birchcliff Energy Ltd. v. R. - TCC: Loss trading plan subject to GAAR

Nov 17, 2015 By Bill Innes

Précis: This decision involved a very complex tax plan designed to trade in the losses of a predecessor corporation of the taxpayer:
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Archives - 2015

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