Feigenbaum Law

Tax Disputes & Litigation

Tax Disputes & Litigation

An Informally Run Money Lending Operation Has Difficulty Proving Its A Business For Tax Deduction Purposes

One of the benefits of being successful in business is having the extra income to invest money that you’ve made into other areas. In a recent decision issued by the Tax Court of Canada, a successful business person used the profits from his business to offer interest-bearing loans to third parties. When two of his borrows defaulted on his loans, he sought to deduct his losses as business losses. However, the Minister… Read More

Tax Disputes & Litigation

Taxpayer Unsuccessful In Attempt To Recoup Litigation Costs From CRA

Many people may reasonably assume that in the event they are successful in litigation they will be able to recover some or all of their costs from the unsuccessful party. However, a recent decision from the Ontario Superior Court of Justice shows that it’s not always the case. In this situation, a taxpayer was successful in appealing an audit by the CRA which had ordered him to pay $14 million for uncollected… Read More

Tax Disputes & Litigation

Taxpayer Looks To Appeal Being Bound To Decision

Over the last few years, a tax shelter known as the Global Learning Gifting Initiative (GLGI) made headlines when tens of thousands of Canadian taxpayers were notified that a program they were participating in was not legal, resulting in reassessments and taxes owed. Taxpayers and people involved in the fraudulent program have made headlines since it was discovered. In February, 2020, we wrote about an unsuccessful appeal made by one taxpayer, while more recently… Read More

An art gallery representing a family business that was said to have been a personal endeavour for one taxpayer.

Corporate Tax Planning

Losses Incurred as Part of a Personal Endeavour vs. in Pursuit of Profit

For many new business startups, the first few years can be tough. If a business is lucky, it can make it through those lean years and eventually grow into a successful operation. It’s not uncommon for people who start a small business to expect to make little to no income in these early years. However, a recent decision from the Tax Court of Canada shows that losses incurred due to a… Read More

A laptop next to a tray of receipt representing a tax scam involving inflated charitable donation receipts

Tax Disputes & Litigation

Partial Settlement Reached In Charity Scam Class Action

In early 2020, we wrote about a popular tax scam that operated for ten years from 2004 to 2014, in which people made cash payments directly to a charity in exchange for software licenses that were valued for a higher amount and then donated to another charity in exchange for a tax receipt. Our previous blog covered an unsuccessful appeal by one of the taxpayers involved. Just last month, the Ontario Superior Court approved… Read More

A handshake representing a tax court holding the Canada Revenue Agency to a deal made with a taxpayer

Corporate Tax Planning

Tax Court Holds CRA to Deal It Claimed Was Made in Error

There’s an old saying that goes, “a deal is a deal.” It means simply that when someone makes a deal, they should honour it, even if they later change their mind. It’s not quite the law when it comes to contracts, but the principle of abiding by the terms of a deal one enters into can be enforced from time to time. A perfect example of this is seen in a… Read More

A vintage photo of a window for a business where people could pay income taxes in NYC

Corporate Tax Planning

Report Indicates Staggering Number of High-Income Non-Filers in the United States

A recently released report from the United States’ Treasury Inspector General for Tax Administration (TIGTA) raised a flag concerning the Internal Revenue Service’s failure to pursue high-income earners who fail to file their taxes. Just how rampant is non-filing amongst high-income earners? The results of the study may be enough to raise eyebrows. How much money is lost due to non-filing? The report states that non-filing, which is a crime when… Read More

An alarm clock surrounded by numbers and a notebook representing new tax deadlines in Canada

Personal Tax Planning

Canada Revenue Agency Resumes Some Activities

Parts of Canada are slowly starting to return to normal. While much of the country is still grappling with the impact of COVID-19, courts and businesses have started to re-open. Similarly, the Canada Revenue Agency, which had largely ceased activities related to collections, audits, and appeals, has started to resume operations. This week we’d like to provide our readers with a summary of what activities have resumed and which are still… Read More

The coronavirus molecule


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

A closeup of a Mercedes Benz emblem

Corporate Tax Planning

A Tale of Three Cars

A requirement to use your own car at work can allow for associated expenses to be claimed on your income tax returns. However, not everyone is entitled to such claims (for example, you can’t make a claim if an employer already reimburses you), and it is critical to keep detailed records, especially if more than one vehicle is used for work. A recent decision from the Tax Court of Canada highlights… Read More