Blog 6

Man in a suit at desk with computer and a gavel

The Tax Court of Canada Orders the Canada Revenue Agency to Release GAAR Committee Reports about Similarly Situated Taxpayers: Coopers Park Real Estate Development v The Queen, 2022 TCC 82

Introduction: The General Anti-Avoidance Rule & Documentary Discovery during Tax Litigation Section 245 of Canada’s Income Tax Act contains the general anti-avoidance rule (also known as the “GAAR”). The GAAR aims to prevent taxpayers from enjoying tax benefits by invoking avoidance transactions that misuse...

Picture of small home and large keys on wood table

Foreign Property Reporting Requirements and PayPal Accounts: A Canadian Tax Lawyer’s Guide

Introduction – Digital Payment Services and Financial Reporting Obligations Digital payment services like those offered by PayPal, which are used to facilitate money transfers domestically and internationally, are now well-integrated into our personal and professional lives. Whether your PayPal account is used for genuine...

Two people holding hands, one holding home key on it

T1135s, Beneficial Ownership of Property, and Chan v The Queen: A Canadian Tax Lawyer’s Case Comment

Introduction – T1135s and Beneficial Ownership The Canadian Income Tax Act requires that Canadian tax residents who own “specified foreign property” with a cost of $100,000 or more in Canadian dollars file an annual Foreign Income Verification Statement, or “T1135”, with that year’s tax...

Couple sitting at desk with coffee, calculator and paperwork discussing taxes

Federal Court of Appeal Overturns Tax Court’s Decision and Vacates Gross-Negligence Penalties because the Canada Revenue Agency’s Evidence was Exclusively About the Taxpayer’s Spouse: Khanna v The Queen, 2022 FCA 84 – A Canadian Tax Lawyer’s Analysis

Penalties Canada’s tax statutes contain various penalties that seek to curb non-compliance. A gross-negligence penalty aims to punish a taxpayer whose conduct “involves a high degree of negligence tantamount to intentional acting, an indifference as to whether the law is complied with or not”:...

A picture of unpaid taxes by a director with a post it note on a laptop reading ”tax deadline

Zvilna v. Canada: Director’s Liability for Unpaid Taxes: A Canadian Tax Lawyer’s Note of Caution to Directors

Background on Directors Liability for Taxes: The Tax Court of Canada has recently decided a case regarding director’s liability for unremitted GST/HST. Generally, a director of a corporation can be held personally liable to CRA for various corporate liabilities such as unremitted GST and...

RRSP Prohibited & Non-Qualifed Investments

RRSP Background – RRSP Anti-Avoidance Rules: Prohibited and Non-Qualified Investments Registered retirement savings plans (RRSPs) are a tax efficient method of investment for individuals created by the government to encourage Canadians to save for retirement.  The basic structure of an RRSP is that a...

RRSP and TFSA Over-Contribution Tax: Canadian Tax Lawyer's Guide

RRSP and TFSA Over-Contribution Tax: Canadian Tax Lawyer’s Guide

RRSP and TFSA Over-Contribution Tax Each year individuals have a certain amount they can contribute to their Registered Retirement Savings Plan (“RRSP”) and Tax Free Savings Plans (“TFSA”) for the year known as “contribution room”. If an individual contributes an amount to his or...

Dividend Refund Rules for Private Corporations

Dividend Refund Rules for Private Corporations

Introduction: Why do private corporations receive Refundable Dividends? Canada’s Income Tax Act was originally drafted with three main principles in mind: equity, simplicity, and fairness. In essence, the overall goal of the Income Tax Act is to remove incentives or disincentives for structuring one’s...

Cryptocurrency Tax: OECD's 2021 Cryptocurrency Reporting Framework

Cryptocurrency Tax: OECD’s 2021 Cryptocurrency Reporting Framework

Cryptocurrency Reporting Requirements: OECD to Release Cryptocurrency Reporting Framework in 2021 The Organisation for Economic Co-operation and Development (“OECD”) is due to release a recommended policy framework for cryptocurrency reporting standards in the upcoming months. Currently, there is little cohesion or transparency among the...

T1134 CANADIAN INCOME TAX FORM: TORONTO TAX LAWYER’S GUIDE

T1134 Canadian Income Tax Form: Toronto Tax Lawyer’s Guide

T1134 Form – Introduction by Toronto Tax Lawyer The Canadian Income Tax Act levies income tax on the worldwide income of resident Canadians. Multinational business structures are efficient, from both an operational and financial standpoint, and are often necessary in order to transact with certain...

Taxable Benefits: Canadian Tax Lawyer Analysis

Taxable Benefits: Canadian Tax Lawyer Analysis

Introduction – What are Taxable Benefits Under Paragraph 6(1)(a) of the Income Tax Act, a taxable benefit is any advantage or benefit given to an employee from an employer, as well as the employee’s non-arm’s length parties such as his or her children or...

Rescission for Taxpayers: Canadian Tax Lawyer's Guide

Rescission for Taxpayers: Canadian Tax Lawyer’s Guide

Introduction: What is “Rescission”? Rescission allows for a transaction to be retroactively cancelled, annulled, or set aside in circumstances where there has been a unilateral mistake by parties. In order to qualify for rescission as a remedy, the mistake must have created some injustice...

Tax Benefits of Cryptocurrency-Trading Business as a CCPC

Tax Benefits of Cryptocurrency-Trading Business as a CCPC

Introduction: Cryptocurrency-Trading Businesses in Canada Canadian cryptocurrency-trading businesses face unique challenges. The mostly unregulated cryptocurrency, non-fungible token (NFT), and blockchain markets brings higher risk of fraud and cyber-crime. The developments in blockchain technology bring about an ever-increasing range of opportunities, arrangements, and assets—smart contracts,...

Canadian Departure Tax: Canadian Tax Lawyer Guidance

Canadian Departure Tax: Canadian Tax Lawyer Guidance

What is Canadian Departure Tax? When taxpayers emigrate from Canada, for tax purposes they are deemed to have disposed of their capital assets even though no assets are actually sold. Capital gains earned from the disposition of these assets will be taxed. This tax...

Repeated Failure to File Income Tax Penalty

Repeated Failure to File Income Tax Penalty

Introduction – Repeated Failure to File Income Tax Penalty Under Canada’s income tax system, taxpayers are required to calculate, report and pay their taxes in accordance with the applicable deadlines. In particular, the deadline to file 2020 taxes is April 30th 2021 for individual...

CRA's Agreement with Coinsquare in Disclosing Crypto User Information

CRA’s Agreement with Coinsquare in Disclosing Crypto User Information

Introduction – CRA’s Court Order against Coinsquare On September 18, 2020, the CRA filed a Federal Court application against Coinsquare in order to compell the Toronto-based cryptocurrency platform to disclose tax information related to its customers. We covered this issue in depth here (https://taxpage.com/articles-and-tips/cra-wants-coinsquare-to-disclose-confidential-client-info/)...

Upward Adjustments for Tax Notices of Objection

Upward Adjustments for Tax Notices of Objection

What is a Tax Notice of Objection? A tax Notice of Objection is a formal dispute filed with the Canada Revenue Agency wherein the taxpayer appeals tax amounts assessed against the taxpayer by the Canada Revenue Agency. For example, a taxpayer may argue an...

CRA Remission Guide: Canadian Tax Lawyer's Overview

CRA Remission Guide: Canadian Tax Lawyer’s Overview

Introduction – Tax Remission Order Canada’s tax laws contain provisions that are carefully crafted and precisely designed to provide taxpayers with various avenues to resolve their tax issues. However, in certain circumstances, Canada’s tax laws do not provide for adequate relief, or the strict...

Indirect Tax Audit Methods: Toronto Tax Lawyer Guide

Indirect Tax Audit Methods: Toronto Tax Lawyer Guide

Introduction – Indirect Tax Audit Methods Canada’s income tax system is designed around every taxpayer, individual, corporation or trust, filing an annual return which reports all of the income that taxpayer earned during the year. Similarly, GST/HST is administered by requiring suppliers of goods...

CRA’S BUSINESS TAX AUDITS: CANADIAN TAX LAWYER ANALYSIS

CRA’s Business Tax Audits: Canadian Tax Lawyer Analysis

Introduction – Business Tax Audit Business tax audits are a keyway by which the Canada Revenue Agency (CRA) ensures that a business has fulfilled its tax obligations with respect to income tax, payroll deductions, benefits, remittances, and GST/HST, pursuant to the Income Tax Act...

Employee Housing Loans

An employee housing loan refers to any loan that you can get from your employer to buy a home. This is quite convenient, considering employers offer housing loans at incredibly low-interest rates. Applying for a housing loan not only allows you to buy a...