FACTS Jobin owned shares in Groupe AST (assume FMV = $13 million and ACB = $nil). He received an offer for his shares from a third-party purchaser. To minimize his taxes, Jobin undertook the following steps. Jobin rolled his shares in Groupe AST – which had a fair market value of $13 million – on […]
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
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
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 »
Payments out of Pension and Deferred Profit Sharing Plans – ITAR 40 NO.: IC 74-21R DATE : June 6, 1977 SUBJECT: Payments out of Pension and Deferred Profit Sharing Plans – ITAR 40 1. Under the former Income Act Tax certain receipts of income, such as lump sum payments, and other transactions which resulted in a taxpayer being required
Payments out of Pension and Deferred Profit Sharing Plans – ITAR 40 Read More »