The CRA’s Information Circular IC 76-19R3 sets out its position on the procedures for correcting T2057s (the form used for elections under section 85 of the Income Tax Act (Canada)). In effect, the Circular identifies two types of mistakes.
In a February post, I noted that the Tax Court does not have jurisdiction over an assessment that relates only to Ontario taxes. In Hiscock v. Canada, 2007 FCA 382, the Court held that the Tax Court did have jurisdiction to determine whether a taxpayer was a resident of Nova Scotia.
In Melnyk v. The Queen, 2007 TCC 733, and Beauchamp v. The Queen, 2007 TCC 747, the Tax Court refused to allow a taxpayer to deduct legal fees paid to defend against a claim for increased support payments. The Court in Melnyk cited the following passage from Nadeau v. M.N.R., [2004] 1 F.C. 587, [2004] 1 C.T.C. 293, [2004] D.T.C. 5736, 2003 FCA 400 (at ΒΆ18):
Conversely, the expenses incurred by the payer of support (either to prevent it from being established or increased, or to decrease or terminate it) cannot be considered to have been incurred for the purpose of earning income, and the courts have never recognized any right to the deduction of these expenditures (see, for example, Bayer, supra).
Subsection 30(2) of the Tax Court of Canada Rules (General Procedure) provides that “where a party to a proceeding is not an individual, that party shall be represented by counsel except with leave of the Court and on any conditions that it may determine.” (more…)
For quite some time now, the CRA has taken the position that (to quote the Employers’ Guide – Payroll Deductions and Remittances ):
Fees paid to executors or liquidators and administrators are either income from office or employment or business income, depending on whether the executor or administrator acts in this capacity in the regular course of business.
Registered Charities Newsletter No. 29 is now available from the CRA website.
