Taxpayer did not point to anything to support finding of when revenue was earned in US

Tax - Income tax - Foreign income

During 2012 taxation year, taxpayer was citizen and resident of US. In 2012, taxpayer earned $26,244.00 of income in Canada from provision of services to corporation. In US, taxpayer earned $233,197.00 of business income through his membership interest in US limited liability company. Through membership, during same year, taxpayer also earned US $46,143.00 in royalties. Minister found that amount of $26,244.00 earned by taxpayer was taxable in Canada. Taxpayer’s appeal from Minister’s assessment was dismissed. Tax Court judge found that when US resident carried on business through permanent residence in Canada, business profits of US resident that were attributable to Canadian permanent establishment were taxable in Canada. Tax Court judge found that Taxpayer provided engineering services as independent contractor to corporation. Taxpayer therefore had business in Canada that consisted in providing engineering services with respect to design of fuel lines for aircraft. Tax Court judge found that payments received by taxpayer were revenues for taxpayer’s enterprise. Taxpayer appealed with Federal Court of Appeal. Appeal dismissed. Taxpayer did not point to anything in record that would support any finding of when revenue was earned in US. Taxpayer failed to establish that Tax Court judge made any palpable and overriding error in finding that there was insufficient evidence for him to conclude that 50 percent or less of gross active business income from taxpayer’s enterprise was earned in Canada.

Wolf v. Canada (2019), 2019 CarswellNat 6303, 2019 FCA 283, Wyman W. Webb J.A., Richard Boivin J.A., and Donald J. Rennie J.A. (F.C.A.); affirmed (2018), 2018 CarswellNat 2777, 2018 CarswellNat 7496, 2018 TCC 84, 2018 CCI 84, Sylvain Ouimet J. (T.C.C. [General Procedure]).

Case Law is a weekly summary of notable civil and criminal court decisions by the Supreme Court of Canada, the Federal Court of Canada and all Ontario courts. These cases may be found online in WestlawNext Canada. To subscribe, please visit store.thomsonreuters.ca

Free newsletter

Our newsletter is FREE and keeps you up to date on all the developments in the Ontario legal community. Please enter your email address below to subscribe.

Recent articles & video

More civil liability for privacy complaints in Ontario after landmark case

Privacy Commissioner could overhaul artificial intelligence laws amid mounting privacy concerns

Cynthia Khoo to research cybermisogyny for women's rights org

Windsor Law expands class action clinic to meet growing demand

Human rights monitoring falls in the law society's mandate, says founding member of group

Condo board capacity still unsettled after decision on notice and nullity

Most Read Articles

More civil liability for privacy complaints in Ontario after landmark case

Human rights monitoring falls in the law society's mandate, says founding member of group

Privacy Commissioner could overhaul artificial intelligence laws amid mounting privacy concerns

Juror's alleged letter praising Crown's appearance does not amount to bias, appeal judges say