An absurd result
An Absurd Result A couple of days ago I came across this 2019 case (I subsequently came across this 2019 case and this 2020 case that clarifies the court’s interpretation) in which the Ontario taxpayer wrongly claimed the New Housing Rebate and was denied the amount under subsection 297(1) of Part IX of the Excise Tax […]
Airbnb Apocalypse Part II: The Reckoning
Airbnb Apocalypse Part II: The Reckoning Over the last couple of months I’ve written several posts (Airbnb) (other non-residential use) about the non-intuitive changes in use from what would normally be residential use to commercial use and the severe tax consequences that follow. This recent tax court case on the sale of a condominium unit […]
Bare Trust Part II: The Unveiling
Bare Trust Part II: The Unveiling Ok. Maybe I’m being a little melodramatic with the title of this post but since I have previously written on Bare Trusts I had to do something fun with the title. What’s not so fun is the new CRA requirement for all trusts to file a return every year […]
Disability Tax Credit
In this recent tax court case the appellant was denied the Disability Tax Credit (DTC) by the CRA because her condition, celiac disease, did not qualify as a medical condition which met the statutory threshold for the credit. As the judge said in the opening paragraphs: “Eligibility for the DTC is not based solely on […]
Repaying CERB
Repaying CERB This recent article on clawbacks of CERB demonstrates the difficulties taxpayers face in dealing with the CRA on their own: ““I was working at Little Ceasars (sic), Subway, Firehouse Subs, but I was reduced to only a shift or two a week or laid off permanently,” Beaumont said. In her mind, she was […]
What Does “Due Dispatch” Mean?
What Does “Due Dispatch” Mean? In every federal tax act in Canada there is a provision that refers to the requirement for the Minister (CRA) to consider an assessment, objection, appeal, etc, with “due dispatch”. This phrase has no legislative definition but it’s generally understood to be within a year or so. However, this recent […]
The Taxpayer Bill of Rights Confers No Rights
The Taxpayer Bill of Rights Confers No Rights The judge in this case had no choice but to dismiss the appeal of the non-resident taxpayer who had unknowingly made the mistake of not filing returns in Canada and electing to have their Canadian income not be counted as taxable. This story is another example of how easy […]
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 […]