Baker Tilly WM LLP

Inclusion of Life Insurance loan in Income

• • 0 Comments

In Neszt v. The Queen 2019 DTC 1105, the taxpayer held two life insurance policies with a life insurance company. He subsequently took personal loans against his life insurance policies. The amount of each such loan was greater than the adjusted cost base of each policy, (being the sum of premiums paid by the insured minus dividends declared and cost of insurance.) The life insurance company issued two T5 slips….

Inclusion of Life Insurance loan in Income Continue Reading »

Canada Revenue Agency, Insurance, Loans, Tax Issues, Uncategorized

DEEMED TRUST: TAX DEBTS AND PROCEEDS OF INSURANCE

• • 0 Comments

In Canada (A.G.) v Nortip Development 2019 NLCA 34, a company fell behind in remitting payroll withholdings and related amounts for several periods over a two-year period to the Canada Revenue Agency (“CRA”). Around the same time, a property with a mortgage owned by the same company, was destroyed by fire. A portion of proceeds of insurance on that property (equal to the amount owed to the CRA) were claimed….

DEEMED TRUST: TAX DEBTS AND PROCEEDS OF INSURANCE Continue Reading »

Canada Revenue Agency, Property, Real Estate, Small Business, Tax Issues, Trusts, Uncategorized

AGREEMENT RECTIFICATION APPLIED FOR AND ALLOWED!

• • 0 Comments

Due in particular to the outcome of some recent court cases, many have feared that formal applications to rectify plans would receive a favorable hearing only in the event of obvious clerical errors in the documentation. However a recent court case in the Supreme Court of British Columbia demonstrated that rectification is possible in circumstances where a definite agreement has gone awry in its implementation. In Crean v. Canada, 2019….

AGREEMENT RECTIFICATION APPLIED FOR AND ALLOWED! Continue Reading »

Business Succession Planning, Canada Revenue Agency, Contracts, Estate Planning, Investments, Small Business, Succession Planning, Tax Issues, Uncategorized

Trusts and Trust Resettlements – Variations and Circumstances

• • 0 Comments

Variation(s) of a trust agreement, after it is settled, does carry the risk of causing a resettlement of a trust or a disposition of a beneficiary’s interest in the trust, with serious tax consequences. But not all variations lead to resettlement, fortunately. Recently in an advance ruling, the Canada revenue Agency (“CRA”) was asked to consider whether a trustee seeking to amend a trust agreement for the appointment of the….

Trusts and Trust Resettlements – Variations and Circumstances Continue Reading »

Canada Revenue Agency, Disability, Estate Administration, Executors, Guardianship, Spouse, Tax Issues, Testamentary Capacity, Trustee, Trusts, Uncategorized

Embryo Freezing Costs: Medical Expense Tax Credit Extended to Same Sex Couples.

• • 0 Comments

The Income Tax Act (“ITA”) generally permits as an eligible medical expense of an individual, an amount paid to a medical practitioner, dentist, or nurse or a public or licensed private hospital for medical or dental services provided to a patient. Medical services are diagnostic, therapeutic or rehabilitative services that are performed by a medical practitioner acting within the scope of his or her professional training. Generally, a payment to….

Embryo Freezing Costs: Medical Expense Tax Credit Extended to Same Sex Couples. Continue Reading »

Canada Revenue Agency, Estate Planning, Healthcare, In the News, Spouse, Tax Issues, Uncategorized

SHAREHOLDERS AGREEMENTS, EXIT PROVISIONS AND THE IMPACT OF CONTROL

• • 0 Comments

Control is an important concept for applying certain income tax rules and valuation issues (amongst others) when dealing with corporations, with serious implications to current and future (and estate) planning scenarios. De jure control refers to legal control of a corporation, which requires a look at shareholdings. Control in fact, or “de facto control”, (“DFC”) is a broader concept that focuses on influence rather than legal control. As a result,….

SHAREHOLDERS AGREEMENTS, EXIT PROVISIONS AND THE IMPACT OF CONTROL Continue Reading »

Business Succession Planning, Canada Revenue Agency, Contracts, Estate Planning, Investments, Property, Small Business, Succession Planning, Tax Issues, Uncategorized
Scroll to Top