Tax Case Summaries

The Federal Court of Appeal Applies GAAR in a Partnership Loss Transfer Strategy: Canada v. 594710 British Columbia Ltd., 2018 FCA 166

Overturning the Tax Court of Canada’s (Tax Court) decision, the Federal Court of Appeal (FCA) ruled in 594710 British Columbia Ltd that GAAR is applicable in a loss utilization strategy where a new partner (Nuinsco) with a significant unused loss balance entered a partnership to facilitate an allocation of virtually all the partnership’s income, availing the former […]

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Tax Court Rules Rental Losses Not a Source of Income in Hustak v. The Queen, 2018 TCC 199

Key Takeaway The Tax Court finds no source of income in a case involving a taxpayer claiming “rental losses” over a few years. Although the properties were clearly investment properties, the taxpayer did not act in a business-like manner to show that rental is a source of income. Tax practitioners must be wary of rental

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Case Update: Laplante v. Canada, 2018 FCA 193 (Multiplying Capital Gains Exemptions)

Key Takeaway The decision in Laplante highlights a major pitfall that tax practitioners should be mindful of when advising clients on structures to multiply the lifetime capital gains exemption among family members. Family members who are allocated a capital gain to claim the lifetime capital gains exemption should be entitled to the money: they cannot

Case Update: Laplante v. Canada, 2018 FCA 193 (Multiplying Capital Gains Exemptions) Read More »

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