At the CRA Roundtable at the recent CPA’s 2016 Commodity Tax Symposium, the CRA declared a current mandate to use alternative audit methods more frequently. Two recent cases are a useful reminder of what may be in store for Canadian GST registrants in that regard, namely 9103-4348 Québec Inc v The Queen (2015 TCC 220) (“The Golden Pub”), and 9091-2239 Québec Inc (2016 TCC 198) (“Hamade”)
The recent FCA decision, Canada v Chriss (2016 FCA 236), underscores the resignation obligations of directors. If directors do not execute their resignations properly and completely, they will remain liable for the actions of the corporation, including director’s liability assessments issued by taxing authorities like the Canada Revenue Agency (“CRA”).
In Re Pallen Trust (2015 BCCA 22), the British Columbia Court of Appeal upheld an order for rescission, which effectively nullified a CRA reassessment.
In The Great-West Life Assurance Company v The Queen (2016 FCA 316) [“Great-West Life”], the Federal Court of Appeal upheld the TCC’s decision that services related to processing claims for drug benefits were not financial services, and so not exempt from GST/HST.
Section 141.1(3) of the of Excise Tax Act (“ETA”) broadens the scope of what is considered to be in the course of commercial activities to activity done “in connection with” extraordinary transactions such as starting and winding-up commercial activities. The Tax Court of Canada (“TCC”), in Onenergy Inc. v. The Queen (2016 TCC 230), discussed how the section should be interpreted.
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