Feigenbaum Law

Litigation

Banknotes in different international currencies representing a currency exchange scam

Litigation

CRA Investigating Possible Currency Exchange Scam

A recent investigative report by the Toronto Star alleges that two former Toronto Maple Leaf players were involved in a foreign currency trading scheme that was designed to defraud the Canada Revenue Agency (CRA). The story looks at how the scheme worked, and why the CRA says it was a scam. What is the Foreign Exchange Market? The foreign exchange market (the “Forex”) is a legitimate trading market where people trade… Read More

A person beginning an order with UberEATS on a laptop screen

Business Management

SCC Paves Way for UberEATS Class Action to Continue

Ridesharing apps such as Uber and Lyft have changed the transportation industry and have shown how industries long thought to be established and settled, such as the taxicab or food delivery industries, can be upended by technology and fresh thinking. From a user-perspective Uber might be an incredibly convenient way to get around or a better way to order food beyond standard home delivery options such as pizza. However, some Canadians working as drivers for… Read More

The coronavirus molecule

Litigation

The CRA and Tax Court During COVID-19

The current health crisis related to the spread of the coronavirus has created challenges and delays in a number of areas, at the height of the tax season in both Canada and the U.S. Many Canadians are left unsure of their obligations with respect to filing taxes in Canada, and when those filings will be assessed. Further, those facing scrutiny of current and past tax filings are no doubt wondering how these delays will impact… Read More

Charter challenge

Litigation

Ontario Man Accused of Tax Fraud After Alleged Child Tax Credit Scheme

An Ontario man is facing allegations of tax fraud after allegedly claiming more than $60,000 in child tax credits for more than forty fictitious children. What Happened? The 39-year old man is facing four charges under the Income Tax Act. According to the Canada Revenue Agency, the man unlawfully claimed child tax benefits by “making, participating in, assenting to, or acquiescing in the making of a false or deceptive statement” to obtain Canada Child… Read More

Corporate taxes

Litigation

The Standard of Conduct the CRA Must Uphold in an Audit

Last week, we reviewed a decision in which the Canada Revenue Agency (CRA) was ordered to pay $5 million in damages after a court found that the Agency had engaged in a number of questionable practices during the “Billionaire’s Audit” targeting high net worth Canadians in the mid-2000’s. This week we explore the standard of conduct that ought to apply during any audit undertaken by the CRA. The Quebec Superior Court examined… Read More

Audit

Litigation

CRA Ordered to Pay $5 Million After “Unreasonable” Audit

The Canada Revenue Agency (CRA) was recently ordered to pay damages of almost $5 million after two men representing a group of taxpayers sued the agency claiming that the CRA engaged in “abusive” practices during an offshore tax audit which the men were caught up in. In a lengthy decision supporting the damages order, the Quebec Superior Court admonished the CRA for a number of questionable practices that took place during the… Read More

Tax reform- palm trees

Litigation

CRA Brings Loblaws to Court Claiming Offshore Corporate Tax-Avoidance

Proceedings between Loblaw Companies Ltd. (Loblaws) and the Canada Revenue Agency (CRA) began earlier this week in Tax Court. The CRA claims that Loblaws’ banking subsidiary has been used as part of a tax avoidance scheme. Depending on the outcome of the case, Loblaws may be liable for more than $400 million. The Details The CRA is alleging that Loblaws established Glenhuron Bank Ltd. (Glenhuron), a “phoney” bank in Barbados, in order to circumvent the… Read More