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...
Canadian Tax Highlights
Litigants must consider cost implications at every stage of litigation. Generally, a cost-benefit analysis is required at the outset, at different stages in the litigation proceedings, and before and during settlement negotiation. In tax litigation, the cost-benefit analysis can be a fairly simple exercise—an analysis of the anticipated cost of litigation, the chance of success at trial or on appeal, consideration of the assessed amount in dispute, and the ongoing effect of a judicial decision on the taxpayer’s position. Historically, awards of costs by a court usually have not been factored into this analysis because they have been negligible. Recently, however, three awards of costs by the TCC to successful taxpayers on GST/HST appeals (each involving unique facts) seem to suggest that the TCC is adopting a new approach—namely, to reward a successful taxpayer with true and proper costs awards that reflect at least a substantial part of the actual legal costs.
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...