Oliveira v. The King (“Oliveria”) demonstrates the need for taxpayers to diligently follow the deadlines stipulated on the notices received from the Canada Revenue Agency (“CRA”). Deadlines stipulated on notices of assessments, reassessments, or confirmations are based upon Canadian tax legislation i.e., the Income Tax Act (“ITA”) and the...
Introduction: Settling Tax Litigation in Canada Tax settlements play a vital role in tax administration and enforcement. It would be burdensome and impractical to litigate every tax dispute in Tax Court. When entering settlement discussions with the Canadian tax-litigation lawyer for the Canada Revenue Agency, taxpayers must carefully assess...
In The University of New Brunswick v. The Minister of National Revenue, 2023 TCC 72, (U.N.B v. M.N.R) the University of New Brunswick (the “University”), appealed a decision of the Canada Revenue Agency (“CRA”), that classified a post-doctoral fellow (“post-doc fellow”) as an employee of the University. The CRA...
The Canada Revenue Agency (CRA) is set to pilot a new automatic tax filing system in 2024. The move toward automatic tax filing, first promised in the 2020 speech from the throne, is one of the several budget measures the Liberals say are meant to help Canadians with the...
The Canadian tax department may no longer be able to collect the taxes owing if you have an unpaid tax liability that is more than 10 years old and CRA has not contacted you to collect it, as further explained by a Canadian income tax lawyer in this article....
The Canadian Departure Tax Regime Under subsection 128.1(4) of the Canadian Income Tax Act, a Canadian emigrating to another jurisdiction is subject to a “deemed disposition” on qualifying property. (This deemed disposition is often referred to as Canada’s “departure tax”). Where a taxpayer is subject to departure tax, that...
A guarantor becomes the creditor when a guarantee payment is made According to the Federal Court decision in Abrametz v. The Queen, when a taxpayer makes a payment under a guarantee for a corporation’s indebtedness, it is generally regarded that the taxpayer has acquired the rights of the creditor...
Burke v. The King, 2022 TCC 158 The Canada Revenue Agency (CRA) conducted tax reassessments for the tax years 2014, 2015, and 2016, expressing doubts about the reported amounts in taxpayer Mr. Burke’s tax returns. Since Mr. Burke recorded most of his business dealings through handwritten notes and ledgers,...
What is the taxpayer relief application? When a taxpayer cannot meet tax payment deadlines or fulfill other obligations set by the Canada Revenue Agency (CRA) due to personal misfortune or uncontrollable circumstances, penalties and interest are typically imposed by the CRA. Luckily, subsection 220(3.1) of the Income Tax Act...
Non-residents of Canada for tax purposes are only taxed on their Canadian income Canadian tax residents are taxed based on their worldwide income. However, non-residents for Canadian tax purposes (which is a different test then immigration purposes) are only liable for Canadian tax on their Canadian source income such...