Archives - 2016

Posts tagged "Excise Tax Act"

Alexander College Corp. v. r. - FCA: Taxpayer a “university” for GST purposes - Tax Court reversed
30 novembre 2016 By Bill Innes
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Précis: This decision turned on a very narrow point of law, elucidated in the Tax Court as follows: [4] The appellant contended that the Associate Degree, defined as a “degree” under the DAA is a degree-granting institution which is recognized by British Columbia provincial legislation, by universities and colleges within that province, by post-secondary institutions within and outside Canada, and by federal departments or programs. As such, it meets the definition of a “university” under subsection 123(1) of the ETA. Therefore, as a university, the Fees paid for courses (supplied) are exempt from GST/HST under section 7 of Part III of Schedule V of the ETA (“section 7”)
Alexander College Corp. v. r. - FCA: Taxpayer a “university” for GST purposes - Tax Court reversedPlus >
Athabasca University v. R. - TCC: Books supplied to students enrolled in distant learning eligible for GST rebates
28 novembre 2016 By Bill Innes
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Précis: Athabasca University provided courses in distant learning and, as part of the tuition for such courses, provided printed books (the “Books”) to their students which became the property of the students. They applied for an HST rebate on the books and were denied the rebate on the basis that there was a “sale” of the books to the students. Athabasca appealed to the Tax Court which ruled that the Books were part of a single supply of tuition to the students and therefore gave rise to a valid rebate claim. The appeal was allowed with costs.
Athabasca University v. R. - TCC: Books supplied to students enrolled in distant learning eligible for GST rebatesPlus >
Cheema v. R. - TCC: Bare trust did not deprive taxpayer of HST new housing rebate
24 novembre 2016 By Bill Innes
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Précis: Mr. Cheema enlisted the help of a friend, Dr. Akbari, to co-sign an agreement of purchase and sale for a new home as well as the mortgage on the property. Both Mr. Cheema and Dr. Akbari testified that Dr. Akbari did not contribute to the purchase price or the maintenance of the home and did not have any interest in the property. The Court accepted that evidence and ruled that the relationship was one of “bare trust”. As a consequence Mr. Cheema was entitled to the HST new housing rebate on the home (which CRA had denied) and allowed the appeal. There was no order as to costs since this was an informal procedure appeal.
Cheema v. R. - TCC: Bare trust did not deprive taxpayer of HST new housing rebatePlus >
Azhar v. R. - TCC: No HST new housing rebate for home sold shortly after purchase
21 novembre 2016 By Bill Innes
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Précis: Ms. Azhar listed a house for sale 11 days after she acquired it in 2013 and sold it shortly thereafter. She maintained that the sale was motivated by changed circumstances and that her mother-in-law had in fact moved into the home prior to its sale. She applied for a new housing rebate which CRA denied. Ms. Azhar appealed to the Tax Court which dismissed her appeal, rejecting her evidence that her mother-in-law had resided at the house. There was no order as to costs since this was an informal procedure appeal.
Azhar v. R. - TCC: No HST new housing rebate for home sold shortly after purchasePlus >
Gibb v. R. - TCC: Taxpayer had no reasonable expectation of profit from horse operation - no ITCs
11 novembre 2016 By Bill Innes
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Précis: Ms. Gibb has a passionate interest in horses and ran a horse farm operation for 30 years. She showed losses in all of those years except in 2003 she reported net farming income of $1,250 and in 2008 she reported nil net farming income. In 2010 and 2011 CRA denied her GST Input Tax Credits on the basis that her horse operation had no reasonable expectation of profit. She appealed to the Tax Court. The Tax Court, while sympathetic to her position, dismissed her appeal. There was no order as to costs since this was an informal procedure appeal.
Gibb v. R. - TCC: Taxpayer had no reasonable expectation of profit from horse operation - no ITCsPlus >
Horseman v. R. - FCA: Appeal dismissed from the bench - indirect attack on tax assessment
9 novembre 2016 By Bill Innes
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Précis: In 2015 the appellant commenced an action in the Federal Court for an order that a Requirement to Pay served on him under the Excise Tax Act was “null and void and contrary to the Indian Act, Treaty No. 8 and section 35 of the Constitution Act, 1982, as well as damages for the amounts seized pursuant to the Requirement to Pay” [para. 2]. The Federal Court dismissed his action on the basis that it amounted to an indirect appeal of a tax assessment and, as such, was exclusively within the jurisdiction of the Tax Court. Mr. Horseman appealed to the Federal Court of Appeal which dismissed his appeal from the bench, with costs.
Horseman v. R. - FCA: Appeal dismissed from the bench - indirect attack on tax assessmentPlus >
ONEnergy Inc. v. R. - TCC: No ITCs for legal fees incurred 2 years after sale of business
27 octobre 2016 By Bill Innes
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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 businessPlus >
407 ETR Concession Company Limited v. R. - TCC: Policing Highway 407 by OPP an exempt supply
7 octobre 2016 By Bill Innes
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Précis: The taxpayer, a private corporation, operated Highway 407 in Ontario under a public-private partnership arrangement. Policing for the Highway was provided by the Ontario Provincial Police (“OPP”) and was billed by the OPP to the taxpayer. The taxpayer took the position that the policing was the supply of a “municipal service” and therefore an exempt supply. CRA took that position that, since the policing was provided by the province and not a municipal entity, the service was taxable.
407 ETR Concession Company Limited v. R. - TCC: Policing Highway 407 by OPP an exempt supplyPlus >
2269619 Ontario Inc. v. R. - TCC: Trucking company did not provide zero-rated supplies
6 octobre 2016 By Bill Innes
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Précis: The taxpayer was incorporated by a Mr. Billing and provided trucking services. It claimed that the services it provided were zero-rated but CRA assessed it for GST. The taxpayer appealed to the Tax Court in respect of 2012 and 2013. The Court held that the taxpayer had not established on the evidence that it had provided zero-rated trucking supplies. The Court did however adjust its receipts and, accordingly, its Input Tax Credits for 2012. An appeal for 2013 was quashed since no notice of objection had been filed. There was no order as to costs since this was an informal procedure appeal.
2269619 Ontario Inc. v. R. - TCC: Trucking company did not provide zero-rated suppliesPlus >
9091-2239 Québec Inc. v. R. - TCC: Court varies alternative audit calculation to reduce GST
30 septembre 2016 By Bill Innes
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Précis: The taxpayer ran a pizza shop. A GST auditor used an alternative audit method to determine that it had under-reported GST by roughly $24,000. The Court varied the method used by the auditor and arrived at a figure of roughly $13,000 of under-reported GST. The Court sustained penalties on the lesser amount. There was no order as to costs since this was an informal procedure appeal.
9091-2239 Québec Inc. v. R. - TCC: Court varies alternative audit calculation to reduce GSTPlus >

Archives - 2016

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