10 Dec What’s New in Tax Court

At Clearline, we do our best to keep up-to-date. Part of doing this means reading, and understanding, the most recent tax court cases. Below are some of the useful insights that have come from our readings:

Failed to file previous year taxes?

In the recent court case, 6075240 Canada Inc, v. Canada (MNR), 2019, it was ruled that if a tax return is not filed within three years of being arbitrarily assessed by the Canada Revenue Agency, then any new filings will be rejected. This is a great reminder to bring your tax filings up to date before the Canada Revenue Agency tries to do it for you. If you are in this situation, please contact us to help you do so!

Pay for your employee’s parking?

In the recent court case, Smith, v. The Queen, 2019, an appeal for the assessment of a parking pass as an employee taxable benefit was dismissed. In this case, it was determined that a parking pass needs to be reported as an employee benefit and therefore included on the employee’s T4. If you are unsure if any of the benefits you pay for are considered a taxable benefit and need to be included on your employee’s T4, be sure to contact Clearline with the details!

Recently move to Canada from another country?

In the recent court case, Ellaway, v. The Queen, 2019, an appeal for the denial of moving expense tax deduction was dismissed. This taxpayer had moved from Australia to Canada and claimed a deduction of $59,188 in moving expenses on her Canadian tax return. This deduction was denied on the basis that this move was not an “eligible relocation”. In most cases, an eligible relocation needs to be from one residence in Canada to another residence in Canada. Need advice on whether or not you can claim a deduction on your personal tax return? Contact Clearline at 604-639-0909.