On November 17, 2010, the long awaited decision was released by the Federal Court of Appeal (“FCA”) in St. Michael Trust Corp, as Trustee of the Fundy Settlement v. Her Majesty The Queen and St. Michael Trust Corp., as Trustee of the Summersby Settlement v. Her Majesty The Queen (“Garron Family Trust”). 

By Nicolas F. Baass  LL.B., LL.M. (Tax) and Kim G C Moody  CA, TEP

This blog deals with a landmark new Tax Court decision released last week.  Given its importance, we spill a lot more ink than our usual blog entries.  Accordingly, be warned that this entry is lengthy.

By Beth P. McLain, JD

Following our August 25, 2009 blog regarding the US's efforts to gather information from UBS about American account holders who may have been hiding assets and evading US taxes, the Internal Revenue Service (IRS) last week indicated that it is setting up an elite division to handle audits of wealthy Americans suspected of offshore tax evasion. The newly created office will be within its Large and Mid-Size Business division, indicating the IRS wishes to have the audits handled by those with experience in dealing with tax treaties and cross-border business structures. As another blogger recently noted, this should encourage those who may have US information reporting requirements to seek advice and consider a voluntary disclosure to the IRS.  The IRS's voluntary disclosure program for reporting previously unreported offshore accounts ends September 23, 2009.

For those of you who know me, you'll know that I personally live our firm's branding material ... I'm passionate about tax! Outside of work, people who know me also know that my taste in music is wide ranging.  I'm passionate about music in general and have a soft spot for "classic rock", with one of my favorite bands being AC/DC.  This weekend, I had the pleasure of travelling to Vancouver with my two oldest children to attend their concert.  It was great!  A little loud ... but great nonetheless!

By Beth P. McLain, JD

By Paul R. LeBreux, LLB, LLM, TEP (friend of Moodys LLP and principal of Global Tax Law Professional Corporation)

It has been almost 10 years to the day that Canada's then Minister of Finance proposed new tax measures aimed at overhauling the method for taxing "non-resident trusts" and "foreign investment entities".  These new tax measures were said to be needed to combat what the government had long perceived as an abuse of the Canadian tax system.  Since the introduction of the controversial initiative, the implementation of the legislation has been delayed numerous times and the Draft Legislation has been released, each time with substantial amendments, no less than six times.  Although the Draft Legislation continues to have an effective date of January 1, 2007, it would seem that the likelihood of these proposals being proclaimed as law has significantly diminished.