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Collections — holding off on collecting on incorrect GST/HST assessment GST/HST and income tax — real estate agent built home for personal use GST/HST — advertising services GST — air travel commissions GST/HST — assessment of real estate agent on sale of condo was statute-barred GST — builder built home for personal use GST — builder of new home was not who CRA thought it was GST/HST — Cancelling interest on "wash transaction" GST — cleaning up years of failure to charge GST on management fees GST — community centre construction GST/HST — convincing CRA that it was too late to assess GST — corporation providing health care services GST/HST — couple built one home for sale and one to live in GST/HST — credit for net tax wrongly remitted GST — dental clinic GST — directors' liability (car dealership) GST — directors' liability (company dissolved) GST — director's liability (construction contractor) GST — director's liability (corporate lawyer) GST — directors' liability (person never agreed to be a director) GST — directors' liability (public company) GST — director's liability (restaurant owner) GST — directors' liability assessment — individual was never a director GST — employee rebate more than 10 years back GST/HST — exported goods GST/HST and income tax — family built home for personal use GST/HST — fixing a failed voluntary disclosure GST — full input tax credits allowed GST — getting CRA to honour a retroactive registration GST — golf club memberships GST — home renovation was not substantial renovation GST/HST — home was built for family, not for sale, and company held it as bare trustee GST — input tax credits allowed without documentation GST/HST — input tax credits for GST incurred before registration GST/HST — input tax credits for joint venture investment GST/HST — input tax credits for legal fees on selling company shares GST — input tax credits justified GST/HST — input tax credits — “medical” company was not making exempt supplies GST/HST — input tax credits on bulk purchases of iPhones GST/HST — input tax credits on inputs to exempt supplies GST/HST — input tax credits on purchase of old home for new project GST — input tax credits on land held for development GST/HST — input tax credits to charity for cost of land GST/HST — input tax credits where CRA had cancelled supplier's GST registration GST/HST — input tax credits where invoices addressed to different company in group GST — interest reduced to reflect offsetting rebate GST/HST — ITCs for joint venturer GST — liability of charitable institution for unremitted GST GST/HST — litigation over real estate purchase GST/HST — mail processing company ruinous assessment averted GST — medical devices GST — miscellaneous adjustments GST/HST — new housing rebate GST/HST — net tax refund approved GST/HST — no HST on settlement received but ITCs on termination payment GST/HST — no "substantial renovation" of apartment building GST — partnership assessment was out of time GST — purchase of real estate GST/HST — purchases by President as agent GST — rebate for ship towed out of the country GST/HST — rebate to builder of student residence GST — recognizing when a second objection had to be filed GST/HST — recovering HST not paid on sales incentives GST/HST — recovering tax from customers after CRA assessment GST — reducing assessment by almost 90% GST/HST — reducing assessment on self-supply of new home GST — registrants were not associated GST — reopening audit after expiry of appeal period GST/HST — resolving dispute between buyer and seller of land GST — retroactively deeming a business to be GST-registered GST — sales of condominiums GST — school board's liability eliminated GST — services to insolvent companies were zero-rated GST/HST — services to US company were zero-rated GST/HST — services were zero-rated GST/HST — showing purchaser that real estate sale was exempt GST — stopping a client from being driven out of business GST — summer camp teaching English as a second language was exempt GST — tax on purchase of commercial property GST — tire installer neglecting to bill GST GST — townhouse renovations GST/HST — valuation of student residence GST — voluntary disclosure — negotiating interest relief and income tax offset GST — voluntary disclosure accepted GST — voluntary disclosure of GST collected on commercial rents GST — voluntary disclosure of management fees GST — waiver of interest GST — waiver of interest and penalty GST — waiver of penalty GST — wash transaction GST — were courses educational or recreational? HST and the Ontario Staycation Tax Credit — correcting the provincial government’s misunderstanding PST — director's liability PST — directors' liability (car dealership) PST — directors' liability re data conversion project PST — eliminating assessment for tax collected by franchisor PST — invoices written up incorrectly PST — reducing tax on sale of book with CD-ROM PST — refund of tax on supermarket construction Income tax — $2 million payment on retirement was tax-free Income tax — another refund where return filed late Income tax — assessment for transfer by tax debtor Income tax — auditor demanding too much Income tax — builder built home as personal residence Income tax — cancelling source deductions assessment Income tax — capital gains vs. income Income tax — charitable donation of kidney beans Income tax — charitable donation to US religious school Income tax — child support deduction Income tax — claiming business losses from past years Income tax — companies were not carrying on Personal Services Business Income tax — consequential reassessment of spouse was statute-barred Income tax — corporation was bare trustee Income tax — cost of building home proven without receipts Income tax — costs of mother's Notice of Objection deductible Income tax — CRA chasing widow for deceased's RRSP Income tax — deduction for Power of Attorney fees Income tax — donations to suspect charity allowed Income tax — expenses against unreported income Income tax — expenses of setting up a film shelter Income tax — general anti-avoidance rule Income tax — getting the $500,000 capital gains exemption Income tax — getting Third Level Fairness review Income tax — income from UN agency was tax-free Income tax — income not earned personally Income tax — intercompany charges deductible Income tax — liability of deceased's estate for UK pension income Income tax — no tax on litigation settlement Income tax — non-resident tax on rental income Income tax — officers of company were acting as outside sales reps, not employees Income tax — over-intrusive audit Income tax — professional fees deduction allowed Income tax — refund to non-resident sellers of property Income tax — refunds where returns filed late Income tax — "reserve" was not a reserve Income tax — RRSP on death Income tax — sale of condo was not a "flip" for profit Income tax — sale of rental property by non-resident Income tax — tax savings on selling home Income tax — taxpayer did not realize she was non-resident and exempt from Canadian tax Income tax — trust for disabled child Income tax — voluntary disclosure Income tax — wages of family members were deductible Income tax — waiver of RRSP penalty tax Income tax — waiver of TFSA penalty tax Income tax — withholding tax on deemed dividend Income tax and GST — real estate agent's business expenses Collections — execution preventing sale of property Payroll withholdings — directors' liability (company dissolved) Payroll withholdings — directors' liability (public company) Payroll withholdings — penalty for late remittance Your problem goes here
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GST — directors' liability assessment — individual was never a director My client worked as manager of a fitness club. The owner, "M", offered him a 20% stake in the business, and he bought 20% of the shares of the company. He signed a Shareholders' Agreement, but never agreed to become a director. My client handled the day-to-day management of the clubs, while M took care of all of the finances and accounting. M was secretive about the financial operations, and did not share information with my client. As it turned out, the company was in financial difficulty and was evicted by the landlord. After the eviction, my client (without M's involvement) incorporated a new company to reopen the fitness club. My client continued to be involved with M in other fitness clubs. Two years later, my client sold the new company to M as part of terminating all their business dealings. The CRA sought to collect unremitted GST from the original company, which had no assets. Years later, the CRA came after the directors of the company. Unbeknownst to my client, M had registered both himself and my client with the provincial government as being the directors of that company. The CRA thus assessed my client as a director, for over $285,000. My client asked me for help. He had never been a director. How were we to prove this to the CRA? I filed a Notice of Objection, collecting all relevant documentation and setting out carefully the history of the case. I drafted Affidavits from several people, including the company's former lawyer and a former office administrator, swearing to the facts that my client had never been or acted as a director and that M had kept all the company's financial information to himself. I noted that my client had never signed any consent to be a director, and that there was no record in the company's minute book that he had been appointed as a director. Indeed, my client had been consistent in telling the CRA that he had never been a director. I showed that the case law confirmed that, in these circumstances, the CRA needed more evidence than the provincial corporate registry to show that my client had been a director. Finally, I pointed out that even if the CRA were inclined to believe that my client had been a director, he met the "due diligence" test because he was unaware that he was a director. I cited case law clearly supporting this principle. The CRA appeals officer agreed, and cancelled the $285,000 assessment. Problem vanished! (2003)