Précis: In 2007 CGI Holding Inc, a Delaware limited liability corporation (“CGI”), received a dividend of $142 million from its related Canadian resident corporation, 3208170 Nova Scotia Company, as the result of a corporate reorganization. A 25% withholding tax (roughly $35 million) was paid on this dividend. In 2010 the Tax Court released its decision in TD Securities (USA) LLC v The Queen, 2010 TCC 186. CRA subsequently changed its policy as to the treatment of dividends paid to an American LLC where the Canada-US Tax Treaty applied. As a result CGI claimed that the withholding tax on the 2007 dividend should only have been 5%, not 25%, and applied in March of 2012 to CRA for a refund. CRA declined the refund request as being out of time.
CGI Holdings LLC v. R. - FCt: Mandamus denied, Minister did not act unreasonably or with undue delayPlus >