Barrett Tax Law - Blogs

Dale Barrett Answers Your Pressing Tax Questions (originally on Global News)

As seen on GlobalNews.ca, Dale Barrett, Managing Partner at Barrett Tax Law, answers your pressing tax questions:   THE QUESTION:   I don’t understand the implications of adding my adult child as a joint tenant on my home. I know that there can be capital gains tax implications but don’t really understand how it works. – A Money123 reader    THE ANSWER:   While adding…

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More Reasons to Abandon the HST (originally on Lawyer’s Daily)

By Dale Barrett – Managing Lawyer at Barrett Tax Law and Tax Columnist at the Lawyer’s Daily. Originally published by the Lawyer’s Daily. In my first article in this series, I expressed the opinion that the entire Harmonized Sales Tax system and its legal framework are fundamentally flawed. I outlined four of the nine problems with HST to help illustrate why it should be abandoned.…

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HST Hurts Economy and Should be Abandoned (originally on Lawyer’s Daily)

By Dale Barrett – Managing Lawyer at Barrett Tax Law and Tax Columnist at the Lawyer’s Daily. Originally published by the Lawyer’s Daily. According to the 2008 federal budget, the Harmonized Sales Tax (HST) was claimed by the federal government to be “the single most important step provinces with retail sales taxes could take to improve the competitiveness of Canadian businesses.” They were wrong. I…

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CRA Auditors Less Concerned with Correctness than with the Size of Reassessments (originally on Lawyer’s Daily)

By Dale Barrett - Managing Lawyer at Barrett Tax Law and Tax Columnist at the Lawyer's Daily. Originally published by the Lawyer's Daily. In any self-reporting or honour system like we have in Canadian taxation, there must be a means by which the state can verify the correctness of information provided. Enter the tax audit - a component of such a system, which is both…

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Ombudsman Not Protecting Rights of Taxpayers (originally on Lawyer’s Daily)

Dale Barrett - Managing Partner of Barrett Tax Law This article was originally published by The Lawyer’s Daily, part of LexisNexis Canada Inc. Although not an actual law as it is in the United States, the Taxpayer “Bill of Rights” sets out sixteen rights, eight of which are within the mandate of the Taxpayers’ Ombudsman’s office. In particular, the Ombudsman is charged with “upholding” the…

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Beware The Net Worth Audit

Beware The Net Worth Audit (re-published from TheGaap.net) August 1, 2018 Dale Barrett Managing Partner Barrett Tax Law   Arguably, the cheapest, fastest, and dirtiest way in which the CRA can audit a taxpayer is by employing the “net worth” method. It throws all principals of good audit practice to the wind and allows the auditor to essentially go freestyle. And it results in reassessments.…

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Taxation of a Partnership – The Basics

June 18, 2018 By Vivian Esper Tax Lawyer Barrett Tax Law 1-866-278-8424 416-907-8429 TAXATION OF A PARTNERSHIP - THE BASICS The Canadian common law of all provinces defines a partnership as the relation that subsists between or amongst persons carrying on a business in common with a view of profit. Subsection 102(1) of the Income Tax Act defines a Canadian partnership as a partnership all…

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AON Inc. – Current vs. Capital Expenditures

On September 6, 2017, the Tax Court released its decision of AON Inc. v. Canada 2015-1043 (IT) G ruling on the issue of classification of expenditures (current vs. capital). The Honourable Justice Gaston Jorre confirmed the established legal test used to determine the nature of the expenditures. In summary, Justice Jorre confirmed “enduring benefit” (most recently followed in Rainbow Pipe Line 1999 TCJ No. 604…

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Late Filing Penalties for RRSP Over-Contribution Canceled by Tax Court

On August 31, 2017, the Tax Court of Canada released a judgment Chiang v. The Queen (2016-2715(IT)I where Sommerfeldt J. canceled late filing penalties under section 204.3 and section 162(1) of the ITA.In brief, the appellant, Mr. Chaing, over-contributed to his RRSPs during the period from 2004 through 2013 taxation years. The minister assessed the appellant for the over-contribution and with the late-filing penalties. Sommerfeldt…

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Cryptocurrency Profits in Canada: Capital Gains vs. Business Income

March 12, 2018 By Dale Barrett Managing Partner Barrett Tax Law 1-866-278-8424 416-907-8429 Cryptocurrency Profits in Canada:  Capital Gains vs. Business Income I am asked all the time whether somebody has to pay capital gains tax on their cryptocurrency gains or whether they have to pay business tax.  The answer invariably, is “it depends.” It depends on a number of factors.  There is no set…

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