Blogue

Iqbal v. R. - TCC: No GST/HST New Housing Rebate on 3 month property flip

7 avril 2016 By Bill Innes

Précis: Mr. Iqbal was assessed deying him a GST/HST New Housing Rebate for a property the “Elbern Property”) that he held for 3 months in 2011 before selling it. At the date he purchased, and later sold, the Elbern Property he owned a home (the “Blackmere Property) which he had purchased in 2005 and in which he continued to reside in at the date of the Tax Court trial.
Iqbal v. R. - TCC: No GST/HST New Housing Rebate on 3 month property flipPlus >

Familamiri v. R. - FCA: Taxpayer’s management fees not exempt from GST

7 avril 2016 By Bill Innes

Précis: The taxpayer was assessed GST, interest and penalties on management fees paid to him by 494743 B.C. Ltd. (the "Company") over a 6 year period from 2005 to 2010. He argued that he had entered into an agreement with the Company in 2002, with the consent of CRA, that he would not charge GST on the management fees. He was unsuccessful in the Tax Court and appealed to The Federal Court of Appeal. The Court of Appeal rejected his contention that there was an enforceable agreement that he did not have to pay GST. His appeal was dismissed from the bench, with costs set at $1,000 all inclusive.
Familamiri v. R. - FCA: Taxpayer’s management fees not exempt from GSTPlus >

Korfage v. R. - TCC: Minister entitled to use 2010 currency conversion rate, not running average

6 avril 2016 By Bill Innes

Précis: This is an extremely esoteric case. The taxpayer was entitled to a US$12,024 exemption in 2010 on a pension received from the International Civil Aviation Organization. The entire issue before the Court was whether the rate of exchange to be applied in determining the amount of that exemption was the 2010 average exchange rate (which was used by the Minister) or an average rate for the 36 month period prior to and including September 2000 (as contended by the taxpayer). The Court concluded that the Minister’s approach was appropriate and dismissed the appeal. There was no order as to costs since this was an informal procedure appeal.
Korfage v. R. - TCC: Minister entitled to use 2010 currency conversion rate, not running averagePlus >

Gray v. R. - TCC: Gross negligence penalties sustained in another Fiscal Arbitrators case

6 avril 2016 By Bill Innes

Précis: Yet another Fiscal Arbitrators case involving a false business loss claim - this time by an 85 year old taxpayer. The gross negligence penalty was sustained.
Gray v. R. - TCC: Gross negligence penalties sustained in another Fiscal Arbitrators casePlus >

The ICIJ Release of the “Panama Papers” Tax Haven Investigation

6 avril 2016 By Taxnet Pro

On April 3, 2016 the International Consortium of Investigative Journalists (ICIJ) released details regarding their in-depth investigation of offshore tax havens used by Mossack Fonseca, a law firm based in Panama. The information leak is believed to be the largest of its kind dealing with offshore tax havens.
The ICIJ Release of the “Panama Papers” Tax Haven InvestigationPlus >

Muir v. R. - FC: Taxpayer bid for judicial review of taxpayer relief application dismissed

5 avril 2016 By Bill Innes

Précis: Mr. Muir filed his 2005 tax return in 2011 and was assessed penalties and interest. His application to CRA for taxpayer relief was refused and he applied to the Federal Court for judicial review. The taxpayer’s claims that CRA was partially responsible for the delay in processing the return were rejected. Similarly the Court concluded that his argument based on financial hardship was without merit. The application was dismissed with costs of $500 awarded to the Crown.
Muir v. R. - FC: Taxpayer bid for judicial review of taxpayer relief application dismissedPlus >

Shevchyk v. R. - TCC: Notwithstanding unusual facts taxpayer entitled to Canada Child Tax Benefit

5 avril 2016 By Bill Innes

Précis: This case concerned the appellant’s entitlement to the Canada Child Tax Benefit (“CCTB”) during the months of May and June of 2013. Mr. Shevchyk had a series of very serious accidents as well as a dispute with his oldest daughter, the upshot of which was that although he continued to support all three children they did not live with him during the period of his convalescence. CRA took the position that he was not entitled to CCTB’s for the three children because his oldest daughter had moved out and, CRA claimed, the Children’s Aid Society had taken custody of the two younger children. The Tax Court concluded that Mr. Shevchyk did not lose custody of the younger children and that he supported them and his oldest daughter throughout the period under appeal. As a result the appeal was allowed.
Shevchyk v. R. - TCC: Notwithstanding unusual facts taxpayer entitled to Canada Child Tax BenefitPlus >

Urquhart v. R. - FCA: Car salesman’s expenses allowed in part, reversing Tax Court

4 avril 2016 By Bill Innes

Précis: Mr. Urquhart acted as a sales manager and commission salesman for a car dealership. His evidence was that he was required to bear some expenses in connection with the commission income he earned selling cars. The Tax Court rejected his evidence. The Federal Court of Appeal reversed the Tax Court in part holding that certain of his expenses were deductible. Since there was mixed success on the appeal there was no order as to costs.
Urquhart v. R. - FCA: Car salesman’s expenses allowed in part, reversing Tax CourtPlus >

Tse-Lam v. R. - TCC: Assessment of undisclosed foreign rental income upheld

4 avril 2016 By Bill Innes

Précis: The taxpayer failed to disclose rental income in 2006, 2007 and 2008 arising in Hong Kong from a trust connected with the estate of her late mother. In 2010 she filed, through her accountant, a voluntary disclosure and was assessed tax and interest but not penalties. She appealed the assessment to the Tax Court, essentially arguing that the amounts should not be taxable in Canada. The Tax Court dismissed the appeal with costs fixed conditionally at $250.
Tse-Lam v. R. - TCC: Assessment of undisclosed foreign rental income upheldPlus >

Buhler Versatile Inc. v. R. - TCC: Taxpayer ordered to produce documents previously disclosed

28 mars 2016 By Bill Innes

Précis: This is a decision on an interlocutory matter arising out of an SRED credit appeal. During the course of pre-appeal negotiations with CRA the taxpayer provided CRA with a letter together with 5 binders of documents (which were referred to in the letter). The taxpayer did not list the binders in its list of documents and declined to produce the binders on discovery. The Tax Court ordered the production of the 5 binders and the taxpayer appealed that decision to the Federal Court of Appeal. The Court of Appeal dismissed the appeal from the bench, with costs.
Buhler Versatile Inc. v. R. - TCC: Taxpayer ordered to produce documents previously disclosedPlus >

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