Articles 2022

This article responds to a recent outcry over the CRA’s policy to tax employee discounts for merchandise, tracking the relevant jurisprudence and showing that in this case the CRA policy conforms to the law as determined by the Courts

In Canada v Green, the Federal Court of Appeal affirmed the Tax Court of Canada's decision and rejected the long-standing position of the Canada Revenue Agency regarding the use of limited partnership losses in tiered limited partnership structures.

The Tax Court of Canada confirms its willingness to apply the general anti-avoidance rule to surplus stripping transactions which circumvent the application of section 84.1. Benjamin Mann reviews the recent decision in 1245989 Alberta Ltd. v. The Queen.

Proposed amendments to the Excise Tax Act may have a number of implications for investment funds and their managers. Jamie Wilks and Jonathan Bright describe and explain the proposals, while discussing some potentially significant consequences for hedge funds, mutual funds, and similar investment vehicles.

On September 8, 2017, the Department of Finance re-released proposed changes to billed-based accounting for professionals for taxation years beginning after March 21, 2017. The article reviews the proposed amendments and transitional rules.

The Tax Court of Canada recently released a decision in MacDonald v. The Queen, that together with the Court’s decision in George Weston Limited v. The Queen establishes the limits to the spectrum of hedging arrangements. Alexandra Neacsu Monkhouse reviews the decision in MacDonald and discusses how it continues and clarifies the prior jurisprudence on derivatives.

On March 30, 2017 the Federal Court of Appeal placed a significant restriction on the CRA’s audit powers, ruling that the CRA could not compel the disclosure of tax accrual working papers that identified a taxpayer’s uncertain tax filing positions. Stephanie Dewey and Mark Tonkovich review the decision in BP Canada Energy Company (2017 FCA 61).

Jonathan Bright identifies an interesting quirk in the adjusted stub period accrual rules that in some cases may create a one-year tax deferral for a partner - the very result that the ASPA rules were intended to prevent.

In December 2016, the newly-established Offshore Compliance Advisory Committee released its first report, setting out a series of recommendations for the future administration of the Voluntary Disclosures Program. Rachel Gold discusses the Committee's recommendations and their potential implications for taxpayers.

The Federal Court of Appeal confirms the CBSA committed an abuse of process in the administration of the Customs Act. John Bassindale reviews the decision in AG v. Bri-Chem Supply Ltd. et al. (2016 FCA 257).