Over the past twenty-five years or so, commentators have lamented the sometimes inordinate influence of tax policy considerations in the administration and adjudication of the federal registered charities regime. There is no doubt fiscal implications ought to be taken into account in structuring … [Read more...]
‘A charity is a charity is a charity’ – The Common Law and Income Tax Act Charity Regulation
As I write this column, a major government report on a Canadian social innovation and social finance strategy is pending. Earlier this year, the federal Budget contemplated exploration of preferential tax treatment for certain types of journalism. In each of these fields, it has been suggested that … [Read more...]
BenchPress – Vol 40-6
1. CRA loses out to Solicitor-Client Privilege The Canada Revenue Agency (CRA) sent a lawyer a request to produce documents about his personal finances and also his current accounts receivable. The lawyer provided some material but refused to produce his current accounts, claiming that to do so … [Read more...]
Married vs. Common Law – What’s the Difference Anyway?
Introduction Most individuals who have recently wed realize this will change their income tax status, but common law couples often fail to realize they may also be considered married by the Tax Man. Many are surprised to learn that a different set of rules applies the next time they file their … [Read more...]
A helpful Guidance on Ineligible Individuals, but questions remain
Andrew Coyne recently drew much attention when he mused in the National Post about the merit of abolishing the charitable tax credit so registered charities could have free rein to engage in political activities. However, the credit is arguably at far greater risk from the abusive tax shelters that … [Read more...]
Is Good Luck Taxable?
Easy Money There seem to be plenty of opportunities to win – big and small – in our lives, from lotteries to radio contests to a friendly wager with a friend. Whether it’s $10 on who wins the golf game, or $10 million from the lottery, does the tax man share in our good fortune? In Canada, the … [Read more...]
It is trite law that guidance about registered charities issued by the Canada Revenue Agency (CRA), through its Charities Directorate, does not have the force of legislation or regulations. Courts can reject or ignore it when determining the permissibility or impermissibility of an organization’s … [Read more...]
Taxation and the Criminal Law: Tips for Accounting Professionals & Legal Advisors
At first glance, one might think that tax law and criminal law are mutually exclusive areas of practice. Taxation largely deals with the application of the Income Tax Act (“ITA”) and Excise Tax Act (“ETA”) to financial transactions entered into by individuals, corporations, trusts, and others … [Read more...]