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On this episode of In Conversation With Friedlan Law find out about the recent decision of the Federal Court of Appeal in Canada and Colitto. The decision of the Federal Court of Appeal overturned the decision of the Tax Court and the victory of the taxpayer. The central question of this case is when an assessment under paragraph 227.1 sub one of the Income Tax Act, which relates to directors liability, crystallizes, such that it can give rise to a derivative assessment under Section 160.

“This in my view was a case where the proper result would have been for the Federal Court of Appeal to simply apply the text as written” - Phil

Timestamps:

0.55 - Adam covers a brief review of the facts from the case

4.52 - Disagreement from the Federal Court of Appeal

7.42 - Hear Adam and Phil’s analysis of the case

14.02 - Final comments on the case

Resources:

• >>>Read The Friedlan Law Blog - https://www.friedlanlaw.com/blog/

• >>>Find a copy of our article form commentary - https://www.friedlanlaw.com/wp-content/uploads/2020/08/1-2020-TOM-Vol20No3-Jul2020.pdf

• >>>Click here to review the case - https://www.canlii.org/en/ca/fca/doc/2020/2020fca70/2020fca70.html?autocompleteStr=2020%20FCA%2070&autocompletePos=1

Connect with Friedlan Law:

• >>>Find out more about Friedlan Law at their website - https://www.friedlanlaw.com/

• >>>Connect with Friedlan Law on Linkedin - https://www.linkedin.com/company/friedlan-law?trk=public_profile_topcard_current_company

In this the first episode of the Friedlan Law Podcast the subject of discussion is the recent case of Eyeball Networks Inc. v. Her Majesty the Queen, 2019 TCC 150, which considers the application of section 160 to a scenario colloquially referred to by tax practitioners as a related party butterfly. In a wide ranging discussion Adam and Phil consider some of the critical issues relating to the case including the wider of significance of the case to the world of tax planning.