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28 August 2017- 12:42am Radelet – Tax Court of Canada finds that the threat of a gross negligence penalty imposition was not “duress” vitiating a waiver Email this Content In addition to rejecting the (self-represented) taxpayer’s largely unsupported allegations that he had lacked mental capacity when he executed a waiver (extending the normal reassessment period so that CRA could await his submissions respecting what it considered to be an unreported capital gain of $445,551 and a questionable business loss of $400,000), Bocock J also rejected the taxpayer’s submission that the waiver had been executed under the “duress” of a threat of a gross negligence penalty- which was not untoward in the context of an unreported capital gain. ...

Supreme Court for a declaration that a purchaser of the foreclosed properties would be considered to be acquiring them from the (resident) banks rather than from the non-residents (so that s. 116(5) would not apply.) ...

CRA responded that “only the expenses that are reasonable to consider to be attributable to the activities generating the [SCI] income … should be considered” as deductions from the SCI income. ...

In particular, where both the business and service income are nil, it will not be considered to satisfy the requirement that less than 90% of its business income is from the provision of services. ...

21 March 2019- 12:51am CRA continues to accept deliberate triggering of CDA additions for distribution purposes Email this Content CRA noted that the approach of the GAAR Committee to surplus-stripping has changed significantly: Since 2015-0610701C6 the Committee has considered that it will no longer recommend the application of GAAR to certain corporate reorganizations through which there is a deliberate triggering of a capital gain in order to distribute a capital dividend to its shareholders. ...

., the cash boot is considered to be sufficient to bust the IRC s. 351 rollover. ...

Generally, the acquisitions and dispositions during the normal course of business would not be considered acquisitions or dispositions of separate businesses. ...

CRA noted that this was similar to Example 9 of CRA’s split-income guidelines, and stated that they both could be considered to be actively engaged in the business – but indicated that this was a question of fact. ...

26 August 2020- 11:19pm CRA comments further on the meaning of a “travel restriction under its COVID Guidelines Email this Content CRA's Guidance on international income tax issues raised by the COVID-19 crisis provides relief respecting adverse impacts of COVID-related travel restrictions on such matters as being considered to have become a Canadian resident. ...

2 September 2020- 12:00am CRA indicates that there generally is no COVID relief from the obligation on non-resident corporations carrying on business Canada to file tax returns Email this Content CRA indicated that its general expectation was that non-resident corporations resident in a non-treaty jurisdiction, which are considered to be carrying on a business in Canada only because of COVID Travel Restrictions, nonetheless would file a tax return- but that the corporation could always seek to try to persuade CRA to show some flexibility in circumstances not covered in the COVID Guidelines. ...