Marie-Aimée Cantin

The appellant appealed assessments for the 2002 to 2009 taxation years involving shareholder benefits, unreported income, and gross negligence penalties.

The Tax Court dismissed the appeals for 2002 and 2009, quashed the appeal for 2007, and allowed the appeals for 2003, 2004, 2005, 2006, and 2008, referring them back for reassessment.

The Court adjusted the shareholder loan account balance, reduced the unreported income and shareholder benefit amounts for 2006, and quashed the gross negligence penalties for 2006.

The appellant appealed notices of determination for its 2007 taxation year, in which the Minister applied the general anti-avoidance rule (GAAR) to reduce the adjusted cost base of shares, add a capital gain, and disallow a capital loss.

The Tax Court of Canada allowed the appeal, finding that while the series of transactions resulted in a tax benefit and constituted an avoidance transaction, the Minister failed to demonstrate that the transactions were abusive of the provisions of the Income Tax Act.

The appellant appealed a reassessment for the 2018 taxation year that added net rental income from a property in France and denied a foreign tax credit.

The appellant argued he was entitled to the credit because he paid taxes to France in 2018, although those taxes were for the 2017 taxation year.

The Tax Court of Canada dismissed the appeal, holding that under subsection 126(1) of the Income Tax Act, a foreign tax credit is only available if the foreign tax was paid on the same income that is subject to Canadian tax for that year.

Since the appellant received a tax credit in France that cancelled his 2018 tax liability there, no double taxation occurred for the 2018 income.