Articles

About Articles The articles below are published by the Taxation Law Section of the Ontario Bar Association. Members are encouraged to submit articles. About Articles

Editor: Kateryna Kozachuk

Today
Today

Women in Tax – Q&A with Allison Blackler

  • June 13, 2022
  • Allison Blackler & Lisa Watzinger

Allison Blackler answers questions about her unique experiences as a woman in tax law. The article gives other lawyers and law students insight into potential career choices in tax law and words of advice on how to build a successful tax practice.

Student Forum, Taxation Law

Substantive CCPCs: Changes to Tax on Investment Income

  • June 13, 2022
  • Joelle Kabouchi, Senior Associate, Borden Ladner Gervais LLP, Ari Derohanesian, Summer Student, Borden Ladner Gervais LLP

The 2022 Federal Budget, tabled on April 7, 2022, proposes the introduction of the substantive Canadian-controlled private corporation rules. The change provides that non-Canadian-controlled private corporations that meet the definition of a “substantive CCPC” will also be subject to the refundable tax on investment income regime that Canadian-controlled private corporations are subject to.

Student Forum, Taxation Law

Raymond Stewart & Pansy Halls: Net worth audits and appeals to the Tax Court of Canada

  • June 13, 2022
  • Milosz Zak, Associate, Farber Tax Law

The article discusses two latest decisions by the Tax Court of Canada: Raymond Stewart v Her Majesty The Queen, 2021 TCC 94, which resulted in the removal of subsection 163(2) of the Income Tax Act gross negligence penalties levied against the appellant and allowed substantial subcontractor expenses in the context of a net worth audit; and Pansy Halls v Her Majesty The Queen, 2022 TCC 14, which dealt with a net worth audit of an unincorporated restaurant business owned by two spouses.

Student Forum, Taxation Law

Keeping it in the Family

  • June 13, 2022
  • Fayme K. Hodal

Bill C-208 received Royal Assent on June 29, 2021, and brought amendments to section 84.1 which allows for transfers of qualified small businesses, family farms, and fishing corporations to receive the same tax treatment when transferred between family members, as when the business is sold to an unrelated third party.  From an economic policy perspective, these amendments are positive to say the least.

Student Forum, Taxation Law

FX Straddle Trading Activity Not a Business – FCA Applies The “Pursuit Of Profit” Source Test in Paletta

  • June 13, 2022
  • Sameer Nurmohamed, Senior Associate, Osler, Hoskin & Harcourt LLP

On May 17, 2022, the Federal Court of Appeal delivered its decision in HMQ v The Estate of Pasquale Paletta, 2022 FCA 86 which applied the “pursuit of profit” source test in Stewart by ruling that an activity devoted solely to tax avoidance cannot give rise to a source of income in the form of a business under the Income Tax Act (Canada). This is true even if the activity lacks a personal or hobby element and appears to be purely commercial in nature.

Student Forum, Taxation Law

Budget 2022: Amping Up CRA’s Enforcement Activities and Targeting Financial Crime

  • June 13, 2022
  • Jennifer Flood and Greg DelBigio, Q.C., Thorsteinssons LLP

The 2022 Budget shows once again Canada’s ongoing commitment to the investigation and prosecution of financial crime including money laundering and tax evasion, including by injecting substantial funds into expanding the CRA’s audit and enforcement activities.

Student Forum, Taxation Law

Taxation of Non-Residents’ Inheritance of Canadian Real Estate

  • April 22, 2022
  • Birute Luksenaite

The author of this article discusses the implications of taxation of non-residents’ inheritance of Canadian real estate including dealing with Taxable Canadian Property, rental income taxation and the new Underused Housing Tax.

Student Forum, Taxation Law

Kingstreet Remedy - A Restrictive Recourse

  • April 21, 2022
  • Robert G. Kreklewetz & Shahrukh Khowaja

When the government disregards its contractual or settlement obligations, taxpayers who fall short of receiving relief under private law usually pin their hopes on public law (or restitutionary) remedies. However, these are typically a last resort and only available in exceptional circumstances.

Student Forum, Taxation Law

Robillard (Estate) c. The Queen: The Uncertainty Surrounding Pipeline

  • April 21, 2022
  • Julia (Zhuying) Zhuo

In Robillard (Estate) c. The Queen, the Estate of Mr. Robillard implemented a “post-mortem pipeline” strategy. The Minister sought to apply subsection 84(2) of the Income Tax Act. With reluctance, the Tax Court followed the Federal Court of Appeal decision in Canada v. MacDonald and found that subsection 84(2) applied. However, it strongly criticized the FCA’s broad interpretation of subsection 84(2) and indicated that it may be time for the FCA to reconsider its MacDonald decision.

Student Forum, Taxation Law

New Rules for Trust Reporting – Postponed for the 2022 Tax Filing Season

  • April 21, 2022
  • Jessica Alves

What Rules Apply for the 2022 Tax Filing Season? New reporting requirements for trusts imposed through the addition of subsection 150(1.2) to the Income Tax Act were originally announced in the July 27, 2018 Federal Budget. These new rules were to take effect on December 31, 2021, and subsequent taxation years. The implementation of these enhanced reporting requirements is currently pending.

Student Forum, Taxation Law