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Archive For Entries On Tax

SCC Denies Charter Protection to Tax Adviser Hit with a Huge Monetary Penalty

The Supreme Court of Canada’s (“SCC”) decision in Guindon v Canada, 2015 SCC 41 [Guindon] has been eagerly awaited by lawyers in the area of taxation. It deals with a relatively new provision in the Income Tax Act, RSC 1985, c 1 (5th Supp), s. 163.2, that allows third parties, such as tax advisers or […]

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 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 [Imperial Tobacco] is about […]

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 […]

At the Court: Jury Vetting Disclosure and Tax Shelters

Jury on Trial Ibrahim Yumnu, convicted of first degree murder with two others in December 2005, will have one last opportunity to appeal his conviction of life sentence to the Supreme Court on March 14. The Court will decide whether there should be a new trial. Yumnu and the two others failed to have the […]

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, RSC 1985, c.1, the General Anti-Avoidance Rule (GAAR). On the one hand, Lord Tomlin’s holding in […]

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 Dubé v Canada

The Supreme Court of Canada (“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, RSC 1985, c I-5), living on a reserve in Quebec, many of Mr. Dubé’s sources of income are exempt from federal and […]