Very shortly ago, the Federal Court of Appeal’s decision in The Queen v. Cameco Corporation (2020 FCA 112, delivered on June 26, 2020) was made public. By any measure in contemporary taxation (in Canada certainly, but for the transfer pricing world globally) the decisions of both the Tax Court of Canada and the Federal […]
Monthly Archives: June 2020
When Free Stuff isn’t Actually Free — The Taxability of Free Products Provided to Social Media Influencers and Bloggers
When we think of influencers or bloggers and the law, the first topic that comes to mind is often the industry’s clash with Competition Bureau Canada, or it’s American equivalent — the Federal Trade Commission. Late last year, Competition Bureau Canada released its new guidance on how influencers must display whether a business sponsored […]
What is the Worth of Your Disability to Canada in Light of COVID-19?
$600. No, the emergency disability benefit proposed in early June is not a monthly payment. Not even an annual one. The yet-to-be-approved program offers a one-time, tax-free payment of up to $600 per qualified applicant. It is expected to cost $595 million. In total, 1.33 million people can receive the benefit. If the program […]
Week in Review - June 26, 2020
European Bloc Suggests Phased Approach to Global "Digital Tax" Negotiations: Following reports last week that the United States was withdrawing from international discussions regarding a potential "digital tax" deal, European powers including the United Kingdom, France, Spain, and Italy have suggested a slower, "phased" approach to negotiations in a letter sent to US Secretary […]
Keeping Canadian Corporate Tax Rates Competitive
The latest issue of the Canadian Tax Foundation’s newsletter, Perspectives on Tax Law and Policy, examines from different perspectives whether Canadian corporate tax rates are too high, too low, or just right. My contribution to the newsletter is linked below. It comes from my perspective that incentives matter very much – we need to […]
Week in Review - June 19, 2020
The United States Withdraws From Global Digital Tax Negotiations: This week in tax news was defined by the US government's decision to withdraw from multilateral international discussions regarding a potential "digital tax" deal, which could result in a wave of new taxes on US tech giants like Amazon, Alphabet Inc. (Google), and Facebook. US […]
Paying for COVID Relief and the State of Corporate Taxation
One of Canada’s most prolific commentators on tax matters in Canada, particularly international tax developments as Canada is affected by them, is Nat Boidman, who practices at Davies Ward Phillips & Vineberg LLP in their Montreal office. Nat’s comments regularly are a catalyst for hard thinking about tax matters. In a recent Letter to […]
The Tax Implications of Hiring Remote Employees from Outside of Canada
A popular trend that advertising agencies, startups, and other organizations have adopted (especially with the rise of COVID-19) are remote employees. Software-as-a-service (“SaaS”) tools have made working remotely seamless — to the point that some businesses run 100% remotely with no physical location. Entrepreneurs and their fully remote offices commonly miss the legal implications […]
Performing Functions of Government – What is a Government Instrumentality?
Recently, the Federal Court of Appeal addressed the nature of a government instrumentality. This classification, expressed in various ways in the Income Tax Act, is important because, broadly, governments generally do not tax each other. This is notable in various paragraphs of section 149 of the Act, and is a longstanding exception to the […]
Should Canada Have a Wealth Tax?
Yes. No buts. No ifs. Just when. A minimum set of questions should be asked to decide whether Canada should have a wealth tax. What’s the purpose of a wealth tax? If one thinks a wealth tax is there solely to raise revenue, one just might be disappointed. Don’t get me wrong – it […]