Précis: Ms. McKenzie received roughly $22,000 from the US IRA of her late mother, who had been a resident of the United States prior to her death (and not a resident of Canada). CRA assessed the amount as income pursuant to clause 56(1)(a)(i)(C.1) of the Income Tax Act (the “Act”). Counsel for Ms. McKenzie argued that an alternative method of taxation applied and that the position contended by CRA would result in double taxation (under each of section 56 and section 70) within the provision of paragraph 248(28)(a) of the Act. The Court rejected both arguments.
McKenzie v. R. - TCC: Distribution from US IRA of taxpayer’s deceased mother taxableREAD MORE »