Search - connection

29 January 2023- 11:12pm Gordon – Federal Court of Appeal indicates that a CRA investigation had not breached CRA’s duty of care to the taxpayers Email this Content After a criminal prosecution of the appellants, in connection with allegedly fraudulent SR&ED claims, was stayed, the appellants brought an action in the Federal Court against the Crown for damages based on multiple grounds including a negligent investigation by CRA of their claims. ...

Such concerns would arise for instance regarding a foreign partnership whose only connection to Canada is the residence of some partners who might be passive and constitute a very small minority of the partners. ...

Before granting the requested order to rectify the implementing documents, Blanchard J stated: The de-connection of the corporations prevented the accomplishment of the will of the parties in implementing the reorganization, which was to crystallize the CGD and not pay any tax, other than minimum tax, while benefiting from the CGD.... ...

29 June 2023- 11:28pm Amex Bank – Tax Court of Canada finds that costs of Amex’ points program were inputs to its exempt credit card revenues, and did not generate ITCs Email this Content CRA denied the input tax credit (“ITC”) claims of Amex for its 2002 to 2012 taxation years for GST/HST paid on expenses arising in connection with the administration and operation of Amex’s Membership Rewards Program (“MRP”), including expenses incurred for the purpose of providing its cardholders who were members of the MRP (“Members”) with rewards on the redemption of points earned by them mostly through making purchases on their cards. ...

In rejecting this submission and in connection with ruling that such services of the Service Provider were taxable, CRA stated: While the supply made by the Centre may include elements that are home care services, the supply also includes accommodation, meals and nursing services. ...

16 November 2023- 11:18pm CRA acknowledges that where a contested notice of assessment is subject to a stay, it generally must apply to the bankruptcy court for lifting the stay Email this Content The Girardi decision (2014 QCCA 1922) stated, in connection with the Bankruptcy and Insolvency Act ("B.I.A. ...

21 December 2023- 11:14pm CRA indicates that the onus is on it to determine the “reasonable and realistic” allocation of an outbound royalty between the exempt and taxable portions Email this Content Royalties were payable by Canco to a non-resident for the right to use copyright and trademarks in connection with the design, manufacturing and sale of products in countries in a particular region. ...

After reviewing the history of Art. 10(8) (in particular, the expansion of the purpose test in 2003) and the OECD Commentaries, the Directorate concluded that “the intention of both Canada and the UK [was] that paragraph 8 of Article 10 of the Treaty not be limited to situations where the degree of connection of the ultimate dividend recipient with Canada is questioned,” i.e., it was not limited to situations of treaty-shopping. ...

St-Joseph argued based on the QSTA equivalent of ETA s. 141.1(3)(a) that it had incurred the costs “in connection with the … termination of a commercial activity” of it, so that such costs were deemed to have been incurred in the course of its commercial activity. ...

5 May 2024- 10:58pm CRA indicates that it will follow Gardner (re deducting a sales person’s expenses of occasional travel between her home office and her employer) only on similar facts Email this Content Regarding the deductibility of automobile expense incurred by an employee, with a fully remote work arrangement, in connection with an occasional visit to the employer’s office from the home office, CRA stated: [T]raveling between an employee’s home, including a home office, and a regular place of employment (RPE) is generally considered personal travel …. … In this case, “regular” means there is some degree of frequency or repetition in the employee’s reporting to that particular location in a given pay period, month, or year. … For example, a work location may be considered to be a RPE of an employee even though the employee may only report to work at that particular location on a periodic basis (e.g., once or twice a month) during the year. ...