Cross-Border Tax: Canada-US Tax Treaty Update – CRA Views On Treaty Entitlement On Canadian Source Income And Profit For US LLC Shareholders
The Canada Revenue Agency (“CRA”) recently confirmed that it continues to maintain its long-standing position that a US limited liability company (“US LLC”) that is treated as a fiscally transparent entity for US tax purposes is not entitled to treaty...
Canadian Tax: Update On Restrictive Covenant Proposals
On July 16, 2010, the Canadian federal government released further amendments to the draft legislation dealing with payments for non-competition and other restrictive covenants. These proposals continue to be significant for taxpayers who acquire or dispose of businesses. A Colourful...
International Tax: The Lehigh Cement Case – Canadian Non-Resident Withholding Tax On Interest Payments
On May 17, 2010, the Federal Court of Appeal (“FCA”) rendered its judgment in Lehigh Cement Limited v. R., 2010 FCA 124 (“Lehigh”), in which it found that the transaction in issue entered into by the corporate taxpayer, Lehigh Cement...
International Tax: Tax Information Exchange Agreements – Overview And Update
Most international tax treaties entered into by Canada include a tax information exchange provision (e.g., Article XXVII of the Canada-US Tax Treaty) that enables the Canada Revenue Agency (“CRA”) to obtain pertinent tax information about a particular taxpayer from a...
New Charity Tax Specific Graduate Degree
Osgoode Hall Law School at York University has launched a new part time Master of Laws (LL.M.) degree specializing in Charities and Not-for-Profit Tax Law. This degree, which we believe to be the first law degree of its kind anywhere...
Current Cases: The Propep Decision: The Associated Corporation Rules
In The Queen v. Propep Inc. (2009 FCA 274), the Federal Court of Appeal (“FCA”) was asked to determine whether Propep Inc. (“Propep”) was associated with two other corporations, and therefore required to share the small business deduction. The FCA...
2010-2011 Quebec Budget Highlights
Having faired relatively well in comparison to the other provinces in the latest recession, Québec is facing greater challenges on the long-term horizon. In fact, the gross provincial debt is expected to reach 53.2% of the gross domestic product, making...
2010-2011 Ontario Budget Highlights
The 2010 Ontario Budget was announced on March 25, 2010, and on May 18, 2010, Bill 16, Creating the Foundation for Jobs and Growth Act, 2010, the legislation enacting many of the changes announced in the Budget, received both its...
2010-2011 British Columbia Budget Highlights
On March 2, 2010, the B.C. Budget entitled “Building a Prosperous British Columbia” was tabled. The Budget is targeted at enhancing vital public services, refocusing government spending to eliminate the deficit, and providing a range of initiatives to stimulate economic...
2010-2011 Alberta Budget Highlights
In its 2010-11 Budget, introduced in the Legislature on February 9, 2010, the Alberta Conservative government has sought to strike a balance between deficit reduction, and continuation of program and planned capital spending. Reiterating its intention to return Alberta to...
