Oct. 04, 2019 - In SLFI Group v Canada (2019 FCA 217), the Federal Court of Appeal (FCA) overturned a Tax Court of Canada (TCC) decision and ruled that a group of Canadian mutual funds (Funds) was not required to self-assess GST/HST on funding services provided by a U.S. entity, because these services were...
Non-application of the anti-avoidance rule aimed at foreign affiliates
On April 23, 2014, the Federal Court of Appeal rendered its long-awaited decision in Canada v. Lehigh Cement Limited (2014 FCA 103), in which it gave a strict interpretation of the anti-avoidance rule provided for in paragraph 95(6)(b) of the Income Tax Act, which applies when a person or partnership acquires or disposes of shares and “it can reasonably be considered that the principal purpose of the acquisition or disposition is to permit a person to avoid, reduce or defer the payment of tax […] that would otherwise be payable.” This decision is significant because, for a certain period of time, the Canada Revenue Agency showed a tendency to apply this provision on a general basis when assessing the structures of foreign affiliates of Canadian taxpayers.
Aug. 22, 2019 - As outlined in our e-communications of May 21, 2019, and August 12, 2019, Québec’s Ministry of Finance has introduced new rules regarding the disclosure of nominee agreements. The new disclosure requirement is relevant to nominee agreements involving one or more parties that are subject to Québec tax...