Canadian Appeals Monitor Information and Commentary on Upcoming and Recent Appeal Court Decisions

Category Archives: Tax

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The Importance of Borders in a Borderless World: Ontario Court Stays Action for U.S. Transportation Taxes

Posted in Case Comments, Class Actions, Conflict of Laws, Tax

In Prince v. ACE Aviation Holdings Inc., the Ontario Court of Appeal stayed a class action based on allegations that Air Canada had improperly collected transportation taxes levied under the U.S. Internal Revenue Code (the “Code”). The Court’s decision highlights the difficulty in predicting the outcome of jurisdictional disputes involving e-commerce transactions. In addition, it… → Read More

Using contract law to fix tax (and other) mistakes: the Supreme Court of Canada recognizes a rectification-like remedy under Quebec law

Posted in Case Comments, Contracts, Tax

The problem and the fix A taxpayer intends to undertake a transaction on a tax-efficient basis. But the transaction gets papered wrong, and the intended tax treatment is not achieved. Can the law of contract save the taxpayer by allowing a court to rewrite the contract documents retroactively in order to achieve the original intention… → Read More

What will Justice Nadon’s appointment bring to the Supreme Court?

Posted in Aboriginal, Administrative, Charter of Rights, Class Actions, Competition, Intellectual Property, Tax

Background Earlier this week, the Prime Minister surprised many Supreme Court-watchers by nominating the Honourable Marc Nadon to replace Justice Fish at the Supreme Court of Canada. Given this recent appointment, the Canadian Appeals Monitor has taken a look at Nadon J.’s jurisprudential legacy to date and identified key cases which illustrate his judicial leanings, especially… → Read More

Government Cannot Withhold a Hidden Agenda in its Dealing with the Courts

Posted in Administrative, Case Comments, Procedure, Tax

A case recently decided by the Federal Court of Appeal reiterates the very high standard of good faith to which the Minister of National Revenue (the “Minister”) must be held when dealing with the courts in the context of an ex parte application provided by the Income Tax Act (“ITA”). For example, the Minister cannot… → Read More

The Second Opinion: BCCA Finds Limited Partners Not Purchasers of Property Sold to Limited Partnership

A Commentary on Recent Legal Developments by the Opinions Group of McCarthy Tétrault LLP

Posted in Corporate Law, Tax

When a limited partner sells property to the limited partnership, is the limited partner itself a purchaser of that property, or is the only purchaser the general partner on behalf of the limited partnership?  That is the question which the British Columbia Court of Appeal recently addressed in Edenvale Restoration Specialists Ltd. v. British Columbia… → Read More

UK Supreme Court Declines to Recognize Legal Advice Privilege for Accountants

Posted in Case Comments, Procedure, Tax

In a watershed ruling that is sure to have implications throughout Canada, the UK Supreme Court has held that legal advice (or “solicitor-client”) privilege does not attach to communications between accountants or other non-legal professionals and their clients. The decision in Prudential holds this to be the case even where the communications involve legal advice which the… → Read More

SCC Pulls Back the Curtain on Trust Residence

Posted in Case Comments, Tax

Background The Supreme Court of Canada has recently clarified in Fundy Settlement v. Canada that for the purposes of Canadian taxation the residence of a trust is where the central mind and management resides. This decision, confirming both the Tax Court of Canada and the Federal Court of Appeal lower court decisions, is a major… → Read More

Rectification of Contracts in Québec: Another Loss for Taxation Authorities and Final Word to be Received from the Supreme Court

Posted in Case Comments, Contracts, Tax

As was already mentioned in the previous blog posted on October 25, 2011 by our colleague, Brandon Kain, the Supreme Court of Canada has granted leave to appeal in a case involving the rectification of contracts in Agence du revenu du Québec vs. Services environnementaux AES Inc. Recently, the Supreme Court of Canada also granted… → Read More

SCC to Consider Rectification of Contracts

Posted in Case Previews, Contracts, Tax

The Supreme Court of Canada has granted leave to appeal in a case involving the rectification of contracts. The appeal in Services Environnementaux raises the question of whether Quebec law permits the rectification of agreements, in a manner that is retroactively enforceable against tax authorities, when their written terms diverge from the common intentions of the parties…. → Read More

FCA to Consider Deductibility of Contributions to a Sickness and Accident Insurance Plan for Single Employee

Posted in Case Previews, Tax

Are contributions to a particular sickness and accident insurance plan for a single employee deductible for tax purposes?  The Federal Court of Appeal will decide that issue when it hears the taxpayer’s appeal in Labow v. R. in Ottawa on October 4th. The taxpayer, Dr. Labow, is a surgeon and professor of surgery. With the help… → Read More

FCA to Review Discretion to Decline Band Members Retroactive Tax Relief

Posted in Aboriginal, Administrative, Case Previews, Tax

On September 1, the Attorney General of Canada appealed the finding of the Federal Court in Abraham v. Canada, that the Minister of National Revenue had erred in denying members of the Sagkeeng Band tax relief on wages earned while working in a mill located on former reserve lands. The Band members had contended that relief was due… → Read More

SCC to Consider the Residence of Trust for Tax Purposes

Posted in Case Previews, Corporate Law, Financial Services, Tax

The residence of trusts and other business entities for income tax purposes has long been a source of confusion.  The Supreme Court of Canada will attempt to resolve that confusion in the St. Michael Trust cases, from which it recently granted leave to appeal. Decisions Below The cases arise as conjoined appeals from the decision of the Federal Court of Appeal in St…. → Read More

Should Redeemable-Upon-Demand Shares Be Included in Paid-Up Capital or Long-Term Debt?

Posted in Case Comments, Financial Services, Tax

On January 29, 2010, the Appeal division of the Court of Quebec determined that Credit Ford Canada Ltd. did not have to include the $1,170,000,000 worth of retractable shares issued in its paid-up capital (and thus be taxed on it) and could, instead, consider it as a long-term debt. This decision alone made a $2,416,767… → Read More