Monthly Archives: September 2008

Rectification, again

The Niagara region seems to be doing its part to contribute to the law of rectification in the tax context. Juliar v. Canada (Attorney General), 1999 CanLII 15097 (ON S.C.) originated in the peninsula. Now comes QL Hotel Service Limited … Continue reading

Posted in Cases, Corporations, Miscellaneous | 4 Comments

Corporations as Beneficiaries

It is often quite useful to have Holdco own shares of Opco through a trust rather than directly. In general, the other beneficiaries of the trust can still claim the capital gain exemption in respect of a disposition of the … Continue reading

Posted in Corporations, Estates and Trusts, Individuals | 2 Comments

Criminal investigations

I posted previously on the decision of the Federal Court of Appeal in Canada (Minister of National Revenue) v. Ellingson, 2006 FCA 202, which was decided in light of the Supreme Court of Canada’s decision in R v. Jarvis, [2002] … Continue reading

Posted in Cases, Miscellaneous | Leave a comment

Full-time Employees

To avoid being found to carry on a “personal services business” or a “specified investment business” under the Income Tax Act, a corporation must employ “more than five full-time employees”. The CRA, based on several tax court decisions, has stated … Continue reading

Posted in Cases, Corporations | Leave a comment

Executors' fees again

An executor who receives fees for acting as such must include the fees in income, usually as income from an office (employment income). Can this result be avoided if the fees are called a “legacy” in the will that provides … Continue reading

Posted in Cases, Estates and Trusts | Leave a comment

Paying dividends

Richard Weber at Taylor Leibow was kind enough to forward to me a CRA technical interpretation (2007-0229311I7) dated June 14, 2007, concerning the payment of dividends. A corporation purported to pay a capital dividend. The necessary election was filed, but … Continue reading

Posted in Corporations, Miscellaneous | Leave a comment