Recent Posts

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

  Oct 27, 2016 By Bill Innes

  Categories:

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

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

  Categories:

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

  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%.
  University of Alta. v. R. - TCC: Campus had 25.36% commercial space for GST purposesREAD MORE »
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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

  Categories:

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

  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:
  University of Cal. v. R. - TCC: Taxpayer’s computations of commercial use accepted by CourtREAD MORE »
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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

  Categories:

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

  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.
  Andrei 95 Holdings Ltd. v. R. - TCC: Legal fees for shareholder fight not subject ITCsREAD MORE »
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  Grondin v. R. - TCC: No GST rebate on land acquired to build personal home

  Oct 14, 2015 By Bill Innes

  Categories:

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

  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.
  Grondin v. R. - TCC: No GST rebate on land acquired to build personal homeREAD MORE »
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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

  Categories:

  • Bill Innes on Current Tax Cases
  • Commodity Tax

  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.
  Gutbucket Inc. v. R. - TCC: Book collecting a hobby of shareholder - no entitlement to ITCsREAD MORE »
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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

  Categories:

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

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