Context: Tax-related representations, warranties, and indemnities are of course common in any share purchase agreement (SPA). These contractual provisions are generally designed to ensure that the purchaser of a target corporation is protected against any taxes payable by the target…
According to data available on its website, the Canada Revenue Agency (the “CRA”) completed approximately 12,000 “real estate” audits in British Columbia for both income tax and goods and services tax/harmonized sales tax (“GST/HST”) between April 2015 and March…
In Ahamed v. The King (“Ahamed”), the Tax Court of Canada held that a tax-free savings account (“TFSA”), despite its moniker, is capable of carrying on a business of trading securities and any income earned from that business is fully…
Bousfield v. The King, 2022 TCC 169, is a recent decision of the Tax Court of Canada that addresses “alternative assessment techniques”. The decision serves as a helpful guide to both the legal bases for such techniques and the…
Much has already been written about the proposed addition of section 237.4 to the federal Income Tax Act (“ITA”), which would impose mandatory reporting in respect of “notifiable transactions.” The purpose of this post is not to explain the notifiable…
Finance Minister Chrystia Freeland announced today that the 2023 Federal Budget will be presented on March 28, 2023. Although the federal government’s 2022 Fall Economic Statement signalled its intention to proceed with a number of previously announced tax measures, it…
A loan or indebtedness which meets the following statutory requirements is generally referred to as a “prescribed rate loan”:
(a) interest is charged on the loan or indebtedness at a rate equal to or greater than the lesser…
The Prohibition on the Purchase of Residential Property by Non-Canadians Act (the “Act”) enters into force this Sunday (January 1, 2023). As supplemented by detailed regulations (the “Regulations”), the Act prohibits any “non-Canadian” from purchasing, directly or indirectly,…
On November 3, 2022, the Department of Finance released revised draft legislation proposing to implement the “excessive interest and financing expenses limitation” (EIFEL) rules first announced in Budget 2021. Initial draft legislation was released on February 4, 2022 and…
On November 4, 2022, Bill C-32 (44-1) was tabled in the House of Commons. Among other things, that Bill contains the latest version of the proposed enhanced trust reporting rules and stipulates that they would be effective for trusts’…
