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Posts tagged "Tax Litigation"

Mattacchione v. R. - TCC: 50-1 Donation flip not a hit in Tax Court
Nov 27, 2015 By Bill Innes
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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
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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.
Vo v. R. - FCA: No extension of time to file notice of objectionREAD MORE »
Ellis v. R. - TCC: Penalty vacated on subsection 160(1) assessment, transfer from husband
Nov 26, 2015 By Bill Innes
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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
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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
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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”).
Barejo Holdings ULC v. R. - TCC: Unusual security was “debt” for the purposes of the ITAREAD MORE »
Myers v. R. - TCC: Court rejects evidence husband’s joint interest in home a drafting error
Nov 20, 2015 By Bill Innes
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Précis: Ms. Myers was assessed under subsection 160(1) of the Income Tax Act in respect of the transfer to her by her husband of his share of their home at a time he had an income tax liability. Her defense was that the original acquisition of the home in their joint names was a drafting error and she was always intended to be the sole owner.
Myers v. R. - TCC: Court rejects evidence husband’s joint interest in home a drafting errorREAD MORE »
ITC Invoice (20376525 Ontario) v. R. - TCC: Development of factoring software not SRED
Nov 18, 2015 By Bill Innes
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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
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Précis: This decision involved a very complex tax plan designed to trade in the losses of a predecessor corporation of the taxpayer:
Birchcliff Energy Ltd. v. R. - TCC: Loss trading plan subject to GAARREAD MORE »
R. v. Superior Plus - FCA: Crown zero for two in procedural appeals
Nov 17, 2015 By Bill Innes
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Précis: This decision combines two appeals by the Crown from procedural decisions of the Tax Court blogged earlier on this site. The first decision dealt with the disclosure of background materials prepared by CRA during its GAAR audit of the taxpayer. The Tax Court ordered the production of the material and the Federal Court of Appeal affirmed that order. The second decision dealt with the Crown’s attempt to obtain privileged legal advice the taxpayer had received based on implied waiver of privilege. The implied waiver was alleged to arise out of the release by the taxpayer of another legal opinion from another law firm. The Tax Court declined to order production of the material in question and, again, the Federal Court of Appeal affirmed.
R. v. Superior Plus - FCA: Crown zero for two in procedural appealsREAD MORE »
Bueti v. R. - TCC: Tax Court takes midpoint of two opposing valuations
Nov 16, 2015 By Bill Innes
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Précis: Mrs. Bueti’s father died in 1999. In 2000 she and her husband acquired his home from his estate. In 2004 they gave the property to their son and daughter-in-law. CRA reassessed the gift transaction lowering the adjusted cost base (ACB) and increasing the deemed proceeds of disposition.
Bueti v. R. - TCC: Tax Court takes midpoint of two opposing valuationsREAD MORE »

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