Uncertainties of digital asset dispositions
Introduction In the ever-evolving landscape where digital assets play a vital role in corporate, commercial, and financial spheres, the transfer of cryptocurrency as part of different transactions has become commonplace. This includes instances where digital assets are pledged as collateral […]
Before setting off on the yellow brick road of tax controversy, do you know where it leads?
Dealing with tax authorities can be very distressing for taxpayers. Correspondence from the tax authorities often contain deadlines which are easy for the taxpayer to miss. In a recent Tax Court of Canada decision, Osadchuck v. The King, 2023 TCC […]
Cryptocurrency and tax reporting obligations
Background framework Section 233.3 of the Income Tax Act (Canada)[1] (the “ITA”) requires Canadian resident taxpayers (subject to certain exceptions) and partnerships with Canadian resident members (subject to certain exceptions) (each referred to as a “specified Canadian entity”) to report […]
Budget 2021 – Tax enforcement, audits, and oral interviews
Recently, Chrystia Freeland, Deputy Prime Minister and Minister of Finance, presented the 2021 Budget on behalf of the Government of Canada (“GOC”). Debits and Credits. The cornerstone of any accounting textbook. For the federal government, the debits (spending) have not […]
Audit First, Pay GST/HST Tax Refunds (Much) Later
Canadian Tax Focus, Volume 10, Number 4, November 2020
GST/HST registrants who commonly make zero-rated supplies often file a return claiming a net tax refund, relying on the prompt payment of that refund in order to finance their businesses. The minister is required to pay the refund “with all […]
Appeals of Charity Revocations: What Is The Proper Standard?
Canadian Tax Focus, Volume 10, Number 4, November 2020
Until recently, when a charity challenged its revocation at the FCA, the charity had to prove that the CRA’s decision to revoke was unreasonable. It now appears that the charity must prove that the CRA committed a palpable and overriding […]
Revoking a charity’s registration: The standard of review
Canadian Tax Focus, Volume 10, Number 3, August 2020
In Ark Angel Foundation v. Canada (National Revenue) (2019 FCA 21), the minister’s decision to revoke the charitable status of the Ark Angel Foundation was upheld, apparently on the basis that the foundation had insufficient control and oversight over the use of […]
Molly Luu quoted in Toronto Star article on COVID-19 bailouts for tax-haven companies
Toronto Star, "Justin Trudeau’s position on COVID-19 bailouts for tax-haven companies gets murkier"
The article examines whether companies registered in tax havens should be excluded from receiving COVID-19 bailout funds: There are too many unanswered questions about how the government would exclude companies from receiving bailout funds, said Molly Luu, a tax lawyer […]
To delay or not? Extensions by the CRA and the Tax Court of Canada
CRA has published its position on collections, audit, objections and appeals in light of the COVID-19 pandemic. Most noteworthy, CRA’s stated positions are the following: “Collections activities on new debts will be suspended until further notice, and flexible payment arrangements […]
COVID-19: Sales tax and tax controversy updates and insights
Businesses of all sizes are scrambling to adapt to the constantly changing world in which we find ourselves. Owners are worried about cash flow. Routine business operations are migrating online. New revenue streams are being explored. Meanwhile, we are inundated […]
