In November 2022, the Canada Revenue Agency (CRA) addressed questions concerning the Canadian income tax implications of transferring the commuted value of benefits from a UK defined-benefit pension plan (“UK DB Plan”) to a self-invested personal pension (“UK SIPP”) by a Canadian tax resident. Specifically, the inquiry focused on...
Decoding Article XIV(6): Can Canadians Really Reclaim Departure Tax Under the Canada–Barbados Treaty? Opportunities for tax planning are virtually limitless. Provided your strategy aligns with both the wording and purpose of applicable Canadian tax legislation (in order to avoid a GAAR attack), it will likely withstand any challenges. Tax...
On Aug 15, 2025, the Canadian Government, through its Ministry of Finance and National Revenue, released for public consultation draft proposals for legislation in order to implement some previously announced tax measures and changes. These tax changes are numerous; however, this article will discuss some notable ones. The notable...
An Overview of the Canada Revenue Agency’s Administrative and Enforcement Powers The Canada Revenue Agency (CRA) possesses a wide range of administrative and enforcement powers in carrying out its mandate as the nation’s tax authority. These powers are extensive and complex, making the guidance of an experienced tax lawyer...
Dividend Tax Planning in Canadian Private Corporations For Canadian entrepreneurs and owner-managers, extracting value from a corporation is a central issue in Canadian corporate dividends and dividend tax planning. The decision to receive Canadian corporate dividends is not merely about cash flow. It directly affects overall tax efficiency, compliance...
In a November 13, 2025, decision, Baxter I.C.I. Corp. v. Attorney General of Canada, 2025 FC 1816, the Federal Court dismissed an application for judicial review, upholding a Canada Revenue Agency (CRA) decision that refused to waive or cancel penalties and interest for the applicant corporation. The case reinforces...
The Dilemma: Corporate Status vs. Tax Obligations The dissolution of a corporation creates confusion regarding its tax filing obligations. The question often boils down to: Does a dissolved corporation need to be legally revived to file outstanding tax returns with the Canada Revenue Agency (CRA)? For a corporation created...
The Underused Housing Tax Act (UHTA) imposes a particularly severe penalty regime for property owners who fail to file their required returns on time. The most punitive element—often overlooked—is the December 31 late-filing rule, which can expose even tax-exempt owners to ongoing penalties as if they owed tax. For...
Missed Deadlines for Objections and the Jurisdictional Bar of the One-Year Rule The Income Tax Act sets strict deadlines for taxpayers to object to tax assessments or reassessments or request extensions. Under paragraph 165(1)(b), taxpayers—including individuals and corporations—must serve a notice of objection within 90 days of the assessment’s...
Overview – A Landmark Warning to CRA on Tax Litigation Conduct In Choptiany et al. v. The King (2022 TCC 112), the Tax Court of Canada delivered one of the most striking procedural rebukes against the Canada Revenue Agency (CRA) and the Department of Justice. The case involved three...