Jacques v. R. - TCC: Death benefit from sister’s US 401(k) plan not taxable as a pension

Nov 22, 2016 By Bill Innes

Précis: In 2009 Ms. Jacques received $389,502 in benefits under a US plan that had been owned by her late sister. The plan was a 401(k) plan and was subject to section 401(a) of the US Internal Revenue Code. CRA taxed the funds as a payment from a superannuation or pension plan. The Tax Court reviewed the evidence and concluded that the fund did not have the essential characteristics of such a plan. Accordingly the appeal was allowed with costs.
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Shreedhar v. R. - TCC: Assessment not nil, included $2.10 in interest - appeal allowed to proceed

Nov 21, 2016 By Bill Innes

Précis: This is an oddball case that may or may not involve some unresolved family drama. Mr. Shreedhar was a student. A Registered Education Saving Plan (“RESP”) established by his grandfather reported to CRA taxable funds allegedly payable to him. CRA then assessed Mr. Shreedhar in respect of this amount but applied unclaimed education‑related deductions available to him resulting in no additional tax payable. Mr. Shreedhar appealed to the Tax Court because he said he had never received any such amount and knew nothing about the RESP. As a preliminary matter the Crown moved to quash the appeal as an appeal of a nil assessment.
Shreedhar v. R. - TCC: Assessment not nil, included $2.10 in interest - appeal allowed to proceedREAD MORE »

Shannon v. R. - TCC: Agent repeatedly making pseudo-legal arguments banned from Tax Court

Nov 15, 2016 By Bill Innes

Précis: Mr. Shannon had appeared as agent in six appeals before the Tax Court, including two before Justice Graham. He repeatedly engaged in disruptive conduct and making the type of pseudo-legal commercial arguments that have become all too common of late, e.g., “ the Income Tax Act fails to describe a taxpayer as a person who gains his or her livelihood in the private sector and thus people who do are not subject to tax” [para. 56(a)]. The Court of its own motion invited submissions on why he should not be barred from acting as an agent before the Tax Court without the prior permission of the Court.
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Morrison v. R. - FCt: Judicial review of taxpayer relief application allowed - lack of procedural fairness

Nov 10, 2016 By Bill Innes

Précis: The taxpayer had participated in the infamous Klotz art flip program and ended up owing over $100,000 in back taxes. His application for taxpayer relief was allowed only to the extent of some interest relief and he applied to the Federal Court for judicial review. On the review it appeared that on a second level review the officer relied in part on without prejudice settlement offers that the taxpayer had rejected. The application was allowed because the Court held that this amounted to a breach of the rules of procedural fairness.
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Mockler v. R. - TCC: Application to extend time to file objection denied - several years too late

Nov 09, 2016 By Bill Innes

Précis: Mr. Mockler was entitled to a disability tax credit since 2007. In 2015 he applied to the Minister to re-examine the application date and in 2016 he was advised that it would be extended back to 2005. In September of 2016 he applied to the Tax Court for an extension of the time to file Notices of Objection for the period from 1997 to 2008. A companion application was made on behalf of his wife. The Court construed the applications as applying only to the period from 1997 to 2004.
Mockler v. R. - TCC: Application to extend time to file objection denied - several years too lateREAD MORE »

Stover v. R. - TCC: Tax Court declines to set aside consent judgment

Nov 03, 2016 By Bill Innes

Précis: Mr. Stover, in consultation with his lawyer, Mr. Crowe, agreed in late 2015 to a consent judgment dismissing his appeal of his 2005 and 2006 taxation years. His intention was to make an application for fairness relief to what is now called the Taxpayer Relief Committee. When he became aware in 2016 that abandoning his appeal had resulted in his accepting liability under the disputed assessments he applied to the Tax Court to set aside the consent judgment dismissing his appeal. The Tax Court held that the interest of finality of court decisions held sway in this application and accordingly dismissed it with costs.
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Muller v. R. - FCA: Court of Appeal dismisses attempt to set aside warrant for access to computers

Nov 02, 2016 By Bill Innes

Précis: Mr. Justice de Montigny of the Federal Court (as he then was) in a decision dated March 2, 2015 (2015 FC 262) refused to set aside an ex parte warrant permitting the search of computer records found in the appellant’s house. The Court of Appeal dismissed the appeal from the bench. Neither side sought costs so no costs order was issued.
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Maynard v. R. - FCA: Appeal of penalties on fictitious losses dismissed from the bench with costs

Nov 02, 2016 By Bill Innes

Précis: This is an appeal of a Tax Court decision blogged earlier on this site. It was another fictitious business loss case where the only issue was the imposition of a gross negligence penalty; in this case both husband and wife had claimed fictitious losses. They were unsuccessful in the Tax Court and their appeal was dismissed, with costs, from the bench by the Federal Court of Appeal.
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Wolsey v. R. - TCC: Taxpayer loses attempt to revive appeal dismissed for failure to attend status hearing

Nov 01, 2016 By Bill Innes

Précis: Mr. Wolsey filed a tax appeal in 2005 in respect of unreported income for his 2000, 2001 and 2002 taxation years. The file dragged on and the appeal was dismissed in 2014 when he failed to attend a status hearing. He moved to set aside the dismissal on the basis that he was unaware of the status hearing and unaware that his counsel had withdrawn from the record. The Court simply did not believe his evidence and dismissed his motion with costs to the Crown.
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Tuccaro v. R. - FCA: Court of Appeal upholds Tax Court decision to let issue estoppel argument go to trial

Nov 01, 2016 By Bill Innes

Précis: This is the fourth time this case has been blogged on this site. In a nutshell, Mr. Tuccaro is asserting a treaty right to a tax exemption pursuant to Treaty 8 of 1899. The Crown is resisting the claim based in part on issue estoppel arising from prior decisions of the Federal Court of Appeal. Mr. Tuccaro moved unsuccessfully in the Tax Court to strike those portions of the Crown’s pleadings dealing with issue estoppel.
Tuccaro v. R. - FCA: Court of Appeal upholds Tax Court decision to let issue estoppel argument go to trialREAD MORE »

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