News & Publications Results
Related items for Practice area: Tax.
|Briefing Note – Minister of National Revenue v. BP Canada Energy Company
In a judgment delivered March 30, 2017, the Federal Court of Appeal ("FCA") in Minister of National Revenue v. BP Canada Energy Company, 2017 FCA 61, unanimously upheld an appeal by BP (in dismissing the federal court judge's compliance order requiring BP to disclose its uncertain tax positions and underlying analysis contained in its tax accrual working papers ("TAWPs") pursuant to the Minister’s inspection powers in subsection 231.1(1) of the Income Tax Act (the "ITA"). This decision has had the effect of substantially overturning the judgment and statements of law made by the Federal Court of Canada ("FCC") where the judge ruled that the Minister has the statutory authority to request analysis and lists of tax risks and underlying analysis prepared in the course of an audit without justification - but it does not necessarily mean that TAWPs are always off limits from the Minister's investigatory powers.
|2017 Federal Budget: Key Tax Changes
The 2017 Federal Budget was released on March 22, 2017. The Budget announced that the federal government will be looking into:
1. Income sprinkling using private corporations
2. Holding a passive investment portfolio inside a private corporation
3. Converting a private corporation's regular income into capital gains
This article, prepared by our Tax Group, discusses highlights of the new budget.
|BC Budget Update - Corporate Tax Cut
The small business corporate income tax rate will be reduced from 2.5% to 2% effective April 1, 2017. This means that the combined Federal and Provincial tax rate for small business income, up to $500,000 per year, will be 12.5% in British Columbia (subject, of course, to any changes coming in the Federal Budget).
|2016 Federal Budget: Key Tax Changes
The 2016 Federal Budget was released March 22nd. The overarching theme is to provide increased benefits and relief to middle-class individuals and to close or restrict cross-border tax planning. This article prepared by Max Walker, discusses highlights of the new budget.
|New Rules for Tax Treatment of Employee Stock Options
The new Liberal government’s tax policy focusses on relieving the tax burden on the middle-class and increasing taxation generally for those earning more than $200,000. As part of that plan, the Liberal government plans to eliminate the tax deduction on employee stock option benefits over $100,000 and increase federal marginal tax rates on individuals with an annual income above $200,000 to 33%.
|BP Canada: Uncertain Tax Positions and the Importance of Maintaining Privilege
In its recent decision in Minister of National Revenue v. BP Canada Energy Company, the Federal Court of Canada considered the Minister’s ability to compel BP to provide its tax accrual working papers pursuant to the Minister’s inspection powers in subsection 231.1(1) of the Income Tax Act. The decision in favour of the Minister signals a substantial change to the audit process and may require modifications to the way in which corporate taxpayers analyse their uncertain tax positions.
|BC Budget Update - Hidden Treasure
The BC Budget (tabled on February 17, 2015) contained no major announcements and no general corporate or personal tax rate changes. Nonetheless, it provides opportunity for personal tax planning for high rate tax payers, and extends useful assistance to early stage businesses in BC.
|Doing Business in Western Canada
This guide has been prepared by Lawson Lundell as a concise resource outlining certain key relevant laws and regulations that companies should consider when doing business in Western Canada.
|Envision: Implications for Canadian Corporations Contemplating a Merger
On September 26, 2013 the Supreme Court released its decision in the Envision case. The case deals with the amalgamation of two credit unions, but has broader implications for the tax treatment of amalgamations in Canada, and will be of interest to Canadian corporations contemplating a merger in the future.
|Team of Lawson Lundell lawyers recognized in Lexpert Magazine's Big Deals for their role in the B2Gold acquisition of CGA Mining Ltd.||31.1.13|
|Reinhold Krahn named Tax Law Lawyer of the Year (Vancouver) by Best Lawyers
Reinhold Krahn has been named Best Lawyers Tax Law Lawyer of the Year in Vancouver for 2013.
|2012 Federal Budget: Changes to the thin-capitalization rules
On March 29, 2012, Canadian Federal Finance Minister Jim Flaherty delivered the government’s 2012 federal budget (the “Budget”). As is typical in Canada, the Budget contained interesting tax policy changes. This article briefly highlights the three most important proposed changes to the thin-cap rules that apply to in-bound Canadian investments.
|Employee Life and Health Trusts and Health and Welfare Trusts
This paper reviews the basic features of Employee Life and Health Trusts (ELHT), considers the most recent statements of the CRA and compares the tax and other advantages and disadvantages of using an ELHT versus a Health and Welfare Trust (HWT).
|Canadian Tax Rates, Not Quite a Tax Haven
This article provides a brief overview of the taxes incurred by a corporation subject to tax in Canada.
|Proposed Amendments to Section 892 Regulations
The IRS has today released proposed amendments to the Code Section 892 regulations. Code Section 892 is the provision within the Internal Revenue Code that exempts foreign sovereigns from taxation in respect of investment income earned in the U.S. The primary amendments are described in this article.
|Overview of the Differences between the U.S. and Canadian Entity Classification Systems
Entity classification refers to a set of rules used in the U.S. tax system to classify entities for the purposes of the Internal Revenue Code. Once classified, the entity will either be subject to the Code rules for corporations or the Code rules for partnerships.
|US Canada Cross-Border Tax: Getting out of Canada
With the U.S. economy not as robust as it once was, it seems that Americans are currently more interested in selling their Canadian assets, particularly recreational property, than buying Canadian assets. It is therefore useful to consider the issues that arise when a U.S. person sells Canadian real estate.
The following points are relevant:
- The U.S. person will be required to prepay tax on any gain arising from the Canadian real estate; and
- If the real estate has been rented, the Canada Revenue Agency (CRA) will require the U.S. person to catch up on any unpaid tax on the rental revenue.
|US Canada Cross-Border Tax: When to Worry About Canada
These days many US businesses are looking north to Canada for new markets. This paper discusses when a US business needs to worry about the Canadian tax system. The short answer comes from some of the oldest provisions in the Income Tax Act. US businesses need to worry about Canadian tax when they have a physical presence in Canada.
|Lawson Lundell represents BC Hydro in the $825 million purchase of a 1/3 interest in the 493 megawatt Waneta Dam from Teck Metals Ltd.
On March 5, 2010, British Columbia Hydro and Power Authority closed the $825 million purchase from Teck Metals Ltd. of a 1/3 interest in Teck’s 493 megawatt Waneta Dam in south-eastern British Columbia.
|Federal Budget 2010 Taxation Measures of Interest to Technology Companies, Private Equity and Venture Capital
The March 4, 2010 Federal Budget introduced some targeted measures of interest to companies in the technology industry, as well as private equity and venture capital funds investing in technology companies.