ONEnergy Inc. v. R. - TCC: No ITCs for legal fees incurred 2 years after sale of business

Oct 27, 2016 By Bill Innes

Précis: The taxpayer, formerly known as Look Communications Inc. (“Look”), sold its business in 2009 (the “Spectrum Sale”). In 2011 it commenced action against its former directors to recover roughly $15 million in payments made to them for “equity cancellation” and as bonuses. Look claimed ITCs on the legal fees in connection with the litigation. CRA denied the ITCs on the basis that the legal fees were not incurred “in the course of a commercial activity pursuant to subparagraph 141.1(3)(a) of the Excise Tax Act” ( the “Act”). The point came before the Tax Court on an application under Rule 58 of the Tax Court of Canada (General Procedure) Rules.
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University of Alta. v. R. - TCC: Campus had 25.36% commercial space for GST purposes

Jan 14, 2016 By Bill Innes

Précis: For GST purposes the University of Alberta was required to compute the percent of its campus which was used for commercial purposes; that computation in turn determined the amount of its input tax credits. The University, after accepting some of the Minister’s adjustments, contended for a figure of 25.36%; the Minister argued for a lower allocation of 14.12%.
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University of Cal. v. R. - TCC: Taxpayer’s computations of commercial use accepted by Court

Jan 14, 2016 By Bill Innes

Précis: For GST purposes the University of Calgary was required to compute the percent of its campus which was used for commercial purposes; that computation in turn determined the amount of its input tax credits. The University, after accepting some of the Minister’s adjustments, contended for allocations as follows:
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Andrei 95 Holdings Ltd. v. R. - TCC: Legal fees for shareholder fight not subject ITCs

Nov 04, 2015 By Bill Innes

Précis: The appellant incurred legal fees during the course of a dispute between it, its shareholders and the shareholder of other businesses in which they were involved. The appellant claimed ITCs on those legal fees on the basis that it was engaged in the commercial activity of providing consulting services and the legal fees were incurred during the course of that commercial activity.
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Grondin v. R. - TCC: No GST rebate on land acquired to build personal home

Oct 14, 2015 By Bill Innes

Précis: Mr. Grondin purchased a piece of land in vacant land in Rockland, Ontario, on November 30, 2010, for consideration of $93,000, plus $12,090 in GST/HST. He sold it in 2012 and applied for a rebate of the GST/HST, which was denied and he then appealed to the Tax Court.
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Gutbucket Inc. v. R. - TCC: Book collecting a hobby of shareholder - no entitlement to ITCs

Jul 14, 2015 By Bill Innes

Précis: The taxpayer claimed ITCs for 2007, 2008 and 2009 totalling $2,555.87 on expenses associated with two residential properties it owned in Guelph and Waterloo, Ontario. The principal of the taxpayer, Mr. Sobara, testified that the condominium in Waterloo was used to store a rare book collection that he had been assembling.
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Rasmussen v. R. – TCC: Taxpayer not entitled to ITC’s from his horse racing venture – not a commercial activity

Feb 17, 2015 By Bill Innes

Rasmussen v. R. – TCC: Taxpayer not entitled to ITC’s from his horse racing venture – not a commercial activityREAD MORE »

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