Alexandre MacBeth

The appellant appealed a ministerial decision determining that her employment with a worker cooperative was not insurable because the parties were not dealing at arm's length.

The Minister based this on the fact that the appellant performed unpaid work for the cooperative prior to receiving a paid contract.

The Tax Court of Canada allowed the appeal, finding that the unpaid work was performed in the appellant's capacity as a founding member during the cooperative's startup phase, not as an employee.

The Court concluded the parties were dealing at arm's length and the employment was insurable.

The respondent moved to strike paragraphs 18.1, 24.1, and 24.2 of the appellant's amended notice of appeal in a dispute over a 2023 SR&ED claim.

The respondent argued that paragraph 18.1 improperly pled evidence by quoting from agreements, and that paragraphs 24.1 and 24.2 pled irrelevant facts concerning the 2024 and 2025 taxation years.

The Tax Court of Canada held that while paragraph 18.1 did plead evidence rather than material facts, it did not prejudice the fair hearing of the appeal and would not be struck.

However, the Court struck paragraphs 24.1 and 24.2 because the Minister's review and determinations for subsequent taxation years were not material to the 2023 claim, granting leave to amend.

The corporate appellant appealed reassessments denying investment tax credits for scientific research and experimental development (SR&ED) for its 2006 to 2009 taxation years.

The Minister reassessed beyond the normal reassessment period and imposed gross negligence penalties, alleging the appellant submitted plagiarized documentation with its claims.

The Tax Court found the appellant made misrepresentations attributable to neglect by submitting plagiarized technical reports, justifying the statute-barred reassessments and penalties.

However, the Court allowed the appeals in part, finding that two projects in 2007 and 2008 did qualify as SR&ED because they involved technological uncertainties and advancements.

The appeals of the individual appellants regarding section 160 assessments were dismissed as the corporate appellant's underlying tax debt was confirmed for the 2006 and 2009 taxation years.