58 results found

When the SCC confirmed that discretionary denials under s. 247(10) fall outside the Tax Court's jurisdiction, MEGLobal's appeal was effectively doomed.

Under Tax Court oversight, the results and economics shift; unsupported positions are exposed and no longer insulated from real scrutiny.

941624 Alberta Ltd. appealed reassessments involving unreported income and denied expenses. Because the company was a large corporation, it had to meet the specific objection requirements...

Deferral as strategy: Departure tax can be deferred without interest when acceptable security is posted, preserving liquidity during transition.

Wuswig v. HMK shows how a technically correct reorganization unraveled when economic reality and interpretive credibility were tested.

Counter Tax Litigators LLP is excited to announce the updated Practical Insight on Penalties under the Income Tax Act (2024), authored by Peter Aprile, James Roberts, and Jennifer Mak...

Quebecor v. HMK shows how a well-framed economic narrative can support a CRA loss consolidation challenge...

No inference of intent: Courts rejected the claim that surplus cash was earmarked for decommissioning in the absence of contemporaneous reserves, allocations, or disclosures.

A Panama-based trust with a Quebec contributor faced federal surtax and denied provincial abatement despite paying Quebec tax, creating a situation where it was taxed as residing nowhere in Canada. The Tax Court dismissed the appeal, calling the outcome unfair but mechanically required by statute, illustrating how some tax disputes are predetermined by clear statutory language regardless of perceived unfairness.

BMO carried on business through U.S. branches and was subject to both U.S. federal and New York City income taxes. After IRS audits for 1997–2001...

Richard Homburg's $1.16 million stock option deduction was denied after the Tax Court found his company's own securities filings contradicted his claim of arm's length dealing. The case demonstrates how corporate disclosures made to investors and regulators can become decisive evidence in tax disputes, even when ownership structures appear to support a taxpayer's position.

The Tax Court's mandate allows the DOJ and CRA to introduce new alternative theories late in litigation, which can increase cost, delay the litigation timeline, and introduce litigation fatigue.

Vortex Energy Services Ltd. developed mobile water heaters for oilfield fracking and claimed more than $1.9 million in SR&ED expenditures over two years. The CRA rejected the claims, finding the work routine.

D'Arcy v. HMK shows that meeting mechanical requirements is not enough; interpretive precision determines whether a structure holds under scrutiny.

The CRA is imposing more penalties, including foreign reporting penalties. These penalties might, prima facie, look the same, but there are key differences.

By the time the CRA issues the reassessment, the record is already taking shape. During the objection, the CRA will reinforce its interpretation of the facts and how they apply...

Keybrand Foods Inc. v. HMQ, shows how interest-deductibility disputes, and others like them, are shaped after reassessment as the objection record crystallizes...

The CRA no longer relies on blunt audit tactics to detect offshore non-compliance. It operates a layered system; data-driven, globally integrated, and increasingly predictive.