Focus On
NEW In-House Counsel | Insurance | Intellectual Property | Immigration | Natural Resources | Real Estate | Tax

Tax

Latest

Friday, April 21, 2017 @ 10:43 AM

FEDERAL INCOME TAX - Capital gains and losses - Calculation of gains and losses - Appeals - Tax Court of Canada - Judgments disposing of an appeal

Appeal by Struck from a Tax Court judgment quashing his appeal. In 2005, the appellant transferred shares in a numbered company and a half interest in a rental property to his son. They reached an agreement on the fair market value of the assets and the manner of payment. The appellant did not report any taxable capital gain arising from the transaction. In 2009, a reassessment included taxable capital gains of $163,000. The appellant served a notice of objection and the reassessment was reduced to $110,500, with $75,000 attributable to the real property disposition, and $35,500 attributable to the share sale. The appellant appealed to the Tax Court of Canada. In 2013, a consent order allowed the appeal and reduced the total taxable capital gains to $72,100, of which $49,850 was attributable to the sale of the property. Following a reassessment issued to reflect the consent judgment, the appellant filed a notice of appeal alleging the total taxable capital gains should be calculated with regard to reserves. The Crown moved to quash the appeal. In 2016, the Tax Court allowed the Crown's motion. Struck appealed. ... [read more]

Thursday, April 20, 2017 @ 09:46 AM

Tax Views: Enforcement of tax law in foreign courts | Vern Krishna

As multinational corporations increasingly engage in international trade, there is a risk that they may exploit the tax laws of countries to reduce their domestic taxes. ... [read more]

Thursday, April 20, 2017 @ 09:34 AM

Americans beware — don’t move to Canada without knowing consequences of U.S. exit tax

Last year more than 30,000 Americans were refused entry into Canada, a jump of 31 per cent over 2015 and four times the total from 2014. That is according to the Canada Border Services Agency, which is responsible for border security. ... [read more]

Thursday, April 13, 2017 @ 10:09 AM

CETA is coming, and here’s what it means to importers

It is expected that the Canada-European Union Comprehensive Trade and Economic Agreement (Canada-EU CETA) will come into provisional effect soon — the exact date is not yet known. The Canada-EU CETA covers virtually all sectors and aspects of Canada-EU trade. Most Canadian customs duty rates will reduce to “free” or zero per cent at the time of provisional implementation. Canadian importers should start to consider what goods may enter Canada duty free when the CETA green light is turned on. ... [read more]

Monday, April 10, 2017 @ 02:44 PM

Bennett joins DLA Piper as senior tax counsel

 Richard (Rick) Bennett has joined DLA Piper's Vancouver office as senior tax counsel.  ... [read more]

Friday, April 07, 2017 @ 10:53 AM

Litigation funding for high-stakes commercial suits coming | Julius Melnitzer

In a sure sign of desperate times for general counsel and in-house law departments, litigation funding is coming into its own — although it is just starting make a dent in Canada. The desperate part is that cost constraints are failing. It’s not that GCs haven’t been trying. The legal press has been awash for some years now with self-congratulatory back-slapping so rampant it risks breaking the collarbone of the backslappers themselves.   ... [read more]

Thursday, April 06, 2017 @ 08:31 AM

FEDERAL INCOME TAX - Non-residents - Withholding tax

Application by the plaintiffs for the summary trial of liability with damages to be assessed and application by the defendants for an order permitting them to deliver a third party notice. The plaintiffs alleged that they entered into a contract to purchase real property. CE International Resource Holdings LLC (CEIR) was a creditor of the registered owners of the property and had conduct of sale. The plaintiffs retained the defendants to complete the conveyance of the title to the property to them, including making inquiries as to the residency status of the seller. The defendants drafted a declaration concerning the residency status of the registered owners, which the lawyers for CEIR refused to sign. Despite not having any indication of the residency of the registered owners, the defendant Tony Liu Notary Corporation proceeded with the conveyance. One of the registered owners was not a resident of Canada at the time of the purchase. Subsequently, the Canada Revenue Agency (CRA) advised the plaintiffs that no certificate of compliance had been obtained in relation to the property and that they were obliged to pay withholding tax which was assessed at $695,000. The defendants admitted the facts in the notice of claim, but alleged that the plaintiffs entered into the agreement for purchase and sale without conditions, before engaging them to complete the transfer, and were therefore bound to complete the purchase. The defendants also asserted that the title search indicated that the registered owners were residents of Canada at the relevant time. They further alleged that they requested that the proposed third party Borden Ladner Gervais (BLG) provide certain undertakings, that BLG was obligated to withhold a purchase of the sales proceeds to satisfy the CRA pursuant to the order approving the sale, and that BLG confirmed in the Seller's Statement of Adjustments that the seller was a Canadian resident. As a result, the defendants claimed that any loss or damage suffered by the plaintiffs was the fault of the registered owners, CEIR and BLG. ... [read more]

Thursday, March 30, 2017 @ 06:19 PM

CBA letter raises concerns about impact of tax changes on lawyers

The Canadian Bar Association (CBA) is concerned that the federal government’s proposal to end billed-basis accounting will prevent people with limited financial means from hiring a lawyer. ... [read more]

Monday, March 27, 2017 @ 08:45 AM

CRA, law enforcement’s collection of fingerprints raises questions

The Canada Revenue Agency (CRA) has been working with law enforcement agencies to upload fingerprints to the Canadian Police Information Centre (CPIC) database of those charged with or convicted of tax evasion. ... [read more]

Friday, March 24, 2017 @ 09:02 AM

Media relations isn't marketing, and that's just the first mistake lawyers make | Julius Melnitzer

When it comes to maximizing the benefits of good media relations, many Canadian law firms haven’t quite got it yet. For those of you who are thinking, “What are you talking about? The profession’s marketing savvy has come a very long way” — you’re making my point. What a lot of law firms still don’t seem to understand is that marketing and media relations are two distinct arts. Lumping them together is akin to shoving an admiralty lawyer and an entertainment lawyer into the same pigeonhole. ... [read more]