Tax Treaty Case: Black v. Canada, 2014 FCA 275

By Robert Robillard - 8 April 2015

This blogpost originally appeared on rbrt.ca.

Black v. Canada, 2014 FCA 275 (CanLII) is the appeal to the Federal Court of Canada pertaining to 2014 TCC 12:

“[1] In thoughtful and comprehensive reasons cited as 2014 TCC 12 (CanLII), Chief Justice Rip of the Tax Court of Canada determined that the Minister of National Revenue may assess tax against the appellant in respect of certain specifically enumerated items of income on the basis that the appellant was a resident of Canada for the purposes of the Income Tax Act, R.S.C. 1985, c. 1 (5th Supp.) (Act).

[2] This is an appeal from that decision.

[3] Two issues are raised in this appeal. The primary issue is whether the Tax Court correctly determined that although the appellant was deemed to be a resident of the United Kingdom under the Canada-United Kingdom Tax Convention (1978) (Convention), the Minister could assess tax on the basis that the appellant was a resident of Canada for the purposes of the Act.

[4] The second issue is whether the Tax Court correctly determined that Article 27(2) of the Convention applied so as to permit the Minister to tax the appellant’s non-United Kingdom income, not just the appellant’s income that arose in Canada.

[5] In our view, Chief Justice Rip made no error in his interpretation of the Convention. We reach this conclusion substantially for the reasons given by him.

[6] It follows that the appeal will be dismissed with costs in this Court.”

Black v. Canada, 2014 FCA 275 (CanLII)

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Robert Robillard, Ph.D., CPA, CGA, Adm.A., MBA, M.Sc. Econ., M.A.P.
Senior Partner, RBRT Inc.
514-742-8086; robertrobillard “at” rbrt.ca
www.rbrt.ca

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