I reported on a tax case involving All Saints Greek Orthodox Church here. Now the Toronto Star is reporting that the church issued receipts with a total value of about $273 million as part of the program under audit in the case! One suspects the CRA is not happy with the church’s management. The 3,000 donors involved aren’t likely happy either.
Beth DeMerchant, formerly of Torys LLP, testified earlier this week about her role in not making public non-compete fees paid to Lord Black (among others) in 2000. She is quoted in this morning’s National Post saying
[We] violated the most basic rule of tax law—get help.
I think I’ll frame that one.
The following article on testamentary trusts appeared in the latest edition of the Hamilton Law Association Law Journal. (more…)
As readers of this newsletter well know, the clear message from the courts lately has been “Woe unto you taxpayers who participate in retail tax shelters or other tax-driven schemes!” The Federal Court of Appeal has reiterated that message in Nunn v. The Queen, 2006 FCA 403 (decision not yet available online). (more…)
To claim an allowable business investment loss (an ABIL) in respect of an amount loaned to a corporation, a taxpayer must establish (among other things) that the amount has become a bad debt. Kyriazakos v. The Queen, 2007 TCC 66, includes an interesting approach to this question by one Tax Court Justice.
I couldn’t help snickering a little at the following news release:
But of course it’s not really the CRA’s fault that “Canada’s New Government” seems intent on making life as complicated as possible for Canadian taxpayers.
In Desormiers c. Lalumière, 2006 QCCS 2357, a son purchased shares from his mother and father for $500,000. The purchase and sale agreement stated that the purchase price was subject to adjustment: if the Minister of National Revenue determined that the fair market value of the shares was some other amount, the parties would adjust accordingly. A CRA agent later opined that the value of the shares was nil, but the Quebec Superior Court ordered the son to pay the purchase price originally agreed upon anyway. The Quebec Court of Appeal dismissed the son’s appeal, and the Supreme Court recently refused leave.
I will be speaking about split receipts at the National Charity Law Symposium on May 10, 2007, in Toronto. I hope to see some of you there.
Joe and I prepared a presentation for some area accountants on the new eligible dividend rules. You can download a copy here.
