Archives - août 2017

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  572256 Ontario v. R. - TCC: Taxpayer entitled to ITCs on expenses incurred by its agent

  11 août 2017 By Bill Innes

  catégories:

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

  Précis: The appellant claimed investment tax credits (ITCs) in respect of HST paid by SVO-Phase Two Management Inc. (SVO) during the Appellant’s reporting period from April 1, 2013 to June 30, 2013 on the basis that SVO acted as its agent in paying the HST in question. CRA denied the ITC claim and the appellant appealed to the Tax Court. The Tax Court accepted the appellant’s evidence the SVO acted as its agent during the period in question and allowed the appeal. There was no order as to costs since this was an informal procedure appeal.
  572256 Ontario v. R. - TCC: Taxpayer entitled to ITCs on expenses incurred by its agentPlus >
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  Kamwar Inc. v. R. - TCC: 2016 application to extend time to object to 2012 reassessment struck

  8 août 2017 By Bill Innes

  catégories:

  • Bill Innes on Current Tax Cases
  • Commodity Tax
  • Corporate Tax

  Précis: In 2012 the applicant was assessed GST/HST for the reporting period October 23, 2009 to September 30, 2010. It took no steps until 2016 when it attempted to file a Notice of Objection with CRA. CRA rejected the Notice of Objection as being out of time and the applicant applied to the Tax Court for an extension. The Tax Court dismissed the application on the basis that it was well outside the statutory limitation period for filing an extension application. There was no order as to costs.
  Kamwar Inc. v. R. - TCC: 2016 application to extend time to object to 2012 reassessment struckPlus >
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  Zheng v. R. - TCC: Appellant entitled to New Housing Rebate as agent of the true purchaser

  4 août 2017 By Bill Innes

  catégories:

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

  Précis: This is one of the few cases where the Tax Court has accepted that a named purchaser was a true “accommodation party” for the real purchaser and, as a result, allowed the New Housing Rebate where the real purchaser (in this case her former brother-in-law), or a member of his or her family, took possession of the property on closing. As a result the appeal was allowed, without costs (this was an informal procedure appeal).
  Zheng v. R. - TCC: Appellant entitled to New Housing Rebate as agent of the true purchaserPlus >
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  Hurd Dentistry v. R. - TCC: Orthodontic services one supply, not separate supplies

  3 août 2017 By Bill Innes

  catégories:

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

  Précis: The taxpayer carried on a practice of orthodontic dentistry through a professional corporation. He claimed input tax credits (ITCs) for GST/HST purposes which CRA denied. At issue was whether his services involved a single supply of health care services or a supply of health care services and a supply of dental articles (e.g., braces, retainers, etc.). If the former, he was entitled to no ITCs; if the latter, he was entitled to the ITCs claimed. The Tax Court concluded that there was a single supply of medical services and dismissed his appeal. There was no order as to costs since this was an informal procedure appeal.
  Hurd Dentistry v. R. - TCC: Orthodontic services one supply, not separate suppliesPlus >
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  Dewan Enterprises v. R. - TCC: GST/HST payable on sale of used vehicles - Ontario Motor Vehicle Tax irrelevant

  3 août 2017 By Bill Innes

  catégories:

  • Bill Innes on Current Tax Cases
  • Commodity Tax

  Précis: This is another decision virtually on all fours with the Aswal decision of the same Judge rendered a few days earlier on July 19, 2017. Put simply, it was no answer to the taxpayer’s failure to collect GST/HST on the sale of vehicles that had been used in its business that the purchaser had paid Ontario Motor Vehicle Tax. Appeal dismissed.
  Dewan Enterprises v. R. - TCC: GST/HST payable on sale of used vehicles - Ontario Motor Vehicle Tax irrelevantPlus >
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  Aswal v. R. - TCC: GST/HST payable on sale of used truck - Ontario Motor Vehicle Tax irrelevant

  2 août 2017 By Bill Innes

  catégories:

  • Bill Innes on Current Tax Cases
  • Commodity Tax

  Précis: The taxpayers, operating as “Annie’s Gas Bar and Variety”, sold a truck that had been used in their business but did not collect or remit GST/HST ($1,755). The invoice issued by the taxpayers did not indicate that it was a GST/HST registrant. That meant that the purchaser had to pay 13% Ontario retail sales tax (“Motor Vehicle Tax”) directly to the Province of Ontario (which assumed that this was a sale between non-registrants). The appeal was dismissed since the payment of Ontario tax by the purchaser did not relieve the appellants of their obligation to charge and remit GST/HST.
  Aswal v. R. - TCC: GST/HST payable on sale of used truck - Ontario Motor Vehicle Tax irrelevantPlus >