Recent Posts

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  Re Pallen Trust – Taxpayer’s obtains rescission when plans scuppered by Sommerer case

  Jun 23, 2015 By Bill Innes

  Categories:

  • Bill Innes on Current Tax Cases
  • Other

  This commentary is provided by guest contributor, Rebecca Jones, of Lenczner Slaght LLP. The areas of rectification and rescission are closely related and are among the most important recent adjuncts to tax litigation outside the context of statutory tax appeals.
  Re Pallen Trust – Taxpayer’s obtains rescission when plans scuppered by Sommerer caseREAD MORE »
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  Superior Plus v. R. - TCC: Crown ordered to produce extensive material underlying GAAR assessment

  Jun 22, 2015 By Bill Innes

  Categories:

  • Bill Innes on Current Tax Cases
  • Corporate Tax
  • Federal Income Tax

  Précis: This is an example of procedural sparring in a large GAAR case where the taxpayer clearly emerged the victor at least in the initial stages in the Tax Court. The underlying transaction was the conversion of an income trust to a corporation, a conversion that was facilitated by amendments to the Income Tax Act several years ago:
  Superior Plus v. R. - TCC: Crown ordered to produce extensive material underlying GAAR assessmentREAD MORE »
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  Staltari v. R. - TCC: Land donated to City of Ottawa was held on capital account

  Jun 17, 2015 By Bill Innes

  Categories:

  • Bill Innes on Current Tax Cases
  • Federal Income Tax
  • Personal Tax, Estate & Wealth Planning

  Précis: The appellant had a long history in the real estate business. He acquired a large parcel of undeveloped land from his father in 2000.
  Staltari v. R. - TCC: Land donated to City of Ottawa was held on capital accountREAD MORE »
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  Sarmadi v. R. - TCC: Net worth assessment - Court rejected evidence of loan from father

  Jun 15, 2015 By Bill Innes

  Categories:

  • Bill Innes on Current Tax Cases
  • Personal Tax, Estate & Wealth Planning

  Précis: The appellant was subject to net worth assessments in 2003 and 2004 alleging that he had failed to report rental and business income as follows: (i) the appellant failed to report rental income of $20,905 and $13,816 in the respective 2003 and 2004 taxation years; and (j) the appellant failed to report business income of $49,206 and $68,900 in the respective 2003 and 2004 taxation years.
  Sarmadi v. R. - TCC: Net worth assessment - Court rejected evidence of loan from fatherREAD MORE »
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  Zhao v. R. - TCC: Move closer to the same place of employment not deductible

  Jun 13, 2015 By Bill Innes

  Categories:

  • Bill Innes on Current Tax Cases
  • Federal Income Tax
  • Personal Tax, Estate & Wealth Planning

  Précis: The taxpayer received a promotion from his employer. He moved closer to his place of employment and sought to deduct his moving expenses.
  Zhao v. R. - TCC: Move closer to the same place of employment not deductibleREAD MORE »
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  Inflection Analytics Ltd. v. R. - TCC: Fees to access data by internet not SRED expenses

  Jun 12, 2015 By Bill Innes

  Categories:

  • Bill Innes on Current Tax Cases
  • Corporate Tax
  • Federal Income Tax

  Précis: The appellant was endeavouring to develop investment management software.
  Inflection Analytics Ltd. v. R. - TCC: Fees to access data by internet not SRED expensesREAD MORE »
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  Hypercube Inc. v. R. - TCC: Program used for web site analysis not SRED

  Jun 09, 2015 By Bill Innes

  Categories:

  • Bill Innes on Current Tax Cases
  • Corporate Tax
  • Federal Income Tax

  Précis: Hypercube Inc. claimed SRED expenses of $28,800 for the development of a program used to analyze web sites to find weaknesses and optimize performance. The Court rejected the claim on the basis that the work done was all based on existing technology and did not go beyond routine engineering and standard procedures.
  Hypercube Inc. v. R. - TCC: Program used for web site analysis not SREDREAD MORE »
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  Kinglon Investments Inc. v. R. - FCA: CRA need not plead person for whom tax shelter representations made

  Jun 03, 2015 By Bill Innes

  Categories:

  • Bill Innes on Current Tax Cases
  • Corporate Tax
  • Federal Income Tax

  Précis: This case involved what the Crown alleged to be an unregistered tax shelter. Part of the Crown’s Reply dealt with statements allegedly made concerning the tax shelter.
  Kinglon Investments Inc. v. R. - FCA: CRA need not plead person for whom tax shelter representations madeREAD MORE »
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  Vine Estate v. R. - FCA: Failure to report recapture negligent - statute-barred year opened

  Jun 02, 2015 By Bill Innes

  Categories:

  • Bill Innes on Current Tax Cases
  • Federal Income Tax
  • Personal Tax, Estate & Wealth Planning

  Précis: CRA assessed the Vine Estate for failure to report recapture (roughly $2,000,000) on the “Victoria Park” property owned by the late Mr. Vine. The Estate appealed to the Tax Court on the basis that the assessment was statute-barred.
  Vine Estate v. R. - FCA: Failure to report recapture negligent - statute-barred year openedREAD MORE »
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  Rosenberg v. C.R.A. – FC: Action by taxpayer to enforce settlement agreement with CRA survives motion to strike and is converted to application

  May 26, 2015 By Bill Innes

  Categories:

  • Bill Innes on Current Tax Cases
  • Other

  Précis: This is an interesting decision on a motion to strike brought by the Defendant CRA. It raises issues of the validity and enforceability of agreements with the Minister, as well as issues of practice in the Federal Court.
  Rosenberg v. C.R.A. – FC: Action by taxpayer to enforce settlement agreement with CRA survives motion to strike and is converted to applicationREAD MORE »