Blogue

407 ETR Concession Company Limited v. R. - TCC: Policing Highway 407 by OPP an exempt supply

7 octobre 2016 By Bill Innes

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

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 >

Mpamugo v. R. - TCC: Fraudster’s claim that he never received reassessments for $6.8M rejected

6 octobre 2016 By Bill Innes

Précis: Mr. Mpamugo was convicted and imprisoned for several years for running a fraudulent scheme to permit non-students to obtain student loans. CRA reassessed him in connection with the scheme for $6.8 million over the period from 1998 to 1999. He filed appeals with the Tax Court. CRA moved to dismiss the appeals on the basis that no notices of objection had ever been filed. Mr. Mpamugo moved to quash his own appeals on the basis that he had never received the notices of reassessment.
Mpamugo v. R. - TCC: Fraudster’s claim that he never received reassessments for $6.8M rejectedPlus >

Quinco Financial Inc. v. R. - TCC: Interest on GAAR assessment not limited to period after assessment

5 octobre 2016 By Bill Innes

Précis: In J.K. Read Engingeering Ltd. v. The Queen (October 21, 2014 – 2014 TCC 309, Hogan J.), a case blogged earlier on this site, the Tax Court held that in the case of a GAAR assessment interest ran from the payment date for the taxation year being assessed not from the date of the assessment. The taxpayer in this case took another run at the issue asking the Court to revisit the matter in an application on a point of law under section 58 of the Tax Court of Canada Rules (General Procedure). It came as no great surprise that the taxpayer’s submissions were again rejected.
Quinco Financial Inc. v. R. - TCC: Interest on GAAR assessment not limited to period after assessmentPlus >

R. v. Chriss - FCA: Unsigned resignations ineffective

4 octobre 2016 By Bill Innes

Précis: The Tax Court decision was blogged earlier on this site under the name Gariepy v. The Crown. The nub of the issue before the Tax Court was whether unsigned directors’ resignations prepared by a corporation’s external lawyers were effective to prevent liability for unpaid corporate remittances. The Tax Court held that they were on the facts of the case. The Federal Court of Appeal reversed that decision in a clear policy decision. A bright line test was necessary and unsigned resignations did not, in the Court of Appeal’s opinion, meet such a test. The Crown’s appeal was allowed with costs in both the Court of Appeal and the Tax Court.
R. v. Chriss - FCA: Unsigned resignations ineffectivePlus >

Osaduke v. R. - TCC: Unreported income adjusted but penalties sustained on lower amount

4 octobre 2016 By Bill Innes

Précis: The taxpayer was audited and the auditor by means of examining bank deposits concluded that he had unreported income in both 2008 and 2009 from the sale of metal and coins and from eBay sales. The Tax Court reduced the unreported income from $62,111 and $46,008 in 2008 and 2009 respectively to $39,488 and $44,425 respectively however it sustained gross negligence penalties on the reduced amounts. There was no award of costs since this was an informal procedure appeal.
Osaduke v. R. - TCC: Unreported income adjusted but penalties sustained on lower amountPlus >

CGI Holdings LLC v. R. - FCt: Mandamus denied, Minister did not act unreasonably or with undue delay

3 octobre 2016 By Bill Innes

Précis: In 2007 CGI Holding Inc, a Delaware limited liability corporation (“CGI”), received a dividend of $142 million from its related Canadian resident corporation, 3208170 Nova Scotia Company, as the result of a corporate reorganization. A 25% withholding tax (roughly $35 million) was paid on this dividend. In 2010 the Tax Court released its decision in TD Securities (USA) LLC v The Queen, 2010 TCC 186. CRA subsequently changed its policy as to the treatment of dividends paid to an American LLC where the Canada-US Tax Treaty applied. As a result CGI claimed that the withholding tax on the 2007 dividend should only have been 5%, not 25%, and applied in March of 2012 to CRA for a refund. CRA declined the refund request as being out of time.
CGI Holdings LLC v. R. - FCt: Mandamus denied, Minister did not act unreasonably or with undue delayPlus >

Azzopardi v. R. - TCC: Extension applications a comedy of errors

3 octobre 2016 By Bill Innes

Précis: The Azzopardi brothers, Thomas and Emmanuel, were limited partners of the same partnership. They applied to extend the time to file individual notices of appeal or notices of objection for a variety of taxation years. The Crown consented to most of the applications but did not consent to Emmanuel’s application in respect of 2002 because it was a nil assessment. In the case of Thomas’ application for 2011 and 2012 the Crown pointed out that the Court was without jurisdiction because Thomas had failed to apply within the period during which the Court had jurisdiction to grant relief. There were no orders as to costs.
Azzopardi v. R. - TCC: Extension applications a comedy of errorsPlus >

Duguay v. R. - TCC: Donation to charity in exchange for lower rent not a true gift

30 septembre 2016 By Bill Innes

Précis: The appellant was living in an apartment owned by a registered charity. He personaly paid for $20,000 in renovations to the apartment. The charity gave him two cheques, each for $10,000 to reimburse his renovation costs. He endorsed one of the cheques back to the charity for which he was issued a $10,000 donation receipt. The receipt was disallowed and he appealed to the Tax Court.
Duguay v. R. - TCC: Donation to charity in exchange for lower rent not a true giftPlus >

9091-2239 Québec Inc. v. R. - TCC: Court varies alternative audit calculation to reduce GST

30 septembre 2016 By Bill Innes

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 >

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