Précis: The appellant was a retired accountant who appealed to the Tax Court unsuccessfully arguing that amounts received from his former partnership after the date of his retirement were not subject to mandatory Canada Pension Plan (CPP) contributions. His appeal to the Federal Court of Appeal was successful. The Court of Appeal ruled that the deeming provision of the Income Tax Act (the Act), subsection 96(1.1), relied upon by CRA deemed payments to retired partners to be income from business for certain purposes of the Act but did not apply to deem such payments to be business income for the purposes of the CPP. Mr. Freitas was awarded $3,500 in costs.
Freitas v. R. – FCA: Payments to retired partner not income from business for the purposes of the Canada Pension Plan – Appeal allowed.READ MORE »