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Archive For Entries On Tax

Blackmore v The Queen: Separate Tax Treatment of Communal Religious Organizations Not Available to Polygamous Mormon Group

Section 143 of the Income Tax Act (ITA), colloquially known as the “Hutterite rule”, provides for the separate tax treatment of communal religious organizations that satisfy the definition of a “congregation” as defined in subsection 143(4). This section was enacted in response to litigation undertaken by a number of Hutterite colonies in 1977. Following its […]

The Supreme Court Redefines Taxable Consideration: Daishowa-Marubeni International Ltd. v. Canada

The Supreme Court’s decision in Daishowa-Marubeni International Ltd. v. Canada, 2013 SCC 29, addressed the question of how much tax was owed by a forestry company on the sale of land with environmental reclamation obligations.  It will be of considerable economic significance for all types of resource industries.  This can be divined from the range […]

Imperial Tobacco v The Queen: A Lose-Lose Situation? Deduction for Amounts Paid to Employees for Stock Options Refused

It is not common for TheCourt.ca to comment on tax cases. Tax decisions often seem complicated and, unless you are an accountant, a corporate executive or a tax lawyer, they seem removed from your daily life. At face value, the case of Imperial Tobacco Canada Limited v The Queen, 2011 FCA 308 is about whether […]

At the Court: Moldowan Revisited and Learning Disability Human Rights Claim Considered at the SCC

Between a Hoof and a Hard Place John Craig is a Toronto lawyer with a successful practice in securities, M&A, and mining law. In his spare time, he breeds and raises horses. Although his income is largely derived from his position as a partner at Cassels Brock, his horse breeding activities have been defined as […]

Appeal Watch: Obonsawin and Klymchuk Denied Leave to Appeal

Supreme Court Denies Leave in Indian Act GST Exemption Case The Supreme Court will not reconsider whether an Aboriginal’s interest in employment contracts can be considered “property” for the purposes of tax exemption under the Indian Act. In Roger Obonsawin v Her Majesty the Queen, 2010 TCC 222, the Tax Court of Canada determined that […]

When Tax Avoidance is Abusive: Elucidating the ‘Spirit’ of the Income Tax Act in Copthorne Holdings Ltd. v. Canada

When deciding cases relating to tax planning—or the minimization of a taxpayer’s tax burden—judges face the daunting task of reconciling a tension between longstanding common law principles and s.245 of the Income Tax Act, R.S.C., 1985, c.1,  the General Anti-Avoidance Rule (GAAR). On the one hand, Lord Tomlin’s holding in Duke of Westminster that “every […]

Bastien Estate and Dube — Taxation of Income of Registered Indians

The Supreme Court of Canada has overturned a long line of Federal Court of Appeal cases that had held that registered Indians who earned interest from investments held in financial institutions located on reserve were liable for tax. On the face of it, the decisions of the Federal Court seemed to directly contradict section 87 […]

Aboriginal Taxation: Does the Indian Act Exempt Interest Income? Find Out Soon in: Alexandre Dubé v. Her Majesty the Queen

The SCC is currently considering the very modern problem of Alexandre Dubé’s capital gains tax woes. As a member of the Obejiwan First Nation (as defined by the Indian Act R.S.C. 1985, c.I-5), living on a reserve in Quebec, many of Mr. Dubé’s sources of income are exempt from federal and provincial taxation schemes. He […]

Antle v. Canada (2010): That Trust was a Sham!

Last month, the Federal Court of Appeal, in Antle v. Canada, 2010 FCA 280 [Antle 2010], upheld the Tax Court of Canada decision in Antle v. The Queen, 2009 TCC 465 [Antle 2009], finding that an offshore spousal trust was not valid. Both courts agreed that the primary purpose of the spousal trust was to […]

SCC to Consider Garnishment under the Federal Income Tax Act in Canada Trustco v. The Queen

As many readers are likely aware, the Minister of National Revenue (the “Minister”) has very significant tax collection powers and employs them often. A quick look at the more recent convictions in the province of Ontario makes that clear. In fact, under certain circumstances, the Minister has the power to garnish a person’s paycheque or […]