“Checking the Box” not enough to avoid director’s liability for outside directorA decision of the Tax Court of Canada has provided further insight into the duties of an “outside” director who wishes to rely on the due diligence defence to avoid a director’s liability assessment under the Income Tax Act (the... |
Release of draft Canadian tax legislationOn August 9, 2022, legislative proposals relating to the Income Tax Act (the “Act”) and other tax legislation were released by the Department of Finance for public feedback (the “August Proposals”). The August Proposals seek to implement certain measures previously... |
Post-COVID emigration: Don’t forget the tax!As COVID-19 travel restrictions are lifted, individuals who are usually resident in another country but sheltered in place in Canada during the pandemic may decide to return to their countries of residence. Those individuals who are planning to leave Canada... |
Budget 2022: Substantive CCPCs and share transactions involving a non resident or public companyThe 2022 Federal Budget was tabled in the House of Commons on April 7, 2022 (“Budget Day“) by the Honourable Chrystia Freeland, Canada’s Deputy Prime Minister and Minister of Finance. A summary of the personal income tax measures, business income... |
Alberta court confirms competent Testator’s right to privacyIn the recent Alberta decision of Duhn Estate, 2021 ABQB 35, the Court of Queen’s Bench has confirmed that, absent a sufficient evidentiary basis, the Court will not displace a testator’s right to keep her pre-death financial life private and... |
Using anticipated losses within ownership structuresAs much of Canada begins to loosen social restrictions surrounding Covid-19, many owners will be taking stock of the economic impact of the pandemic on their businesses. While the full economic picture is not yet known, many business are expected... |
Third party tax assessments and deathFor purposes of the Income Tax Act (the “Act”) are we still related to someone after their death? In certain circumstances, the answer to this question will determine whether a taxpayer is jointly and severally liable for the unpaid tax... |
How Long is “awhile”?: Kirst Estate (Re) and Holographic WillsA recent decision of the Court of Queen’s Bench of Alberta, Kirst Estate (Re), provides a useful reminder of some of the issues that may arise through the use of holographic wills. William Kirst (the “Testator”) of Calgary, Alberta died... |
Many Canadians Collect Loyalty Points, but What Happens to Those Loyalty Points After We Pass Away?In most cases, loyalty points will not be subject to the deemed disposition on death found in subsection 70(5) of the Income Tax Act (Canada) because they are unlikely to be capital property. There is no “enduring benefit” gained from... |
House “Giveaway” Could Turn Principal Residence Gain Into Taxable Business IncomeIn a recent news story out of Millarville, Alberta, a woman who has been unable to sell her home has instead decided to give it away in a letter writing contest. The woman is required to downsize because she can... |
(Re:) Toigo Estate and the Power of EncroachmentWhen implementing an estate plan that involves a life interest, such as a spousal trust, it is typical to grant the Trustee a power to encroach on the capital of the trust for the benefit of the life interest beneficiary.... |
