Does the CRA Have to Accept Your Tax Return as Accurate
The answer is “no”. In this case decided in 2023 the taxpayer argued: “the Minister’s agents at the CRA had inappropriately discounted his late tax return contrary to their legal obligation to accept it as accurate and reliable.” The judge rightfully answered: “As a result of not filing for 2009, the Minister exercised her right […]
Buying tax losses is a not a winning strategy
This recent case is super complicated in technical terms but is simple in concept, a transaction or series of transactions that is undertaken primarily to avoid taxes is not going to fly with the CRA or the courts. The judge summarized the amounts in question in the first paragraph: “The Appellant appeals from the Minister’s […]
Documentation is key for winning/losing an appeal
Fresh off the presses, the Tax Court mailed out this recent case about a two decade long conflict with the CRA over an assessment that ended up with criminal charges and a trial in which the judge found that significant breaches of the defendants Charter rights were made. The write-up is long and complicated but […]
Tax Schemes and Procedural Justice
Tax Schemes and Procedural Justice I’m on the mailing lists for the Tax Court of Canada, the Federal Court, the Federal Court of Appeal and the Supreme Court. As such, on a near daily basis I receive new court cases to review and the one today, regarding taxpayers who entered into agreements with two disgraced […]
The Westminster Principle and Athlete Bonuses
Arranging ones financial affairs to reduce tax owed is an unwritten right
Short Term Accommodations Apocalypse in B.C.
Short Term Accommodations Apocalypse in B.C. How Selling Your Airbnb Property Might Get Taxed as a Commercial Property In October 2023, the Province of British Columbia passed a law that comes into effect on May 1, 2024, that generally eliminates what are colloquially called “ghost hotels”, short term accommodation units that are usually rented on […]
When is a Residential Unit not a Residential Unit?
When is a Residential Unit not a Residential Unit? Imagine a scenario where a business owner purchases a used residential complex and begins running his business in it and for no other purpose. Is the subsequent sale for GST/HST purposes an exempt sale of a residential complex or a taxable sale of commercial property? For […]
Does CRA need to prove that you owe the taxes?
The short answer is a resounding NO.This is baked into the law. For example, 299(3) of the Excise Tax Act states: “An assessment, subject to being vacated on an objection or appeal under this Part and subject to a reassessment, shall be deemed to be valid and binding.”
Protective rebate claims (should I file one?)
Protective rebate claims (should I file one?) The case Ontario Addictions Treatment Centre and The Attorney General of Canada is the objective answer to the question of whether one should file a rebate or appeal application when the CRA’s position is still being debated. There was no downside to filing the rebate application while waiting for CRA […]
Hiding side hustle income
Hiding Side Hustle Income “Around 50 per cent plan to hide some or all of their side earnings from the tax man, according to the survey“. This article about tax avoidance/evasion gives some insight into the consequences of hiding income: “Soucie offered a hypothetical. Let’s imagine that a side-hustler — let’s call him Kevin — chooses (to) […]