CRA EMPLOYEE AS AN EXPERT WITNESS IN SR&ED CASE

In a January 12, 2015 Tax Court of Canada case (HLP Solution Inc. vs. H.M.Q., 2012-671(IT)I), a research and technology advisor (RTA), employed by CRA, was not permitted to testify as an expert witness in the case of a disputed scientific research & experimental development investment tax credit case. The Court noted that the RTA lacked the impartiality to testify. The Court also noted that expert witnesses do not need to be independent but should be impartial.

For further information see VTN Monthly Tax Update Seminar, Issue No. 410

PARTNERSHIP INFORMATION RETURNS

Watch Jon D. Gilbert, LL.B of Felesky Flynn LLP discuss the Partnership Information Returns.

Click here for the source documentation.

COORDINATING WITH FINANCIAL PLANNERS - FAQs

Watch Jason Watt, CD, CLU®, RHU™ of Business Career College Corp. discuss the Coordinating with Financial Planners - FAQs.

AREAS OF FREQUENT QUESTIONS BY FINANCIAL PLANNERS (linked)

1. Principal Residence Exemption ( Principal Residence Folio ) as it relates to:
   1. Multiple properties (eg. cottage and house)
   2. US Property (as in the most recent Tax Lane)
   3. Farm Residence (the home quarter or whatever slang gets applied)
2. Farm Rollovers between spouses and to the kids.
3. Incorrect assumptions around taxation at death. As an example, a lot of people don’t realize that spousal rollovers of capital property are available any time, not just at death.
4. US Persons and their Canadian tax situations. Complicating factors include filing of tax returns; use of TFSA, RESP, and RDSP.
5. Private Health Services Plans / Health Spending Accounts: keeping them compliant and what rules apply and don’t apply. A lot of the information around these is based on Circulars and Interpretations that accountants will typically have access to and benefits brokers may not have access to.
6. Active and Passive assets in the corporation, and the overall use of the LCGE – CRA and Business Career College
7. Attribution rules. One may fall offside fairly easily with the attribution rules, whether it’s informal trusts for kids, or gifting shares of the business to the spouse.

SELF-CONTAINED DOMESTIC ESTABLISHMENT (SCDE)

In a March 2, 2015 Technical Interpretation (2014-0527281E5, Dagenais, Anne), CRA clarified that even if the individual does not own or lease the property but is responsible for it and pays expenses on a regular basis, the location may be a SCDE. Where the payments are random or irregular, it will not be a SCDE.

For further information see VTN Monthly Tax Update Seminar, Issue No. 409

HOME BUYERS’ PROGRAM (HBP) – QUALIFYING HOME

In a June 22, 2015 Technical Interpretation (2015-0574271E5, El-Kadi, Randa), CRA confirmed that the definition of a “Qualifying Home” (Subsection 146.01(1)) is clear that the residence must be located in Canada. CRA referred concerns about the related tax policy to the Department of Finance.

For further information see VTN Monthly Tax Update Seminar, Issue No. 410