Publications

April 11, 2022

Federal Budget 2022: Good News for Mining Exploration Compagnies!

On April 7, 2022, Finance Minister Chrystia Freeland tabled the federal government’s new budget for 2022. This budget includes several tax measures relevant to the mining industry in Canada. The Canadian federal government intends to provide $3.8 billion over eight years to implement Canada’s first (…)

March 31, 2021

Pre‑ruling Consultation with the Canada Revenue Agency (CRA): a little‑known yet practical service

Canada’s tax system is very complex and tends to become more complex over time. Amendments to tax laws in recent years have not simplified our tax system, quite the contrary. The introduction of various intention tests in tax laws has also further increased tax authorities’ discretion as to the (…)

March 11, 2021

COVID-19: Anticipating Capital Gains, Wealth, Gift and Inheritance Taxes

The deficits being generated by the emergency measures that the federal and provincial governments have implemented since March 2020 are a reminder of the magnitude of our governments’ pre-crisis deficits. This situation will inevitably lead to a greater tax burden for businesses and individuals at (…)

February 15, 2021

Payment to non-residents of Canada: How can the Multilateral Instrument (MLI) be applied?

The internationalization of trade has led to an increase in payments made by Canadian companies to non-residents of Canada, which are most of the time subject to Canadian withholding taxes. Canadian payers must ensure that they withhold the correct percentage of Canadian tax on such payments, as (…)

January 8, 2021

The tax system to the rescue of print media

Canadian newspapers’ loss of advertising revenues to the hands of internet giants over the past several years has jeopardized the very existence of many such newspapers. In 2018, our governments announced several advantageous tax measures in order to ensure the survival of independent print media.  (…)

December 11, 2020

Teleworking: What are the allowable expenses for employees and tax impacts for employers?

The COVID-19 pandemic has changed Canadian workplaces. For many organizations, the pandemic and its containment measures have fast-tracked the shift to teleworking.  In this context, the Canada Revenue Agency (the “CRA”) and the Agence du Revenu du Québec (the“ARQ”) have published administrative (…)

November 6, 2020

International tax planning endorsed by the Court

In the recent decision in Agracity Ltd. v. The Queen1, the Tax Court of Canada (the “Court”) endorsed the Canadian tax consequences of business transactions between a Canadian corporation (“Agracity”) and its Barbados affiliate (“NewAgco-Barbados”) within a group of companies operating in the (…)

October 19, 2020

Tax Aspects of Insolvency and Bankruptcy

The current crisis caused by the COVID-19 pandemic has already caused, and will continue to cause, significant liquidity problems for some businesses. Companies whose financial difficulties threaten their very existence will have to restructure in order to avoid bankruptcy, either by availing (…)

October 1, 2020

Time limit extensions: What are the possible consequences on limitation periods for tax purposes?

A recent Ministerial Order1 from the Minister of National Revenue has formally extended certain deadlines under the Income Tax Act (“ITA”) and the Excise Tax Act (“ETA”). The Order is retroactive to March 13, 2020. The extension is 6 months or until December 31, 2020, whichever is earlier. This (…)

September 25, 2020

Court upholds deductibility of carrying charges

The Tax Court of Canada (the “Court”) recently upheld the deductibility of carrying charges incurred in connection with an issuance of shares.  In so doing, the court upheld the tax benefits arising from a common financing practice. In addition, the Court reiterated the principle in tax matters (…)

June 26, 2020

Sale of a Business: New Tax Planning Option

The sale of a business is often the most significant business transaction in an entrepreneur’s life. In addition, the net proceeds from such a sale often represent an entrepreneur’s only retirement fund. Therefore, it is crucial to maximize such proceeds by reducing or deferring the taxes resulting (…)

June 16, 2020

Resumption of Mergers and Acquisitions: What May Change After the Crisis

The COVID-19 crisis has significantly slowed economic activity in all respects. The area of corporate mergers and acquisitions is no exception, and the level of activity, which was high before the crisis, has dropped significantly because of it.   It is difficult to predict when and at what pace (…)

June 9, 2020

COVID-19: Support for Agriculture and Agri-Food Businesses in Quebec and Canada

It goes without saying that the economic upheavals caused by the COVID-19 pandemic are posing countless challenges for all companies, whether or not they are pursuing their activities within the limits imposed by the governments of Canada and Quebec. Food producers such as agricultural and food (…)