Articles 2021

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Substantive CCPCs: Changes to Tax on Investment Income

  • June 13, 2022
  • Joelle Kabouchi, Senior Associate, Borden Ladner Gervais LLP, Ari Derohanesian, Summer Student, Borden Ladner Gervais LLP

The 2022 Federal Budget, tabled on April 7, 2022, proposes the introduction of the substantive Canadian-controlled private corporation rules. The change provides that non-Canadian-controlled private corporations that meet the definition of a “substantive CCPC” will also be subject to the refundable tax on investment income regime that Canadian-controlled private corporations are subject to.

Student Forum, Taxation Law

Raymond Stewart & Pansy Halls: Net worth audits and appeals to the Tax Court of Canada

  • June 13, 2022
  • Milosz Zak, Associate, Farber Tax Law

The article discusses two latest decisions by the Tax Court of Canada: Raymond Stewart v Her Majesty The Queen, 2021 TCC 94, which resulted in the removal of subsection 163(2) of the Income Tax Act gross negligence penalties levied against the appellant and allowed substantial subcontractor expenses in the context of a net worth audit; and Pansy Halls v Her Majesty The Queen, 2022 TCC 14, which dealt with a net worth audit of an unincorporated restaurant business owned by two spouses.

Student Forum, Taxation Law

Keeping it in the Family

  • June 13, 2022
  • Fayme K. Hodal

Bill C-208 received Royal Assent on June 29, 2021, and brought amendments to section 84.1 which allows for transfers of qualified small businesses, family farms, and fishing corporations to receive the same tax treatment when transferred between family members, as when the business is sold to an unrelated third party.  From an economic policy perspective, these amendments are positive to say the least.

Student Forum, Taxation Law

FX Straddle Trading Activity Not a Business – FCA Applies The “Pursuit Of Profit” Source Test in Paletta

  • June 13, 2022
  • Sameer Nurmohamed, Senior Associate, Osler, Hoskin & Harcourt LLP

On May 17, 2022, the Federal Court of Appeal delivered its decision in HMQ v The Estate of Pasquale Paletta, 2022 FCA 86 which applied the “pursuit of profit” source test in Stewart by ruling that an activity devoted solely to tax avoidance cannot give rise to a source of income in the form of a business under the Income Tax Act (Canada). This is true even if the activity lacks a personal or hobby element and appears to be purely commercial in nature.

Student Forum, Taxation Law

Budget 2022: Amping Up CRA’s Enforcement Activities and Targeting Financial Crime

  • June 13, 2022
  • Jennifer Flood and Greg DelBigio, Q.C., Thorsteinssons LLP

The 2022 Budget shows once again Canada’s ongoing commitment to the investigation and prosecution of financial crime including money laundering and tax evasion, including by injecting substantial funds into expanding the CRA’s audit and enforcement activities.

Student Forum, Taxation Law

A Lawyer’s Reflections on COVID-19

  • June 10, 2022
  • Neha Chugh

Criminal defence lawyer Neha Chugh reflects on working from home during COVID-19, separating work and home life, and returning to court.

Criminal Justice, Student Forum
Head-shot photo of authors

Does Mediation Satisfy the OHSA Duty to Investigate Workplace Harassment?

  • June 10, 2022
  • Ruthie Wellen & Jesse Elders, Kastner Lam LLP

This article considers whether alternative dispute resolution, such as mediation, meets the statutory requirement to conduct an investigation into allegations of workplace harassment under the Ontario Occupational Health and Safety Act. We conclude that alternative dispute resolution does not satisfy an employer’s duty to investigate, but we encourage employers to consider using mediation and other restorative techniques as part of their overall response to a complaint of workplace harassment.

Labour and Employment Law, Student Forum