Archive for Author: taxlaw

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Are You Entitled to Receive the Canada Child Benefit (CCB)? ‘Tax Residence’ is Key, Plus How to Determine if You’re Tax Resident

Introduction – The Canada Child Benefit (“CCB”) Where it applies, subsection 122.61(1) of the Income Tax Act entitles an “eligible individual” to the Canada Child Benefit (“CCB”). The CCB is defined as an overpayment to ensure it remains a tax-free payment to the recipient. Many provinces in Canada (including...

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CRA Cancels CERB, CRB Debts of $246 Million of Canadian Taxpayers Who Were Ineligible to Receive COVID-19 Benefits

The CRA reversed $246 million in COVID benefit debts after taxpayers challenged their decisions The Canadian government has had to annul debts totalling over $246 million for numerous citizens initially deemed ineligible for pandemic benefits. Since 2022, the Canada Revenue Agency (CRA) has been reclaiming funds from individuals who allegedly...

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Case Commentary: Persaud v The King – When Can You Claim Tax Deductions (including Medical Bills) for Dependants? Tax Residence in Canada is Key

Introduction: Dealing with Tax Residence When Claiming a Deduction for a Dependant Several provisions of Canada’s Income Tax Act (the “Tax Act”) allow individuals to claim medical expenses as a deduction. This includes subsection 118.2 of the Tax Act, which allows a taxpayer to claim medical expenses for a...

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Tax Court of Canada Rejects the CRA’s Attempt to Apply Gross-Negligence Penalties in Statute-Barred Years: Fuhr, et al v The King, 2024 TCC 43

Introduction: Statute-Barred Taxation Years Canada’s Income Tax Act generally bars the Canada Revenue Agency from reassessing a taxpayer’s taxable income or tax payable after the expiry of the “normal reassessment period.” For most taxpayers, the normal reassessment period expires three years from the date that the CRA issued the...

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Case Commentary Cassidy v Canada: Using ‘Extraordinary Circumstances,’ CRA’s Delays, Inability to Pay, or Financial Hardship When Seeking Taxpayer Relief

Introduction: Mr. Cassidy’s Request for Taxpayer Relief Taxpayers may, under subsection 220(3.1) of the Income Tax Act (“Tax Act”), request relief for penalties and interest in what is referred to as a taxpayer relief application (formerly known as fairness application). Granting this application is at the Canada Revenue Agency’s...

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