A February 2, 2026 Tax Court of Canada case considered whether spouses who repeatedly built and sold houses were builders and whether GST was applicable. CRA had reassessed the taxpayers for GST of $22,875 for the March 2016 reporting period after they completed building and first occupied a house in British Columbia. The taxpayers had purchased seven houses and sold five (including building several houses on bare land) over an 11-year period (2010 to 2021).…

A December 17, 2025 Court of Quebec case considered whether shareholder benefits arising from approximately $1.6 million in personal expenses paid by a corporation from 2014 to 2017 should be included in the shareholder’s income or whether they could be offset by loans that he had made to the corporation. From 2015 to 2017, the taxpayer had made three loans to the corporation, totalling approximately $1.5 million. Taxpayer losesThe expenses that the corporation paid on…

In a September 23, 2025 French Court of Quebec case, an individual accidentally sold shares, triggering a $67,362 capital gain, while reviewing his stock portfolio on his phone while on pain medicine in the hospital. Realizing his error the next day, he immediately repurchased the shares. The taxpayer argued that there was no sale of shares as he accidentally pressed the button to confirm the sale. He also argued that, as CRA determined that the…

An employee may elect to stop contributing to CPP, provided they are at least 65 years of age (but under 70), receive a CPP or QPP retirement pension and have earnings subject to CPP contributions. A November 13, 2025 Tax Court of Canada case reviewed the timing of an employee’s election to cease contributing to the CPP when he began collecting retirement benefits at age 65. The employee was the sole employee and shareholder of…

OAS provides a monthly income-sensitive payment to eligible individuals aged 65 and older. Individuals who normally receive OAS are occasionally surprised when some OAS is subject to a special tax (commonly referred to as a “clawback”) with their personal tax filings due to high earnings. In particular, OAS is clawed back at a rate of 15% of adjusted income received in that year, above an indexed threshold of $93,454 for 2025 and $95,323 for 2026.…

The voluntary disclosures program (VDP) provides taxpayers with a chance to correct past tax errors or omissions before CRA finds them. If CRA accepts a disclosure, taxpayers may receive some penalty and interest relief and will not be referred for criminal prosecution. Any taxes owing will still have to be paid by the taxpayer in full. The VDP has been significantly changed, effective for disclosures submitted on or after October 1, 2025. Types of disclosures…

A July 25, 2025 Federal Court case found that CRA’s denial of penalty tax relief on excess TFSA contributions was reasonable. Due to the loss of value in the taxpayer’s TFSA, the taxpayer could not withdraw the full amount of his excess contribution. The taxpayer noted that without relief, his only means of reducing the overcontribution was to wait for annual TFSA limit increases, currently set at $7,000, which would require approximately 16 years for…