Comments for SimpsonWigle Law LLP Tax News

Comment on Double Taxation in US Health Care Reform by David Bazar, CA, CPA

David Bazar, CA, CPA — Mon, 18 Jan 2010 10:39:57 +0000

Welcome Nathan!
The result in Niemeijer is what I would have expected.
The Canada-US treaty is really just the exception to a well established rule.
It seems to me that private health insurance premiums will not qualify as social security taxes just because they are mandated but that they will qualify as a medical expense for Canadian income tax purposes.
I can’t imagine that the associated penalties would qualify for any tax relief in Canada.
I wonder if US citizens resident in Canada (and elsewhere outside of the US) will be obliged under US law to purchase US medical insurance that they probably would never use.

Comment on The Long Arm of Section 160 by John Loukidelis

John Loukidelis — Tue, 12 Jan 2010 12:55:46 +0000

I can’t comment on the particular circumstances to which you refer, but section 160 provides that the transferee’s liability is for all amounts owing by the transferor under the Act, which would include interest and penalties.

Comment on The Long Arm of Section 160 by Guy

Guy — Mon, 11 Jan 2010 21:21:57 +0000

Does a shareholder’s liability under Section 160 in relation to a dividend paid in 2001 include interest and penalties that a corporation is being charged on the value of the tax owed for that year, or is just the amount of the tax owed?

Comment on Corrupt by Karen

Karen — Wed, 09 Dec 2009 00:01:56 +0000

Some of the CRA, may be honest, however there were arrests for corruption. When, people lose their business, their savings and their homes, and end up with nothing, because, of the CRA shredding their papers, they took it to court, and won, however, the CRA refused to reimburse them. And I have found from my experience with them, if they are in the wrong, they will lie and deny, and will not co-operate with you, what so ever. I agree the CRA should be dissolved. Anyone on a wage should have their income tax bill taken from their checks. I think, that person said, there would just have to be a watch dog, to keep the wealthy toeing the line. The savings of ridding the CRA for the everyday citizens, would be in the millions. If the government can tax citizens, with a percentage on the HST, they can dammed well do the same, with income tax.

Comment on Nightmare by Gloria

Gloria — Tue, 08 Dec 2009 23:41:25 +0000

This is the case for thousands of Canadian tax payers. I am a senior who has been fighting them since 2004. My son had passed away, and left me an inheritance. Not knowing if it was taxable, they say when in doubt, call the CRA, which I did. I was told the inheritance, was not taxable, so the funds were used to pay bills off, etc. I got a statement from CRA which had my income at an amount, I wished was true. The CRA, then said the inheritance was not tax free, from there on, everything went to hell in a hand basket. The CRA, sent me so many different statements, I had no clue what I owed. I ended up taking all my papers to an accountant, he couldn’t get it straightened out. My house sold, so I moved to a different town. I had been asking CRA to send all the documents they had, to see where it went wrong, they declined. I then took my papers to my MLA, they had no success either. I handed it over to my son, he called and asked them again to send all the documents to us, they declined again. As I am a senior, my son insisted that I move to where he and his family lived. My son, called the CRA, again for documents to be sent. Would you believe, they said I didn’t file my 2007 tax return. It was filed late, because of illness and, Again I had moved. When my son looked back, my 2007 taxes had been filed in July. My son was furious and told CRA, they were to send the documents now. CRA sent the documents, they didn’t make a lick of sense, those documents looked as though, there were two different people. So, I called, and got, six different phone numbers given to me. I then had my local revenue agency number to call. She found three errors, however, my son was so steamed, he gathered every thing up and took it to the MLA again. And that is where it is still sitting to-day. The CRA, refused to co-operate, what so ever. And, of course, the local agent had a different set of numbers. Why can’t income tax be deducted from a payroll, or seniors cheques, at a lower rate, and tax the wealthy at a higher rate. That would mean the CRA, could be disbanded, and would need a watch dog to police the large company’s. Income tax has become so complicated, their staff can’t keep up with all the tax grabs.

Comment on Freeze Shares by Michael

Michael — Wed, 02 Dec 2009 21:29:11 +0000

You may find an interesting method of determining a reasonable rate as the rate on long bonds (30 years) x (1 -rate on interest income) / (1 – rate on deemed dividend). As of Dec 1, 2009 I would calculate (4.25%) x (1 – 44%) / (1 – 30%) or about 3.4% cumulative dividend rate.

Comment on The Long Arm of Section 160 by John Loukidelis

John Loukidelis — Fri, 30 Oct 2009 09:38:10 +0000

Michelle, you can find more information on section 160 of the ITA on my blog at blog.simpsonwigle.com by searching “160″. That said, the information on my blog is general in nature, and it is no substitute for professional advice that addresses your particular circumstances. I would recommend strongly that you contact a tax lawyer (ideally) or a good tax accountant for help with your problem.

Comment on The Long Arm of Section 160 by MICHELLE

MICHELLE — Thu, 29 Oct 2009 21:04:59 +0000

i am currently being assessed by the cra under the article 160 law. Where can I find some more info regarding consideration?? I need help please…

Comment on Rectification, again by John Loukidelis

John Loukidelis — Wed, 21 Oct 2009 15:17:01 +0000

The citation for the Court of Appeal decision, which is very brief, is QL Hotel Service Limited v. Ontario (Finance), 2009 ONCA 715. The decision was just rendered, and so it won’t be available on line for some time.

Comment on Rectification, again by John Loukidelis

John Loukidelis — Wed, 21 Oct 2009 12:52:34 +0000

I am told that the Ontario Court of Appeal has dismissed the Crown’s appeal in QL Hotel. I’ll post a link once it’s available.