Archives - septembre 2018

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  Kwan v. R. – TCC: Parent allowed bulk of child care expenses claimed; Court criticized CRA’s attempt to cherry pick expenses and second guess choices of parents

  19 septembre 2018 By Bill Innes

  catégories:

  • Bill Innes on Current Tax Cases
  • Federal Income Tax
  • Personal Tax, Estate & Wealth Planning

  Précis: This case is illustrative in demonstrating both the wide variety of possible child expense claims and the Court’s refusal to substitute CRA’s concept of reasonable child care expenses for that of the children’s parents. CRA disallowed $5,086 of expenses claimed. The Court allowed $4,621, disallowing only $465. There was no order as to costs since this was an informal procedure appeal.
  Kwan v. R. – TCC: Parent allowed bulk of child care expenses claimed; Court criticized CRA’s attempt to cherry pick expenses and second guess choices of parentsPlus >
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  Dilalla v. R. – TCC: Taxpayer not entitled to fresh discovery with new representative of the Crown

  17 septembre 2018 By Bill Innes

  catégories:

  • Bill Innes on Current Tax Cases
  • Federal Income Tax
  • Personal Tax, Estate & Wealth Planning

  Précis: Mr. Dilalla worked as a carpenter and received amounts in 2010, 2011 and 2012 from a contracting corporation of which he was sole director and shareholder. He did not report them as income arguing that “his activities were performed for the “sole purpose and intent of exercising his labour in providing a livelihood” for himself and his family. In short, he believes the amounts received were neither a source of taxable income nor dividends. [para. [1]].” He conducted a discovery of the officer appointed by the Crown and was dissatisfied with the answers. He moved to examine another officer of the Crown. Bocock J. dimissed his application with costs holding it was not supported by the facts, the jurisprudence or the Rules.
  Dilalla v. R. – TCC: Taxpayer not entitled to fresh discovery with new representative of the CrownPlus >
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  Stevenson v. R. – TCC: Divorced taxpayer not entitled to non-refundable tax credits in respect of “net” support payments in respect of child of his former marriage

  14 septembre 2018 By Bill Innes

  catégories:

  • Bill Innes on Current Tax Cases
  • Federal Income Tax
  • Personal Tax, Estate & Wealth Planning

  Précis: Mr. Stevenson paid support for the child of his former marriage. The payments were netted against notional payments made by his former wife. He claimed child tax credits which were denied by CRA. His appeal to the Tax Court was dismissed without costs holding that the credits were not available in the case of “net” support payments.
  Stevenson v. R. – TCC: Divorced taxpayer not entitled to non-refundable tax credits in respect of “net” support payments in respect of child of his former marriagePlus >
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  Sycheva v. R. – TCC: Appeal of net worth assessments allowed in part to recognize loan repayment

  12 septembre 2018 By Bill Innes

  catégories:

  • Bill Innes on Current Tax Cases
  • Federal Income Tax
  • Personal Tax, Estate & Wealth Planning

  Précis: The taxpayers, husband and wife, were reassessed on a net worth basis for the 2009-2011 taxation years. The taxpayers made three arguments: 1. The wife, Mrs. Sycheva, had received a gift of $422,000 U.S. in 2005 from the estate of her late parents which the taxpayers kept intact until 2009 and used to cover some of their expenses in the years under appeal. 2. They claimed to have received a loan of $119,000 Cdn. from a Mr. Kogan in January of 2009 which was repaid in cash in 2011. They argued that the repayment was made from the funds saved from the 2005 gift from the estate of Mrs. Sycheva’s parents. 3. They claimed to have received a loan of $123,000 Cdn. from a Mr. Kravchenko in January of 2009 which was repaid in cash in late 2010. Again, they argued that the repayment was made from the funds saved from the 2005 gift from the estate of Mrs. Sycheva’s parents. The Tax Court accepted the evidence of the Kogan loan but rejected the taxpayers’ other two arguments. Since the success on the appeal was split, the Court made no order as to costs.
  Sycheva v. R. – TCC: Appeal of net worth assessments allowed in part to recognize loan repaymentPlus >
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  Rocco Gagliese Productions v. R. – TCC: Amounts paid to composer’s company by Society of Composers, Authors and Music Publishers of Canada (SOCAN) were active business income

  5 septembre 2018 By Bill Innes

  catégories:

  • Bill Innes on Current Tax Cases
  • Corporate Tax
  • Federal Income Tax

  Précis: Rocco Gagliese is a composer and a Writer Member of SOCAN. He carries on his business through a corporation (RGP). Under the rules of SOCAN almost all of the corporate revenue took the form of transfers from SOCAN. CRA reassessed to deny RGP the small business deduction on the basis that the payments from SOCAN were not “active business income”. RGP appealed to the Tax Court which allowed its appeal with costs on the basis that the amounts paid to RGP by SOCAN were income from an active business carried on in Canada.
  Rocco Gagliese Productions v. R. – TCC: Amounts paid to composer’s company by Society of Composers, Authors and Music Publishers of Canada (SOCAN) were active business incomePlus >
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  Kau v. R. – TCC: Failure to withhold 25% on purchase of real estate from a non-resident – taxpayer’s lawyer failed to make adequate inquiries – appeal dismissed

  4 septembre 2018 By Bill Innes

  catégories:

  • Bill Innes on Current Tax Cases
  • Federal Income Tax
  • Personal Tax, Estate & Wealth Planning

  Précis: The taxpayer purchased a condominium in June 2011 from a vendor who turned out to be a non-resident of Canada. There was no withholding pursuant to section 116 of the Act on the purchase and CRA assessed the purchaser 25% of the sale price.
  Kau v. R. – TCC: Failure to withhold 25% on purchase of real estate from a non-resident – taxpayer’s lawyer failed to make adequate inquiries – appeal dismissedPlus >