The taxpayer, a dentist, purchased a practice from another dentist. The taxpayer was under the understanding that the parties would file an election under subsection 167(1) of the Excise Tax Act to avoid paying GST/HST. For reasons that are unclear, no such election was filed.
Monetary Awards Are Characterized Based on What They Are Intended to Replace
This case dealt with whether the monetary award received by the taxpayer following a labour dispute was taxable as income. The labour dispute revolved around the fact that the taxpayer was not offered the opportunity to work overtime whereas the collective agreement stated that overtime work would be offered on an equitable basis to readily available qualified employees.
Donative Intent, Really?
In this case, the taxpayer withdrew money from his RRSP in 2004. In order to offset the tax he would have had to pay, he made a charitable donation of $65,000 to the Canadian Literacy Enhancement Society (“CLES”). In 2008, the CRA reassessed the taxpayer’s 2004 taxation year to disallow the federal and provincial tax credits he claimed in relation to that payment.