p>Earlier this year, in Black v. HMQ (2014 TCC 12), Lord
Conrad Black unsuccessfully argued in the Tax Court of Canada
that, due to his U.K. residency status, he should not be subject to
Canadian tax on certain income and taxable benefits (see our
previous post
here).
In the case, the Tax Court held that a liberal and purposive
approach must be adopted when interpreting tax treaties
(i.e., Canada-United Kingdom Income Tax
Convention). Applying this approach, the Tax Court held that
Lord Black could be deemed a U.K. resident for the purposes of the
Canada-UK Treaty and also a Canadian resident for
the purposes of the Income Tax Act (Canada) (the
"Act").
Further, the Tax Court held that Article 27(2) of the
Canada-UK Treaty applied to enable the CRA to assess a
Canadian resident's non-Canadian office and employment income.
Consequently, the Tax Court held that Lord Black was liable for tax
on the income and benefits in question.
