Another tax shelter case, another loss for the taxpayer: see Norton v. The Queen, 2008 TCC 91. It’s clear that the courts have little patience for these schemes, which is a real problem for those trying to promote legitimate shelters. The cynical among you will say “Is there such thing as a legitimate shelter?” There is. The problem is trying to distinguish the good from the bad.
In my post for June 17, I discussed a case allowing interest relief for court-related delay for a taxpayer whose objection was held in abeyance pending the outcome of the court case. In the June 5 Tax Topics, John Yuan points out a potential trap for a taxpayer whose objection is being held in abeyance. (more…)
Bill C-50 received Royal Assent yesterday and became law as S.C. 2008, c. 28.
A number of my faithful correspondents have written to me to draw my attention to a story on the front page of yesterday’s Globe and Mail. The story recounts the saga of an insurance executive who went to Tax Court and won over the issue of whether an employer-supplied golf club membership was a taxable benefit even though the executive hated golf and rarely used the membership.
The case is Rachfalowski v. The Queen, 2008 TCC 258, which is a decision of Chief Justice Bowman. As usual, the Chief in his reasons puts on a virtuoso performance, but he does so in the context of an informal procedure appeal where the amounts in dispute were quite small. It doesn’t matter though: the case will provide helpful guidance for tax professionals wrestling with similar issues, as he no doubt intended. Chief Justice Bowman will be sorely missed when he retires from the bench in July.
A Federal Court decision from earlier this year considers whether interest relief should be available to a taxpayer whose objection is held in abeyance pending the outcome of the appeal. (more…)
It seems that lately the CRA has been refusing to accept corporate authorization forms (RC59s) signed by anyone other than a director of a corporation. The CRA will refuse to accept the consent unless it is signed by somebody who appears in the “Ontario registry” as a director. What is the CRA up to now? (more…)
Bill C-50—”An Act to implement certain provisions of the budget tabled in Parliament on February 26, 2008 and to enact provisions to preserve the fiscal plan set out in that budget”—received third reading in the House of Commons yesterday.
Joe Monaco will be giving a presentation at the CRA practitioner’s roundtable on June 5 at the Royal Botanical Gardens.
Here’s some tax trivia to get us through the month of June. How does one cite the Income Tax Act? (more…)
The CRA posted a useful, albeit brief, memorandum a few weeks ago on its website about model objects for charities.
