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Hamilton (2013 TCC, V. Miller) – If you miss the 90-day deadline to appeal, you can apply for an extension but don’t count on it

Her lawyer was only 7 days late in filing Ms. Hamilton’s Notice of Appeal in the Tax Court of Canada.  But the Tax Court refused her application to extend the filing time limit.  That refusal is surprising, especially because this was an Informal Procedure appeal.  Normally, the Government would agree to the application, when the taxpayer misses the deadline to appeal by so few days. … Read More »Hamilton (2013 TCC, V. Miller) – If you miss the 90-day deadline to appeal, you can apply for an extension but don’t count on it

Auclair v. The Queen (2013 TCC, Masse) — You cannot deduct work-related courses as an employment expense

Mr. Auclair was a pilot.  His employer had him take a course to qualify for piloting a particular plane.  The course cost $12,000 and, because he quit the employer early, he had to pay $9,000 of that course fee.  He deducted the cost as an employment expense for his 2010 tax year.  You can deduct the cost of supplies you consume in your work, where… Read More »Auclair v. The Queen (2013 TCC, Masse) — You cannot deduct work-related courses as an employment expense

Gardner v. A.G. of Canada and The Queen, (2013 Ont. CA) – If you want to sue CRA, you can start by challenging its reassessment

Ms. Gardner felt that CRA wrongly reassessed her in 1996 as a way to support its reassessment of her husband.  She fought the CRA’s reassessment in Court and won in 2005.  Then, in 2007, she tried to sue CRA for “the tort of abuse of power or misfeasance in public office.”  The Ontario Superior Court judge agreed with the Government that Ms. Gardner started her… Read More »Gardner v. A.G. of Canada and The Queen, (2013 Ont. CA) – If you want to sue CRA, you can start by challenging its reassessment

Anonby (2013 TCC, C. Miller) – If your employer doesn’t send your withheld taxes to the Government, you may still have to pay them.

Mr. Anonby showed that his employer had paid him more than CRA recognized.  He filed his tax return reporting $42,000 of income, including about $13,000 for withheld taxes, CPP and EI.  But his employer had not remitted that money and CRA refused to recognize it.  So, CRA reduced Mr. Anonby’s income to $29,000 — a lower amount but, because he got no credit for withheld… Read More »Anonby (2013 TCC, C. Miller) – If your employer doesn’t send your withheld taxes to the Government, you may still have to pay them.

Bower (2013 TCC, Bocock) – To get CCTB and GST tax credit refunds, you must be a Canadian resident

Canada spent about $3.5 billion in the year ended June 2012 on the refundable GST credit and about $10 billion on the Child Tax Benefit. This may explain why the rules are complex and the CRA is strict.  Obviously, Canada can only afford to give these credits to its own residents.  This case deals with the test for residence in Canada. Mr. Bower was from Nova… Read More »Bower (2013 TCC, Bocock) – To get CCTB and GST tax credit refunds, you must be a Canadian resident

Danial (2013 TCC, Bocock) – Payments to spouses are deductible only with a Court order or written agreement

Justice Bocock confirmed that if you want to claim support payments to a former spouse, you must show that the payments were ordered by a court or by a written separation agreement.  But Bocock J. did acknowledge court cases where judges have accepted less formal proof of a written agreement.   Mr. Danial didn’t have this evidence (and originally, he claimed the payments as expenses from… Read More »Danial (2013 TCC, Bocock) – Payments to spouses are deductible only with a Court order or written agreement

Pilfold Estate (2013 FCC, C. Miller) – Whether fishing business was “situated” on a reserve

A status Indian’s income from property on an Indian reserve is exempt from income tax under s. 81 of the ITA and s. 87 of the Indian Act.  But cases have expanded the meaning of “property situated on a reserve”. “If there were sufficiently strong, concrete and discernable connections between the property and a Reserve, the exemption would be available to the Indian.” (See para. 38 citing the SCC… Read More »Pilfold Estate (2013 FCC, C. Miller) – Whether fishing business was “situated” on a reserve

Lenneville (2013 TCC) CRA must show more than large differences to open a barred tax year

It’s not enough for CRA to show an increase in net worth, even a large one, to meet its burden for opening a statute barred tax year.  If the taxpayer neglected to report the income innocently through ignorance, CRA may not be able to reassess, if the normal reassessment period has passed.  See Lenneville (2013 TCC, Tardif, J.) esp. at paras. 28, 38 and 41.

9101-2310 Quebec 2012cci (Archambault) — Deposits to an agent’s bank account are not transfers

In this 40-page decision, Justice Archambault says that a person who takes money as agent of a tax debtor does not get a transfer which CRA can attack.  A principal does not transfer property to his agent.  This is one of a series of cases in which Tax Court justices show their reluctance to allow CRA to collect money from people who never had any… Read More »9101-2310 Quebec 2012cci (Archambault) — Deposits to an agent’s bank account are not transfers

Johnson (FCA): CRA can reassess late if you don’t get independent advice

Normally, CRA cannot reassess more than 4 years after CRA makes its “original assessment”, when you have first filed your tax return.  But if you make a negligent misrepresentation, CRA can reassess you any time; there is no limitation period.  In Johnson, the Federal Court of Appeal said at paras 58 and 60: In early 2003 when Ms. Johnson would have been preparing to file… Read More »Johnson (FCA): CRA can reassess late if you don’t get independent advice

Kosma-Kare Canada Inc. c. La Reine, (2014 CCI Lamarre) — You can’t get GST Input tax credits on your payroll

Can you claim input tax credits for fake invoices?  Of course not.   Revenue Quebec has faced many ITC claims for GST/QST based on third party invoices, often, as in this case, involving payments to temporary employment agencies.  RQ finds or suspects that these third party agencies are not real businesses but shell companies that give “convenience bills” (“factures de complaisance”) to allow the registrant… Read More »Kosma-Kare Canada Inc. c. La Reine, (2014 CCI Lamarre) — You can’t get GST Input tax credits on your payroll

Bandi v. The Queen, 2013 TCC (Hogan) — Charity donation schemes aren’t gifts; so you can’t get a tax credit for them

This is another in a series of charity deduction cases in which the taxpayer lost.  The charity donation scheme is similar to other schemes of the past, such as the software partnerships of the 1990s.  The basic idea is to give you a deduction based on a falsely inflated valuation of your expense or donation.   You should avoid these schemes.  They prey on your belief… Read More »Bandi v. The Queen, 2013 TCC (Hogan) — Charity donation schemes aren’t gifts; so you can’t get a tax credit for them