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.
